Having
taken the leap to purchase a property in Belize, property investors
will have to look at ways to ensure that their monthly mortgage
payments can be made. One of the best ways to finance your property
purchase is to consider renting out property in Belize. Of course,
the vast majority of investors are hoping for a considerable capital
gain, but in the meantime, renting out the property can ensure that
an annual rental yield is achieved, meaning that the benefits of
investing in Belize are felt immediately.
There
are many factors that a landlord should take into account when
renting out property in Belize. Particularly important, in
Belize,
is the fact that the government is encouraging real estate
investment, by offering many subsidies and incentives to those who
are both buying and renting out property, in Belize.
The
rental credit programmes that are in operation, locally, provide a
way of subsidising older and disabled residents. If you find that
you have a property that fits in line with the agency requirements,
you are likely to see a very high occupancy rate and be guaranteed
your rent. As these programmes are run on a local basis, you will
need to contact your closest agency, to see if your property fits
the bill!
Renting Out Property in
Belize
Luckily for those looking at renting out property, in Belize, there
are no rental controls in terms of size and facility requirements
concerning certain sized properties. This makes renting out property
in Belize a lot easier and cheaper than in other areas, such as the
USA.
Rental
prices across Belize vary widely, as do the original purchase
prices. For example, an apartment in the centre of Belize City could
potentially be rented out at over $1000 per month (or around $0.80
to $1.50 per square metre); if you move to the more rural area of
the Cayo district, a property with acreage could raise a meagre $300
per month.
No
matter which area you may be considering, the properties that will
be most coveted and will, therefore, attract the highest rental are
the North American style houses. These include all mod cons such as
air conditioning, security and modern appliances. More traditional
Belize properties that are constructed of simple concrete or wood
and generally have only the basic appliances, will typically rent
for a lower monthly figure.
Those
renting out property in Belize have two main options: to rent on a
long-term basis, or to rent on a short-term basis, primarily to
holidaymakers. Deciding which way to rent your property will depend
on several factors, namely location and desired level of return.
As a
general rule, short-term rentals will produce a higher monthly
yield. However, this relies on the property being fully occupied,
for many weeks in the year. Whether high occupancy is achieved or
not will depend on the location and the attractiveness for the
tourist trade. Island resorts, beach apartments and jungle homes
will always be reasonably popular with tourists and will, therefore,
have a reasonably high occupancy rate.
Those
deciding to let their property on a short-term basis will have to
consider who is going to manage both the property and the bookings.
Unless you are planning to live in Belize and manage your property
directly, you will have to use a local agent to deal with the day to
day running of your property. Remember that the real estate market,
in its entirety, in Belize is unregulated and this includes letting
agents; therefore, extreme caution should be exercised before
entering into a management agreement.
Longer-term rentals offer greater security and are particularly
suitable for areas such as Belize City, where the number of locals
looking for rental property is substantially higher than the number
of short-term tourist visitors. Management fees are likely to be
lower than those for short-term rentals, as regular cleaning and
re-letting will not be required. Rental contracts in Belize follow a
similar pattern to those in the UK, with most tenancies being 6 or
12 months. This offers a degree of security for the landlord;
however, a long-term let is unlikely to produce the same returns as
a holiday let, with even average occupancy.
Renting out property in Belize requires a large amount of thought in
terms of the location of the property and the type of return that
you are seeking. Think carefully and you will find that the yield
you can achieve is above the national average of 5 to 6 percent.
Belize property rentals are on the up and a solid way to finance
your long-term investment.
Locating Property in
Belize
