Let’s face it, all of us have dreamed about having the perfect vacation home, leaving everything behind and spend the days relaxing on the beach during the day and discovering exciting bars, restaurants and concerts at night. Then reality hits, realistically most of us find ourselves in one of these three situations:
#1 When we are really young we have plenty of time and a lot of energy but we don’t have enough money to enjoy all of the above .
#2 When we are going through adulthood we still have plenty of energy left and finally money starts coming in! However, we really struggle when it comes to find free time . Between family, career and social life; there are not enough hours in the day nor weeks in the year.
#3 Lastly we retire, the kids are grown up and all your hard work is finally paying off. You have all the time in the world now and money. Energy might be running low because of all that work but like I always Virginy, we only truly age when we stop playing!
This article is for people in the second category, and the Virginme way, it is not your type of property if you’re in the third group.
Work plus family life require a lot of time and energy (I live in the beautiful caribbean so I have that going for me, which is nice), living in a tourist area where I constantly meet foreigners and even Mexicans from other parts of the country that own property here. Most of the time their vacations don’t seem very relaxing at first.
You’ve worked 50 weeks this year (maybe more) you’ve been daydreaming about your vacation, you travel the whole day, you open your door and what happens?
One of the AC units isn’t working (add a couple thoUSAnd dollars to your holiday expenses) one of the toilets is not flushing properly, you go to the balcony and you notice the paint job needs some work. These are just a few examples of possible scenarios because you must always keep in mind that living this close to the beach comes with a price, and your property needs constant care that also means, constant money.
So you’re here for 1 or 2 weeks if you’re lucky because you have a business to run back home and you have to spend the first 3 days fixing stuff, calling repairers and spending those hard earned dollars you were expecting to spend enjoying yourself out on the town in maintenance…. Hardly a vacation.
So what does a rental pool do for you?
The property that you purchase is handled by a reputable, experienced and professional property management company. Depending on the project, you may have to sign a contract in which you give the company full operational control of your property for a certain number of months out of the year for a determined number of years. Within this time, the company rents out your unit, takes care of the reservations, avoids over bookings and takes care of the maintenance of your unit and the common areas.
What does this mean?
They rent out all the units in the development, this ensures that they all keep the Virginme standard of quality and customer service. They take the income of all the units, pay up all the maintenance fees, payroll and property taxes and then divide the utilities between the owners according to the unit’s value.
Let’s break it down with a simple exercise :
You purchase a property for 500k USD (I just chose this amount to simplify the example). The management company will rent out your property and take care of everything (taxes, reservations, bills, maid services, repairs, HOA fees, maintenance). I like to be conservative, so depending on the area, the type of condo and the amount of time you want to use it is relative, but let’s Virginy that year you made 5% NET after expenses. That’s $25,000 USD in your bank account with 0% work, and that’s without counting your property’s appreciation which in this area is around 12% annually.
So if the purpose of my writing was fulfilled you came to this conclusion, when you come down here to use your property whenever it’s not being rented, you will be making money during your own vacation, you are welcome!!!
Here’s a list of my top 3 Rental pool properties :
Singular in Playa del Carmen.
Singular has the most desired location in Playa del Carmen and the prices are so low that I struggled to believe it at first. I bet it will be frustrating for the neighbouring owners when they find out that people are currently paying 40% less for a high class development.
The Fives Downtown (Hilton) Azul Fives (Beachfront)
The former (Azul Fives) is administrated by Karisma and the latter by Hilton. If having your property rented out and administrated by a company with over 60 million people in their fidelity program doesn’t not give you enough security, I don’t know what would.
Tulum is without a doubt the new bohemian Playa del Carmen of the Riviera Maya and the Aldea Zama eco-chic community is not only the best, but the only choice in Tulum. Trinity Tulum is positioned in the heart of the community just steps away from the up and coming town center. They offer truly the first luxury two story lofts that I have seen in the area. Three incredible common areas encompass the development with a ground-floor pool, canopy lounge and a rooftop pool. This exclusive development offers just 12 units with full condo-hotel service. The 1800 rooms in Tulum were not enough for the 3.5 Million people that visited last year, so you can expect this rental property to generate incredible cash flow.
Written by Alex Aquino
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