The majority of buyers do not live full time in Costa Rica so if this is your case, you will need a reputable property manager if you plan on renting out your home. Property Managers will maintain your property and will be on-call to deal with any issues that arise and oversee paying the owner’s bills such as utilities, HOAs, taxes, cleaning service, be responsible for clients’ check-in/out.
Luckily, there is a high rental demand for homes and condos in our area, especially with the popularity of websites like www.airbnb.com, www.vrbo.com, www.booking.com, and more. I always recommend my clients to be proactive in also renting out your property and not totally rely on your PM.
When you are searching for a manager, be sure they are registered with the banking division of the Costa Rica Government, SUGEF. Being registered with SUGEF is true for real estate and escrow agents. To be registered with SUGEF, you have to be a resident or citizen of Costa Rica and have had an FBI background check and also with the OIJ (FBI of Costa Rica). SUGEF was formed to prevent money laundering and will be monitoring banks and those who receive wire transfers to their accounts. If you or anyone dealing with your funds are not registered, their bank accounts can be frozen and your funds seized. You will need to pay monthly sales tax with the Hacienda, and you will be required to hire an accountant to file on your behalf monthly.
It is essential that when selecting a PM that you choose one that stable and has a solid marketing strategy. I would recommend that you make an appointment with several PMs for a face-to-face meeting, so you are comfortable with your choice. You can then ask how they will be managing your property and if they can share with you an estimate of your returns. This PM will be handling all your finances, so it is also essential to ask for references. The PM should also have an accountant they are working with, so you will also need to meet with them, so you understand your tax obligations and the law.
If you would like a list of Property Managers in the area, please let me know, and I’d be happy to share that with you or provide an introduction.
Property managers are typically charging a 20% commission on the rental.