by: Federico Fernandez, Real Estate Consultant
Our charming beach community of Tamarindo´s economy is based on tourism. Lodging is one of the basic items in the scope of services available to serve a growing flow of tourists visiting us. Visitors not only seek options of staying in hotels. Renting a condo, villa or home is an alternative that every day becomes more and more attractive. This has become a win-win situation. Tourists are able to stay in comfortable beautiful houses or condos with private pools, ocean view, beachfront locations, walking distance to the beach or even in the countryside within short driving distances to several beaches and activities. The units available are furnished, fully equipped and serviced by property management companies that facilitate all renters´ needs during their stay. It is very convenient for vacationers that they can choose within a wide variety of properties. Some of them are large houses or condos that can host large groups. It is common that two or more families come together and occupy these units. They have a great time as they can share cohabiting, enjoying the private pools and cooking together or barbecuing. The net result could even be savings for the renters as they have to eat out less frequently. Options of renting private vacation rental units range over $100 a night up to $20,000.00 a week, depending on the characteristics, size, time of the year and amenities provided. Owners of these properties are benefited as well. Several of these vacation rental units, without much effort, are self-sustainable financially speaking. This means that renting a couple of weeks a year, usually in high season is easy and the income produced is enough to cover all the yearly expenses related to the property. If the focus of a property is business related, some of them are very profitable. As a quick reference, a condo in a walking distance to the beach that can be purchased completely furnished and equipped at $375,000.00 could generate a net profit of USD$25,000.00 yearly. On bigger dimensions, properties over a million dollars can generate yearly revenues close or over $100,000.00. This is very convenient. Your vacation home pays for itself and for your own travel expenses to enjoy it. The vacation rental business is usually ongoing and when a property sells, the bookings are granted to the new owner. Ask your ABC Real Estate advisor for the rental income history or capabilities of the property you are interested in. You might be surprised.