What You Need To Know Before Buying Airbnb In Riviera Maya Mexico
Buying Real Estate in Mexico as an Airbnb rental is a hot topic for Americans and Canadians alike.
There’s no exact formula on what to look for when it comes to buying homes in Mexico. Nonetheless, there are some elements that are present with almost every home purchase you make in Mexico.
These elements influence the final purchase price and should be focused on.
Here are the 5 Things You Should Know Before Buying a Mexican Airbnb.
1. What’s the Rental Occupancy Potential?
Find out how much the potential occupancy rate is for your local area to which you are thinking of buying.
Another thing you should do is determine your target occupancy rate based on your own personal use of the property. How many days of the year do you plan to rent out the property versus using it for yourself or family members?
Understanding this will give you an idea of how much income you can expect from your investment.
2. Understand the Finance terms and conditions
You may need to put 50% down or more to finance an Airbnb in Mexico and pay it off within 5 years. This can depend on whether you are buying a preconstruction or already delivered property in Mexico as to the payment terms.
Financing is limited and is often high-interest rates than in Canada, America, or your own country.
If you would like to find out more information on financing a property in Mexico?
Click here to read: 7 Ways to Finance a property in Mexico as an American or foreigner.
3. Understand the local market for Airbnb in Mexico
Airbnb has been growing rapidly in Mexico and there are a lot of people interested in renting their homes out to tourists.
The first thing it’s important to understand is that the market for Airbnb in Mexico is still very new.
This can make choosing the right home a bit of a guessing game. The second thing you need to know is that renting on Airbnb isn’t quite like it is in most other countries.
In some places, you’re more likely to rent houses, apartments, or rooms inside a house. But in Mexico, you’ll find mostly condos and villas, which are sometimes owned by Americans (and foreigners) and Mexicans.
There are some major differences between Mexican Airbnb listings and those in the U.S., Canada, and Europe.
For one thing, many of them cost less than your typical rental property in the US and are amenity-rich.
It’s important to understand the Airbnb market within the location you plan to buy in. The market in Mexico city is very different from the market in Tulum or Playa del Carmen.
That’s why it is highly recommended to chat with a qualified Real Estate agent in the area you are choosing.
If you are thinking of buying an Airbnb property in Riviera Maya Mexico such as Playa del Carmen, Tulum, Puerto Aventuras then chat with our qualified real estate agents for free at no obligation today.
4. Understand the Local Law in Mexico for Vacation Rentals
While the law is not uniform across Mexico, in most cases, you will need a permit to rent your property as an Airbnb.
In many cities, however, a permit is not necessary if you live there and rent out a room. In these cases, you can just register with the city and obtain a tax identification number.
Permits are more commonly required if you are renting out property that is in commercial zones or in tourist areas.
The Mexican Constitution gives municipalities the right to regulate tourist rentals, but it does not provide specific guidance on how to do so.
Airbnb has been working with local governments for several years to make it easier for hosts to apply for permits and comply with local regulations.
It also provides information about what is legal and what isn’t on its website. When Airbnb first began operating in Mexico, the company helped hosts apply for permits where needed.
This service has since been discontinued, but Airbnb continues to work closely with local authorities in order to ensure compliance with laws and regulations.
5. Know all expenses and reoccurring fees
Whether you are looking for an investment property to use for Airbnb or you’re using your spare bedroom as an Airbnb host, you will have to incur start-up expenses.
To name a few, certain costs include mortgage, furnishings, amenities, software, security, insurance, operational, and marketing.
There are also HOA and maintenance fees. These costs should be estimated to determine if it’s feasible to operate an Airbnb rental.
Also, understand that it takes time to create cash flow with any new venture so be prepared to spend money upfront with this type of business in order to make good money in the long term.
Find an Airbnb in Riviera Maya Mexico today
Navigating the Airbnb Vacation Rental market in Riviera Maya Mexico can be a challenge. Tulum and Playa del Carmen are the hottest markets for Airbnb in Mexico.
But to make the right decision you will need help from an experienced and qualified Real Estate agent who can help you every step of the way. From finding and viewing the best Airbnb property opportunities to buying and closing on your Airbnb property.
Caribe Luxury Homes has helped many Americans, foreigners, and Mexicans find their perfect Airbnb investment property in Riviera Maya Mexico.
And the service of our real estate agents is free for you as the buyer of an Airbnb in Mexico.
Are you interested in receiving the best listings in Riviera Maya Mexico? Click the links below:
Get the 10 Best Tulum Vacation Homes (to Rent Out) on Sale Now
Mexico Vacation & Investment Property for Sale
10 Best Tulum Condos for Sale Under $150k
10 Best Tulum Condos for Sale Now Under $300k
Get the 10 Best Tulum Pre Construction on Sale Now
View Tulum Mexico Real Estate Listings
Get Tulum Real Estate Listings
Read more helpful articles below:
Click here to read more about buying property in Mexico as a non-Mexican.
Buying a Vacation home in Tulum Mexico to Rent out
5 Ways to Finance a Vacation Home in Mexico (as a non-Mexican)
8 Reasons Why Tulum Mexico Real Estate Market Is Booming (during the Pandemic)
What Property in Mexico Appreciates in value the most?
Guide to HOA Mexico Real Estate (Homeowners Association in Mexico)
