| | |  Puerto Vallarta Real Estate 
Purchase and Pay with Rental Income in Puerto Vallarta
 Ed Rogalski - PVNN
September 15, 2010
| | There are a few key components to keep in mind when buying Puerto Vallarta rental property as an investment. | |
As realtors in Puerto Vallarta, we are often asked the question: "What kind of return on my investment can I expect if I rent out my condo or house I just purchased?" This challenging question can illicit varied responses but there are a few key components that an investor has to keep in mind when buying a property as a rental investment.
Firstly, the old clich้ in real estate rings true in situations like these but a lot will be dependent upon location. It obviously makes sense that a beachfront property will garner you higher rentability than any other type of property so, when looking to purchase, ask yourself the question: "If I were coming here on vacation, would I enjoy staying and renting this condo for a week or two?"
Secondly, look at the surroundings. What are the amenities like? How close are you to the beach? What about accessibility to the unit and to the various sites that Vallarta has to offer?
Thirdly, what are my expectations from renting my unit? Am I in this to become a millionaire or would I be satisfied just to cover off my operating costs such as maintenance and trust fees, property taxes and monthly utility bills?
My suggestion to clients is to do your homework beforehand. Talk to your realtor, rental agents and property owners to get an idea of what to expect. Check out various rental websites. Many of these have calendars where you can check the occupancy rates throughout the year and the pricing as well.
I also suggest that, as an investor, become involved in the rental process itself. It's not enough to purchase a condo and expect a rental agent to start renting it out for you immediately. Think of this as owning your own 'business' and ask yourself what YOU can do to increase 'sales,' in this case rentals.
There are numerous tools at your disposal and a multi-faceted approach to renting your property must be a hands-on operation. Besides listing with a local rental agency, put your rental listing with a realtor as well. Many real estate agencies have rental departments as well that can upload your property onto their websites.
Place your property onto online sites such as craigslist, facebook, yahoo and msn chat rooms and vrbo.com. Advertise your paradise hideaway in your local weekend newspaper. Many major cities in North America have a Saturday travel section and that can garner you some business as well. And, lastly, a very effective way to promote your property is to create your own website where you can advertise and have control of the content on your site.
Remember that in order to make money you may have to invest some money. And start off with slightly lower expectations and increase your rental business from year to year with a solid business plan. In this way your possibilities are endless, you'll be able to shoot for the stars and bear the fruits of your plan in the future.
Ed Rogalski is a realtor with Prudential California Realty in Puerto Vallarta and can be reached at ed.rogalski(at)prurealtypv.com.
 About Prudential Vallarta: Whether you are looking to buy a home or condominium in the Banderas Bay area, or are simply considering a vacation rental, Prudential Vallarta is Your Source for Puerto Vallarta Real Estate. You can depend on our bilingual and bicultural sales professionals to help you through the process. If you would like to learn more about Prudential Vallarta's real estate or vacation rental properties click HERE, or visit PruRealtyPV.com. |
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