Real Estate Newsletter Playa del Carmen and Cancun

The sales pitch for investing in the Riviera Maya is simple: Vacation Rental = 10% to 14% ROI. This figure is real, but it is gross and often ignores the operating costs and management effort that come with high turnover. For the passive investor, the pursuit of this peak performance can be a logistical nightmare. The question is not what generates the most gross income, but what generates the most stable net income with the least effort.

Cost-Benefit Analysis with Key Figures:

The Occupancy Factor (The risk of seasonality):

The average hotel occupancy in the Mexican Caribbean remains strong (around 80.9% in the first quarter of 2025). However, in the vacation rental market, small hotels in Playa del Carmen have reported occupancies as low as 30% in the low season (September/October, Source: Small Hotels of PDC).

Impact: If your 14% ROI is based on 75% occupancy, an unexpected drop in the low season destroys your projections. The long-term rental guarantees you 100% occupancy on a 12-month contract, eliminating that risk completely.

Location is King (The 6-10% map):

Properties near 5th Avenue, Colosio, and Zazil Ha are the undisputed champions for Vacation Rentals, but competition is fierce.

For Long-Term Rentals (LTL), consolidated residential areas such as Playacar or residential areas with services (close to shopping centers and schools) such as certain parts of Ejido or developments in the north (Corasol), guarantee demand from families, professionals, and digital nomads seeking stability. Here the 6-10% is clean, predictable, and with tenants who take better care of the property.

The truth you must accept:

Your investment must align with your lifestyle. If you are looking for a truly passive source of income, the 6% assured annual return from a long-term contract in a premium residential area of Playa del Carmen will give you comparable appreciation to a vacation rental, but with a fraction of the effort. Don't be swayed by just the 14% ROI headline.

Are you an Active or Passive investor? Only one of these two strategies will truly make you happy. Allow me to show you a real breakdown of a property in Playa del Carmen, comparing the net ROI of both models based on your profile. Send me a message and let's adjust your profitability strategy today. contact us now to make your tailored analysis.