Is it more profitable to rent short term?
Some properties are certainly more profitable if they are rented at short term. However, you have to pay close attention to certain points: the service charge (water, electricity, heating, internet) are at your own expense. It is so very important to control the consumption of your tenants obtaining an individual meter reading for example. The common charges of the building commonly at the expensive of the tenant are they significant? The rent is evaluated according to the number of beddings and not necessarily to the living space. We consequently make little surfaces very profitable when beddings available are various. For example, a 2 bedrooms apartment of 65 m². The arrangement, decoration, equipment of your accommodation is very important to make it very profitable. Financially talking, the renting profitability of all the apartments is as high in long term non furnished renting as in short term furnished renting. It depends on the situation of your apartment (some neighborhoods offer expensive long term renting), on its characteristics (big terrace, nice view, parking lot in the building), habitable area.
What is the occupation rate of the properties rented in short term renting?
The occupation rate depends on the situation and the minimum stay of your property. It varies between 62% and75% in Brussels and between 70% and 90% in Liège.
How much can make the renting of my apartment?
We will answer your question after receiving your entire file (with all the required information and photos).
What does it cost to rent a furnished apartment? – What are the taxes to pay?
Since you rent a furnished accommodation, a part of the received rents are considered as investment income. The taxation of the rents must be apportioned according to a part “building” and part “furniture”. The proportion of the tax administration is 60% for the building part and 40% for the furniture part. Taxation of the building part: you have to declare the proportion of the cadastral income that matches the rented surface (or the totality if the rented accommodation is an autonomous building with its own cadastral income). You also have to take into account the number of rented nights over the year. Concretely, for the building part, the taxation is the same for a non-furnished renting. Taxation of the furniture part: Incomes from movable property are estimated at 40% of the total rent. Service charges on an inclusive basis at 50% are deduced from this gross total. It would be better for you to choose the deduction of real service charges, but in this case, you have to justify them and in practice, the flat fee is generally more interesting. The result you obtain is taxed at 50% (+the additional communal cents). Other taxes If your property has a television, you will have to pay the radio and television license fee. Some municipalities apply specific taxes, for example on trash, while provincial taxes on nights exist. Get information in the concerned administration. Some municipalities also ask for a tourist tax.
Do we have to be subject to VAT?
In the field of our activity, a service for the renewal of the household linen (bath towels and bed linen) and cleaning is proposed to each guest. This service offer is subjected to a 6% VAT. This service can be taken care of by ZE Agency or by the owner. If it is taken care of by the owner, he must be subjected to VAT. Some formalities are mandatory to be subjected to VAT but the accounting stays easy.
- To identify at the VAT is required close to a VAT office chosen according to your address which list can be found on www.fiscus.fgov.be. You will have to fill out the form 604A. This formality must be done only once and is free.
- To fill out a yearly listing.
- To keep a receipts book that lists complementary services made and not the property renting that is exempted from VAT.
Freelance workers will simply have to add incomes of supplementary benefits in the square 01 (6% VAT) of their regular tax return
Do you offer a guaranteed income?
We take a commission on the bookings we make. If there are no bookings, you won’t receive any rent and we won’t take a commission. In some cases, we rent long term non-furnished properties and we arrange them and decorate them ourselves. If you think that your non furnished property can interest us, don’t hesitate to propose it to us.
Do you ask for a security deposit?
A security deposit is asked for every renting. The amount of the security deposit varies in function of the rented property and the duration of the booking.
How do you evaluate the rent paid by the tenants?
Selling prices are determined individually, according to the location of the property, its arrangement, its characteristics, its equipment, its decoration, the number of beds … We prefer to offer properties with a good price-quality ratio that will allow a high occupation rate and then a better profitability. If the night price offered is too significant, the yearly profitability could be less good than a night price at the market price.
I think your commission is too high, is there anyways to reduce it? Or to negotiate your rates?
We work with owners that look for a flexible formula that allows them to maximize their property without taking care of them or only taking care of aspects they appreciate. All Ze Agency’s partners are declared. Having to deal with various details, we bring a real added value to our clients, whether tenants or owners. We declare all our services, we pay a 21% VAT. Our services can be significant for some but they match the quality of our provided services.
How to win more money?
En vous occupant vous-même de l’accueil des clients. Taking care yourself of the welcoming of guests.
What are you selection criteria? Can my property enter Ze Agency’s portfolio?
