Costa Rica Houses That Make Great Rental Properties

May 12, 2023 in Buying Process, Real Estate in Costa Rica, Tips for Buyers

Jungle, mountains, ocean views, and waterfalls: Costa Rica houses with these sensational features make the best rental properties. Our Osa Tropical Properties office does not manage rental properties as a part of our business model. But we do recognize that rental potential is one of the biggest factors that our clients are looking for today and we sell a lot of homes that go on to become successful vacation rentals in Costa Rica. Investing in real estate has always been a great way to secure one’s long-term savings and it seems that confidence in Costa Rica's houses, lots, and businesses is growing. International investors have been watching our real estate market for years, witnessing the number of sales going up and prices increasing steadily. This is not likely a bubble; it is proof that a growing number of people are wanting to spend time in this incredible part of the world, whether short-term or long. Foreign investors in Costa Rica are observing a rise in vacationers traveling to this region looking for houses to rent in Ojochal, Uvita, Dominical, Tres Rios, Chontales and beyond. New, international cuisine restaurants are openings all over the coast and long-time Costa Ballena tour companies are thriving amid a new crop of adventure guides. This dynamic landscape serves to inspire the nature lover, who is thrilled to discover hidden ecological jewels, whether by hike, kayak, or off-road track. All of these many, diverse people need a place to stay while they are visiting the Costa Ballena. And many of the so-called “snowbirds” who come and go throughout the year are all too happy to share their Costa Rica homes in exchange for a great rental income.

The top reasons why people choose to share their Costa Rica houses with vacationers

Aside from the obvious reason of return on investment, the cost of ownership in Costa Rica real estate is a topic that is often overlooked and has significant baring for many who rent their Costa Rica homes. Maintenance in Costa Rica houses can become expensive, especially if a home is not lived in and looked after often. Ants, geckos, vines, and the elements all have their slow and steady effect on structures in the tropics. It won't be long before the jungle reclaims a structure that is not looked after by human interference. You don’t have to have people living in your home to prevent the elements taking over your home in Costa Rica. But if you are away for any length of time, you will have to have cleaning and maintenance people visiting your home at least once every 2 weeks to tend to your home's cleanliness, the garden, and your pool. The cost for this work is much lower than in North America or Europe but these costs still add up. It works out to be quite worth it to have people enjoy your well-maintained space since the work is getting done anyway. Buyers of Costa Rica real estate who are not yet ready to retire are also taking comfort in their retirement savings earning an income through their Costa Rica houses. They have fallen in love with the Costa Ballena and have chosen to purchase property in Costa Rica now while the market is still growing and evolving. Since they are still working and only able to visit Costa Rica every once in a while, they will frequently choose to rent their homes. We have a number of clients who have purchased homes in the Costa Ballena over the last few years, who are now wanting to expand their local real estate portfolio. It makes sense to have multiple investments in one region, especially if you have a great property management team looking after you. Our clients who have chosen this path appear to be delighted with their choice.

Helpful advice for Costa Ballena vacation property investors

International investors who are happy to not yet use their Costa Rica houses for their own personal use are finding that buying property in Costa Rica with their IRA or similar investment scheme is a worthwhile venture. To maximize this investment, buyers are looking for luxury homes in the best regions of Dominical, Uvita, and Ojochal; or premium, well-situated homes that they can upgrade to increase their rental potential. The highest return on investment in Costa Rica properties can be found in high-end vacation rentals. Luxury seekers are willing to pay top dollar to enjoy the sensual experiences that a private home in this beautiful environment can provide. As a basic rule of thumb for South Pacific Costa Rica vacation rental properties, you can expect an annual net return of 4 – 6% on your investment. According to local property managers, on average, a good rental property will rent for about 65% of the year. But these figures can climb as high as a netting an 8 – 10% on investment if you build or buy the right kind of rental for the growing premium rentals market.  It’s critical to keep guest experience in mind when selecting your property purchase. A large pool, tropical landscaping, and guest amenities are crucial factors to consider adding and maintaining in your Costa Rica house for rent. Consider all of your target market’s needs and desires based on the nightly price average in which your home naturally falls. If, for instance, you own an older home near the beach, you may want to target smaller-budget surf and adventure clientele who may not need luxury features like expensive entertainment systems. But they will likely want a small pool to cool off in, A/C in the bedrooms to combat the beach-side heat, and a BBQ to cook their dinners. And if you have a great ocean view property up in the mountains of Costa Ballena, your guests will likely want a fuller set of amenities since they will be traveling a further distance inland to reach your rental home. Think large pools, lots of shaded outdoor space, great landscaping, and a full-range of high-end appliances and electronics.  Vacationers choose this South Pacific region of Costa Rica for the incredible quality of life that features stunning nature, tranquility, and warmth. As long as these three characteristics are emphasized on your Costa Rica rental property, you are likely to find a long list of international clientele who will love to return here again and again. We know that there is no place else in the world like the South Pacific region of Costa Rica that we know as Costa Ballena. If you are interested in purchasing real estate in Dominical, Uvita, Ojochal, Tres Rios, or Chontales, this is our Osa Tropical Properties region of service. We know all of the best homes and lots for sale in Costa Rica's South Pacific and we are here to answer any and all of your questions. Sign up to our real estate newsletter below for weekly updates about our local properties market. Or email our team at sales@osatropicalproperties.com for immediate attention. Pura vida! 

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