Choosing a Profitable Vacation Property in Puerto Vallarta

Written by Tropicasa Realty
January 17th, 2023

With the PVR airport receiving over 6.2 million passengers in 2022 – almost a million more than in 2019 and with projections for over 7 million visitors in 2023 – many people are looking to purchase an investment property in Puerto Vallarta. 

If you’re going to purchase a second home in Puerto Vallarta with the idea of offering it as a vacation rental property when not in personal use, there are several considerations to ensure it will generate the best return on investment. Here are a few important factors to keep in mind.  

  1. Location matters. Unlike buying a primary home, when you purchase a potential investment home in Mexico, the location needs to not only appeal to you, but appeal to future renters. In Puerto Vallarta, beachfront condos and homes are always popular choices, but locations like Old Town, the Romantic Zone, Amapas, Conchas Chinas, and Marina Vallarta are always very well-suited for vacation rentals. Additionally, up-and-coming areas like Cinco de Dicembre and Versalles are primed to be excellent investment areas for buying a second home in Puerto Vallarta, especially appealing to digital nomads looking to bring their office to our city for a month or two. 

  2. Market competitively and strategically. Pricing your vacation rental home in Puerto Vallarta strategically can be one of the best ways to fill up the days on your booking calendar and see the best return on investment. Remember that while the rental potential is huge on the Vallarta market, guests have a lot of options, including traditional hotels, so you want your vacation property to stand out as offering value.  
  3. Do the math. It’s important when purchasing an investment home in Puerto Vallarta that you are considering the expenses correctly to establish a positive profit margin. Things that you’ll want to keep in mind include: 
  • Property management fees 
  • HOA fees 
  • Property taxes 
  • Utilities 
  • Repairs, cleaning, and maintenance 
  • Property insurance 
  • Accounting fees 
  • Marketing and advertising your property 
  • Appliances and supplies 
  • Furnishings  
  • Vacancy periods 
  • Income taxes on rental income 

Additionally, there are other key factors besides just the price per night, that potential guests will consider when selecting a vacation rental: 

  • Property size  
  • Location 
  • Amenities  
  • Reviews 
  • Cancellation policies 

Keeping these things in mind will help you select a vacation home that will show great return on investment that will help your second home pay for itself. Our expert real estate agents will be able to help you determine the rental potential of any property you’re considering in the Puerto Vallarta area. 

Click here for more Puerto Vallarta real estate and lifestyle tips from Tropicasa Realty.