Maximize vacation rental income for your condo in Puerto Vallarta Mexico.

June 22, 2010 - PRLog -- PUERTO VALLARTA, MEXICO.

SUMMARY
How to maximize rental income for your condo in Puerto Vallarta Mexico?
Review our guidelines for setting a fair price and follow alongside the changes in seasonal demand. Identify the best solution for advertising your property and identify important US tax implications.

How many weeks a year you will rent?
A typical vacation condo or villa in Puerto Vallarta will rent for 14 to 18 weeks out of the year, which is in line with other vacation destinations worldwide. This number already includes all the important Mexican, USA and Canadian holidays.

More expensive homes, or very large homes, rent fewer weeks out of the year.

Demand for your vacation property is the highest in the weeks when your family wants to be there. Take these “family” weeks into account in your rental calculations.

How do I determine the rental price?
Puerto Vallarta’s average rental price is anywhere between US$35 to US$150 per person per day (for week-long contracts)… but what is the correct number for your property?

First, determine your competition on major holidays. Use the internet to inquire about week-long stays (typically Saturday to Saturday) during Christmas, Mexican and Canadian holidays for two people at several nearby hotels. Take special care to consider room-only hotel rates and not all-inclusive rates which include unlimited food and alcoholic drinks.

Second, determine the high-season rate. Check the same hotels’ rate for a week-long stay and mid-February to mid-March.

Third, adjust down if needed. If you are comparing your property against 5-star hotels with a great worldwide reputation, a prominent internet presence or a large advertising budget; then lower your anticipated rental rate to be 20% to 40% less than the competing hotel rates. Also take into account that a competing hotel may offer a better location or amenities than your property.

Fourth, once you are armed with this competitive knowledge, set your property’s holiday, high-season and low-season rental prices watching that the price per-person-per-day stays within reason.

Maximizing your annual rental income.
Don’t let your property sit empty large portions of the year! Make adjustments to your rental price according to changes in seasonal demand. The chart below shows that vacation home demand in Mexico swings +15% to -30% from the annual average during high- and low-season.

Visit http://rentalsinvallarta.com to see a chart with quantifiable seasonal demand of vacation properties in Puerto Vallarta Mexico.

What about holidays?
Do similar price comparisons for:
• Christmas-New Year holiday
• Easter holiday (varies)
• USA and Canada Thanksgiving holidays

Internet advertising is essential.
You need to reach as many potential occupants as possible to keep your place rented. List your property on three to five sites. Plan a budget of US$100 to US$150 monthly per internet site for each property.

Do you need a middleman?
Management companies take 10% to 60% of rental income. They take prospect phone calls, show the property, sign a contract, collect rent payments and security deposits, solve problems throughout the visitor’s stay, evaluate the state of the vacation property at the end of the stay, refund deposits, and fix any problems. Management companies should be able to handle calls in English, Spanish and French.

Tax benefits
If you report your taxes in the US, you may write off mortgage interest and property taxes on a second home. You may also deduct utilities and maintenance. Up to $25,000 in rental losses may be deducted if your modified adjusted gross income (MAGI) is under $100,000 but disappears entirely if your MAGI is greater than $150,000.

Consult a tax specialist in your country to evaluate your specific tax situation. Ask a knowledgeable advisor about the implications of exchange rate changes and any potential tax liabilities this may generate at tax time or at the time of the sale of the property.

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ABOUT WWW.RENTALSinVALLARTA.COM

The website http://RentalsInVallarta.com showcases properties inside luxury hotels, exclusive condominiums or standalone premium locations together with detailed regional maps, visitor information and even secret hideaways. Visit our “Special Deals” section for daily offers and coupons.

MEDIA CONTACT
Sue Lyon
RentalsInVallarta.com
Puerto Vallarta, Jalisco
Mexico
pr@rentalsinvallarta.com
http://www.RentalsInVallarta.com