Understanding the Market
Most buyers in Costa Rica fall into three categories:
- Full-time residents
- Snowbirds who visit part of the year
- Pure investors who rent the property most of the time
If you belong to the third group or even part-time users looking to offset costs, rental income can help your property pay for itself — and in many cases, generate a modest profit.
What Type of Return Should I Expect?
Typical returns for well-located short-term rentals range between 3% and 8% annually, depending on occupancy, property type, amenities, and how involved you are in promoting the unit.
A condo with ocean views, walking distance to the beach, and access to a beach club may bring in $150–$300 per night in high season.
But keep in mind:
- Property managers typically aim to give every unit 12–20 weeks/year in rentals.
- If you want more than that, you’ll need to market it yourself.
Keys to Boosting Your ROI
To attract bookings and earn more income:
- Invest in appealing décor and top-quality photos (ideally with drone video)
- Offer guest-ready extras like beach towels, coffee makers, coolers, Netflix, and even bikes
- Create a dedicated webpage with personal hosting tips and local recommendations
- Maintain fast Wi-Fi and clean, comfortable bedding
Renters are browsing online from colder countries — make your listing stand out with visual appeal and personal touches.
Should I Hire a Property Manager?
Yes, unless you live locally. A good manager will:
- Handle bookings, guest check-ins, cleanings, and maintenance
- Market your property on platforms like Airbnb and VRBO
- Charge commission (typically 20–25%)
Top managers often prioritize higher-quality listings with better photos and rental potential. Second-tier properties get less attention. Choose wisely and maintain the unit well.
What About Costs?
Before profits, consider these ongoing expenses:
- HOA fees and utilities
- Repairs and maintenance
- Cleaning services
- Internet and cable
- Property management commission
- Property taxes
- Income taxes (13% VAT for short-term rentals)
- Capital gains taxes upon sale
What Can I Really Expect?
If you're just hoping to offset costs and enjoy a free vacation home, the answer is: yes, Costa Rica delivers. If you want maximum ROI, you'll need to be proactive — better listings, more marketing, and strategic property selection.
The biggest earners tend to:
- Rarely use the property themselves
- Invest heavily in guest experience
- Treat the rental like a business
A Word on Rental History
Rental history from the previous owner is rarely helpful. ROI depends more on:
- How often you rent
- Your pricing strategy
- Property upgrades and presentation
- Your property manager’s capabilities
Buy the property for what it can do — not what the last owner did with it.
Final Thoughts: Costa Rica Is a Lifestyle Investment
If you’re buying purely for maximum profit, there are easier markets. But if you want to enjoy a personal piece of paradise while earning enough to cover your costs — and maybe even pocket a little extra — Costa Rica is a solid choice.
With travel to Guanacaste becoming easier, tourism growing, and inventory tight, many owners are seeing stronger returns than ever before.
And if you ever decide to move here full-time? That’s the ultimate ROI.
Want to Know More?
If you're considering buying a rental property in Costa Rica and want to explore your income potential, we're here to help. We’ve assisted hundreds of clients in finding homes that not only fit their lifestyle — but also help fund it.
Got questions? Contact us today for personalized advice about the Costa Rica rental market.