How does an uptick in Summer travel impact your Cabo Rental?
For many full-time ex-patriate residents of Los Cabos travelling back to the States or Canada once or twice a year is a necessary evil. Whether it is for a family members wedding, an appointment at the DMV, or to pick up the Amazon Prime stash that has been accumulating at your permanent US address, flying in and out is quick and convenient. Last week I was returning from my Mother’s retirement party in San Francisco with my girlfriend when I was met with a pleasant surprise.
We boarded the Southwest flight early and headed straight to the back of the plane. She chose the window seat and I sat in the aisle placing our bags in the middle seat, the universal sign for “Can’t sit here, seat’s taken.” As boarding continued the seats started filling up. A sea of people in straw fedora’s and swimsuits crowded the aisles, clamoring for overhead bin space. The two of us looked at each other with bewilderment but shook it off in disbelief. Moments later, a flight attendant approached us and said “I am sorry Sir but we have a full flight and will need you to make this seat available.” Incredulously I looked at her and all I could muster was “…but… it’s Summer?”
Travel to Los Cabos is up 17% from last year and is on track to break over 4 Million visitors for 2016 resulting in longer lines at Customs… in August. All of those visitors need to stay somewhere through a Cabo rental and investors are taking notice. My office has been buzzing with stories from clients that have recently purchased with the intention of making their home a Cabo rental during the months in which they are not in town to enjoy it and already being completely booked! This additional income helps them cover HOA dues, utility bills, and sometimes even pays for the property itself.
A client of mine recently paid $100,000 for a studio condo at Marina Cabo Plaza. He decided to see if he and his wife could figure out how to advertise and rent the property themselves. Using internet sites like VRBO, LeaseBaja.com, and Facebook, they are booked throughout the entire summer! Averaging $64 per night means that over three months that they did not plan to visit, their Cabo rental will have earned 5% of their purchase price back.
Working with a BCS MLS/AMPI Realtor and a knowledgeable Tax Attorney you can learn how easy it is to get into the vacation rental business and always have a place where you can take long weekend getaways in Cabo. All investments should be seriously considered prior to being made. Fortunately, most research that is done here involves warm weather and cold margaritas.
Original article from Destino Los Cabos Magazine
Dane Posey is a BCS MLS/AMPI Realtor with REmexico Real Estate Group.
Find him online at poseknowscabo.com or facebook.com/daneposeyCNE.
Email Dane@CaboRealEstate.com or call 624-161-2618.