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How to Generate Rental Income from Your Costa Rica Vacation Home

Costa Rica is not just a tropical paradise—it’s also a hotspot for real estate investors and second-home buyers seeking steady rental income. Whether you’re already a property owner or are browsing homes for sale in Costa Rica, turning your vacation home into a rental property can be a smart financial move.

At Century 21 Ballena Properties, we’ve helped countless buyers find income-generating properties across the Southern Pacific zone, including Uvita, Dominical, Ojochal, Golfito, Puerto Jiménez, Puerto Cortés, and more. If you’re considering investing in Costa Rica real estate, here’s how to make your property work for you.


1. Choose the Right Location

Your rental success starts with location. Areas like:

  • Dominical – A surfer’s haven with a laid-back vibe and high tourist traffic.

  • Uvita – Home to the famous Whale’s Tail and a growing expat community.

  • Ojochal – Known for its gourmet food scene and peaceful atmosphere.

  • Golfito and Puerto Jiménez – Gateways to the Osa Peninsula, ideal for eco-tourism rentals.

  • Puerto Cortés – A charming coastal community off the beaten path.

  • San Isidro / Pérez Zeledón – A thriving town close to mountain retreats and coffee farms.

These are all prime areas for short-term and long-term rental opportunities, especially with rising tourism and remote work trends.

» Continue reading: “Uvita vs. Dominical: Which Costa Rica Beach Town is Right for You?”or “Why Golfito is the Next Big Real Estate Investment Hotspot in Costa Rica” or “A Guide to Buying Real Estate in Uvita: What You Need to Know


2. Find the Right Property

The type of property you buy affects your rental income potential. At Century 21 Ballena Properties, we offer a wide selection of Costa Rica houses for sale that appeal to both vacationers and digital nomads.

Look for:

  • Turnkey homes with modern amenities

  • Eco-lodges or cabinas near national parks

  • Oceanview villas and condos close to beaches

  • Jungle retreats for off-the-grid living experiences

These types of properties are in high demand on platforms like Airbnb and Booking.com.

» Continue reading: “Beachfront vs. Jungle Homes: Which is the Best Investment in Costa Rica?


3. Understand Local Rental Trends

Rental income can vary by season and region. For example, high season in Costa Rica (December–April) often brings premium rates, while green season (May–November) may see lower occupancy.

In tourist hotspots like Uvita and Dominical, many property owners see strong returns even during the low season due to year-round interest in surfing, whale watching, and national parks.


4. Use a Local Property Manager

Managing your rental from abroad can be tricky. That’s why many of our clients use local property managers who:

  • Handle guest check-ins/outs

  • Manage cleaning and maintenance

  • Promote the property on rental platforms

  • Ensure compliance with local laws and tax requirements

We can connect you with trusted professionals in each of our servicing areas.


5. Promote Your Property

List your home on platforms like Airbnb, Vrbo, and Facebook Marketplace. Highlight features like:

  • Proximity to the beach or jungle

  • High-speed internet

  • Private pools or outdoor kitchens

  • Unique Costa Rican design or eco-friendly features

Professional photos and a detailed listing description go a long way in attracting high-quality renters.


6. Know the Legal & Tax Requirements

Foreigners can legally own property in Costa Rica and rent it out. However, you’ll need to:

  • Register for a DIMEX number (if applicable)

  • Pay the required taxes on rental income

  • Collect and remit 13% VAT (IVA) on short-term stays

Consulting with a local attorney or accountant is recommended to ensure full compliance.

» Continue reading: “How to Get Residency in Costa Rica Through Real Estate Investment


Ready to Buy an Income-Generating Property?

Browse our Costa Rica real estate listings featuring a wide variety of homes for sale in Dominical, Uvita, Ojochal, Golfito, Puerto Jiménez, Puerto Cortés, and beyond. Whether you’re looking for a beachfront escape or a mountain-view retreat, we’ll help you find the perfect property that fits your rental goals.


📞 Contact Us Today

Thinking about turning your dream vacation home into a profitable rental?
👉 Reach out to us at Century 21 Ballena Properties for expert advice and personalized service.


Let’s make your Costa Rica real estate investment a smart and successful one.

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