A Little About Income Generating Properties

Today’s handy tip is all about the rental market… specifically the Jaco Beach rental market.

I had a long chat today with our Broker David Karr who has decades of experience in the Jaco rental market, and he gave me the low down on what kind of rental income owners can safely expect from a 3 bedroom beachfront unit. 

I was surprised to hear that the rental market on this type of property is so strong that even during the Covid shutdown all of his clients properties stayed in the black. I’m not sure many rental markets can say that!

I’m going to paraphrase because it was a long conversation. 

Obviously, there can be a huge difference in the location, style and level of luxury from one home to the next. The quality or marketing can also make a big difference to your ROI. 

The good news is that owners can safely expect to make $35,000 gross annually on the low end and $80,000 gross annually for a premium property (meaning one that is of higher quality and with a prime location).

The average nightly rental rate for these units (again, depending on the quality/demand for your unit) will run between $150 in the low season and $400 in the high season... although I have seen it as high was $725/night in the peak season (Christmas to early January.)

Since gross income isn’t the only thing you need to know before you invest, I also asked about carrying costs. 

He said that most 3 bedroom beachfronts will have similar carrying costs, and that they will run you between $10,000- $14,000 per year… again depending on location since prime units also tend to carry higher HOA costs.

There are always exceptions to the rule but this will give you a general idea of the type of revenue you can make when you buy in Jaco.

The bottom line? If you’ve been putting off purchasing that retirement home because you have a few more years to work… you might want to think about getting in to the market now and then renting your unit until you are ready for your big move. That way you get the best price and when the time comes, your slice of paradise will be ready and waiting!

As Costa Rica's popularity grows and the American economy changes, its almost guaranteed that the market will continue to strengthen, and as it does- prices will only go up!

Here are a few listings that are already in the rental market and earning good returns...

https://www.jacocoldwellbanker.com/property/2-bed-condo-for-sale-in-los-suenos/6538

https://www.jacocoldwellbanker.com/property/3-bed-condo-for-sale-in-jaco/6628

https://www.jacocoldwellbanker.com/property/2-bed-condo-for-sale-in-jaco/4963

https://www.jacocoldwellbanker.com/property/2-bed-condo-for-sale-in-jaco/3448

https://www.jacocoldwellbanker.com/property/3-bed-condo-for-sale-in-jaco/5831

https://www.jacocoldwellbanker.com/property/3-bed-condo-for-sale-in-jaco/6133