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Guillermo Godínez: Fixed income or vacation rental?

Lately, the dilemma is being presented to people who own an apartment, especially if they rent it on a fixed basis or if they put it on a vacation lodging platform.

I believe that both options are good depending on your interests and abilities. Fixed income offers you the peace of mind and guarantee that month after month you will receive your secure income. In the case of offering it for vacation lodging, you will have the uncertainty month by month if the guests “choose” you so that you can rent it.

If what you are looking for is that your property gives you the most that can be obtained from it, definitely the vacation accommodation at the end of the day will be the best alternative.

BUT! and I put it in capital letters… you will have to spend a lot of time and attention to this option. What I can tell you is that, for example, if you would earn 15,000 pesos in the fixed line, in the vacation option it is double or even more.

You have to be aware of all the details as if you were a hotel. You will get all kinds of clients from the very “cute” to the very “gachos” and demanding who think they are in a Four Seasons or a St Regis, to name a few.

There are a good number of vacation platform options where you can register your property so you can start earning money.

The success of this option has been so great that it is already becoming a problem in large cities around the world, since property owners are canceling fixed-income contracts to put their properties into vacation rental mode.

Such is the problem that even the authorities are intervening because they have displaced many inhabitants to other places.

I believe that this problem will be presented to Monterrey considering the evolutionary or progressive difference in about 15 years, approximately.

If you decide to enter the vacation rental business, recently management companies have appeared for these options that charge you from 15 to 30 percent of the net earnings of the rentals.

If we deduct from this what the platform charges you, which is more or less another 30, then you do the math and decide what is best for you.

In any of the two options, both are good, as long as you evaluate your situation, time, dedication and if you like dealing with people or if you like being a host!

See you until next time!

The author has more than 31 years of experience in the field of real estate in terms of communication, campaigns and launch of real estate projects. Since 1995 he has been a member of the National Association of Real Estate Editors (NAREE).

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