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Long-term Rentals In The Riviera Maya

18 March, 2023

In just 20 years, Quintana Roo’s permanent population has grown 112.3 percent.

This means that in the year 2000, there were 849,963 people living in the state.

By 2020, this number had increased to 1,857,985. This has been mainly propelled by the insatiable growth of the region, and therefore, the great amount of job offers generated for both national and foreign workers.

Additionally, the COVID-19 pandemic opened the door for many people to flock towards the Riviera Maya and settle down for both work and living.

With the increase of the digital nomad population and people who were able to work from home, many people decided to set base here, thanks to its beautiful white-sand beaches, impressive nature, and friendly and vibrant communities.

All of this has benefited the demand for long-term rentals over the past years and has turned the heads of investors who were mainly thinking of vacation rentals due to the ROI these generate.

The Advantages of Investing in a Long-Term Rental

When you invest in a property in the Riviera Maya that is purposely thought for long-term rentals, you open up to many possibilities location-wise.

You can find properties that are further out from the tourist area.

At the end of the day, you are providing a long-term home to someone who although probably came to the area for its beauty is here to actually settle.

This will give you the opportunity to see more options, which are most likely more accessible, and in residential zones with a lot of potential and future value due to their location.

Your possible tenants can vary between recently graduated youth, people in search of new opportunities, or couples or families seeking somewhere to settle and establish a new home.

It may interest you: long-term rentals in playa del carmen

Financial Stability

A long-term rental represents a win-win situation for both the owner and the tenant. Contracts can vary between three, six, or twelve months.

With this, you know you will have a fixed income for an established period of time, without having to worry about low season or variable income month over month. This will give you financial stability.

Maintenance

It will reduce your maintenance costs.

This is something you can negotiate with your tenant; but if your property is located within a complex or residential, you will most likely have to pay a monthly HOA fee for common areas, maintenance, and security.

Since these are beneficial to your tenant, it is something you can have them pay within the rent, also increasing value to your rental. That way, you don’t have to worry about making these monthly payments.

To Furnish or Not to Furnish

One big expense that purchasing a property entails is furnishing and conditioning the house.

However, if you are searching for a long-term tenant who is trying to establish and make a living here, you could rent without furnishing, creating an important saving in your investment.

But, you should consider that if you are renting to someone who just moved here or is just starting out, they will most likely rent a furnished property.hin the rent, also increasing value to your rental.

That way, you don’t have to worry about making these monthly payments.

Damage Protection

When you rent your property long-term, as opposed to a vacation rental, you can protect yourself by charging a deposit that is equal to one month of rent.

With this, you can pay for repairs or damage that your tenant may cause. This should be established in the contract previously.

However, if by the time the lease is up and there is no damage to your property, you must reimburse this money, so make sure to keep it somewhere safe.

Utilities and Services

You will be able to decide whether you include services such as water, electricity, gas, and Internet in the rent, or you prefer your tenant to pay on their own.

If you include it, you can increase the rent slightly as you will have to cover this expense on a monthly basis.

In this case, it is recommended that you limit the water and electricity consumption in the contract to avoid paying over-the-top bills.

Disadvantages of Investing in a Long-Term Rental

You must always place any investment opportunity on a scale and weigh out the pros and cons.

Although all the abovementioned points make for an amazing investment, you must consider the disadvantages of this investment.

The first and foremost is that you won’t be able to use your property as long as you are renting it out.

If you’re looking for a second or vacation home to use from time to time, this business strategy won’t work, and we recommend you invest in a vacation rental instead.

The other disadvantage is finding the perfect tenant.

Don’t be afraid to ask for references, interview your possible tenants, and set rules.

Be strict with your limitations and make sure they are followed through. At the end of the day, you are protecting your investment and making sure that whoever is renting it will take care of it as if it was their own home.

As we mentioned at the beginning, the Riviera Maya has become an attractive destination for people searching for a long-term or forever home – whether for work or flexibility.

The region’s growth speaks for itself and paints a very favorable panorama for anyone looking to invest in a long-term rental.

Author

Maya Ocean

Maya Ocean Real Estate

We are a company dedicated to the Sale of Real Estate and we also offer the option to Manage, Promote and Rent. Our real estate inventory and area of operations extends to the Riviera Maya mainly in the cities of Playa del Carmen and Tulum...

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