Costs & Budget

Rental Income from a Renovated Property in Tuscany: Real Numbers and Strategies

Leopoldo Manini - Founder MANINI® — 4 May 2026 — 18 min read

Introduction

Renovating a farmhouse in Tuscany isn't just about taste and comfort. For many buyers — especially international ones — it's also an investment. The key question is: how much can a renovated property in Tuscany yield, both as holiday rental and as capital appreciation?

This article analyses real numbers, average returns, management costs and strategies to maximise return on investment. For renovation cost understanding, read our dedicated guide.

The holiday rental market in Tuscany

Tuscany is Italy's third region for tourist arrivals and the first for high-end international tourism. The short-term rental market for villas and farmhouses has been growing steadily since 2015.

Market data 2025-2026:

• Average occupancy premium villas/farmhouses: 22-28 weeks/year
• Average high season rate (June-September): €250-€600/night
• Average low season rate (October-May): €150-€350/night
• Average annual revenue 4-bedroom villa Chianti: €60,000-€120,000
• Average annual revenue 3-bedroom farmhouse Val d'Orcia: €40,000-€80,000

Factors influencing returns:

• Location (Chianti and Argentario command higher rates)
• Pool (mandatory for international market, +30-40% rate)
• Number of bedrooms (4-6 bedrooms = optimal point)
• Finish and furnishing quality (luxury pays)
• Additional services (chef, concierge, transfer)
• Online reviews (above 4.8 on Airbnb = premium pricing)

Net return calculation

Concrete example: 4-bedroom farmhouse in Chianti, purchased at €500,000, renovated for €400,000 (total investment €900,000).

Gross annual revenue: €90,000 (24 weeks occupied, average €535/night)

Annual costs:

• Property manager (20-25%): €18,000-€22,500
• Cleaning and linen: €8,000-€12,000
• Routine maintenance: €5,000-€8,000
• Utilities (water, electricity, gas, internet): €4,000-€6,000
• Insurance: €2,000-€3,000
• Taxes (flat rate 21% or IRPEF): €12,000-€18,000
• IMU second home tax: €3,000-€5,000
• Accountant and compliance: €2,000-€3,000

Total annual costs: €54,000-€77,500

Net annual income: €12,500-€36,000

Net return on investment: 1.4%-4.0%

Capital appreciation

Rental income is only part of the return. Property appreciation over time is often the main component.

Appreciation data for renovated properties in Tuscany (2015-2025):

• Chianti: +35-50% over 10 years
• Val d'Orcia: +25-40% over 10 years
• Argentario: +20-35% over 10 years
• Versilia: +30-45% over 10 years
• Maremma: +15-25% over 10 years
• Crete Senesi: +20-30% over 10 years

Factors accelerating appreciation:

• Renovation quality (materials, finishes, systems)
• Energy efficiency (class A or B)
• Pool and well-maintained outdoor spaces
• Perfect planning and cadastral compliance
• Panoramic position or views
• Generous land (1+ hectare)

Appreciation example:

Farmhouse purchased at €500,000 in 2020, renovated for €400,000 (total investment €900,000). Estimated value 2026: €1,100,000-€1,300,000. Appreciation: +22-44% in 6 years.

Strategies to maximise ROI

1. Buy well (below market value)

• Inherited properties (heirs wanting to sell quickly)
• Properties with solvable problems (access, compliance, condition)
• Judicial auctions (20-40% discount but high risks)
• Direct purchase from owner (no intermediation)

2. Renovate intelligently

• Invest in what the market pays for (pool, kitchen, bathrooms)
• Don't over-renovate (extreme luxury isn't proportionally rewarded)
• Maximise bedrooms without sacrificing common spaces
• Plan spaces for additional services (laundry, storage, plant room)

3. Manage professionally

• Local property manager with luxury experience
• Dynamic pricing (seasonal rates, last minute, early booking)
• Presence on multiple platforms (Airbnb, Booking, VRBO, luxury agencies)
• Premium services (welcome pack, chef, excursions, transfer)

4. Optimise taxation

• Flat tax 21% (cedolare secca, if applicable)
• Simplified tax regime for hospitality activity
• Renovation deductions (recovered over 10 years)
• Furniture and equipment depreciation

Comparison with other investments

| Investment | Net annual return | Appreciation | Liquidity | Risk |

|-----------|-----------------|-------------|-----------|------|

| Tuscan farmhouse (rental) | 2-4% | 3-5%/year | Low | Medium |

| Italian government bonds 10yr | 3.5-4% | None | High | Low |

| Equities (global ETF) | 5-7% average | Variable | High | High |

| City property (long-term rental) | 3-5% | 1-3%/year | Medium | Low |

| Tuscan farmhouse (no rental) | 0% | 3-5%/year | Low | Medium |

The Tuscan farmhouse advantage: combines rental yield + appreciation + personal enjoyment. No other investment offers the possibility of using the asset for your own holidays.

Mistakes that destroy returns

• Underestimating management costs (20-25% of revenue goes to property manager)
• Not including a pool (without pool, the international market won't consider you)
• Renovating without thinking about rental layout (bedrooms without en-suite = low rate)
• Ignoring seasonality (in Tuscany 70% of revenue comes in 16 weeks)
• Not investing in professional photography and marketing
• Neglecting reviews (below 4.5 on Airbnb = booking collapse)

The MANINI method for investment

MANINI EXTRA integrates the investment vision into the renovation project:

• Preliminary analysis of the property's income potential
• Layout design optimised for holiday rental
• Finish and material selection with optimal cost/impact ratio
• Integrated fiscal planning (bonuses + rental regime)
• Connection with qualified local property managers
• Realistic estimate of expected returns

Want to assess the investment potential of a property in Tuscany? Request a personalised analysis with our team.