How to make the most of a second home?

Sep 16, 2024

A well-decorated living room with a plant

Owning a second home is a dream for many, offering a place of escape and relaxation. But did you know that this property can also become an interesting source of income?

Whether by the sea, in the mountains, or in a tourist city in Morocco, a second home can be a profitable investment if managed intelligently.

Here’s how to make the most of your second home.

Vacation rental: an attractive additional income

Vacation rental is one of the most effective ways to profit from a second home, especially if it is located in a popular tourist area. Morocco, with its beautiful beaches, majestic mountains, and historic cities, attracts thousands of visitors each year.

Short-term rental: high profitability

Short-term rental allows you to rent your second home during periods when you are not occupying it. Tourists and travelers are often willing to pay more for a short-term rental, which can significantly increase your income. By renting your property during peak periods (school holidays, festivals, local events), you maximize your profits.

Example: A villa in Marrakech or an apartment in Agadir can generate much higher monthly income than a yearly rental, especially during the high tourist season.

Rental platforms: global visibility

Online platforms like Airbnb, Booking.com, and Houdaify (specialized in rentals in Morocco) make it easier to rent out your second home. They offer global visibility, allowing you to reach potential tenants from all over the world. Moreover, they enable you to manage bookings and payments securely.

Flexibility of use

Vacation rental offers appreciable flexibility. You can decide on the periods during which you want to rent your property while retaining the possibility of using it for your own vacations. This approach allows you to combine pleasure and profitability.

Services and amenities: increase the rental rate

To increase your income, don’t hesitate to equip your second home with features that attract tenants: swimming pool, air conditioning, Wi-Fi connection, equipped kitchen, etc. Additional services, such as cleaning or transport services, can also justify a higher rental rate.

Long-term rental: a less restrictive option

If you are looking for a more stable income and do not wish to manage the comings and goings of seasonal tenants, opting for long-term rental is an interesting alternative. Long-term rental guarantees you regular income and reduces costs related to the frequent maintenance of the property.

Less daily management

Unlike vacation rental, long-term rental requires less management. You don't have to worry about constantly finding new tenants or organizing cleaning between stays. A long-term rental contract gives you peace of mind and a steady monthly income.

Choosing the right tenant

To maximize the benefits of long-term rental, it is crucial to choose your tenant carefully. Make sure to check their solvency and clearly define the terms of the rental agreement (rent, duration, maintenance, etc.). You can also use a real estate agency to help you manage the property and select the ideal tenant.

Student or professional rentals

If your second home is located near a university or in a vibrant city like Casablanca or Rabat, you can consider renting to students or mobile professionals. These types of tenants often offer regular demand, and leases are generally more flexible in terms of duration.

Tax benefits and investment aids

In Morocco, certain tax measures can help you optimize the profitability of your rented second home.

Deducting expenses

Owners of rental properties can deduct certain expenses from their rental income, including maintenance costs, local taxes, loan interest, and insurance. This deduction reduces the taxable income, allowing you to keep a larger share of the generated income.

Tax exemptions

There are also tax exemption schemes, especially for properties located in developing tourist areas. Find out about the tax benefits you may be eligible for and the conditions to qualify.

Investment in eco-friendly equipment

Making your second home more eco-friendly can be an effective way to increase its value and attract more tenants. Travelers are increasingly sensitive to environmental issues and are willing to pay more for eco-friendly accommodations.

Energy-efficient equipment

Installing energy-efficient equipment, such as solar panels, solar water heaters, LED lighting

systems, and A-rated appliances, helps reduce energy costs and increase the attractiveness of your property.

Property appreciation

A residence equipped with eco-friendly installations enjoys a better image and can be rented at a higher rate. Additionally, these facilities enhance your property, increasing its value in case of resale.

Reselling with capital gain: a long-term strategy

If you do not plan to keep your second home in the long term, you can profit from its appreciation by reselling it at a price higher than the purchase price. Second homes located in tourist or developing areas tend to increase in value over time, offering you a nice capital gain upon resale.

Tip: To maximize the capital gain, make sure to regularly maintain the property and undertake improvement works (renovation, decoration, modernization of equipment). A well-maintained and up-to-date residence will sell more easily and at a better price.

In conclusion: optimize your second home with Housing Place

Profiting from a second home is possible and can be very profitable, provided you choose the right strategy.

Whether you choose seasonal renting, long-term renting, or eco-friendly investments, there are many ways to maximize your income while enjoying your property.

To assist you in managing your second home and discovering the best real estate opportunities in Morocco, feel free to check out the available offers on Housing Place.