Long Term Rentals in Dominical

Yes, they do exist. I am making the prediction that long term rentals for Uvita, Dominical and Ojochal, (known much more simply as Costa Ballena), are going to become, not just as they are now which is, difficult to find, but that the market for them will grow into a ripe branch of the rental market.

The allure of the Vacation Rental, with its lavish weekly rates has been predominant and frankly, a bit intoxicating for home owners in Costa Ballena. However, I contend that, when all aspects of the rental business are considered, the long term rental is going to grow in its appeal.

The costs of maintaining, marketing and general management of a vacation rental home are considerably higher than a long term. The net result is a home, likely with an ocean view and well situated to enjoy all the attractions of the zone, that draws a great weekly rate. But, and this is the crux of the biscuit here – the occupancy over the course of a year is somewhere around 50%.

I know, you may say that your vacation rental gets a higher rate than that, and it is likely true.  But there are many whose occupancy rate is lower than that.  I am just using it as an example.

Take that wonderful weekly rate x 52 to get your annual 100% occupancy rate. Divide by 2 for a 50% annual occupancy. So now that lush vacation rental weekly rate is cut in half. Now, add to that the expenses of doing the business of vacation rental:

1. Marketing: to do the vacation rental business well, you MUST pay high annual fees to websites such as VRBO, HomeAway, TripAdvisor and so on.

2.  Weekly Maintenance: cleaning up after the people that just left: cleaning, laundry, time spent just getting the place set up in the requisite “spiffy” quality a vacation rental demands.

3. Local property management: If you live out of the country, you no doubt have to pay someone to “meet & greet” and make sure that the guests can then find the home.

4. General time spent: your time in managing all the above aspects.

Now, compare that with long term rentals.  A 1 year lease gives you 100% occupancy, and the maintenance and bills can be included in the rent, or covered by the renter.

I am almost always asked by the adventurous property owners how much I think that they should charge per month for their house.  I usually hover right around the 1 week area with a little bit added. And, I contend, that the numbers will work out.

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