Vacation rentals in Tulum can generate substantial income for investors. It’s not a get-rich-quick scheme, rather a way to build a lucrative income.
But how much money can a Tulum vacation rental owner expect to make? Vacation rental income varies.
If you’re buying a Tulum vacation rental purely as a cash-flow investment, spending up to $100,000 for the property should be enough to generate a positive annual cash flow of about $10,000 to $12,000.
There are many vacation rentals that earn more than this number, however, this number is what you should expect.
So, for example, a Tulum home purchased for $500,000 should earn $50,000 to $60,000 in rental revenue each year.
If you plan to use a vacation rental often, remember that the more days you spend at your vacation home, the less revenue it will make.
A survey by vacation rental marketplace Vrbo found that the average owner who rents out a second home is able to collect more than $33,000 in annual rental revenue.
We asked a few vacation homeowners in Tulum how much money they make. The numbers were ranging from $1,800 to $3,900 USD monthly.
“With the strength of the Tulum real estate market where it is today and in the future, I do believe vacation rentals are a good investment,” says Brian who is from Texas and a recent buyer of 2 properties in Tulum.
Many people use vacation rental platforms to at least cover the costs of their own home while they wait for it to appreciate.
In fact, short-term vacation rentals in sought-after markets like Tulum now outpace long-term rentals for potential cash flow.
How to figure out how much money your Tulum vacation rental could make
Figuring out how much revenue your Tulum vacation rental can produce is no easy task. But places like Airdna have data on the Tulum vacation rental market.
Airdna offers an online tool that enables you to calculate average daily rental rates, occupancy rates, and revenue.
“To calculate your monthly profit, you begin by subtracting items like principal, interest, management fees, and taxes.” says Zulema Murillo, Commerical director and Co-founder of Caribe Luxury Homes.
Assessing where to buy your vacation rental in Tulum
Two factors that contribute to a vacation rental’s appeal in Tulum are its popularity and its accessibility.
For example, a vacation home in the town might cost less than another closer to the beach, but it might not bring in as much rental revenue, Zulema says.
It’s always best to start chatting to real estate agents so you get an idea as to where the right place to invest is for you.
If you would like advice and direction on where you should be buying a vacation rental in Tulum then chat with our real estate agents.
Our real estate agents help Americans, Mexicans and foreign buyers find and buy their property in Tulum safely and easily. Click here to contact our real estate agents in Tulum now.