Panama Vacation Rentals
Vacation rental is an expression used in tourism industry and pertains to the renting out of self catering furnished apartments, houses, or lodging on a temporary basis as the alternative to a hotel arrangement, where the industry standard is on a weekly basis, although some vacation rentals are available on a nightly basis. The more common vacation rental in Panama is the fully furnished condominium, villa or town house.
Panama is known as a premier and ideal destination for vacation rentals catering to large population of tourists and retirees. In fact the growth in vacation rental development is on par with the increasing number of vacationers and retirees flocking to Panama. The main reasons Panama attracts million of North Americans and Europeans for retirement is the low cost of living, the attractive weather, low crime rates, a strong and growing economy and a US style infrastructure.
For investors, there is great opportunity in vacation rentals with attractive investment incentives and an expected good return on investment on vacation rentals. The boom in Panama vacation rental development has attracted the likes of major US and International real estate companies and baking institutions who establish businesses or franchises in Panama.
Panama is a Spanish speaking country with the US dollar as its main paper currency and Panama is known as a major player in offshore financial services. Its economy is based on service based industries such as tourism, banking and commerce. But, as a holiday destination, Panama offers the pleasures and adventures of many worlds over. Panama is a diverse country and unique in its geography with a range of volcanic mountains to its center, bordered by the Caribbean Sea and the Pacific Ocean, impenetrable dense vegetation covers the forested areas, and spectacular beaches grace the coastlines. The lifestyles of Panamanians is as diverse as its geography, from its busy metropolitan style city, Panamá City, to the mountain retreats and secluded coastal developments, Indian villages; Panamá has a vacation rental options for any style and budget.
The Panamanian government recognizes the importance of maintaining its success not only as financial and offshore center but as a major tourist destination, and a retirement and expat community. As such, the business and private sector in Panama invest in ventures which cater to the whims and fancies of those very visitors, retiree, and expat. They provided the diverse style of accommodation, the services, the goods and amenities in demand, plus the variety of vacation rental properties. The government has generous incentive packages in place for investors willing to establish business and homeowner/retirees hoping to settle in Panama. Personal income tax exemptions, duty exemptions on personal effects; construction material and equipment, on real estate tax exemption , a generous retirement discount program which is envied by first world countries are just some of the incentives set out for investors and retirees.
Panama vacation rentals are popular choice for long stay tourist or retirees who prefer not to buy panama real estate at that time. Hotels, B&B, hostels, cabins and cottages cater primarily to the short stay tourist. Of course the location, the budget, the amenities and the services required will determine the most appropriate type of vacation rental. Panama vacation rentals are the mainstay of the tourism market at this time. It is estimated that travelers spend at least 50-60% of the expenses on accommodation. And vacation rentals have their own appeal as well: cost savings- no added taxes or expenses such as tips or gratuities, service charges; vacation rentals tend to offer a more personalized living space, more privacy, more unique amenities, swimming pools, maid services, personal laundry facility, Jacuzzi, separate sleeping quarters.
The downside of vacation rental is the fact that you remove the comfort zone provided by a hotel- 24 hour maintenance service, check in, concierge service, and problem solving. But the pros outweigh the cons every time, hence the reason why vacation rentals continues to be popular in Panama.
So, as an investor looking to invest in vacation rental property there are many ways to go. Land may be purchased to be developed into anyone of the more feasible property developments, or existing properties may be purchased to conduct vacation rental activities. Panama lists many reputable real estate agents who would be happy to discuss various vacation rental opportunities in Panama. For further details on real estate in Panama refer to the other article on this website.
In most cases, properties established and advertised as vacation rentals would have preset pricing (short term or long term) and a preset services and amenities offered. Vacation rentals in panama are the most abundant and diverse forms of vacation rental in the Caribbean, few countries can boast of having islands and castles, and boats available as vacation rental properties. For an investor, as the population of visitors and retirees increases in panama the need for vacation rentals will continue to rise. The only main decision is selecting the right business of vacation rental on which the yield is highest and most secure on return on the investment.
When choosing a vacation rental, a few steps to follow: Make sure the terms of vacation rental are clear, the rate, the length, the deposit requirements, the services or amenities provided. Long term rentals may require lump sum deposit or a specified deposit. Vacation rentals under a month’s stay; normally require a credit card to confirm the booking and amount is settled as policy dictates. Deposits are held as security against damages to property or payment defaults, upon end of the contract deposit will be refunded. Long term vacation rentals may require reference letters, and subject to credit check and report. Most vacation rental are furnished, and in such cases it is recommend that an inventory check be conducted and sighed off by both parties.
The existence of vacation rentals proposes great opportunities for investors in Panama, and through a diverse range of vacation rentals in Panama, any visitor to Panama will be sure to find suitable lodging to make their stay comfortable.