Second home or investment? Balancing owner use and letting

Second home or investment: the two can sit comfortably together when owner stays are booked within pre-agreed limits and through the same reservation system as guests. Every night you spend in the apartment replaces a night that could have been let, so the effect on income depends mainly on when you stay and for how long.

Second home or investment: what is the real difference?

The difference lies in which calendar comes first. With a second home, your own dates take priority; with an investment, the lettable periods do. Most owners sit somewhere in between.

Buyers who mainly want a second home tend to keep the most popular periods – summer, holidays, long weekends – for themselves. Buyers focused on income usually visit in quieter months, when a night taken out of the letting calendar costs less. Both approaches are perfectly reasonable; they simply lead to different results.

It pays to be clear about the apartment’s purpose before you buy. That shapes how you read the income model scenarios and which owner-use terms suit you.

How does owner use affect rental income?

Each owner night reduces the number of nights available to let, but not all nights carry the same weight. A week in high summer is typically worth far more than a week in November, because demand and the average daily rate (ADR – average revenue per occupied night) are usually higher.

HillGate’s illustrative model uses three scenarios – 160, 220 and 250 let nights a year. The model is not a promise of returns; if you plan to use the apartment yourself, consider how your intended owner nights relate to the let nights in whichever scenario you look at.

The table below shows the direction of the effect, without figures:

When you stay	Demand displaced	Effect on income
High summer, public holidays	High	Largest
Long weekends, school holidays	Medium to high	Significant
Spring and autumn weekdays	Medium	Moderate
Late autumn and winter weekdays	Lower	Smallest

For a fuller explanation of occupancy, ADR and RevPAR, see our guide to holiday-let performance metrics.

How is peak season handled?

Peak-season handling means the management agreement sets out in advance how much an owner can book during the busiest periods, and on what terms. This keeps things fair between owners and makes the letting programme predictable.

The Hévíz area is well placed here. According to Central Statistical Office (KSH) data, the spa town recorded close to 1.2 million guest nights in 2025, almost half of them by international guests. In commercial accommodation across the wider Lake Balaton region, around 59 per cent of guest nights in 2025 fell outside the July–August peak. Demand does not rest on a single summer peak, which makes it easier to schedule owner stays in quieter periods.

Our article on Hévíz tourism statistics looks at the data in more detail.

What booking rules should you expect?

Owner use usually rests on a handful of recurring rules, with the exact terms set by the management agreement. At HillGate, owner bookings run through the same reservation system as guest bookings, so double bookings cannot occur.

In the short-term rental market, owner-use policies commonly cover:

• Booking lead time: how far ahead an owner stay must be notified, especially for peak periods.
• Peak-season allowance: how many nights can be booked in the busiest weeks and how they are shared between owners.
• Existing guest bookings: a confirmed guest reservation normally takes precedence over an owner request made later.
• Last-minute use: dates still empty shortly before arrival are often easier to release to owners.
• Cleaning and preparation: how cleaning after an owner stay is charged.
• Family and friends: whether stays by people other than the owner count as owner use.

HillGate’s management agreement covers booking lead times, the handling of peak-season periods and how cleaning is charged; full details are in the investment pack.

What should you check in the management agreement?

Beyond the owner-use rules, check how your stays appear in the accounts and reports. The aim is to know in advance what you receive, what you pay and what happens if your plans change.

Our article on short-term rental management in Hungary explains the full-service model – revenue management, distribution, guest handling and the owner statement.

Does owner use have tax implications?

It can, particularly if you buy through a company and reclaim the VAT. Under Article 26 of the EU VAT Directive (2006/112/EC), the private use of business assets on which VAT was deductible is treated as a supply of services for consideration.

The purchase price of HillGate apartments includes 27 per cent Hungarian VAT, which may be reclaimable when buying as a company. If you also plan to use the apartment yourself, discuss the VAT and corporate tax consequences with a tax adviser before you buy. This is general information based on rules available in October 2026, not tax advice; individual cases require a tax adviser or lawyer.

How do you decide between the two goals?

Start with a simple annual calendar: mark the dates you definitely want to be there and the periods where you are flexible. It quickly shows whether your use falls mainly in peak season or in quieter months.

1. Estimate your owner nights per year, and how many would fall in peak season.
2. Deduct them from the let nights in the scenario you are considering and see how sensitive the outcome is.
3. Compare your plans with the owner-use rules in the management agreement.
4. If buying through a company, ask a tax adviser about private use.

For a sense of what the area offers during your own stays, see Hévíz, Keszthely and Lake Balaton within easy reach. If you would like to experience the house as a guest first, opening plans (1 June 2027) are on hillgate.hu.

Frequently asked questions

Can I use my HillGate apartment if it is in the letting programme?

Yes. Owner stays are possible within pre-agreed limits and are booked through the same reservation system as guest bookings. The management agreement sets out booking lead times, the handling of peak-season periods and how cleaning is charged.

How much does owner use reduce rental income?

It depends on how many nights you stay and when. Each owner night replaces a lettable night, but peak-season nights usually weigh more than nights in quieter months. It is worth weighing your planned owner nights against the scenario you are considering.

When is the best time for owner stays if income matters?

Quieter periods – late autumn, winter, and weekdays in spring and autumn – displace the least income. Hévíz is an established spa town with visitors throughout the year, so these periods are still a good time to be there.

Do I pay VAT on private use if I bought through a company?

Possibly. If you reclaimed VAT on the purchase price, private use may count as a taxable supply of services under EU VAT rules. This needs an individual assessment, so speak to a tax adviser before buying.

Where can I see the full owner-use rules?

HillGate’s owner-use rules are set out in the management agreement, which forms part of the investment pack. The pack also covers the operating model, costs and fees, and the payment structure.