Any hosts from Costa Rica?

[Alexandra316]

Good day all! My husband and I have two properties we host in Ontario, Canada and we are Superhosts. We have been looking at purchasing a third property down south, either in the Caribbean, Mexico or Central America. It would be a vacation home, as well as a rental property when we weren't there. The plan would be to retire there for at least part of the year when the time comes.

I'm wondering if there are any hosts on here from Costa Rica, and what your experiences have been with owning and hosting a vacation property there. One of my main concerns is market saturation: there seem to be a lot of places available to rent. Any other thoughts or insights are also greatly appreciated. Thanks! 

[Lizzie]

Hello @Alexandra316,

I hope you are good. This sounds like an exciting venture and what a lovely place to visit.

Just a thought, if you are able to speak Spanish, you might like to ask this question in the Spanish speaking Community Center as I know there are many hosts from this area there who might be able to help you.

Lizzie

[Alexandra316]

Hello @Lizzie, that's a good idea, thanks. My Spanish is pretty remedial, but I will give it a try.

I know there are lots of Canadians and Americans with vacation homes down there, so I was hoping for insite for some people in the same boat.

[Eimear2]

I have had a place in Playa Hermosa Guanacaste for ten years. We rent it on AirBnB when not using it. I too am a Superhost, with properties in Ontario and here... and retiring, sort of... We ourselves are here in prime time..i.e. December to March, so rentals are only when we are not around. We do have a guest suite which we can rent independantly when no family or friends are visiting. We have fewer rentals through AirBnB because it is mainly through AirBnB.com rather than .ca. You cannot even login to your Canada AirBnB website from Costa Rica, ONLY through the US one. US visitors often are not prepared for the tropics and the differences in living here, la pura vida. They expect US-type accommodations, constant air conditioning (extremely expensive for hosts) and American bulk food prices. Here, American and Canadian presence has pushed up all costs. Food is more expensive than Canada or US. Everything is imported and taxed. Canadian and European guests are generally more easy going.

I now have a local manager and, over time, have built up good relationships with the workers in the Villas Sol resort where our private villa is located. Speaking Spanish and doing this has made a huge difference... more rentals, easier maintenance, better guest welcoming and responsiveness to issues.

If I were you, I'd rent through AirBnB in an area you find interesting and see what the experience is like. Living here is different from visiting. The systems (for wifi, phone, banking, taxation, government) are different, more time consuming and bureaucratic. Speaking the language makes a big difference.

Hope that helps,

Eimear

[Jo647]

Hi Eimear

I spent the month of January 2020 in Costa Rica traveling around from Playas del Coco to Monteverdi and La Fortuna then off to Playa Hermosa south of Jaco. Next was Radial Atenas and then Samara and back to Playas del Coco. I really have to admit I loved them all. With meeting such nice people as well as experiencing the difference areas, I have to go back. 1 month was just too short.

Jo

Ps I am a Super Host from Hanover Ontario with 9 private suites.

[Fred13]

@Alexandra316Also Panama is worth a look, such as by-the-sea Coronado or inland- David area. I will be going soon there in April. Cuenca, Ecuador is also another mecca for 'Norte-Americanos'.

[Alexandra316]

@Fred13 I've heard Panama is a popular spot as well, but I haven't looked into it in any detail yet: thanks for the tip. Let me know how your visit goes, if you think of it; I've never been. I'd never considered Ecuador, but I will give it a look also.

We were considering CR because they still offer socialized medicine, and the doctors and hospitals are supposed to be decent. That's not so important now, but once we retire it's a concern. We're still open to different locations, though, for sure.

We had looked at Mexico also, but the rules around property ownership for foreigners there really scare me, as does the current situation with the cartels.

[Fred13]

Mexico on property ownership, I ~heard~ lately they have changed from the past 99-year lease limitation; @Sarah0 has a place there. The social medicine in Ecuador is outstanding btw, as is communication.  Medellin, Columbia is another mecca, but inland, not 'on the water'. I have 'heard' exceptional things about Grenada btw. Just took a scouting cruise to the upper Antilles, lovely places, unfortunately in 'Hurricane Alley'; Grenada is in the Lower Antilles. Can definitely give you a report on Panama-Ecuador in May.

