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Vacation Rentals in Costa Rica - FAQs
Investing in Vacation Rentals
Is Costa Rica a good place for vacation rental investments?
Yes! Costa Rica has a strong tourism industry with high demand for short-term rentals in beachfront and jungle destinations.
How profitable are vacation rentals in Costa Rica?
A well-located rental property can generate 6%–12% ROI annually, depending on:
✔ Occupancy rates (higher in tourist hotspots).
✔ Nightly rates (luxury homes and beachfront rentals earn more).
✔ Property management & maintenance costs.
What are peak rental seasons in Costa Rica?
✔ High season (Dec–April): Best months for bookings & premium rates.
✔ Green season (May–Nov): Slower, but still attracts long-term stays & digital nomads.
✔ Holiday weeks (Christmas, New Year's, Easter): Maximum demand & highest rental income.
What are the best locations for vacation rental properties?
✔ Samara – Family-friendly, strong rental demand, swimmable beach.
✔ Nosara – Luxury & wellness tourism, high-end rental market.
✔ Carrillo – Quiet, scenic, up-and-coming for investors.
✔ Tamarindo, Jaco, Manuel Antonio – High tourist traffic, strong rental markets.
Do I need a property manager for my rental?
If you’re not living in Costa Rica full-time, hiring a property manager is highly recommended. They handle:
✔ Guest check-ins/outs
✔ Cleaning & maintenance
✔ Bookings & marketing
✔ Emergency issues
What are the costs of running a short-term rental?
✔ Property management fees (20%–30% of rental income)
✔ Utilities (water, electricity, internet, pool maintenance)
✔ Cleaning & laundry services
✔ Booking platform fees (Airbnb, VRBO, etc.)
Do I need a special permit to run an Airbnb?
No special permit is required, but all rental income must be declared for tax purposes.
Should I buy a furnished property for a vacation rental?
Yes! Turnkey properties rent faster and command higher rates. If furnishing from scratch, focus on:
✔ Comfortable, high-quality furniture.
✔ Reliable Wi-Fi & air conditioning.
✔ Outdoor living spaces (hammocks, patios, pools).
✔ Fully equipped kitchens for long-term stays.
What platforms should I use to list my rental?
✔ Airbnb – The most popular for short-term stays.
✔ VRBO – Great for family & luxury vacation homes.
Can I live in my rental part-time and rent it out when I’m not using it?
Yes! Many owners block off personal dates and rent out the property when not in Costa Rica. Dynamic pricing tools help maximize earnings while keeping flexibility for personal stays.
Short-Term Rental Taxes & Regulations
What taxes do I need to pay as a vacation rental owner?
✔ Value-Added Tax (VAT) – 13% on short-term rentals (if rented for fewer than 30 days).
✔ Income Tax – Variable, but rental profits must be reported.
Do I need a Costa Rican corporation to run an Airbnb?
Not required, but many investors own properties under a Costa Rican corporation (S.A. or S.R.L.) for tax and liability benefits.
What legal requirements exist for running a short-term rental?
✔ Vacation rental income must be declared for tax purposes.
✔ If you offer additional services (like tours, meals, or housekeeping), you may need a local business permit.
✔ Guest safety measures (fire extinguishers, security features) are recommended.
Setting Up a Vacation Rental
What are the essential steps to setting up a successful short-term rental?
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Furnish and decorate with high-quality, comfortable furniture.
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Install fast Wi-Fi, AC, and modern amenities.
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Create professional listings on Airbnb, VRBO, and Booking.com.
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Hire a property manager (if remote) to handle bookings and maintenance.
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Market your rental through social media.
How much should I charge for nightly rates?
Pricing depends on location, property size, amenities, and seasonality. We recommend:
✔ Peak season (Dec–April): Higher rates due to tourist demand.
✔ Low season (May–Nov): Competitive pricing or monthly stays.
How do I avoid bad guests?
✔ Use Airbnb’s screening tools (verified ID, reviews).
✔ Set clear house rules to prevent parties or damage.
✔ Require security deposits and rental agreements.
How do I handle cleaning & maintenance?
✔ Hire a local cleaning team (before and after guest stays).
✔ Schedule regular AC, pool & plumbing maintenance.
✔ Use lockboxes or smart locks for keyless entry.