What does a high quality vacation rental look like?
Every business measures its performance through a profit and loss statement. How much money comes in and how much did it cost to produce this money. A home is no different and this is where a good purchase can make such a difference. The key to this is buying or building a property that checks all of the boxes and maximizes profitability. A few of these criteria are shown below.
- Market Competition( how many homes are similar to yours and what is the demand in that category of home)
- Costs to operate
- Repairs and Maintenance, An easy keeper or needy of attention?
- Well appointed/ Presentation( Pictures).
- In demand amenities
- Location- Distance to the beach, Ocean view, Distance to town( shopping, dining, nightlife)
- Property use, Venues, combination rentals, division rentals.
- A quality management company
The list above are a few criteria which should be considered when looking for a best performing rental. Get all of these right and the property will surprise you in how easily it can generate a great return on investment. While we at Stay In Tamarindo consider the detailed explanation of the above list our proprietary information, if we are working with you and your realtor we will go over this information carefully in order to get it right. An example of this would be the amenities. We know our rental market well and homes that have a beach club are far more in demand to rent than homes that do not. Conversely a home on a golf course does not seem to increase rental demand at all. Additionally certain decors outperform others, bed sizes and sleeping configurations all have an impact on whether your home is the preferential rental.
The most underappreciated item on the list is what does it cost to run your property? An easy keeper, as we call them, costs much less and does not need frequent attention during a guests visit. The difference is all profit… or loss depending. I have some homes that successfully rent a lot but make limited income because they are needy of attention and cost much to operate. I also have homes that are poorly positioned in terms of competition and amenities but they are quite profitable because they run smoothly and their costs like electricity and water and maintenance are quite low. Ideally we find a home for you that does all of the above.