Riviera Maya Investment Properties

September 18, 2021September 19, 2021 Kyle

Is the ROI as good as they say??

You have probably heard mixed reviews about owning investment property in the Riviera Maya, some people netting more than $2k usd a month on a $80k usd Investment and making an annual 25% roi. I can tell you that I’ve met many people living here that do own and manage their own property and make those returns, but I can also tell that it’s not that easy. It does take work, and you should always keep an eye on your Investment, especially this one. I’ve heard it from almost every client that I’ve ever had here, that their property in the Riviera Maya is the best monthly cash flowing investment that they own. Now that I’ve said that, I can also state that is not the case for everyone.

Top 3 Key Performance Indicators

Location, Location, Location! This crucial when looking for vacation rental income. Your success is never guaranteed of course, but buying a property that is in the tourist area, where there is more tourist activity makes a world of difference for the demographic visiting.
Amenities – Rooftop Pools, a spa, a gym, shopping area, restaurants and more.. Most vacationers that are visiting the Riviera Maya, are usually enjoying the beach, cenotes or Ruins all day, but after they want to enjoy being close to restaurants and also have a pool to hang by as well. If your development has a spa and other amenities, it will bring in more guests if properly advertised. Remember that nobody will know about your condo or the sweet amenities that it comes with, without proper marketing channels.
Administration – The difference between 8%-14%-25% ROI, management and marketing... Not all property managers are equal, and the base line is not up to Excellent. This will always be a key factor when owning real estate. It’s easier to rent your property out long term, and let the tenant pay the utilities, but will make you on the low end of what’s possible. Managing your property that way does save you on paying a property administrator 25%-30% administration to manage the bookings and cleanings of the short term rentals, along with the customer service calls and emails that need to be sent when managing a property. Make no mistake, managing your condo requires customer service and it is work that someone needs to stay on top of daily, in order to make the most money. Some people that are naturally gifted at management and marketing, do really well on their own and have been known to make over 20% returns. Most of my clients pay their initial investment off between 5-7 years.