Owning a vacation home in a location like France or Italy may seem out of reach. But when you compare it to renting an Airbnb year after year, is it really? Beyond the countless lifestyle advantages of owning your slice of paradise, fractional ownership homes can make financial sense—even for savvy budget-conscious travelers.
By exploring the costs of renting versus owning, this article reveals how fractional ownership homes emerge as an amazing Airbnb alternative.
The True Cost of Airbnb Rentals
To uncover the numbers, I did a little sleuthing. I hopped onto Airbnb and searched for rental prices in two popular destinations in France: Uzès and Vers Pont du Gard, the charming village where Le Muguet—one of our fractional ownership properties—is located. My goal was to determine the average cost of a four-week stay during May, a shoulder season for travel.
The findings? A comparable rental averages €3,500 per month. Let’s crunch some numbers:
- 5 years of renting: €17,500
- 10 years of renting: €35,000
- 20 years of renting: €70,000
That’s tens of thousands of euros spent on short-term stays, and that’s assuming no increases due to inflation or high-season surcharges. When you add Airbnb’s service fees, cleaning fees, and fluctuating exchange rates, the actual cost could be even higher.
Why Fractional Ownership is the Ultimate Airbnb Alternative
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Unlike Airbnb, fractional ownership allows you to enjoy the comfort and familiarity of your own vacation home at a fraction of the cost of sole ownership. For example, at Le Muguet, one share costs $74,900 and provides you with a 4 week stay every year.
Breaking Down the Costs
In addition to the purchase price of a fractional home, annual maintenance fees cover upkeep, utilities, and professional property management. Let’s assume annual costs of €1,200 per owner. Over time, these add up:
- 5 years: €6,000
- 10 years: €12,000
- 20 years: €24,000
Even with these fees, fractional ownership remains a wise Airbnb alternative compared to renting. At the end of 20 years, instead of spending €70,000 on short-term stays, you own a share in a property with predictable costs and guaranteed use. Not to mention, the potential for appreciation and resale.
Flexible Options to Fit Your Lifestyle
If the upfront cost of fractional ownership feels daunting, you’re not alone. Some buyers choose to split a share with a family member or close friend. This allows both parties to enjoy the benefits of ownership while sharing the costs.
Additionally, those who own fractional ownership properties with International Property Shares may be willing to trade for stays at other properties in different locations. This flexibility ensures you get the most out of your investment.
Beyond the Numbers: A lifestyle upgrade from Airbnb rentals
While the financial benefits of fractional ownership are compelling, the lifestyle advantages make it an even better Airbnb alternative. Fractional ownership solves many of the common frustrations travelers face with Airbnb rentals:
- Consistent Quality: Unlike rolling the dice with Airbnb, you know your property will always meet your standards.
- Predictable Costs: With annual maintenance fees clearly outlined, there are no hidden fees or peak-season surcharges.
- Immersive local experience: You’ll get to know the markets, festivals, and neighbors beyond the average Airbnb tourist.
- No more uncertainty. You’re not crossing your fingers for availability or at the mercy of rising prices. no worrying about cancellations, surprise fees, or whether the property will live up to the photos.
- A sense of belonging. It’s nice to know that you’ve got a go-to place in Europe, year after year, instead of starting from scratch with each booking.
- Shared responsibility. Fractional ownership means you’re not shouldering all the upkeep and costs alone, making it more manageable.
Airbnb’s New Challenges
According to a Forbes article, there is an “Airbnb effect” where prices rise slowly and push out indigenous populations. Popular areas saturated with short-term rentals like Airbnb contribute to over-tourism and disrupt community dynamics… forever changing the environment you came to enjoy! New laws across Europe are designed to ease pressure on local housing markets by reducing the number of properties converted into short-term rentals.
How French Laws Could Impact Short-Term Rentals
France’s new legislation aims to regulate short-term rentals like Airbnb more tightly. The law introduces limits on the number of rental days, imposes stricter licensing requirements, and reduces tax breaks for hosts. As a result, travelers may find fewer options and higher prices, making alternatives like fractional ownership homes more appealing for long-term access to vacation properties.
Italy Tightens the Reins on Airbnb
To address the strain on popular tourist destinations, Italian authorities have introduced new regulations such as bans on short-term rentals like Airbnb in historic city centers and restrictions on the number of properties that can be rented out. These actions are part of a broader effort to preserve local culture and reduce the negative impacts of tourism.
An Airbnb Alternative for Lasting Connections and a Smaller Footprint
Nightly and weekly rentals can accommodate hundreds of guests per year. Contrast this to co-owning a vacation home among a handful of like-minded travelers. Co-ownership as an alternative to Airbnb reduces the tourism footprint on the area. Furthermore, as an additional benefit, it fosters lasting relationships with neighbors, shopkeepers and other co-owners—something that short-term rentals often fail to offer.
