How Much Money Does An Airbnb In Tulum Make?

When trying to find out how much money an Airbnb in Tulum makes – we need to look at uniqueness.

The key is to buy something that is unique, that is the key 🔑 Yes. It also could depend on the location of the property and which region your land is located.

A very big mistake in my opinion, if you want to rent and collect high rent returns from an Airbnb in Tulum, is investing in big developments where there are 40, 60, or 80 units.

This is because you’re competing against the other 79 people in your own building, plus everyone outside.

So the reason why my partners and I only will develop some boutique developments is that we know that the highest return for our client is in the boutique development of Airbnb units.

The other option to make significant returns is to have commercial space in Tulum – but that’s not what we specifically want to do.

This is what we’ve always done, we’ve been very selective of where we buy the land, the actual views that the land’s going to have, the design, and being boutique, people like that, especially coming to Tulum.

Having a boutique Airbnb listing is definitely essential. And in my opinion, which region your land is located due to supply and demand

When we think about an HOA fee in a small boutique development in Tulum compared to a larger building – like the administration fees – they are so small that the money you’re going to make on the rental offsets that.

So for example, let’s say you buy a two-bedroom.

If you buy in a bigger development, maybe it’s gonna be $250. If you buy in a boutique development, maybe it’s $400 a month.

Okay. But get this, that’s only a $150 difference. You’re gonna make about $800 more per month for renting that unit in a boutique development in Tulum compared to one in a development with 50+ units.

So it doesn’t really matter if your maintenance is higher if the return that you’re getting is much higher.

What A $6,000 Profit Per Month Unit Looks Like On Airbnb 03:35

So this unit right here is a ground floor unit. This is a two-bedroom unit. It’s on Airbnb, you can check it out here. It’s normally going between $240 to $350 per night.

That is the average. Now in high season, it can reach $400, during Christmas week, New Year’s Week, and Easter week, it’ll reach $600 a night – because it is boutique, and we manage the Airbnb unit for our investors and have a full strategy.

The lowest I’ve rented this – is about $180 per night.

We only rent per night. We don’t do long-term because it doesn’t make a lot of sense to do long-term here and you will make more money on Airbnb because of the demand.

I’ve had people come to me and offer $3,500 a month for this, $4,000 a month per month.

It doesn’t make sense because of the numbers I make each month from the unit.

An Exceptional Airbnb Rental Property And Its Performance 04:36

You have to understand that this is not how all Tulum Airbnb units perform when it comes to short-term rentals.

It is important to note, that if you have a good marketing team and Airbnb property management team in Tulum – it can do very well.

You also must have a very nice and unique unit to set yourself apart from the competition.

It needs to show well with aesthetics, then the services you offer, the concierge service to help guests check in or handle any issues that could arise during a stay, and the additional things that you offer like upsells and excursions to name a few.

So I would say this is an exceptional unit but look at the performance of this Tulum Airbnb in the month of February 2022.

We made about $ 6,700 USD in the month of February (the shortest month of the year with some nights still available).

March is super booked with rentals again at $ 7,000 USD for the month at almost a 100% occupancy rate and it’s only January at the time of this recording.

What this tells me, is that my prices are too low and I could raise them even higher to make more revenue.

So look, January 2022 in pesos, 193,000 Mexican Pesos ($9,650 USD). Now, this is gross, this is not net returns, but we’ll get to that.

February is $103,000 pesos plus $33,000 pesos not paid out just yet because we have not reached those check-in dates. So it’s like $140,000 Mexican Pesos.

Because we still have some months there are days in February that haven’t been rented yet. March is looking super good $172,000 pesos, and April is about $130,000 pesos.

And since we have bookings far out – it actually means we could raise our prices a little more.

But at the start of the year, we already have in bookings $35,000 USD in bookings. And we just started, we’re just in February.

Wow.

The First Year Airbnb Performance In A Tulum Unit 6:26

Let’s look at last year, 2021 as a whole to see what a short-term rental in Mexico made on Airbnb as a whole. We began renting this unit on Airbnb in March 2021.

There is no previous history. So March 2021 it started slow because we needed to build up this listing within the Airbnb algorithm.

March 2021 made $71,000 pesos which is still super good. That’s roughly $3,500 USD.

But the thing that we’re seeing now is as we have done good service, good customer reviews, the algorithm pushes up and this unit for 2022 is gonna like, crush it completely.

With our team operating the Airbnb unit in 2021, we did pretty well and finished higher than normal in our first year.

We had 212 nights booked resulting in a 79% occupancy rate. And I think these occupancy rates will stay high if you know how to manage an Airbnb property in Tulum like we do.

This is way higher than normal – because we know how to operate the Airbnb unit on the backend to consistently achieve 5-star reviews 🌟

Again, not everything in Tulum is like this. It is a really good example of choosing a good product – because that is what results in 5-star reviews and more revenue.

And I think that’s what’s given us – this really high ROI.

So let’s do the math – and remember we didn’t rent in January and February 2020. So for the total year of 2020, we did about $1.4 million pesos which is $70,000 USD.

But we also need to take away our expenses – like the HOA, electricity, wifi, etc. The best way to do this is to subtract 33% from the gross to get your net. 

With this specific unit, we didn’t sell it. I’m a developer here in Tulum. I also like to invest in the units we built and keep units when we can.

But, if we did sell this unit back in March it would have sold for $385,000 USD. Let’s say you only have $100,000 to invest, I wrote a post on where you could get high returns with just $100k here.