You may be thinking about purchasing property in the Riviera Maya to either have a second home or as an investment. However, both of these options require full previous learning so you can get great benefits. Here, we will share the essential information you need to know about how to generate extra income through vacation rentals.
Vacation Rentals Scheme
Vacation rentals are a business that has become very popular in the past years, especially in tourist zones. Although it seems to be a high-potential business, there are some aspects that you need to understand.
If you’re considering to invest in a property with the primary purpose of entering the vacation rentals market, you need to know how to manage your business. And great news! There are many people currently doing this for their living.
To succeed in the vacation rental business, you need to rent your property as much as you can. If you offer competitive rates, good services, and excellent amenities, you can ensure your property will be rented most time of the year. If your average occupancy goes from 80% to 90% throughout the year, then you’re doing a fantastic job.
The Riviera Maya is a trendy destination among national and international tourists. Therefore, the possibilities to maintain high occupancy throughout the year are high.
How to Choose the Right Property for Vacation Rentals
The Riviera Maya is a tourist destination that ensures an excellent return on investment. However, it’s essential to consider specific characteristics to shine among all the housing options available. and ensure high profitability.
First of all, choose a good location. If your property is located in an accessible spot, close to the main attractions. We suggest looking for properties located far enough from the noise, but close enough to the hustle and bustle. Always strike for high quality, so you can reduce maintenance costs and increase your earnings.
Another important factor is the neighborhood where your property is located. If your home is within a gated community, close to services and facilities, the chances of renting your property are higher. Properties in Playa del Carmen or Tulum that are close to the beach also have excellent rental potential
Finally, the amenities included within the community or with the property can also increase your property’s rental income and occupancy. Some of the top amenities are swimming pool, gym, clubhouse, grill area, spa, sports area, and co-working area.
Vacation Rental’s Management and Operation
Being your property manager is not that easy. Although it’s an excellent way to generate extra income, managing your property requires several tasks and help from other people, especially if you’re not living where your property is located.
Basic tasks include check-in, check-out, cleaning service, making several payments, maintenance, and more. Consider that if you rent your home, it will require regular maintenance due to the constant use and any damage your guests can cause. If you’re renting your home in the long-term, we recommend charging a security deposit so you can cover the repairs of your property if needed.
Also, keep in mind that vacation rentals require marketing, a proper operation, and an innovative payment system. The best way to list your home is on different vacation rental portals. These portals are the easiest way to connect with travelers. You list your home, write a description about it, and then you add beautiful pictures. Whenever someone wants to stay in your home, these websites will take care of the payment, making sure it gets to you. Some of the most popular portals are Airbnb and booking.com. Just keep in mind that these servers will charge a commission for each reserve.
However, if you decide not to be your property manager, you can always hire a professional company. Usually, the firms representing you will charge you over 15% to 30% of your total income.
Other Ways to Generate Extra Income with your Home
Nowadays, many people are offering other services and experiences apart from vacation rentals. These experiences include amusement, adventure, and entertainment to generate a fantastic income. An example of these activities is a private chef feast, professional massages, tours, car rentals, and more. The income you receive will depend on whether the services will be offered by you or by someone else.
Without any doubts, vacation rentals are a new business scheme that requires attention, processes, and dedication. The operation is something you can manage by yourself or hiring a professional company. Either way, you will generate a high return on your investment. Remember, the Riviera Maya is an excellent option if you’re looking for a vacation home or an investment property.
Feel free to contact us at Top Mexico Master Broker. We have several options for investment properties that could be exactly what you’re looking for.
If you need further information or if you’re ready to invest in the Riviera Maya, get in touch!