Renting Out an Apartment for Short-Term Stays: Requirements, Risks, and Benefits

At first glance, the calculation seems simple.

If an apartment can be rented long-term for EUR 1,000 per month, while one overnight stay costs EUR 100, it may seem that just ten booked nights are enough to make the numbers work.

But short-term renting is not simply long-term renting divided into individual days.

It is a different type of activity.

And behind the potentially higher income lie more work, more expenses, more requirements, and more risk.

First: an apartment for guests is not simply a “short-term rental listing”

When a property is used to provide tourist accommodation, the owner should check which requirements under the Bulgarian Tourism Act apply.

In Bulgaria, guest apartments are among the tourist accommodation establishments subject to a registration regime, and hotel accommodation services may only be provided in establishments that are registered or categorized in accordance with the Tourism Act.

The Ministry of Tourism also provides an official application-declaration form for registering hotel accommodation activities in a guest room or guest apartment.

Therefore, before accepting your first booking, check the current procedure applicable to your municipality and the specific type of accommodation.

Registration is only the beginning

Accommodation providers are also required to submit information to the Unified Tourist Information System — ESTI.

The Ministry of Tourism states that this obligation also applies to individuals who provide accommodation in guest apartments.

This is an important difference compared with ordinary long-term renting.

Short-term accommodation is an activity that requires administrative organization, not simply finding a guest.

Check the tax treatment in advance

Income from short-term rentals may fall under different tax regimes depending on how the activity is carried out.

The Bulgarian National Revenue Agency provides specific information on short-term rental of real estate through online platforms and notes that, depending on the circumstances, patent tax obligations or income taxation may apply.

Other tax obligations may also arise depending on turnover and the way the activity is conducted, which is why it is not advisable to rely on “advice from a friend.”

Consulting an accountant before you start may save you far more than the cost of the consultation.

There is also a tourist tax

Overnight stays are subject to tourist tax, with the specific amount depending on the local municipality and the applicable classification or registration regime of the accommodation.

For example, the Plovdiv municipal administration states that tourist tax is calculated according to the number of overnight stays and the applicable rate for the respective category and must be paid by the 15th day of the following month.

Owners should therefore check the specific rules of the municipality in which the property is located.

What are the real benefits of short-term rentals?

Higher potential income

With a good location, a high-quality property, and strong occupancy, the income may be higher than that from a long-term rental.

But the key word here is potential.

Income depends on:

• seasonality;
• location;
• competition;
• events in the city;
• price;
• quality of the listing;
• ratings and reputation;
• periods without bookings.

Greater flexibility

The owner can keep certain periods available for personal use or adjust the price according to the season.

More frequent control over the condition of the property

With shorter stays, the property is inspected between guests, which means that some problems can be noticed quickly.

However, this also has a downside — considerably more operational work.

What are the risks?

There is no guaranteed monthly income

One month may be almost fully booked.

The next may be significantly slower.

Income should not be calculated simply as:

price per night × 30 days.

That rarely reflects reality.

More wear and tear

Suitcases, different guests, constant use of bed linen, appliances, doors, locks, and furniture.

Short-term stays usually mean more intensive use of the property.

That is why your profitability calculation should include:

• repairs;
• depreciation and wear;
• consumables;
• laundry;
• cleaning;
• replacement of textiles;
• minor damage.

Cleaning is part of the product

With long-term renting, a clean apartment is usually a condition for moving in.

With short-term accommodation, cleanliness must be maintained to a high standard before every new guest arrives.

A single mistake can lead to a negative review, which may affect future bookings.

Neighbours can become a serious factor

Noisy guests, late arrivals, constant movement through common areas, or failure to respect the building rules can cause conflicts.

That is why you should establish clear rules regarding:

• noise;
• parties;
• maximum number of guests;
• smoking;
• pets;
• check-in and check-out times.

Do not wait for the first problem before deciding what the rules should be.

Security needs to be planned

Think carefully about how you will manage:

• keys;
• access to the building;
• lost keys;
• changing access codes;
• valuables;
• emergencies;
• contact in case of a problem during the night.

Short-term renting means that many more people will have access to the property over the course of a year.

A good listing is especially important for short-term stays

In tourist accommodation, guests often make their decision without physically viewing the property.

That is why you should give them the most realistic possible idea of what the place is actually like.

Useful information includes:

• high-quality photos;
• accurate floor area;
• exact number of sleeping places;
• information about the kitchen;
• parking;
• elevator;
• air conditioning;
• internet connection;
• distances to important locations;
• clear terms and conditions.

Misleading information about tourist accommodation may also be subject to regulatory control. The Bulgarian Consumer Protection Commission has identified misleading online information regarding the conditions and location of accommodation establishments among common consumer complaints.

Don’t just show the bed. Show why someone would want to stay there.

A tourist is not looking for square metres.

They are looking for convenience.

A business traveller may be looking for fast internet, parking, and a convenient location.

A family may need a kitchen and enough sleeping spaces.

A group of friends may be looking for capacity and easy access.

That is why structured criteria can be far more useful than advertising phrases such as “unique,” “luxurious,” or “incredible.”

On Dealehome, for example, a short-term rental property can be presented through specific features, guest capacity, a map, photos, and video. This allows people to decide whether the accommodation meets their actual needs instead of being attracted only by a beautiful photograph.

Before you start, make a realistic calculation

Write down:

Expected income

minus:

• commissions;
• cleaning;
• laundry;
• consumables;
• electricity;
• water;
• internet;
• taxes;
• tourist tax;
• accounting;
• repairs;
• depreciation;
• periods without guests.

Only then compare the final result with a long-term rental.

You may discover that short-term stays generate significantly more income.

You may also discover that the additional income does not justify the additional work.

Who is short-term renting suitable for?

It is particularly suitable for an owner who:

• has a property in a good tourist or business location;
• can organize regular cleaning;
• can respond quickly when a problem occurs;
• accepts fluctuations in occupancy;
• is prepared to comply with administrative and tax requirements;
• views the property as a small tourism business, rather than simply a home with a higher rent.

Which is better — long-term renting or short-term stays?

There is no universal answer.

Long-term renting generally offers greater predictability and less day-to-day work.

Short-term stays can offer higher income and greater flexibility, but they require much more active management.

The right question is not:

“How much does one night cost?”

It is:

“How much is left as net profit at the end of the year — and how much of my time did it cost me?”

That changes the decision completely.

Important: Requirements regarding tourist registration, taxation, and local taxes may change and may vary depending on the municipality and the way in which the activity is carried out. Before starting, check the latest information provided by the Bulgarian Ministry of Tourism, the National Revenue Agency, and the relevant municipality.