What is your property’s value in the short-term rental market in Milan?

The short-term rental market in Milan is constantly growing, thanks to tourism, international events, and the city’s dynamism. But how much can your property really earn? And what are the factors that influence its value? In this article, we will guide you through the main parameters to consider to understand your property’s potential in the short-term rental market.

1. Location: the Heart of Success

The location of the property is the most determining factor for the value of short-term rentals.

• Central Areas: Neighborhoods like Duomo, Brera, and Navigli attract tourists and professionals, allowing for premium rates of up to €200-€400 per night.
• Strategic Areas: Zones like Porta Venezia, Isola, or the surroundings of the Fiera di Milano offer great opportunities for events and business tourism.
• Proximity to Transport and Services: Being close to the metro or points of interest increases the property’s competitiveness.

Tip: Use tools like Google Maps or market analysis platforms to check the average property value in your area.

2. Size and Type of Property

In the short-term rental market, the type of property plays a crucial role.

• Studios and One-Bedroom Apartments: Perfect for tourists or couples, they represent about 70% of the demand in Milan.
• Larger Apartments: Ideal for families or groups, they offer higher rates but require strategic positioning.

Example: A one-bedroom apartment in the Porta Venezia area can earn up to €2,500 per month during the high season.

3. Seasonality and Dynamic Pricing

The value of your property varies based on the season and events in the city.

• High Season: During the Salone del Mobile or Fashion Week, prices can triple.
• Low Season: A flexible pricing strategy helps maintain a good occupancy rate.

Pro Tip: Use rate management software to optimize prices in real-time, based on demand.

4. Property Condition and Furnishing

Guests look for comfortable and well-furnished accommodations. A well-designed interior increases positive reviews and, consequently, the property’s value.

• Renovation and Maintenance: Investing in small improvements can increase the average nightly rate by 20-30%.
• Modern Amenities: Fast Wi-Fi, smart TV, and air conditioning are essential services.

Example: An apartment with designer furnishings and modern amenities in Navigli can exceed €300 per night.

5. Reviews and Reputation

The perceived value of your property is closely linked to its reputation on short-term rental platforms.

• Positive Reviews: An average above 4.7 stars on Airbnb can increase the price by up to 20%.
• Customer Service: Quick and personalized responses to guests improve your reputation.

6. How to Calculate Your Property’s Potential?

To estimate potential earnings, consider the following factors:

• Average Price per Night: Use platforms like AirDNA or AllTheRooms to analyze market data.
• Average Occupancy Rate: In Milan, it ranges from 60% to 80% depending on location and season.
• Management Costs: Cleaning, maintenance, and commissions can account for 20-30% of total revenue.

Calculation Example:
A one-bedroom apartment in Porta Nuova with an average price of €150 per night and an occupancy rate of 70% can generate about €3,150 per month.