Panama Rental Management: How Does It Work in Our Star Projects?

When choosing real estate as an investment, rental management, how does it work, and how to approach it are key aspects to consider. The purpose of having a passive income is that it doesn't bring you too much of a headache when it comes to promotion, finding tenants, or conducting check-ins and checkouts. This is especially so when it comes to short-term rental management.

Today, Mundo presents how two of our star projects work when it comes to such an important part of the investment strategy. Whether you will be taking care of this by yourself or hiring property management companies, it's important to know the basics.

Short-Term Rental Management in Panama and Its Potential

Receiving money from passive income is everybody's dream, yet it can become the worst nightmare if not managed properly. The potential is enormous because it allows you to reach a specific niche of people who travel and are willing to pay more. Tourists, for example, are ready to spend good money on accommodation, and many of them prefer cozy apartments instead of hotels. 

Short-term rental also caters to other needs, like businesspeople who are coming for conferences or meetings, or visitors who are traveling to get medical attention. In general, they come with at least one relative, and they don't need a hotel. These are the ones who will appreciate a comfortable studio or maybe a one-bedroom apartment near high-end medical facilities.

Short-Term Rental Management with A Due License

When it comes to legislation, Panama is more advanced than many celebrated destinations, for example, New York. In Panama, you must have a short-term rental license for this activity: all rentals shorter than 45 days must be conducted under this license.

The projects we're presenting here both have those licenses, which is more important than you imagine. Legislation stipulates certain conditions, like the size of the lobby, and applying these to an already built project can be challenging. These developments, on the other hand, are designed accordingly from day one. Both constructions will start in December 2025, yet they have the short-term rental licenses in place already.

Rental Management in Panama

Hiring property management companies is natural if one wants the business to run smoothly. The projects in Amador and Punta Pacifica come with optional rental management services that can significantly make your life easier. Thanks to a smooth process, you can fully enjoy the benefits, which, according to the developer, are returns estimated to be between 9% and 11% of the investment.

Projects in Amador and Punta Pacifica Rental Management: How Does It Work

Properties are delivered fully turnkey. This means you can move in right away or start renting. They include appliances like a fridge and a washing machine, and details like lighting, curtains, and of course, furniture. All you have to do is turn the key, turn on the lights, and start enjoying yourself. In Punta Pacifica, for example, you can choose between studios, one-bedroom, and two-bedroom apartments depending on your needs.

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Short-Term Rental Management in Panama: Flexibility

One of the best advantages of this short-term rental management service is that it’s not based on an investment pool. In investment pools, owners have limited days to enjoy their apartments, for example, two months, one month, or two weeks, and usually they can't use them all in a row, but in separate periods throughout the year.

The complexes presented here are not based on an investment pool, therefore, owners have complete flexibility. If they want, they can rent the apartment for two days and live in it for the other 363. Moreover, it doesn't require a 30-day notice, although the further in advance, the higher the chances of finding occupancies.

Short-Term Rental Management in Panama: Conditions

Like other property management companies, there are certain conditions to apply and maintain the said services.

Short Term Rental Management in Panama: Maximum Occupancy

The developer is committed to offering the highest living standards for guests and long-term residents. Therefore, they have stipulated a maximum occupancy. A studio can host a maximum of two people, a one-bedroom can host a maximum of four, and a two-bedroom apartment can host a maximum of six guests.

Minimum Pricing

In line with this, there's a minimum price stipulated to protect both the standards of the building and the interests of the industry, a move that benefits all players in the long term.

Short-Term Rental Management with Mandatory Furniture Package

Like most property management companies, this one wants to maintain a consistent image and uniform branding. Therefore, owners who want to participate in the short-term rental management program must buy a furniture package. It includes all the furniture, decoration, and an air conditioner.

Mandatory Terms of Use

If you enter the short-term rental management program, the minimum contract is for 18 months. This gives the company enough time to prove its worth and to make the most of the property.

Rental Management: How Does It Work When It Comes To Pricing?

The company charges 15% of the rental income plus a flat fee of $100 per month.

Disclaimer: This article presents the general conditions of the rental management services and the units in these projects. However, this article does not constitute legal advice on investment or real estate. The prices, fees, and conditions stipulated here may not be 100% accurate. Accurate and updated information will be provided only during formal consultations. Before making any real estate investment, make sure to consult with a certified professional.

Easy and Accessible Short-Term Rental Management In Panama

Mundo’s publication is dedicated to perpetual travelers and global investors. We have close connections with developers who are building some of the most luxurious and best-located complexes in Panama. The possibility of short-term rental management being done safely and properly is not to be dismissed that quickly.

We can connect you to the developers and help you get one of these units which are already on sale. Entering before the construction starts offers even more advantages, with the possibility of paying through special plans or obtaining developer financing.

If you're not interested in real estate for now, we can also help you open bank accounts and companies abroad, set up trusts, and obtain residency or citizenship in another country. Contact us and ask us about your area of interest.

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