Tourists are looking for affordable and exciting vacation properties to stay in for their vacation in Tulum.
And that’s what makes investing in Tulum vacation home rentals is an excellent investment.
Many real estate investors are now buying a Tulum vacation home to rent out and also use as a second home.
There are many different kinds of vacation homes in Tulum. Including condos, hotels and multi-family properties.
Yet, few people know how to find and buy a Tulum vacation property.
Here’s a helpful list of dos and don’ts to help you get started.
Here are some things you need to do when buying a Tulum vacation home to rent out in 2021:
1. Do research extensively (with a Real Estate agent)
When buying a Tulum vacation home to rent out you should do extensive research with a real estate agent.
Research these details with your real estate agent:
- What’s the projected occupancy rates?
- What’s your expected ROI?
- What’s the desirability of the location?
- What the current Tulum market rental rates?
The best Tulum vacation rental property to buy is close to popular Tulum attractions. Such as cenotes, ruins, beaches, holistic centers. They also offer fantastic hotel-like amenities either shared or private.
2. Do consider the potential income
The main goals of buying a Tulum vacation home to rent out should be to make a profit. And to help you improve your own finances.
A cost-benefit analysis can help determine if financially it’s worth renting out your home in Tulum. When it’s unoccupied.
Let’s say the property’s monthly mortgage payments are $2,150, monthly operational expenses are $300, the rental rate is $150 and the occupancy rate is 70%, the potential monthly income can be calculated like this:
Potential Monthly Profit:[($150) x (70%) x (30 days) – [($300) + ($2,150)]] = $700
3. Do Keep in Mind the Costs
There are expenses when owning and operating a Tulum vacation rental property.
You can list your Tulum vacation home on an online booking site. You are likely to be charged a monthly fee.
You also pay HOA fees, insurance, hotel taxes (occupancy taxes), and utilities.
Other costs include. Property taxes, property management fees, taxes on rental income, and mortgage payments.
4. Do Decide How You Will Make Money
You can make money from your Tulum vacation home rentals different ways.
Such as through hotel programs, Vacation Rental By Owner (VRBO), or Airbnb.
You have the option to a buy Tulum vacation home and list it on hotel programs to rent.
The hotel will maintain the building, rent it out for you, and give guests access to the amenities.
VRBO – Vacation Rental By The Owner
A classified website that property owners use. To advertise their Tulum vacation homes to tourists.
Vacation rental owners can hire a property manager. They handle day-to-day operations and manage your property.
Airbnb is a company that provides a platform for you to list your Tulum rental properties online.
Every time you make a booking, Airbnb charges you a service fee.
Here are five things you should not do when buying a Tulum vacation home to rent out.
1. Don’t Buy a Tulum Property You Wouldn’t Use
You should use your Tulum property once in a while. Tulum’s a great location you can visit at least once or twice each year.
By owning property in Tulum, you can reach your vacation home within 12-hours. With short flight and drive. Visit your Tulum property for the weekend and be back to work or school on Monday.
2. Don’t Try and Figure Things Out By Yourself
When you decide to buy a vacation home in Tulum, be certain to get help from a real estate agent.
A real estate agent will help you better understand the tax laws in Tulum Mexico. They guide you through the process.
Find your Tulum vacation home, make an offer and close on your Tulum property safe and securely.
To find your Tulum home and start your search, get the help of a professional real estate agent in Tulum. Click here to contact our Tulum Real Estate agent for free help today.
3. Don’t Choose the Wrong Financing Option
The best way to pay for a Tulum vacation rental is with financing or cash.
There are 3 main ways you can finance a Tulum vacation home:
– Using your own savings.
– Through developer financing (up to 50%) with 5 to 10 years.
– Borrowing from a Mexican bank with higher interest rates than USA or Canada.
4. Don’t Try to Sell Too Soon
When you buy a Tulum vacation rental property, you generally expect its value to increase over time.
A good idea is to hold onto your Tulum vacation home for a few years. The longer you keep your Tulum property, the more rent you collect and appreciation.
Before deciding to buy a Tulum vacation home, speak with a local real estate agent who knows the area well.
Compare costs, financing and upkeep before making a decision to buy a Tulum vacation home.
Click here to get help from a friendly Tulum Real Estate agent. Find the perfect Tulum vacation home for you today.
As the buyer you do not pay fees to Real Estate agents in Mexico – the sellers do. Click here to get started today. No obligation.
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