A significant percentage of short-term rental activity is now taking on a professional character.

According to research company AirDNA, which analyzes data from the Airbnb and Vrbo platforms, to date, the share of private owners in Athens does not exceed 30% of all active listings, compared to 42% in 2019, before the start of the pandemic. Nationally, the corresponding percentage is 40% compared to 46% in 2019.

In practice, this means that six out of ten short-term rental properties are now managed by professionals. High competition, the need for constant investment in real estate to stand out from the rest, the use of modern promotion tools and professional management in general are now considered key components of the successful operation of real estate through digital short-term rental platforms.

The coronavirus outbreak has forced many self-employed entrepreneurs out of the market.

This trend has become even more evident since the pandemic. The coronavirus outbreak has forced many self-employed entrepreneurs out of the market. These people began to use their property on the basis of long-term lease agreements. Their choice has been facilitated by a significant rent increase of 40-50% from 2018 to today, making this decision much more profitable in relation to short-term rentals, especially if the property is located in more than one place of high demand from foreign visitors. , i.e. around tourist attractions in the center of Athens or in the southern suburbs.

However, even if the income is the same (between short-term and long-term leases), long-term leases are clearly more profitable. Firstly, with a long-term lease, the owner does not incur significant costs, such as, for example. utility bills (telephone-Internet, electricity and water supply), as well as utilities that do not apply to short-term rentals. In addition, short-term lease significant personal time is now required from the ownerto display the property. Since it is not always easy, many owners end up choosing it. management decision property to a professional. He will take care of all relevant services (photography, promotion, cleaning, hosting, etc.) and after deducting the appropriate commission (about 15% -20% of the proceeds), he will pay the owner the difference.

According to AirDNA, from 2019 to date, the largest growth is in the listings (by manager/owner) of 6-20 properties. The share of this category has now increased to 22% in Athens from 15% in 2019 and to 15% nationally from 11%. However, in popular holiday destinations such as Mykonos, the growth is even greater, as the corresponding share now stands at 25% of all listings, compared to 17% in 2019.

At the same time, an important development concerns the greater penetration of professional property management companies, especially in Athens. Companies that manage more than 21 properties account for 21% of listings today, up from 16% in 2019. Some of them manage both properties and third party properties, while other companies in the industry focus on the exclusive management of third party properties.

In other words, the company Transparent, a strategic partner of STAMA Greece (Association of Short Term Property Companies), said that the Athens market recorded the second largest growth on a pan-European level in terms of the percentage of professionals working in it. Specifically, Athens is up 22% compared to Paris’s 35% growth, while the Milan market follows with a 17% increase and the Cannes market up 15%.

But now the industry is undergoing other changes. One of them concerns creation of real estate management companies. Even if it is a sole proprietor with one or two properties, more and more people are beginning to realize that it is more beneficial to set up a sole proprietorship or IKE to manage this related activity. However, in addition to being able to deduct expenses, in the near future to act through a company and not as an individual, it will become almost one-sided due to the imminent introduction of VAT on all income generated from the short-term rental industry. This is a European directive that will be adopted by all Member States in the coming years. Having a company will be a key benefit for the VAT discount as well as its efficiency, even through the short-term rental platforms themselves.

“Sea” Airbnb

As for the number of properties for rent in Greece, it exceeds 100 000as he mentioned in a recent interview with “K”, Airbnb CEO Giacomo Trovato. Taking into account the AirDNA data, it is clear that active rentals in Greece are currently down compared to the expected third quarter of 2022, as many tenants only rent out their properties during the summer months.

In terms of the geographical distribution of the listings, the map of the islands and their leases reflects the popularity of this particular business practice in the island nation.

Among the Argosaronic Islands, Aegina has the largest number of places to live, while in the northern Aegean, Thassos “offers” visitors more than 1,000 rooms and houses. In the Cyclades, Mykonos and Santorini have the most hotels, followed by Naxos and Paros. In the Dodecanese, Rhodes, being the largest island, also offers the most accommodation through Airbnb.

Crossing the Ionian Sea, the island of Corfu is taking the reins in rental home numbers, as it reached 10,000 active rental homes last summer, a number that reached and narrowly surpassed Berlin, which for some time was below five figures. It is also impressive that the rental offices in Corfu are close to the number of Athens (11.5 thousand).

On Greece’s largest island, Crete, Airbnb has several thousand listings in each of the island’s 4 prefectures. Chania, however, seems to be extremely popular, with more than 11,000 properties rented out across the prefecture last summer, while Lassithi is on the opposite side with 3,500 apartments for rent.

In the cities and municipalities of mainland Greece, the spread of short-term rental housing is even more uneven. The major cities of Athens and Thessaloniki have, as expected, the largest number of rental properties, followed by Kalamata and Volos. In contrast, areas such as Serres and Agrinio have few records on the platforms.

In metropolitan areas, Airbnb is for many the “demon” behind the rise in rents, and for others the “angel” for revitalizing declining neighborhoods. Athens, the country’s largest city and capital, is expected to have a large number of rental properties with 11,500 listings. This fact is typical for other southern European capitals such as Rome, Madrid and Lisbon. However, the distribution of housing in Athens is also observed in certain areas. The shopping triangle, which is the most central point of the city, collects the most ads, followed by Koukaki, Neo Kosmos and Exarchia. The central areas with good transport links are the areas with the highest concentration of rental housing, while the areas with the least supply are located on the outskirts of the center of Athens.