You have an apartment or bungalow in Torrevieja or Orihuela Costa and the eternal question arises: vacation rental or long-term lease? The quick answer is “vacation rental earns more.” The answer with real numbers is: it depends on your actual occupancy, your management costs, and your tolerance of regulations. Let’s do the full calculation.
The Vacation Rental Calculation
High income per night, but distributed with extreme seasonality: July and August fill up on their own, spring and autumn depend on your price and your reviews, and winter is sometimes saved by the long-term winter tenant (retirees from northern Europe). From the income, subtract: platform commissions, management and cleaning fees (a professional manager charges around 20–25%), utilities at your expense, replacements and accelerated wear, specific insurance… and the tourist license with its requirements, which in the Valencian Community has become stricter (we cover this in the tourist rental license guide). The real net amount is usually quite far from the gross that excites.
The Long-Term Rental Calculation
Lower monthly rent, but collected twelve months a year, single tenant, utilities paid by them, and normal wear and tear. The risks are different: non-payment (mitigable with good tenant selection and insurance) and housing regulations with 5/7-year contracts and more rigid rent controls. Management, however, is minimal compared to vacation rentals.
The Technical Tie That Almost Nobody Mentions
In many areas of Torrevieja, when you subtract all vacation rental expenses and apply a realistic occupancy rate (not the August extrapolated), the annual net income is surprisingly close to that of long-term rentals — despite ten times more work and regulation. Vacation rentals clearly win when the property is very suited to that use (seafront, pool, family capacity), professionally managed, and the license is secured. They lose when it is an ordinary apartment far from the beach managed only occasionally.
The Third Option: Medium-Term Rentals
Seasonal contracts (1–10 months) to relocated workers or European winter residents: better rent than usual, less turnover than vacation rentals, and no tourist license required. It demands a real seasonal cause well documented in the contract, but for many local owners it is the perfect balance.
And There’s Always the Uncomfortable Question
What if neither option? With current sale prices in the area, some portfolios yield less rented out than they would by selling today and reinvesting. Before deciding on a rental regime, know the real sale value of your property: it is the missing comparison term in almost all calculations. At Mayrasa, we provide that information free, and if you rent, we guide you on the real demand for your property type — you can see the demand among buyers in our selection of apartments in Torrevieja. Numbers first; regime later.
