Buying a Vacation Rental in Mexico: What to Know Ahead of Time
MexHome thrives on helping people find the perfect place in Mexico. Typically, we have two types of clients: People who are hunting for their dream home in paradise or those who are looking to invest. In recent years, there has been an increase in clients looking to invest in Mexico and buy a rental. Many of them are in the market for buying an investment property that could also double as a vacation rental. Mexico vacation rentals have become extremely popular in the last few years. Specialized websites such as Airbnb and VRBO have made the process of searching, booking, and paying online so easy that almost anyone can do it. This is great news for rental property owners in Mexico because it is easier than ever to market your property to potential renters throughout the world.
If you are interested in buying an investment property in Mexico, such as a vacation rental, here are a few things you should know.
Location is Everything
The location of the property is one of the most important things to keep in mind as it will affect your potential renters. For example, if your vacation rental is a beachfront dream in a hopping town, chances are your potential tenants will be couples or families looking for short-term rentals. If your home is more secluded or in a quieter town, you will likely be renting to retired couples or ex-pats interested in renting for the long term. The town, the location, and the type of tenant all affect how much you can charge for your vacation home and how quickly you will see a return on your investment.
Magnificent Mansion or Cheap Crackerbox?
How much room do you need? Will friends and family be visiting? Will they be staying overnight? Several days? A month? If yes, then it would be a good idea to have a room that can serve as an office or TV room that can also double as a guest bedroom. If you are considering a condo, how big do you want it to be? Usually, the larger the project the more amenities you need to provide.
Places to Go… Things to See
Make sure you are aware of all the things that make your place stand out. Does it have beach access or A/C? Does it have a pool, a BBQ area, or a home gym? Is it close to town or the beach? Is it a short walk or ride to yoga centers, shops, restaurants, etc?
Keep your ear to the ground for any news on future amenities being built nearby such as parks, gyms, movie theaters, etc. Most people who looking to rent want an easy walk to the beach in an exotic place but they also want the comforts of home. Some of the most popular amenities in a vacation rental are Satellite TV, Internet, and A/C.
Building Up or Building Down?
It is important to give some thought to the future before you buy. Your home may have a gorgeous ocean view now, but if there is a lot in front of it, maybe one day a two or three-story condo development could take that view away. Is there a lot of construction in the neighborhood with the constant noise almost every day? These issues are likely to affect how much you can rent your place out for.
Hip-Hop Funk or Ghost Town Blues?
Before you buy a vacation rental in Mexico, do some research and find out how many vacancies there are in the area. Buying a property in a location where no one wants to be will make it impossible to rent your home out at a decent price. What are others charging for similar rentals in your area? Are prices in keeping with how much you want to earn from your rental property? You may have to drop your price – or you could be pleasantly surprised with how much you can get! Keep in mind that the highest occupancy rates for vacation rentals in popular tourist destinations in Mexico take place over the winter months – especially Christmas and New Year – Spring Break and Semana Santa (the week preceding Easter Sunday). Be sure your home earns you enough money so you can cover expenses during the low season.
Time is Money!
How much time do you plan to spend at your rental property in Mexico? When do you plan to stay there? Plan your rental calendar accordingly or you risk having to look for a vacation rental yourself! The demand for vacation rentals in Mexico has been growing for years. You may find that your home gets rented out frequently, especially if it incorporates these four factors: fabulous views, great location, good size, and modern amenities.
The MexHome Guarantee
A knowledgeable real estate agent can help you find the perfect investment rental property in Mexico. At MexHome, we have nothing but the best! We are here to answer all your questions and help you find the perfect property. Contact us today to see our amazing real estate in Mexico.
