Costa Rica Property Management – Bill Paying and Maintenance

Monkeys may be cute hanging out on the balcony, but leave a door or window open and they can do more damage than any vandal

Costa Rica’s is the most popular destinations in Latin America and for good reason. With over 5% of the world biodiversity it’s no surprise people from around the world flock to experience her beauty and charm.

Buying a home in Costa Rica is a sound investment. If you are not planning to live full time in your home, renting it out to folks who want to have a dream vacation here is a great way to subsidize the ownership costs. What’s not to love about relaxing on the beach, zipping through the trees with the monkeys or enjoying a pacific sunset cruise? Sounds like a getaway to paradise! However, when owning a home where you will not be spending all your time and possibly rent out, it is ever so important to have someone you can trust to watch over it when you are away.

Lucky for you, property management doesn’t get any better than in Costa Rica and companies can be found throughout Costa Rica.

When owners are not using their properties or would like to rent out their property a Property Management company is the eyes, ears and feet on the ground when owners cannot be. Many of the individuals who own homes or condos in the resort and beach communities in Costa Rica live in San Jose or abroad in the USA or Europe. It is these individuals that need someone in the community they can depend on to take care of their property in their absence. There is a great amount of trust that is placed in this type of relationship. A Property Management company communicates with the owner about their property and investment. They take care of every aspect of owning a property including paying property taxes, doing the accounting, paying water/electric bills, generating expense reports, overseeing security, housekeeping and maintenance.

And with high tech, and the best internet service in all of Central and South America, communication is the best it has ever been. Management can email photos, legal documents and keep owners abreast of their property  with the touch of a few keys.

Even if a property is not occupied, many management companies have a policy to go into the property every 7-10 days for light cleaning and most important, inspection.  Last thing you want is the property being claimed by squatter’s rights, and/or damaged by vandalism (humans and animals such as monkeys) and robbery. Some owners have come back to their property after months  and have found it ransacked and/or cleaned out of appliances, like washers, dryers and stoves.

Property Management companies play an important roll in helping make the place look like it is being lived in while you are away.

For this service, most companies charge a flat monthly fee which can vary depending on what type of management service the client requests.

Payments are made by credit card or wire transfer or occasionally cash that an owner may bring on one of their visits. Personnel checks are not accepted unless from a Costa Rican bank because foreign checks take weeks or months to clear.

What one will find in most Costa Rica Property Management companies is no different than what one will find anywhere else. There are three distinctly different types of property management when it comes to taking care of absentee properties. Most companies handle either all 3 or at least 2 out of the 3. Property Management is broken up into 1) Association Management 2) Individual Property Management and 3) Vacation Rental Property Management.

1. Association Management is when there is a complex with multiple units such as condos or villas and there are common areas that need to be taken care of.  A Property Management Company is usually voted in as the Administrator.
2. Then there is Individual Management, which is when a property is owned by someone who does not live in it full time and they would like a company to take care of their property in their absence.
3. Lastly is Vacation Rental Management, for the owners who would like to generate rental income from short term vacation rentals or long term leases from their condo, villa or house.

When hiring a management team for vacation or long term rentals the owner will pay typically from 10-30% commission on income generated by the rental. The difference in the percentage split is dependent on a variety of factors including marketing, referral, type of management, if it is a long or short term rental, or if the rental came from a travel company or an owner.

This article was written by Costa Rica Property Management, located in Playa Tamarindo.  Horizon Pacific Property Management and Rentals has been a steady leader in the business community. Owner Bill Ripley has 20 years of Real Estate and Property Management experience, contact them if you need more info.

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