Your accommodation is well located, whether downtown or in a strategic place, near major road links, an industrial estate… We also look for properties in the countryside. Your accommodation is fully furnished and equipped. You will find on this link the list of essential equipment. It is decorated and furnished with taste. If your accommodation is not decorated yet or furnished or if it needs a little relooking, you can contact our Relooking / decoration service! The toilets and the kitchen were recently renovated. The electrical installations, heating and gas conformed to the standards. The fire regulations are also respected.
What do I have to do to rent my apartment via Ze Agency?
To offer your accommodation, you just have to send us an email with information on your property and pictures of all the rooms. After examining your file and the pictures of your property and if it matches our selection criteria, we will contact you by phone. To know the following steps, click here.
How do I have to arrange my accommodation?
Your accommodation must correspond to our selection criteria and be attractive for our tenants. To have an idea on how to arrange, you can visit the properties that we manage. It will give you an idea of the desire of our clientele. If your accommodation is not furnished yet, you can contact our arrangement, decoration and relooking service. This service is really not expensive and will give you great opportunities to rent your property correctly.
Do you have a list of essential equipment?
Yes! You will find it on this link.
What services do you offer? At what cost?
You will find the answer to your question on this link.
What are the advantages of short term renting?
To know the answer to this question, click here.
What are the disadvantages of short term renting?
Choosing to rent your accommodation at short term, you take the risk of it non being occupied all the time. For some apartments, the rent is not higher in short term location than in long term location. If your apartment is not furnished yet, you will have to support the cost of the furnishing, decoration, household electrical, and equipment.
Do tenants damage a lot the accommodations?
Our tenants are generally very respectful of the rented goods and don’t cause any problems. But the zero risk doesn’t exist and we take our precautions to try to reduce the risks at the maximum. This is why we realize an inventory check-in and an inventory check-out. We personally welcome the tenants in their accommodation; we make them sign internal rules written by you. Stains on walls, stains on sofa, little spoons missing, broken plates and glasses are however unavoidable. This is why it is important to put a painting that is easily washable on the wall, sofas with removable covers that can be washed, easily removable dishes… A tenant will never take care of your property as you, it is important for you to know it, do not put fragile materials or valuable items (sentimental or financial) in your accommodation.
Do you come to visit my accommodation?
Yes, we visit all the apartments that we have in our portfolio. We come and visit your apartment after receiving complete information on your accommodation and after our phone conversation.
Can I continue to occupy my property?
Of course! You can occupy your property when you want it. You just have to block the dates of your stay on the calendar in the extranet of our website. It is not necessary to contact us first. If the calendar is free, you can occupy your property as you wish. You just have to be sure that the accommodation will be ready for further tenants. It then must be totally cleaned after your stay. After staying in your accommodation, you can even ask for a cleaning service at Ze Agency that we will charge you after.
What do you do in case of trouble with tenants?
Do you ask exclusive contracts?
If we take care of the management of your good from A to Z, yes, we ask an exclusive contract because we guarantee a constant quality standard to our guests for the maintenance, the cleaning, the laundry and the state of the property and it is complicated, or impossible, to maintain this quality standard if we don’t control all these parameters for every location. If you take care of the welcoming of tenants, we will not require an exclusive contract. However, many of our owners stay faithful to us because their goods are rented in the conditions they desire.
Do I have to take out insurance?
La législation belge oblige le locataire à prendre une assurance «RC locataire » pour les dommages suite à un incendie, une explosion, à des dégâts des eaux. Toutefois, dans le cadre d’une location court terme, il est difficile de s’assurer que le locataire ait bien souscris à cette assurance. Nous vous recommandons de souscrire à un abandon de recours vis-à-vis du locataire dans votre police incendie afin de couvrir la responsabilité du locataire. Le supplément de prime est de maximum 50% du taux appliqué dans le contrat. Vous devez également vérifier que vous êtes assurés pour le bâtiment et le contenu dans votre police d’incendie. Si vous ne pouvez pas souscrire à un abandon de recours vis-à-vis du locataire, Ze Agency peut vous recommander une assurance proposée par la compagnie d’assurance AXA.
Belgian legislation obliges the tenant to take out « RC tenant » insurance for damages caused by a fire, an explosion, water. However, in a short term renting, it is difficult to make sure that the tenant has taken out insurance. We advise you to take out