The Short-Term Rental Opportunity
Mexico's tourist destinations generate some of the highest short-term rental (STR) yields in Latin America. Tulum in particular has produced gross yields of 8–15% in premium jungle properties. However, "gross yield" headlines often obscure a harsher net yield reality.
Gross vs. Net Yield Reality
From gross rental income, subtract: property management (20–30%), platform fees (15%), cleaning (5–8%), maintenance reserves (5–10%), property tax, utilities, and Fideicomiso annual fee. Net yield after all costs typically runs 40–50% of gross. A 10% gross property may net 4–5%.
Occupancy by Destination
Tulum: 65–75% annual occupancy in established jungle developments. Cancún hotel zone: 55–70%. Mérida: 45–60% (growing). Bacalar: 50–65% in established properties. These are sustainable figures — developer projections of 80–90% are typically aspirational.
Legal Requirements
Mexico requires STR operators to register with SAT (Tax Authority) and pay IVA (16% VAT) plus ISR (income tax) on rental income. Platforms like Airbnb now report income to Mexican tax authorities. Budget 20–25% of gross for taxes and local licensing.
Choosing a Property Management Company
A quality management company handles listings, pricing, guest communication, cleaning, and maintenance. Ask for audited occupancy and revenue reports from comparable properties they manage. Red flags: no references, no transparent reporting, ownership in the management company.
Best Properties for STR
Privately-gated jungle or beachfront developments with pools. Properties in recognized clusters (Aldea Zamá, Holistika in Tulum). Walking distance to beach or cenotes. Modern design with Instagram appeal. 1–3 bedrooms outperform large units.