Vacation rental management in Tenerife, let's talk

Thanks to its subtropical climate, Tenerife has tourist demand all year round. However, the high season is in winter and spring, when European tourists look to escape the cold and enjoy the sun. In summer, occupancy also remains high, especially due to national tourism.

Profitability depends on the location, size of the property, and quality of management. In areas such as Costa Adeje and Playa de las Américas, a 2-bedroom apartment can generate over €2,500/month in high season. To maximize earnings, a dynamic pricing strategy and professional management are essential to optimize occupancy.

Contact us and request a free profitability study for your property. We won’t charge you anything.

Yes, but you must comply with regional and local regulations. You need to obtain a tourist license and meet the requirements established by the Government of the Canary Islands, such as registration in the General Tourism Registry and compliance with safety regulations. Some homeowners’ associations may restrict holiday rentals, so it is advisable to check the internal rules before starting activity.

At CABANA Rentals, we manage your tourist accommodation in Tenerife in full compliance with current legislation.

The main expenses include:

• Maintenance and cleaning: It’s essential to keep the property in perfect condition to receive good reviews. With our management model, we take care of everything.
• Utility bills (electricity, water, internet): Costs vary depending on guest consumption.
• Platform commissions: Airbnb, Booking, and others charge a percentage per booking.
• Professional management: If you delegate management, a percentage of income is applied. Based on our clients’ metrics, with our management your property can generate 20% to 40% more compared to self-management, meaning you delegate AND increase your income.

The most profitable areas include Costa Adeje, Los Cristianos, El Médano, and Puerto de la Cruz. These destinations stand out for their year-round demand, good infrastructure, and proximity to beaches. They also attract a diverse guest profile, allowing for flexible pricing and improved occupancy.

The process varies depending on the municipality, but generally takes between 2 and 6 weeks. It includes submitting a responsible declaration and fulfilling technical requirements. At CABANA, we handle all the paperwork so you can start renting without complications or delays.

You must declare the income in your personal income tax (IRPF) as rental income. In some cases, IGIC (7%) also applies if you provide additional services such as cleaning or breakfast. Having a good tax advisor is essential to handle everything correctly.

What’s the difference between a holiday rental and a long-term rental?

Holiday rentals generate higher income over short periods, while long-term rentals offer stability with fixed monthly payments. With the right management strategy, a well-located holiday rental can generate 30–50% more annual income compared to long-term renting.

Can the homeowners’ association prohibit me from renting my property as a holiday rental?

Yes, in some cases. If the community approves it with a qualified majority and includes it in the bylaws, they can limit or prohibit tourist use of properties. This is why reviewing your building’s internal rules is essential before starting.

What safety requirements are mandatory for a holiday rental in the Canary Islands?

You must provide complaint forms, visible emergency phone numbers, basic accommodation information, and in many cases a fire extinguisher and first-aid kit. Having everything in place is not only required by law—it also improves the guest experience and your property’s reputation.

What type of property works best as a holiday rental in Tenerife?

One- or two-bedroom apartments with a terrace or nice views, located near the coast or tourist areas, tend to be the most profitable. Villas and detached houses are also in high demand, especially in quieter areas ideal for families or long stays. Contact us and we’ll prepare a profitability study for your property.

How can I increase the occupancy of my holiday rental?

Good management includes:

• Professional photos and attractive descriptions
• Presence on multiple platforms (Airbnb, Booking, etc.)
• A dynamic pricing system
• Fast and personalized guest communication
• Encouraging positive guest reviews

At CABANA, we handle all of this for you to maximize occupancy and profitability.