"How much will my home earn as a short-term rental?" It is every owner's first question. The honest answer is: it depends, but it is no mystery. Income is built from a handful of measurable variables. If you know them, you can estimate your net income quite accurately and compare it with a traditional long-term let.
In this guide you will find the formula, the variables that matter in Sanremo, the costs and taxes to subtract, and the mistakes that bring the result down.
The formula: from gross to net
The calculation starts with two numbers and ends with one: the one you actually care about.
- Gross revenue = nights sold × average nightly rate.
- Minus the direct costs of each stay: platform commissions, cleaning and linen.
- Minus the costs of the home: utilities, internet, your share of condominium fees, maintenance, consumables.
- Minus the management fee, if you use a property manager.
- Minus tax on the rental income: cedolare secca (the Italian flat-rate rental tax) or IRPEF (personal income tax).
- = Net income in your pocket.
The tourist tax is not your revenue: the guest pays it and it goes to the Comune. Keep it out of the calculation.
The two levers: occupancy and average rate
Gross revenue depends on two levers that move together.
- Occupancy: the percentage of available nights that are sold.
- Average nightly rate (ADR in industry jargon): how much you earn on average for each night sold.
Keeping the rate high empties the calendar; keeping it low fills it but leaves money on the table. The metric that combines the two is revenue per available night (RevPAR): occupancy × average rate. It is the number to look at when you compare two periods or two different management approaches.
What drives income up in Sanremo
Location
In Sanremo three distances matter: from the sea, from the pedestrian centre and from the Teatro Ariston. A home a few minutes' walk from the sea or the Ariston gets more enquiries all year round, not just in summer. Hillside areas can perform well if they offer a view, a terrace and parking.
Size and sleeping capacity
A one-bedroom apartment for four and a two-bedroom apartment for six appeal to different guests: the first to couples and weekenders, the second to families, groups and crews. The number of separate bedrooms matters more than the number of sofa beds.
Amenities
Air conditioning, fast Wi-Fi, a washing machine, a fully equipped kitchen, a lift, a terrace or a sea view are filters guests really use on booking platforms. Every missing amenity shuts you out of part of the searches.
Photos, listing and reviews
Two similar apartments in the same building can earn very different amounts. Professional photos, a clear listing in several languages and high review scores bring more bookings at better rates. Find out more in How to prepare your home for short-term rental.
Seasonality in Sanremo
Demand in Sanremo is spread more evenly than in many seaside resorts:
- Summer: the classic peak, with longer stays and families.
- February, Festival week: the highest demand of the year near the Ariston, with nightly rates far above the winter average. The 2027 dates have been announced as 16 to 20 February.
- Spring and autumn: mild weather, events, the cycle path, visitors from France and northern Europe.
- Winter: lower demand, but with weekends, bank holidays, business travellers and medium-length stays.
Good management focuses precisely on the shoulder months: that is where you earn the difference compared with owners who only rent in summer. Read Dynamic pricing for short-term rentals.
The costs to subtract
| Item | Who pays | Notes |
|---|---|---|
| Platform commissions | owner (partly the guest) | vary by platform and fee model |
| Cleaning and linen | usually covered by the guest's cleaning fee | per stay |
| Utilities and internet | owner | electricity and air conditioning add up in summer |
| Consumables | owner | bathroom and kitchen products, welcome pack |
| Maintenance | owner | small repairs and wear and tear |
| Management | owner | if you use a property manager |
| Tourist tax | guest | collected and paid over to the Comune |
The details of each item, including CIN, safety and the management fee, are in the guide How much does it cost to manage a short-term rental.
Tax on rental income
For a private individual renting for periods of up to 30 days, the following rules apply in 2026:
- cedolare secca at 21% on one property of your choice;
- cedolare secca at 26% on any other short-term rental properties;
- from the third property used for short-term rentals in the same year, the activity is treated as a business: you need a VAT number and business tax status, and the cedolare secca no longer applies.
If an intermediary collects the rent on your behalf, it withholds 21% tax as an advance payment, pays it over and issues you the Certificazione Unica (the annual tax statement). The rules change often: always check your own situation with your accountant. You will find everything in Taxes, CIN and regulations.
Short-term or traditional rental?
The right comparison is between two net figures, not two gross ones. With a traditional let you earn less, but with few costs and little work; with a short-term rental the potential is higher, but so are the costs and the effort. Also consider what it is worth to you to be able to use the home for a few weeks a year. The full comparison is in Short-term or traditional rental.
How to read an income estimate
When someone gives you a figure, always ask these questions:
- Is it gross or net? A serious estimate states which costs and which taxes it has already deducted.
- What occupancy is it based on? Assuming the home is full all year round is not realistic in any seaside resort.
- Does it reflect the real calendar? The weeks you keep for yourself, maintenance work and closed months must be removed from the available nights.
- What data does it start from? The most reliable estimates use real bookings of similar homes in the same area, not national averages.
A good number is one you can check after a year, against your statement.
The mistakes that lower your income
- A fixed price all year: you miss the peaks and sit empty in the quiet periods.
- Blocking the calendar too long for personal use in the busiest months.
- The wrong minimum stay: too long in winter, too short in summer.
- Slow replies to guests: platforms reward hosts who respond quickly.
- Neglected obligations: a fine for a missing CIN or a mistake on the tourist tax can wipe out months of margin.
Frequently asked questions
Can I use the home myself for a few weeks a year? Yes. Just block the dates on the calendar in advance; bear in mind that the weeks in August and during the Festival are the ones that earn the most.
Is the income the same every year? No. It changes with events, the holiday calendar and the competition. That is why it is worth comparing the same month year on year, not just the total.
Do I need to refurnish from scratch? Hardly ever. Targeted improvements, good photos and the amenities guests look for are often enough.
How we work
Abitare is a hospitality and technology company founded in Sanremo: more than 200 properties managed since 2019. Abitare OS, the platform we work on (software owned by Federico Aresio and licensed to ABC SRLS), updates prices every day based on demand, publishes the home on Airbnb, Booking.com, Vrbo, smaller portals and our direct website, with calendars and prices kept in sync by a channel manager, and handles online check-in with identity verification.
As withholding agents, we take care of the 21% withholding tax and the Certificazione Unica, as well as the tourist tax, Alloggiati reports (the mandatory guest registration with the police) and the CIN. In the owner app you see live bookings, income, a monthly statement and a year-on-year comparison; the bank transfer arrives by the 15th of the month.
Work out your home's income
Generic averages are of little use: what counts is your home, with its location and amenities. With the income calculator you get an estimate of your net income after withholding tax, cleaning and commission. If you would like to talk in person, book an appointment by choosing a day and time slot.