Los Cabos has become a top-tier vacation rental market, offering exceptional opportunities for real estate investors. With an ever-growing influx of international tourists and an increasing preference for private accommodations over hotels, the region offers high occupancy rates and strong long-term potential.
1. Why Cabo Is Ideal for Vacation Rentals
Cabo’s appeal is global — combining luxury, safety, and natural beauty. Millions of visitors arrive every year, and platforms like Airbnb and VRBO show consistent booking demand for ocean-view condos, villas, and golf-course homes.
Occupancy rates in top areas can exceed 80% during peak season, and many owners report 8–12% annual ROI from well-managed properties.
2. Finding the Right Property
Location plays a key role in profitability.
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Cabo San Lucas (Medano Beach & Marina Area): High demand, nightlife, and walkability.
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San José del Cabo (Palmilla & Puerto Los Cabos): Luxury market with upscale clientele.
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Cabo Corridor & El Tezal: Strong mid-range investment opportunities and new developments.
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East Cape: Emerging destination with eco-luxury potential and future growth.
Consider property features such as private pools, ocean views, modern kitchens, and proximity to attractions — these significantly influence booking performance.
3. Legal Requirements for Foreign Owners
Foreign investors can safely own property through a Fideicomiso (bank trust). This structure grants all ownership rights, allowing you to rent legally.
However, you’ll need to:
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Register your rental with the SAT (Mexican tax authority).
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Pay applicable income tax and possibly IVA (VAT) if using management services.
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Obtain short-term rental permits in certain municipalities.
A local real estate attorney or property manager can help handle compliance smoothly.
4. Professional Property Management
Reliable management is essential for overseas owners. Top companies in Cabo offer full-service solutions, including maintenance, guest services, dynamic pricing, and marketing.
Some also provide concierge experiences that increase guest satisfaction and boost reviews — crucial for success in the vacation rental business.
5. Marketing and Design for Maximum Profit
Presentation is everything. Professionally staged homes with coastal-chic interiors, local art, and outdoor living spaces attract higher rates.
Combine this with SEO-optimized listings, drone photos, and social media ads, and you’ll stand out among thousands of Cabo listings.