BTW, I lived in Costa Rica for 2.5 years. Great place, though I found it too 'Americano', felt like..hm...Southern California.

[Alexandra316]

@Fred13Interesting idea regarding Grenada. I've been to that area, but never that island. We have looked at some of the other islands in the Antilles, but as you said, hurricanes, and there are definitely some barriers to ownership.

Thanks re: Panama and Ecuador.

Interesting regarding Costa Rica. I actually haven't been there yet either: we attended a workshop on purchasing property there as a Canadian, and we're just starting to do some proper research. We will have top make the trip. Having some of the conveniences of home is good, but I agree, I don't really want to be in California Lite.

[Alexandra316]

@Fred13 That being said... I think my remedial Spanish is going to need some help regardless of what location we end up choosing! It's terrible.

[Fred13]

Must say, speaking Spanish is a plus, even here in Belize (official language being English).

[Sarah977]

In Mexico a foreigner cannot own land in their own name within 50 kilometers of the coast. Instead that land is put into a Mexican bank trust in your name, to which you can name a beneficiary. I have never heard of anyone having problems with their bank trust. There is an initial cost to setting it up of about $3000-5000, and then you pay a yearly fee of about $500.

There was some talk in Mexican govt, a few years back about doing away with this (letting foreigners own land anywhere) but it never passed.

As far as the cartels go, the US State Dept. would have people believe that your life is constantly in danger just walking down the street. The reality is quite different. There are some dangerous areas, but most of the touristy areas are fine. When you hear about foreigners getting killed, the backstory usually turns out to be that they were hanging out in sketchy places (late night bars, soliciting prostitutes, going to some guy's house they just met at the bar who told them they could hook them up with some good weed, etc).  And those are crimes done by regular criminal types, not cartels, who basically just kill each other for stepping on each other's territory or not paying up.

If the Canadian, Mexican, and European govts. put out warnings about the dangers and probabilities of getting shot in the US, no one would ever go there.

[HannahyMartín0]

Hello,

I have an Airbnb in Montezuma, Costa Rica, going on almost a year. Ive noticed a lot more hosts popping up this year. The town itself is a small bohemian artistic place drawing lots of expats from all over. It depends where exactly you’re looking to buy in Costa rica-beachfront, mountain side, busy town or small village. I think anywhere you start an Airbnb there will be others that also jump on board, but thats where you can offer things others don’t or create an experience they can’t find elsewhere.

[Kelly149]

@HannahyMartín0 I recently came across a small 4 building property for sale in Montezuma and it has me thinking of exactly what @Alexandra316 has already considered....

If I moved out of our main house and turned it into an STR, I could more than cover my US expenses while we were gone so the Costa Rica setup would just need to cover our expenses there and put us close enough to the beach to feel like we were at a working vacation.

In our case, we'd be looking to check out of US life for a few years and then come back before our kids start high school (they're 6,7&10).

So not the same retirement scenario that Alexandra proposed but I have some of the same concerns: how do the locals view expats, any concerns about an expat owning property, many listings are very cheap, how is the tourism, is the rainy season a problem, etc...

I've never enjoyed California, so @fred 's comment worries me a bit. But here in Austin our town slogan is Keep Austin Weird so a bohemian village sounds right up my alley. And my Spanish is limited, rusty & has most commonly been employed in restaurants and construction sites so a kind of americanized locale has some appeal.

But I'd love to hear @fred 's Panama thoughts as well.

Clearly we aren't the only folks considering running off to someplace sunnier!

[Dan505]

Hi Hannah~~

My name is Dan. I liked the thoughts in your answer here! Hoping to get your perspective if you have a moment.

I recently purchased a BnB in Uvita, right between the mountains and the Pacific.. .I am setting up my listing with AirBnB now, and trying to avoid sacrificing a ton of money to get paid. Could I ask you what method you use and how much it costs you to get paid?

Also, do you, as a host, have to collect and pay the 13% VAT from the customer? We are about to try to tackle the electronc tax system filings as well. Ugh.

Come visit!

Thanks,

Dan