Buying a property in Cabo San Lucas for Airbnb

[Mollie14]

Hi, I am looking into purchasing a property in Cabo and starting an airbnb. I have no idea how to get started since I am in California so any advice is helpful! How do you find a realtor? How do you find a host and cleaner or manager? Are there Short Term Rental laws in Cabo? Any advice please :))))

[Helen3]

1. If you want to know if their are STR regulations in the area you want to buy in- check the local government website for the area. @Mollie14 

2. If I am looking to buy in an area I do a google search to find local estate agents

3. Read the tutorials and guides on this community forum about getting started as host on Airbnb

4. Find a local host group for the area on social media/online and ask for recommendations for local co-hosts/cleaners or just use google and find local property management companies.

[Mollie14]

Excellent information! How do I find a local host group besides googling? Thank you again!!!

[Helen3]

I don't know any other ways of finding local host groups other than using Google or searching on social media platforms @Mollie14 

I agree with others you need to go down there and stay in a few STRs to get a feel for how things work, what amenities people provide, talk to local estate agents.

Research is key to the success of any business.

[Mollie14]

I agree thank you!!!!

[Fiona256]

Go and spend time there to find all this out on the spot. Do your research locally and don't rely on others to provide all the information.

[Mollie14]

Couldn't agree more thank you so much!

[Laura2592]

@Mollie14 definitely go there. There is no substitute for spending time in the area you are looking to purchase in.  Also read this thread for some things to consider. 

https://community.withairbnb.com/t5/Hosting/Buying-a-remote-property-to-use-as-STR-things-to-be-awar...

[Mollie14]

Yes, I completely agree thank you for the link!!!

[Sarah977]

@Mollie14  You will also need to research the tax implications. You'll need a Mexican accountant and will need to file and pay taxes both in Mexico and the US.

[Mollie14]

Okay I will look into that do you have any recommendations for accountants or know off hand how much the tax rate is.

[Sarah977]

@Mollie14  I don't live anywhere near Cabo, so I wouldn't have any recommendations for that area. (It's like asking someone who lives in California for a recommendation for an accountant in Ohio). The thing to do is, when you do boots on the ground research there, to ask for recommendations from people who live there, and try to connect with other hosts there.

As far as I'm aware, if you don't have Mexican residency status and therefore a Mexican tax number, guests will be charged 20% tax (it's 4% if you are registered with the Mexican tax bureau) plus 16% Goods and Services tax, but there may be more. I haven't hosted for a year, because I have a home share listing and haven't been vaxxed yet, so I'm not up in all the new tax laws regarding Airbnb and Mexico. 

So with Airbnb fees, guests are going to be paying in total about 50% more than your nightly rate.

And US citizens and residents have to declare all worldwide income. There is a tax treaty between the US and Mexico, which prevents double taxation. So whatever taxes you paid in Mexico would be deducted from what you would owe in the US.

One thing to be aware of is that Airbnb isn't "easy money", especially if you are a remote host. There's a lot of things to be aware of and a lot of expenses involved.

[Mollie14]

Thank you Sarah. I was wondering how the tax would affect the guests. I wish more hosts posted about these sorts of things but I appreciate all that you have helped me with!!!!! Thank you!!!

[Ricardo1445]

Hello Mollie, 

did you get the propertie? 

I am from Mexico I can help you with the AirBNB administration

[Petra-And-Paul---0]

Hello we are looking in Cabo too did you find a place ?