There is nothing better than having a property in Mexico. A property to vacation with your family and make a profit from real estate, a vacation rental, for the rest of the year. Because it produces an accelerated return on investment.
Earn money through vacation rentals and increase the value of your home year after year. Property rentals are one of the businesses that generate the most passive income in real estate strategies. We will explain what this business consists of and how you can get the best out of it. Continue reading and learn more!
Passive income is a profit that you obtain through businesses that don’t require special care or don’t involve being aware. The rental of properties is one of the most common passive income sources. However, there is a division of this business: vacation rentals.
What is a Vacation Rental Property
One of the strongest vacation trends in recent years has been using platforms such as Airbnb, Vrbo, and HomeAway to rent properties in different cities around the world. What began as a great alternative to renting your home around the 1990 decade, has become a lucrative business in which more and more investors prefer to invest because of the high return produced by this type of activity.
Does it work?
The most important is that this business model works. The profit from real estate, that is a vacation rental property, is a rental income for the owner three to four times higher than that of long-term rent, without the owners worrying about the management of the property.
It is essential to mention that the profit from real estate depend a lot on the seasons. That is, there is not always a constant occupation. Initially, investments in this business are usually higher, starting with the cost of the property. Other expenses to consider are the payment of commissions to the platforms, marketing, and sometimes the amenities you will offer to guests.
Where to buy the vacation rental property
Hosts are looking to invest in homes with excellent locations in destinations of great interest. The cities’ main avenues, beaches, and tourist attractions stand out. They can even be resting places away from the towns. Such as cabins in forests, houses in the jungle, villas in vineyards, and Haciendas in Pueblos Magicos.
As in any business, it is important to consult with a real estate expert in the area where you want to invest. Experts advise you both on the most profitable type of property like the luxury properties and the most popular areas. As well as choosing a property with good potential and surplus value over time.
As an owner of a vacation rental property, you have many benefits, such as total property control. You decide the dates and conditions. But you also have obligations like maintaining a clean, pleasant, and safe space.
Think that you must create unique experiences of rest and comfort. The success of many investors lies in those details. For example, a well-designed space with an excellent location and offering a pleasant experience will have higher occupancy.
Some of the multiple benefits of this type of investment are:
Vacation and produce profit from real estate
Suppose there is somewhere where you would like to spend more time alone or with your family and friends. Then, acquiring a property in the area can be a very profitable business if you consult with experts. Thus, you will have a property that you can use as many times as you want. Additionally, for the rest of the year, rent it to produce an income and cover expenses.
Generate a positive income with rentals
Ideally, the property’s rent covers maintenance expenses, taxes, and mortgages, and it has a positive flow so that it is profitable as an investment. This model has become a favorite of several investors who focus entirely on acquiring various vacation properties. The total return on short-term rentals is several times higher than long-term fixed incomes, especially in areas where low seasons have less impact. For this reason, several beaches around the world and cities such as Los Cabos, Akumal, and Tulum, have become ideal destinations for this type of investment because that kinds of places have a flow of visitors all-year-round for their climate and location, among other reasons.
It is essential to consult with an expert like Top Mexico Real Estate since some properties have restrictions for short-term rentals.
Your property increases in value over time
It is of great benefit to make a purchase advised by experts who can guide you in the best properties that, over time, will naturally increase in value. A property in a popular place to vacation preserves and increases its worth more than properties in areas with lower demand.
One way to increase value is to make small or large remodels to the property if you need it. Or focus on acquiring properties at a reasonable price that need a makeover to increase their value and profitability after renovation. In the future, if you sell the property, you will be more than satisfied with the profit from real estate produced.
One way to reduce risk is by acquiring properties in profitable areas in both the short and long term in case you want to change the rental model.
Contact one of our experts at Top Mexico Real Estate and start earning money from your Vacation Rental Property. Remember…At Top Mexico Real Estate, We make it happen!
