Letting a holiday cottage – what you need to know

Letting a holiday cottage for a weekend, a few days or weeks is a great idea for extra income, or even a steady livelihood. But what should we know before we start letting a holiday cottage?

The landlord sets the rules

It is up to the person letting a holiday cottage to set the rules of the let. The best solution is to draw up house rules for the cottage, in which we state clearly and specifically the terms of use. Besides the nightly rates, the owner can also set the amount of the advance payment (zaliczka) or the security deposit to cover any losses.

The rules should also include guests' arrival and departure times. This is particularly important when the cottage has to be prepared for the next holidaymakers within a few hours. You can also stipulate that third parties are not allowed to visit the property. Such house rules can be posted on a website or emailed to people interested in renting the cottage before they pay the advance. The sooner both parties know the rules, the better.

Show the area

Your offer covers not only the letting of a holiday cottage but also spending time in the surrounding area. Prepare information about interesting attractions near the cottage. It does not have to be an amusement park straight away; the point is to show what is interesting. It can even be a walk to a nearby forest where amazing ferns grow.

Gather information about walking or cycling trails, find out where sleigh rides or bonfires are organised nearby, and where you can hire a bicycle or a kayak. If there is a swimming area or another interesting venue not far away, prepare up-to-date information on opening hours and prices. You can leave such an information pack in the cottage. Holidaymakers will certainly remember their well-spent time fondly.

READ ALSO – INVESTING IN LEISURE: BUYING A RECREATIONAL PLOT

Letting a holiday cottage and tax

Anyone who wants to let a holiday cottage must set up a business. This applies to everyone who lets holiday cottages seasonally by the night, for weekends or for whole weeks. There are several forms of income taxation to choose from.

The easiest form is taxation on general principles. In broad terms, we subtract the costs incurred in letting the holiday cottage from the revenue received. From the result we calculate tax at 18 or 32 per cent and pay it into the tax office's account.

The costs can include everything we had to buy (e.g. furniture, bedding, kitchen or bathroom equipment) or spend on bills (e.g. water, electricity) or renovation. At the end of the year we file our return using form PIT-36.