SHORT-TERM/LONG-TERM SUB-LETTING OF ACCOMMODATION
Property owners increase your income, save time and energy
Earning successful returns on leased commercial property means more than filling space. It begins with a firm grasp of what kind of space the most desirable tenants want and what they will pay for it. And it’s followed by a marketing and leasing strategy that we’ll execute to mix the best tenants at the best lease terms – and retain them for lasting value
Crucial Hospitality leases properties that fulfill its standards by using long or short term agreements.
By this method, owners release themselves from the responsibility of operating a business while their property is being managed by a company with expertise in order to upgrade the business in terms of quality standards of operation, provided services and brand awareness.
In most cases, the properties are extensively renovated in order to cope with the ever increasing competition which often leads in the improvement of style, quality of services and total turnover.
There are specific criteria for the properties available. The basics are the area, the quality of the property, if it is renovated or not, its size. We undertake the promotion, management and, in some cases, the formation of the property in its entirety.
Crucial Hospitality Τeam selects, inspects, furnishes and services its properties while strongly relying on technology to automate bookings, pricing and to streamline processes and communication.
There’s a number of Αdvantages for the Property Owner to cooperate with Crucial Hospitality:
Proper revenue management with well-positioned prices taking into account competition, quality of facilities, location of the property.
Dynamic presence of the properties in the online systems and offline sales
Maximize Occupancy and Revenues
Focus on the quality of our services to achieve client satisfaction
Integrated property management
Adjusting the duration of the contract to the needs of the owner
Possibility to sell the property at any time
Short-term and long-term accommodation subletting
Short-term and long-term accommodation subletting refer to two different property rental practices, with significant differences in terms of lease duration, legislation, and the nature of the agreement.
1. Short-Term Subletting
Short-term subletting refers to renting out a property for a short period, usually from a few days to a few months. This form of rental is typically used for tourism purposes or temporary stays, and the sublet accommodation is rented out for a short period to tenants who are usually tourists or business travelers.
Advantages
Greater flexibility for both the owner and the tenant.
Higher income compared to traditional long-term renting.
Ideal for tourist accommodations, such as villas and apartments in tourist areas.
Disadvantages
Frequent tenant turnover and increased management workload.
Some laws and regulations restrict short-term subletting, for example through platforms like Airbnb.
2. Long-Term Subletting
Long-term subletting refers to renting out a property for a longer period, usually from 1 to 5 years or even more. In this case, the tenant takes on the lease of the property for a long period, with more stable terms and ongoing obligations.
Advantages
Stability and guaranteed income for the owner.
Lower workload for property management compared to short-term renting.
Long-term contracts with fewer risks for the owner.
Disadvantages
Lower income compared to short-term renting.
Reduced flexibility for the owner, since the property is tied up for a long period.
Relation to Legislation
The legislation for short-term and long-term renting differs significantly in many countries. In Greece, for example, short-term rentals through platforms like Airbnb have sparked intense discussion, and the law has evolved to ensure compliance with local regulations and taxation.
It is important to monitor changes in short-term rental laws, as regulations are often updated to protect local communities and the rental market.
Are you interested in one of the two rental types?
Short-Term and Long-Term Subletting in Greece
In Greece, short-term and long-term accommodation subletting are treated under different regulations and requirements, mainly because of the popularity of short-term rentals through platforms like Airbnb. Let’s look at the situation for each case:
1. Short-Term Subletting in Greece (e.g. via Airbnb)
Short-term renting in Greece has become extremely popular in recent years, mainly for tourism reasons. However, Greek authorities have introduced specific regulations to control this market and protect local communities and tenants.
Legislation & Regulations
Property Registry (M.I.T.E.): Owners who wish to rent out their property for short-term rental through platforms like Airbnb must register it in the Short-Term Rental Property Registry (M.I.T.E.). This requires obtaining an M.I.T.E. number, which must be included in listings.
Taxation: Income from short-term rentals is subject to taxation. The tax rate depends on the owner’s income. Owners must declare their earnings to the tax office and pay the relevant tax, in many cases for income above the annual threshold of 12,000 euros.
Local Regulations: There are restrictions regarding rentals in certain areas, such as popular tourist destinations. In some areas, local authorities may impose limits on the duration of short-term rentals or require additional permits.
Advantages
Higher income due to tourist demand.
Flexibility and the ability to use the property whenever desired.
Disadvantages
High bureaucracy and the need to comply with many regulations.
Taxation can be quite burdensome for higher earnings.
Risk of being absorbed by the tourism sector and the degradation of housing for permanent residents.
2. Long-Term Subletting in Greece
Long-term renting is the traditional form of property leasing and involves signing contracts for a long period, usually 1 year or more. This form of rental is more stable and has fewer regulations compared to short-term renting.
Legislation & Regulations
Lease and Contract: For long-term renting, a lease agreement must be signed between the owner and the tenant. The contract must be submitted to Taxisnet in order to be registered and declared to the tax office.
Taxation: Property owners who engage in long-term renting must declare their income to the tax office and pay the relevant tax, which is usually lower compared to short-term renting.
Advantages
Stable income and reduced workload, as tenants stay for long periods.
Guaranteed lease duration and lower risk of tenant turnover.
Disadvantages
Limited income compared to short-term renting.
Less flexibility for the owner, since the property remains rented for long periods.
What Should You Choose?
The choice between short-term and long-term renting depends on the type of property and your goals. If your property is in a tourist area, short-term renting may be more profitable, but it requires greater attention to legal obligations. On the other hand, if you want stability and less workload, long-term renting may be the better choice.
Is there a specific rental type that interests you more, or any question about the process in Greece?
Practical Yield Comparison
Below is a practical comparison of short-term vs long-term rental performance in Greece, with realistic examples.
1. Long-Term Renting
Example
70 sq.m. apartment in Athens.
Rent: 800€/month.
Annual income: 9,600€.
Expenses
Income tax (15% up to 12,000€) ≈ 1,440€.
ENFIA (e.g.) 300€.
Maintenance/vacancy periods ≈ 500€.
Net annual income
~7,300€.
If property value = 180,000€
Net yield: ~4%.
2. Short-Term Renting (Airbnb-style)
Example
Same apartment.
Average nightly rate: 100€.
Average occupancy: 65%.
Annual nights: ~237.
Annual income: 23,700€.
Expenses
Platforms (~15%) ≈ 3,500€.
Cleaning (~30€/booking, e.g. 120 bookings) ≈ 3,600€.
Utilities & internet ≈ 2,000€.
Maintenance/damages ≈ 1,500€.
Tax (22% bracket above 12,000€) ≈ ~4,000€.
ENFIA 300€.
Net annual income
~8,800€.
If property value = 180,000€
Net yield: ~4.9%.
Real Comparison
When does short-term perform better?
In tourist areas.
If you have high occupancy (>70%).
If you manage it properly.
If there are no strict municipal restrictions.
When is long-term better?
If you want stable passive income.
If you do not have time for management.
If the area does not have strong tourist demand.
If you want low risk.
Important for 2024–2025
In many areas of Athens, restrictions have been placed on new short-term rentals, and tax pressure is increasing. This reduces the net advantage.
If you want, tell me:
How many sq.m.
In which area
How much the property costs
and I can give you an exact yield calculation for your specific case.
