If you think you are starting your adventure in short rentals without a thought, a minimum of hassle and TAXES standing in your way, you are sorely mistaken… In this article we will outline how taxes, VAT and various percentages will affect your passive income on short rental income. Many agencies often provide weekly or monthly estimates in line with the market at the time and based on your property.
However, they often overlook fundamental aspects related to taxation, an area in which we are particularly knowledgeable.
Let’s assume that the average weekly valuation and “promise” provided by many agencies for your property is about 5,000€ net for you.
How are fees calculated on that amount?
It all depends on the method adopted by the agency you decide to work with.
Let’s look at how we work us.
We start by creating a profile in the owner’s name on all major booking platforms, so that everything shows up in his or her name; even to the municipality and the police.
This system has advantages and one disadvantage.
THE BENEFITS.
Total control: The owner retains complete control, as all transactions result in his or her name.
This can also be a positive factor in view of a future sale of the property, as it demonstrates ongoing care and increases the perceived value of the property.
Direct Payments: Payments from short rentals are credited directly to the owner immediately after guests check in, ensuring immediate and transparent control over income.
Access and transparency: The owner can monitor all listings as if they were the host, sharing impressions and suggestions about guests or other aspects of management with us.
The owner’s opinions are critical to us in creating the listings, because we believe that his or her vision for HIS home is a priority.
Best Reservations: Guests tend to prefer bookings from individuals over those managed by companies, which increases the likelihood of successful bookings.
This finding is confirmed by our experience.
TAX DETAILS
The landlord will have to pay the dry coupon, which amounts to 21% and is calculated on the gross amount paid by the guest.
This is as true with us as with any other agency: the dry coupon is always calculated on the gross amount paid by the guest and cannot be avoided.
Other agencies, in fact, pay the dry coupon on behalf of the owner, using the money the guest paid and then send the money back to the owner.
The tax is always deducted from the gross amount paid by the guest.
However, many agencies calculate ALSO their commission on the gross paid by the guest, while we charge our percentage only on the net, excluding platform fees.
This means that at the end of the day our commission is small compared to many other agencies, both because of this and because we are literally lower than the average, making our service more profitable.
In general, a standard commission from a rental agency, tour operator, or real estate agency that sends clients to you (and does just that, but more on that later) starts at a minimum of 15% to even as high as 40% On each reservation.
Our basic offer is from the 20% extending to a maximum of 30% When we also have to manage the pool and garden at our own expense.
Our services will be detailed later.
We now come to TripCare’s core offerings and how our service can greatly assist you in achieving the goals you set for your property.
GUARANTEED ANNUITY
Tripcare offers the possibility of securing a guaranteed and long-lasting annuity, either monthly or yearly.
The owner will receive a fixed rate, while Tripcare will take care of everything, investing and maximizing revenues on its behalf, including an insurance coverage.
But there is more:
- The owner will not pay any commission,
- No VAT,
- No Dry Coupon on the gross, considering all previous fees.
Who likes to pay a lot of taxes and end up with less than they expected?
With this solution, dry coupon will be applied only on the amount offered by Tripcare e not on the gross of all fees.
There will be no transaction costs, VAT o management costs.
This represents a real advantage, both in terms of safety and cost-effectiveness, guaranteeing a secure return on investment thanks to the experience of experts and professionals in the field.
FULL SERVICE
Our Comprehensive Service includes careful and dedicated management of your property.
Specifically, we take care of:
- Guest management, automated and flexible check-in and check-out via safe deposit box
- Linen supply and management
- Professional Cleaning
- Online management and bureaucracy, including registrations with the municipality, ISTAT, Accommodation Web, and tourist tax collection
- Quick responses to guest issues, both on-site and virtually, as evidenced by our 100% response rate within 5 minutes across platforms
We maintain continuous communication with the owner to build a relationship of trust and cooperation.
We do not want to be the typical company that says ” the owner no longer has to think about anything“.
We strongly believe that, especially in the first year, the owner should be constantly updated on market developments, pricing and property management, as well as guest behavior.
You will always have real-time access to messages with guests and can check them at any time of the day through exclusive access to major platforms.
A report will be sent at the end of the month with personal comments on property performance, reservation tables with all fees listed precisely, net, gross, and strategies on how to improve month by month.
In addition, we offer a customized channel manager with all reservations, prices per night, and an interactive calendar where you can easily block off dates in case of personal use of the property or for other needs.
This service is offered on the condition that we are granted exclusive management of the Airbnb and Booking platforms; no other agency will be allowed to create an account on these platforms or duplicate the facility to obtain reservations independently through these portals.
ONLINE PROMOTION
Our offer Online Promotion covers only online management of your property and includes:
- Photo shooting
- Ad on Tripcare
- Multichannel Promotion
- Property registration
- Registration of guests before check-in
- Online troubleshooting
- Answers to guests’ questions
- Customized report at the end of the month
- Support for paperwork
Our goal is to promote your property in an excellent way. We provide high-quality photos and well-curated ads, offering advanced teachings on marketing on all platforms.
Our dedicated team manages messaging and pricing, using our software to maximize bookings.
We guarantee the best results in your area.
EXTRA
Experiences
The best experiences come from the best agencies.
Through our extensive network, Tripcare offers extraordinary itineraries, supported by a team dedicated to guest well-being, to ensure an unforgettable experience at the place of stay.
Take advantage of the best travel opportunities and enjoy boundless experiences, all at competitive prices.
Concierge
With an unwavering commitment to excellence in hospitality, we dedicate significant resources to a highly qualified Concierge team.
This team, which specializes in welcoming and managing guests, provides assistance throughout the entire journey, offering valuable advice to ensure a memorable experience.
Attention to hospitality is paramount, with the goal of maximizing guest satisfaction.
24/7 Support
Our 24/7 service offers comprehensive support for any needs regarding your facility and reservation.
From dedicated assistance for owners and customers to efficient management of every detail, we ensure maximum accountability and accuracy for a flawless trip.
Your peace of mind is our priority.
IN CONLCLUSION
In summary, TripCare offers dedicated solutions for your property, with a transparent and personalized approach aimed at maximizing the owner’s gains through exclusive, flexible and competent service.
No more confusion about what to pay or doubts about taxation; you will have total control of the market.
We guarantee concrete and realistic results through close collaboration with the owner, with the goal of growing the value of the facility and optimizing earnings over time.
To learn more, contact us via the contact form on this site or directly at our e-mail: info@tripcare.it.
We look forward to working with you to make the most of your property.
