One of the best ways to invest in a home for personal vacation use is to buy a home that will generate income while you are away.
The best performing homes in Manuel Antonio make over $100,000 in net income per year. These homes typically sell at 10 times earnings or more and allow investors to own their dream home and have other people pay for it while it is appreciating.
If you are interested in buying or building a home for vacation rental, it is important to understand the market. For the most part, the market is view driven, and homes with spectacular views have the highest occupancy rates.
In the luxury market, high end homes with big views, 4 or 5 bedrooms, pools, and comfortable well appointed living spaces rent for $4,000-$8,000 week. However, non view homes can certainly generate an impressive return on investment as well as long as they are well appointed and priced right.
The most important thing to remember is that the economy of scale of running a larger home allows for your monthly expenses to be a smaller fraction of your overall operating costs.
Adding another home to your portfolio allows an even greater economy of scale as you only need one maid, one gardener/maintenance guy, and one person to meet and greet your guests at both properties.
Here are two ways to manage a vacation home while living out of town:
- Owners can hire a local property manager or management company and let them do all of the work. Fees range from 10% to 25% of the gross income and services can include marketing, maintenance, maid service, meet and greet, bill paying, and more.
- Owners can hire a trusted manager and pay him or her a monthly salary to manage the property and handle the coordination of maintenance, bill paying, and meet and greet. Then, it is up to the owners to handle the marketing and booking of their home. This option saves the owners the fees on bookings that are sometimes very easy to get, and owners can always try to fill in their empty dates by offering them to local vacation rental companies.
Vacation Rental Homes in Manuel Antonio, Costa Rica.
Article/Property ID Number 1347
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