Are you looking to rent out your vacation home in Panama? The real estate sector in Panama has been growing since 2005 and is considered one of the markets with the greatest opportunities in Latin America. So, if you want to rent out your vacation home, this time you will learn everything about it:
We will teach you how to exploit Panama’s tourist potential, from its paradisiacal beaches along its coasts to the impressive City of Panama, with its modern architecture and vibrant nightlife.
What do you need to rent out your vacation home in Panama? Specifically, we will discuss three basic requirements in the legal field:
First, you must register your vacation home with the National Tourism Registry and obtain a certificate accrediting you as a tourism service provider. To do this, you must meet the minimum conditions for infrastructure, equipment, safety, and quality of tourist accommodations.
Secondly, you must declare and pay the corresponding taxes on the income you receive from renting out your vacation home. In Panama, these revenues are subject to income tax and real estate transfer tax. Additionally, you must issue invoices or receipts for each rental transaction you make.
Lastly, you must obtain appropriate insurance that covers potential risks or damages that may occur to your property or your guests. You can choose a multi-risk home insurance, liability insurance, or specific vacation rental insurance.
Important: Keep in mind that these are just some initial tips, and we can provide you with in-depth advice if you contact us and let us know about your projects.
Create professional photographs to promote your property
Now let’s talk about one of the most important advertising tips:
One of the key requirements for renting out your property in Panama is having professional photographs that showcase the best of your space and capture the attention of potential guests. The photographs and all the visual elements you use are essential because they are the travelers’ first impression of your accommodation, so they can make a difference in whether they choose you or not. That’s why we give you some tips for creating quality photographs:
- Hire a professional if you can, as an experienced photographer will know how to take advantage of light, angles, and composition to highlight the features of your property. They can also edit the images to improve the final result, always showing your property in the best light.
- If you can’t hire a professional, use a high-resolution camera and a tripod to avoid blurry or shaky photos. You can also use editing applications or programs to correct defects or adjust brightness, contrast, and color.
- Get inspired by looking at photographs of accommodations on Airbnb or other platforms. Those with the highest reviews can be your inspiration. You can research properties in other cities to get the best references.
- Prepare your property before taking the photos: clean, tidy, and decorate your space, removing personal or unnecessary items. Add some details that give warmth and personality, such as plants, flowers, or cushions.
- Show the different rooms and the details that make them special. Don’t limit yourself to taking general photos, but also focus on the elements that add value, such as the view, balcony, pool, or fully equipped kitchen.
- Finally, accompany your photos with a description that not only mentions the details of the property, but also highlights some advantages of Panama City. For example, you can emphasize its tropical climate, cultural diversity, gastronomic offerings, or tourist attractions.
Why rent out your vacation home with Airbnb?
If you want to rent out your vacation home in Panama, you will have different platforms to promote it, and Airbnb is one of the most popular:
Airbnb is a platform that allows you to rent out your vacation home and offers several advantages, such as:
- You have full control over your listing, from the price, availability, house rules, to communication with guests.
- You have the support of Airbnb, which provides host protection insurance, 24/7 customer support, and tools to verify the identity of guests.
- You can be part of a global community of hosts that offers tips, resources, and events to enhance your experience.
In our blog, you will find an article with some tips for renting out your property on Airbnb. Here, we will mention just a few:
- As expected, prepare your home to receive guests, making sure it is clean, tidy, and equipped with everything necessary.
- Be a good host by responding quickly to inquiries, providing useful information, and being friendly and respectful.
- Request and value guest reviews to improve your service and increase your reputation.
How to calculate the price of your rentals
Finally, let’s talk about a common question in the real estate sector: how to calculate the price of a rental? To establish an appropriate price that allows you to make a profit and remain competitive in the market, we suggest following these steps:
- First, conduct a market study and explore the different rental prices in your area. Remember to do this with properties similar to yours.
- As a second point, analyze the fixed and variable costs of your property. Fixed costs are those that do not depend on occupancy, such as mortgage, taxes, insurance, or maintenance. Variable costs are those that do depend on occupancy, such as utilities, cleaning, or platform fees.
- Estimate the occupancy rate you expect to have. This will depend on demand, season, and the location of your property. You can use tools like Airbnb Insights or AirDNA to see market statistics and traveler trends.
- Remember to adjust your prices according to supply and demand. Don’t stick to a fixed price throughout the year, but vary it based on the season, events, offers, or cancellations.
Remember, we can offer you personalized professional assistance, so feel free to contact us!