Owners who rent only in the summer: "Income can triple or quadruple that of a week in the off-season."

Real estate activity has entered its traditional summer slumber. Agencies, banks, and notaries are working at half speed these days. However, the market is more awake than ever. Vacation rentals thrive during the summer, especially if the destination has a beach. The number of tourist apartments in Spain has increased significantly: "It went from around 418,000 apartments available in January to more than 610,000 in August," says Sergio Cardona, an analyst at the Rental Observatory, promoted by the Seguro Alquiler Foundation and the Rey Juan Carlos University.

Access to one of these homes is expensive this summer. The average cost reaches 1,200 euros per week, according to Tecnitasa. In the most sought-after destinations, such as Ibiza or Marbella, it rises to 3,300 euros, or 471 euros per night. And the bill can reach 25,000 euros for seven days in a luxury villa. The temptation to rent at these prices is attracting owners who until now had not considered participating in this market.

More and more people are renting out their properties—primarily second homes—only in the summer. “July and August represent between 60% and 80% of the entire year's occupied nights in coastal destinations with high seasonality. In urban areas, the figure is around 40%,” says StayAlliance, the short- and medium-stay accommodation association.

The business is self-explanatory: they earn in three months—from July to September—what would be impossible at any other time of year. “It can triple or quadruple the income of a week in low season in highly seasonal coastal destinations. In cities, with less seasonality, the difference between high and low season also exists, but it is much less pronounced,” the association points out. And, if done well, the income can be similar to that of a residential rental in a year, although the activity entails a tax burden and operating costs that must also be taken into account when calculating the numbers. Furthermore, the owner must register with the Single Registry of Tourist Rentals to obtain the identification code necessary to advertise on platforms.

At GuestReady, a comprehensive vacation rental management company, whose portfolio includes clients who rent only between June and September, they insist that this is an increasingly common seasonal model in Spain that "can result in significantly higher returns than months like March or November." They quantify this: "Up to 40% higher."

The owners are reluctant to share their experience and agree to do so under fictitious names. “No one wants to because they tend to be criminalized,” says a real estate agent (API) from Ibiza. Sonia, 66, is offering a semi-detached house in the Novo Sancti Petri development in Chiclana de la Frontera (Cádiz). “I usually advertise for two weeks or entire months, but if I have requests for weeks, I study it, raise the price a little, and I have no problem. It's to avoid having any extra weeks,” she argues. During the rest of the year, she uses the house sporadically, especially during long weekends. In August alone, she earns around 8,000 euros. “With what you earn in the summer, the house is maintained all year round, in addition to preserving the asset, of course,” she says. Sonia rents to acquaintances and through Rentalia. “I take care of the rest (contract, keys, cleaning, etc.).”

Berta, 55, has just listed a two-story bungalow for rent in Torrevieja (Alicante), a town where there are more empty houses than residents living there year-round (of the more than 122,700 properties, only about 36,800 are registered as primary residences, according to the General Council of Economists). This is Berta's first time in this market. She rents fortnightly, but only in the summer "so as not to destroy the house, to avoid huge expenses with the change of tenants, and for peace of mind." In fact, "we've been offered long-term rentals in the winter, but we don't want to lose contact with the house for so many months," she explains. It's managed by a local agency that handles everything (movements, departures, cleaning, etc.). For a fortnight, the income is 1,700 euros. "This year, we've only rented two fortnights so far, or 3,400 euros." The agency's commission and cleaning fees are subtracted from this.

National owner

The predominant profile is that of the national owner. Sergio Cardona states that many of them "don't consider residential rentals because they use their property as a second home the rest of the year." In some cases, GuestReady says, it's part of personal or family planning to balance costs associated with travel or vacation periods. However, StayAlliance insists that demand isn't limited to vacations. "In many coastal areas, flexible accommodation also meets work or professional mobility needs, such as temporary workers or personnel linked to the service sector, among others, who require accommodation."

In addition to being self-explanatory, the business is almost self-made, as most people delegate management to a company, especially those who live several miles from their second home. “Online booking platform commissions range between 15% and 20%, to which cleaning and taxes must be added,” explains StayAlliance. The real estate agency charges Berta 10% plus €40 for check-in and check-out , with cleaning not included. “Matching residential use with tourist use is a phenomenon that is part of an increasingly professionalized model,” maintains StayAlliance.

These days, real estate agencies in the most sought-after destinations are bustling. "They serve many owners who choose to rent out their second homes during periods when they don't plan to be there," says Carles Sala, spokesperson for the Real Estate Agents of Catalonia.

The luxury market is also participating in this frenzy. “Many owners, both national and international, choose to rent their homes only during the summer season. We estimate that between 35% and 40% of owners in the luxury residential segment use this model,” says Rodrigo Lozano, director of the Balearic Islands at Spain Sotheby's International Realty. A villa in Ibiza or Mallorca can rent for between €10,000 and €25,000 per week during July and August. “This represents an increase of between 100% and 300% compared to the low season. Even smaller, high-end properties in exclusive areas can double their usual rate.” Let's say the house is rented from July to September: it can generate gross income of between €60,000 and €150,000. “It's an efficient financial strategy.” Renting only in the summer allows for high profitability, while maintaining personal use of the property the rest of the year," according to the manager.

Some owners are only willing to rent for months. In July and August, in Denia and Jávea (Alicante), rents can range between €25,000 and €35,000, and even reach €40,000 in some cases," estimates Vicente Salamanca, sales director for Denia and Jávea at Engel & Volkers.

Less seasonality

Compared to other markets, although it's true that activity is slowing, summer is no longer a completely blank period, at least for some. "Those looking for a home in the summer tend to be more determined, with clear deadlines, whether due to a job transfer, a family move before the end of the school year, or an investment they want to close before the end of the year. For rentals, it's a period of peak turnover," says María Matos, Director of Research and Spokesperson for Fotocasa.

The continued decline in the supply of available housing and growing demand pressure are causing activity—both in terms of buying, selling, and renting—to remain more stable throughout the year. The market refuses to slow down with the heat . “The traditional seasonality of the real estate market is fading, and there are more and more transactions even in the summer,” explains José María Alfaro, president of the National Federation of Real Estate Associations (FAI). The federation assures that “many agencies maintain a stable level of activity throughout the year; purchasing decisions don't slow down because of the holidays.”

Iñaki Unsain, a real estate personal shopper , is a good example of this shift. “For us, summer isn't synonymous with a break, but rather with opportunity, if you know where and how to get around.” Based on his experience, he explains that “some buyers take advantage of the holidays to visit properties. And if you've been looking for some time, summer can be the ideal time to make decisions more calmly and with less haste.”

Luxury real estate agencies are also experiencing a significant increase in activity. Marbella is a good example. “It's an internationally recognized destination, and the summer season brings a notable increase in clients interested in properties, whether for vacations or as an investment,” says Smadar Kahana, executive director of Engel & Völkers Marbella.