Oct 16 2019
Buying Puerto Rico Investment Property
With the rise of AirBnB and vacation home rentals, we have many clients interested in purchasing an investment property in Rincon or Western Puerto Rico. It is an ideal place to invest if you enjoy using the property a few times a year and then renting out. If you are considering an investment property in Puerto Rico there are a few things to consider:
- Is the location ideal for vacation rentals?
- How much will management cost?
- What other ancillary costs will be incurred?
- Are there any restrictions on short term rentals?
- What is my competition?
Most ares of Western Puerto Rico are in ideal areas for short term rentals, beaches are nearby, the views are amazing and there are plenty of support services such as banks, grocery, pharmacies, hospitals, etc.
Management fees depend on what services are required. Many buyers can manage inquiries and payments remotely, and with smart locks, check in can be handled remotely as well. But you will need cleaning and maintenance, these are key to keeping your investment property looking good and in return getting return clients and good reviews.
Ancillary costs such as insurance, taxes, accounting fees, utilities must all be figured into the bottom line, Island West can help estimate these fees to help you understand your expenses going in.
Many condos do not allow short term rentals. Many people do it anyway. If you are depending on that rental income, you will want to find a property that allows short term rentals in its homeowners rules and covenants. Currently there are no restrictions on short term rentals by municipalities in Western Puerto Rico but those things can change and it is important to be aware of any changes.
Western Puerto Rico and the cities of Rincon, Aguada, Aduadilla and Isabela have a high number of vacation rental properties and the list is growing, competition is high, but the key is standing out, service, great reviews and knowing who you are catering to. Island West Properties has over 25 years in Western Puerto Rico property sales and can help!