The Short-Term Rental Opportunity
Bosnia and Herzegovina is emerging as one of the most exciting short-term rental markets in the Balkans. Tourism has grown by double digits year-over-year, and platforms like Airbnb and Booking.com have seen significant expansion in the country.
Why Bosnia for Short-Term Rental?
- Low entry prices: You can acquire a rentable property for 60,000–150,000 BAM in most cities
- Growing tourism: Bosnia received 1.4 million international visitors in 2024, a record
- Undersupply of quality accommodation: Hotels are expensive; tourists increasingly prefer apartments
- High occupancy in peak season: June–September in Mostar and Neum; year-round in Sarajevo
Returns by City
Mostar
- Peak season (June–September): €80–150/night for a 2-bed apartment
- Average occupancy in season: 75–90%
- Monthly revenue in season: €2,000–4,500
- Annual gross yield: 7–12%
Sarajevo
- Year-round demand from tourism, business and diplomats
- Average rate: €50–120/night
- Average occupancy: 60–75% year-round
- Annual gross yield: 6–10%
Neum (Adriatic coast)
- Purely seasonal (June–September)
- Very high rates in peak season
- Low occupancy in winter
- Best suited as a second home with seasonal rental
Legal Considerations
- Short-term rental income is taxable in Bosnia
- You are required to register guests with local police (automated through most platforms)
- Some municipalities are introducing licensing requirements – check local regulations
What Makes a Good Short-Term Rental Property?
- Location: Walking distance to major attractions
- Size: 1–2 bedroom apartments perform best on yield
- Condition: Guests expect modern interiors; renovation may be required
- Wi-Fi and amenities: Standard expectation on all platforms
Risks to Consider
- Seasonality: Outside major cities, demand drops sharply in winter
- Management: Remote management requires a local property manager (Arimes can assist)
- Regulations: Rules are evolving; stay informed
Arimes can help you identify suitable investment properties and connect you with local property management services.