10 things you should know when buying Tamarindo real estate
Pt. 3: Property Managers
In part one of this ten-part series, we discussed the Costa Rican legal system and how it differs from the U.S. legal system. In part two, we discussed how to choose a realtor. In this third installment, we will discuss the property manager’s role in the Tamarindo real estate market. Once your realtor has found you your perfect vacation home and your Costa Rican lawyer has made sure you have a good title, you are going to need help caring for your new home. Paying bills, arranging for maintenance and repairs are all more challenging if you are not fluent in Spanish. Even if you speak the language, finding qualified personnel to help care for your home can be difficult. A competent property manager can help ensure the long-term prosperity of your new home.
Property managers provide three categories of service: a) they generate revenue through rentals; b) they maintain and repair your property; c) they provide accounting and tax services.
Tamarindo has a robust rental market. If you decide to rent your property while you are not using it, your property manager may provide clients to rent your home. The fee for this service is a commission on the rental (usually 20% of the rental income). While many owners now have their own rental website pages (such as VRBO and Flip key), you will still need someone to greet the guests, give them keys and answer questions about the home. In addition, your property manager will arrange tours and excursions for the guests. Exploiting the Tamarindo real estate rental market is a great way to cover your home’s maintenance and finance expenses.
Maintenance and Repairs
Your property manager will take care of any required repairs to your home. Discuss with your prospective property manager how they conduct and bill for maintenance and repairs. Some property managers have their own maintenance staffs. Others contract out repairs. Most property managers charge a monthly fee of $75 to $100. Ask if this covers their fee for arranging for maintenance or if they add a percentage on to each repair. You should also speak to current clients of the property manager. Ask them if they are satisfied with the maintenance and repairs in terms of cost and response time.
Accounting and Tax Services
Your property manager may also provide tax and accounting services. If your home produces rental income, then you will have to file Costa Rican income taxes. In addition, you will need to pay corporate and property taxes and perhaps the luxury home tax (depending on the value of your home). You will need accounting services to keep track of costs spent on maintenance and repairs and any rental income your home may produce. Your property manager should provide you with a monthly statement. Speak to other clients and ask them if they receive statements on time and on a regular basis. Also ask if your monthly fee covers the cost of paying your corporate, property and luxury taxes. If not, you will want to know the fee for them to perform this service.
While a Tamarindo vacation home can be both a pleasure to visit and a smart investment, you will need someone to care for it while you are away. Follow the suggestions outlined above to find the right property manager for your new home.
PPV Tamarindo Real Estate is an Eco-conscious, residential Ocean View community located on Costa Rica’s beautiful Pacific Coast. Our development offers more luxury than you would ever expect at an affordable price. Our development is close to beautiful beaches; offers Ocean View Condos; lots offering panoramic Ocean views; and affordable tropical residential lots.