The Holy Grail Of Beach Resort Rental Opportunities—This Is As Good As It Gets
A turnkey beach resort rental property with built-in management and a built-in market that you could use yourself whenever you wanted for a vacation that had nothing to do with making repairs and replacing broken dishes…
That’s the property investor’s Holy Grail, right?
Kathleen and I enjoyed a stay at a resort property last week that fits that description precisely.
It was the venue for our recent Live and Invest in Mexico Conference.
Located on the Riviera Maya coast about an hour-and-a-half south of the Cancún airport near Tulum and Playa Del Carmen, the resort where we convened for our conference boasts four hotels and two golf courses (one with 18 holes, the other with 9).
Each of the several different residential communities has its own dedicated amenities (such as swimming pools and gyms), and the property features many restaurants and activity areas. In addition, a new beach club for use by all residents is in the works.
This is a five-star property. As an owner, you could enjoy your vacation each year in luxury.
The rest of the year, you could ask the management company to rent your place out for you, filling it with overflow traffic from the resort hotels.
How much overflow traffic could be expected?
The resort’s hotels operate currently at an annual occupancy rate as high as 90%. This is effectively full occupancy for a large hotel, as, at any given time, some rooms are out of service for maintenance and repairs.
In high season, the hotels can be booked at rates as high as 120%.
Right now is low season. However, every hotel on the property was full during the week of our conference. Attendees who wanted to extend their bookings at the last minute and stay for a few extra days at our hotel were turned away.
“Really, at this point, we have no low season,” the developer’s representative explained. “We’re nearly full all year round.”
The resort is that popular, and its marketing outlets are that powerful. It enjoys an inside track in this regard; the owner of the resort also owns a tour company in Europe.
To date, overflow hotel bookings have been sent to nearby resorts. Imagine how frustrating for the developer to turn away business regularly?
To address the opportunity, the developer has begun building condos.
Last high season the first of these were available to take on some of the overflow nights from the hotels. The test was successful and helped the management team work out bugs in the systems.
This high season they expect to keep all available condos full and still have overflow they’ll have no choice but to send to other area resorts.
So they’re building more condos.
Six new building projects on offer include one-, two-, and three-bedroom condos. Four of the buildings are 85% sold out; the other two are 30% sold out.
This complex features two pools, a gym, and a barbecue area… plus access to the residents’ beach club when it is completed and one of the hotel beach clubs in the meantime.
You could make use of all of the amenities of the resort and residence areas when you spend time there, and, as important, all of those amenities are available to your potential renters… both the overflow coming from the hotels and any other renters you bring to the table.
That is, you’re not required to work exclusively through the resort hotels. You can find renters any way you’d like. Bring in additional renters directly using Airbnb, for example.
Meanwhile, the management company takes care of everything so you don’t have to worry about the property. You can just show up when you want to spend time in your condo and enjoy yourself.
Special Incentives For Live And Invest Overseas Readers Only
As beach rental investments go, this one is about as good as it gets.
And it gets better.
At last week’s conference, the developer offered special incentives for those in attendance that he’s agreed to make available now to all Live and Invest Overseas readers.
Specifically, the developer is including a membership to the golf club at the resort for any reader who reserves a condo by the end of October. That is a US$25,000 value.
In addition, you can get one week of day passes for two people to access all hotel services and amenities if you buy a one-bedroom condo. Buy a two-bedroom condo and get one week of day passes for four people.
The day passes include meals at the restaurants in the hotels as well as access to the hotel pools and other amenities, including shows.
Prices for the condos start at US$155,000 (for the one-bedroom units) and go up to US$409,000 (for the three-bedroom penthouses).
But, wait, there’s more… as they say on late-night TV…
The developer is also offering financing.
You pay 20% down and 40% over the construction period (projected to be 10 months). The developer will finance the remaining 40% for up to 8 years at 7% interest.
These terms are some of the best I’ve seen for developer financing anywhere.
As a total package, again, this would be very hard to beat. What’s on the table is pre-construction pricing with developer financing, five-star resort amenities already in place, residential infrastructure installed, and rental management and rental demand built-in.
Plus, this is a beautiful property on one of the most beautiful stretches of white-sand beach in all the Caribbean.
To get more information, including projected rental yields for the size of condo you’re interested in, contact the developer here.
Lief Simon
