Traditional rental or short-term rental: understand the obligations before buying

Buying a property to rent out isn't just about estimating rent or return on investment. Choosing the right rental method has legal, administrative, and practical implications for the owner. Traditional rentals and short-term rentals are subject to different rules and carry different responsibilities. Understanding this difference from the outset is essential for a successful investment.

Traditional rental: what this implies for the owner

A standard rental agreement refers to a property rented as a primary residence, whether furnished or unfurnished. The landlord operates within a rental relationship governed by a stable legal framework. The property must meet standards of decency and safety. It must be suitable for habitation, with functional equipment, compliant electrical wiring, and adequate ventilation.

Depending on the municipality, renting out a property may be subject to specific local regulations, such as a rental permit. In this case, authorization or a declaration may be required before or after the lease is signed. Traditional rentals also involve a long-term commitment. The lease is structured, rent review rules are strict, and tenant protection is robust. In return, management is more predictable and rental stability is often greater.

Short-term furnished rentals: what they actually entail

Short-term furnished rentals refer to accommodation rented for temporary stays, by the night or by the week, without constituting a primary residence. This type of rental is not subject to a rental permit, but it falls under a different, often more restrictive, legal framework.

Depending on the municipality, the owner may be required to register the property with the town hall, obtain specific authorization, adhere to a maximum number of nights booked, or change the property's use. In some cities, these regulations can severely restrict or even prohibit short-term rentals. Management is more intensive, involving frequent check-ins and check-outs, regular maintenance, and rigorous organization. Profitability can be attractive, but it depends directly on local regulations and the owner's commitment.

Two very different bond leasing methods

Traditional rentals rely primarily on the suitability of the property and the stability of the landlord-tenant relationship. Short-term rentals, on the other hand, depend on obtaining the necessary authorization to operate the property in this way. A property perfectly suited for long-term rentals may be prohibited for short-term rentals. Conversely, a property attractive to tourists may not be suitable for traditional rentals.

That is why the rental method should always be defined before the purchase of the property and not after.

Buying to rent: plan ahead from the start

A secure rental project begins with verifying the applicable regulations in the municipality. Identifying what is permitted, understanding local constraints, and adapting your project accordingly helps avoid administrative roadblocks, penalties, and lost profitability. Planning the operational aspects from the outset is the key to a controlled and sustainable investment.

Conclusion: The Dubach House

Renting out a property is a significant decision that commits the owner far beyond the simple lease agreement. Each project must be carefully considered in light of the property's intended use, its location, and applicable regulations.

At La Maison Dubach, we support rental projects with a comprehensive and rigorous approach. Our role is to anticipate constraints, ensure sound choices, and build coherent, compliant, and sustainable projects.

Because a well-thought-out investment is an investment that lasts.