MOST IMPORTANT POINTS FOR SUCCESSFUL RENTAL INCOME:
1. Most important: You should be on TITLED LAND (will explain later) and near the beach, can’t be further than 300 meters away (3 blocks) or you won’t get vacationers coming for the beach. You carry a baby, or a 6 pk and towels, or a surf board, for more than 3 blocks and see how often you want to repeat….
2. The location has to be either in Jaco, Los Suenos or Playa Hermosa due to the cost of taxis for the YOUR RENTERS, to and from these places vs further south like Esterillos or Bejuco. Nobody wants to pay more than $10 each way, and certainly not $20 each way…
3. The fixed costs related to the HOA or monthly maintenance fees as Jaco has monthly charges from $600 to $980 or more, due to guards and the elevator back up system. The #1 exception to this is N. Jaco´s beachfront community of free standing houses called La Flor, $350 monthly! In Playa Hermosa, two great beachfront communities: the Hermosa Beach Bungalows are $300 monthly and Hermosa Palms
even with it’s underground electric is only $335 monthly (but now with an initiation fee thats kinda high!)
4. Read very carefully what the rental manager is charging! Do they take less commission if you find the Renters thru YOUR OWN ADs! Do they act with great “customer service” ensuring that arriving guests see bottled water; bananas or other fruit; coffee with sugar packs/creamer, salt and pepper packets.
Be aware that the percentage charged by the rental manager in Costa Rica can be higher than many places in the U.S., but you will save money on property taxes!
Ask your accountant regarding taxes and deductions with foreign rental income properties!
5. Want good earnings, then for you and your family to visit your property, choose to come one week or more before/after the most popular times of the year (Christmas-New Years; Easter-Semana Santa; and the more popular 3-4 day weekend for both Costa Rican-U.S. holidays.) You decide if you want to rent longer than one month, or strictly short term.
Also be aware that many will say they are booking for only 4 people but 3 cars and 6-8 people plan on staying there. PENALTIES? DEPOSITS?
Think about offering/requiring insurance policies for all renters. It’s only about $100…
6. Finally maintain active communication with your renters that had a fantastic time. Encourage positive reviews by offering a discount on their next vacation to your place. Always respond to any comments, positive or negative on any of the Booking agencies that offer reviews.
These are just a few suggestions, but they can make a huge difference in your rental income numbers. I have some fantastic places for you that not only would provide a yearly positive-net income but also should see some strong future equity growth, when the values start rising again.
Its a great time to buy right now, as there are some sellers that definitely need to recoup their cash losses from the “COVID CRISIS” and finally they are willing to lower their prices to where they are losing 20-35% from the super highs when they purchased.
THE REAL SAVINGS IN COSTA RICA IS ON ANNUAL PROPERTY TAX. SMALLER HOMES IN HERMOSA PALMS, UNDER $650 YEARLY!!!
Many are predicting an awesome 2021 year for rental income, and increased equity growth, and this has been evident the first 6 months of 2021!!!
CR BEACH OFFERS BUYER’S PROTECTION:
How are you protected when buying Costa Rican property?
1. We use a Costa Rican Central Bank licensed Escrow company; your funds are released only with your signed permission!
2. After you receive the lawyer’s Due Diligence report, you may cancel
the sale, and receive your full deposit back, minus only the lawyers’
Due Diligence research fee!
Jeff Fisher www.CRbeach.com Owner-Broker CR Beach Investment Real Estate
For our Office: NEW NUMBER: (011-506) 4702-0808 SKYPE: crbeachjeff
For Cell Phone: USE WhatsApp: 1+ (506) 8388-5055 It’s fun, easy, & free!
Playa Hermosa-Jaco, Garabito, Puntarenas, Costa Rica 61101
International Realtor ® Certificate of Membership #061212737 Costa Rican Real Estate Member since 2004
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