Investing in real estate in Marrakech is one thing, but turning your property into a profitable rental requires the right approach. With Morocco attracting 16 million visitors in 2024, making it the most visited country in Africa, and Marrakech being its number one destination, rental demand is stronger than ever. Whether you are targeting tourists with short-term rentals or expats with long-term leases, this guide explains how to maximize your returns, reduce risks, and manage your property effectively.
Short-Term Rentals in Marrakech
Short-term rentals are the most popular option for investors aiming to benefit from Marrakech’s booming tourism industry.
Advantages:
- Potential for high yields: 7% to 9% on average, with peaks up to 15% during high season.
- Flexibility to use the property yourself when it’s not booked.
- Demand concentrated in central and tourist-oriented districts.
Best neighborhoods for short-term rentals:
- Guéliz: modern apartments close to shops and nightlife.
- Hivernage: luxury apartments and villas near hotels and restaurants.
- Medina: authentic riads highly attractive to tourists looking for unique stays.
- Route d’Ourika: fast-growing villa zone near the new Morocco Mall, popular with families and groups.
Where to list your property:
- Global platforms: Airbnb, Booking.com, Expedia.
- Local luxury agencies specialized in villas and riads.
- Social media marketing with video tours and high-quality photos.
Key considerations:
- High-quality service is crucial: professional cleaning, fresh linens, and guest support are expected.
- All short-term rentals must be registered with the authorities.
- Tourist tax applies and must be collected from guests.
Long-Term Rentals in Marrakech
Long-term rentals appeal to expats, locals, and professionals looking for stable housing.
Advantages
- Steady monthly income with less fluctuation than tourist rentals.
- Lower management requirements compared to daily bookings.
- Less vacancy risk during off-seasons.
Best neighborhoods for long-term rentals:
- Agdal and Menara: residential districts popular with families.
- Guéliz: central apartments for professionals and students.
- Route d’Ourika: spacious villas at lower prices compared to the city center.
What tenants expect:
- Furnished apartments or houses with modern amenities.
- Reliable internet, air conditioning, and secure parking.
- Clear contracts, usually 6 to 12 months in length.
Yields for long-term rentals are typically 5% to 6% annually, which is lower than short-term but more stable.
Taxes and Legal Requirements
Moroccan law requires all rental income to be declared.
- Tax rate: rental income is taxed at approximately 10% to 15%, depending on the amount.
- Short-term rentals: you must register your property and pay tourist tax for each guest night.
- Foreign investors: funds can be repatriated abroad if the property purchase was registered correctly through Moroccan banks.
- Contracts: for long-term rentals, always have a written contract registered with local authorities to protect your rights.
Tip: hire a local accountant or property manager who knows the Moroccan tax system to ensure compliance and avoid fines.
Costs of Managing a Property
When renting out property in Marrakech, factor in these ongoing costs:
- Cleaning and laundry: essential for short-term rentals, often charged per stay.
- Maintenance and repairs: air conditioning, pools, and traditional riad structures require regular upkeep.
- Property management fees: typically 15% to 25% of rental income if outsourced.
- Utilities: electricity, water, and internet may or may not be included in rental rates.
- Insurance: landlords should secure coverage for damage, theft, or liability.
Common Risks and How to Avoid Them
- Tourism fluctuations: Ramadan, extreme summer heat, or global travel issues can reduce demand. Mitigation: combine short-term and long-term rental strategies.
- Tenant issues: unpaid rent or property damage. Mitigation: proper contracts and security deposits.
- Regulation changes: short-term rentals face stricter monitoring. Mitigation: stay compliant with registrations and taxes.
- Market volatility: while prices have risen 30% to 100% in recent years, growth could slow. Mitigation: invest in prime locations with long-term demand..
Choosing Between Short-Term and Long-Term Rental
When deciding which model suits you best, ask:
- Do you want higher returns with more work (short-term) or steady returns with less hassle (long-term)?
- Is your property located in a tourist hotspot or in a residential area?
- Do you prefer to use the property yourself occasionally (short-term makes this easier)?
A hybrid approach works well for many investors: short-term rentals during high season, long-term leases in low season.
Professional Property Management in Marrakech
Managing property from abroad is challenging. At YSM Properties, we offer complete property management solutions:
- Marketing and tenant acquisition.
- Guest management and customer support.
- Professional cleaning and maintenance.
- Handling of taxes and legal compliance.
With our local expertise, your investment stays protected while maximizing returns.
cONCLUSION
Renting out property in Marrakech offers investors a rare combination of strong rental yields, capital appreciation, and lifestyle benefits. With property prices having risen by 30% to 100% in recent years and tourism at record highs, both short-term and long-term rental strategies can generate excellent returns. Success, however, depends on choosing the right neighborhood, staying compliant with Moroccan rental regulations, and ensuring professional management.
For owners in the Moroccan diaspora as well as international investors, Marrakech remains one of Africa’s most dynamic real estate markets. By working with a trusted partner like YSM Properties, you can maximize income, reduce risks, and benefit from the continued growth of Marrakech as Morocco’s number one property investment destination.
