Many foreigners choose Costa Rica to invest in real estate; buying properties in popular tourist destinations can be quite profitable if done right, but if done wrong it may end up causing many headaches and little to no profit.
Is investing in a vacation property in Costa Rica a good idea?
First, let’s start by saying that the number of tourists that choose vacation rentals vs. hotels when they vacation in Costa Rica, has grown throughout the years, going from 4.4% in 2010 to over 11% in 2015. In fact, Shawn Sullivan, director of Public Policies for AirBnB stated in an interview with Spanish daily La Republica:
“For us Costa Rica is the most important and biggest market in the entire region, it’s where we have more hosts, properties and the country with most visitation”.
The tourism industry is Costa Rica’s main economic activity and it continues to grow year after year; the majority of visitors come from North America (U.S. and Canada) but the number of European visitors has also increased over the past years as new direct flights have begun operations in the country.
All of this data confirms that investing in a vacation property makes perfect financial sense.
But how can you make real money renting your vacation property in Costa Rica?
Location and the type of house you have obviously have a lot to do with how much you can make from renting your vacation property. Houses in popular vacation areas and close to the beach, such as Herradura, Tamarindo, Nosara, Dominical, the Caribbean will certainly be easier to market than properties located in more remote locations or far from the beach; certain details such as the size of the house and it’s facilities will determine the price of your rental, there is a market for every type of vacation home you just have to be very clear on which market you are targeting.
Take into consideration that vacation rentals can also be located in the city, the mountain areas, or anywhere else in the country; if you are only spending part of your time in the country, make sure you are earning with your property when you are out of town. Properties in the city are perfect for companies that require flying in a client, investor or executive for a few weeks, hotels are good for a few days, but vacation properties are perfect for business trips that require more time.
If you still don’t own a vacation home in Costa Rica but are considering making the investment, make sure to do your homework and consult with experts in real estate in the country like Expat Housing,this way you will be able to evaluate all the available options and start out on the right path with a house that meets all the criteria for a successful income.
If you already own your vacation home, and are looking for ways to increase your profit, you should consider getting the assistance of a vacation rental property manager. Not only will this reduce the amount of work you have to do considerably, but it will also give you peace of mind, knowing someone is on top of things and able to handle your guests and requests.
Many times the reason property owners are not earning enough on their vacation rentals has to do with the fact that they have no time to dedicate to advertising, marketing and listings. It tends to be time consuming and requires commitment.
Getting your property rented is just the first part of the business, the second part involves making sure that your guests get what they expect, and ensuring your property is protected.
Expat Housing Costa Rica offers vacation rental services to assist you manage your listing on Airbnb as well as other channels for maximum exposure; providing follow up, handling booking inquiries, guest verification, support, maintenance and problem solving, around the clock.
Good reviews will bring in more clients, and having someone take care of your property for you will allow you to sit back and relax while your vacation rental makes money for you.
f you need a partner to help you arrange your move to this wonderful country or you need to find your home in Costa Rica don’t hesitate to contact //www.expathousingcr.com/ and we will make sure to have every aspect of your move to Costa Rica covered for you and your loved ones.
Also for short-term and long-term housing options in Costa Rica www.expathousingcr.com – [email protected] – +506 6255 7577.