The question we hear most after “where should I buy?” is “should I put it on Airbnb or lease it for a year?”. Most of the time you get an opinion. This time we answer with an experiment: the same unit, the same twelve months, both strategies side by side, and every expense on the table.
The unit: typical of our inventory
For the exercise to be useful, the unit had to be representative. Of the
79 properties in our catalog, 47 are in Tulum. Among these, 12
are two-bedroom with a published asking price, and their median is 217.000
dollars. We used as a reference a two-bedroom unit at
220.000 dollars, which is exactly what two of our listings are
asking today.
One note before we start: none of our catalog listings publishes a verified rental
history. That’s why every rate, occupancy and expense in this article is shown as
indicative ranges, and at the end we explain the sources. What
matters is not the exact number, but how the two options compare.
Version A · Nightly vacation rental
Base-case assumptions for a well-furnished two-bedroom unit in
areas like La Veleta or Aldea Zamá:
- Average nightly rate: 135 dollars (range 110 to 160 depending on
season, location and amenities). - Annual occupancy: 55%, about 200 nights (range 45% to 65%).
- Platform fee charged to the host: around 3%.
- Professional property management: 20% of revenue (charged 18% to
25%; includes guest handling, coordinated cleaning, and minor maintenance). - Condo HOA fee: about 3.000 dollars per year.
- Electricity, water, internet and platforms, which in vacation rentals are paid by the owner: about 2.400
per year. - Replacement of linens, housewares and wear-and-tear: about 1.000 per year.
Base-case result: 27.100 dollars in gross revenue and
about 14.500 dollars net before taxes. On the
220.000 purchase, a 6,6% annual yield.
But you need to look at the endpoints. At 110 dollars per night and 45% occupancy, gross
drops to 18.100 and net to about 7.500: a 3,4%. At 160 dollars and 65%,
gross climbs to 38.000 and net to about 22.800: a 10,4%. Short‑term
rental doesn’t have a single return; it has a range, and the width is the risk.
There’s one cost that doesn’t show up in the annual math: furniture. A
two-bedroom unit turnkey for demanding guests runs from 15.000 to 25.000
dollars in furniture, equipment and decor. In our Tulum catalog, only 11
of the 47 listings are delivered furnished or equipped; the rest need to be outfitted.
Version B · Annual lease with contract
The same unit, leased to a resident on a twelve-month contract:
- Monthly rent: 1.250 dollars (range 1.000 to 1.500 for two
bedrooms, unfurnished or semi‑furnished). - One vacant month per year between tenants, to be conservative.
- Broker fee for placing the tenant: one month’s rent.
- Condo HOA fee: the same 3.000 per year.
- Minor repairs: about 500 per year.
- Electricity, water and internet: paid by the tenant.
Base-case result: 13.750 dollars collected and about
9.000 net before taxes, a 4,1% annual yield. With
rent at 1.000, net lands at 6.500 (3%); with 1.500, at 11.500 (5,2%). The range is
much narrower.
The breakeven point
This is the number we cared about most. At a 135‑dollar nightly rate,
vacation rental breaks even with the annual lease when occupancy reaches about
41%, roughly 148 nights a year. Below that, Airbnb yields less than a fixed
tenant, and with much more work.
If you amortize the furniture over five years —about 3.600 dollars per year on an
18.000 outlay—, breakeven moves up to around 50% occupancy, about 183
nights. Put differently: for vacation rental to truly be worth it, the
unit has to be occupied more than half the year, consistently—not just in December and Semana Santa.
And the gap in the base case—about 5.500 dollars a year in favor of vacation
rental—takes more than three years to pay back 18.000 in furniture.
What the calculator doesn’t capture
Time and headspace. An annual lease can be managed with one email a
month. A vacation rental means reviews, 3 a.m. messages, an AC that fails on a Saturday
and a manager you still have to oversee. There’s a reason “vacation rental property
management” shows up in our Google stats: it’s the part of the business that worries
buyers the most.
Local supply. Tulum has a lot of new product hitting the
short‑term market at the same time. When an entire building is delivered on the same
street, nightly rates adjust. Annual rent, which depends on people who live and work in
the city, moves more slowly.
Building and municipal rules. Not every condo allows nightly rentals,
and some limit them or charge extra fees. Read the bylaws before you buy, not after.
Taxes. You pay in both versions. In short‑term, platforms withhold
taxes from the host and there’s also a state lodging tax; with an annual lease, you
report rental income. The right tax regime depends on whether the owner is a resident
or not, and it’s best to define it with an accountant before the first booking.
Owner use. With a vacation rental, the owner can spend two or three
weeks a year in the unit. With an annual lease, you can’t. For many buyers that’s the
real reason—and that’s fine, as long as you know what it costs.
Our conclusion from the experiment
Vacation rental wins in the base case and wins big in the good case. But it
loses to an annual lease if occupancy drops below 40% to 50%, and it
requires an upfront investment that takes years to recover. The annual lease yields
less, but it does so with near certainty.
The right question isn’t which one yields more, but what occupancy that
specific unit can sustain: its area, building, amenities, and the
competition next door. That can be estimated before you buy.
If you’re looking at a unit in Tulum and want to see these same numbers on the
actual property, write to us. We’ll run both versions with its price,
its area and its building, and tell you at what occupancy they intersect.
Inventory read from our catalog on October 5, 2026, with prices in pesos converted
at 18,19 pesos per dollar. Nightly rates, occupancy, monthly rents, commissions, dues
and expenses are indicative ranges for a two-bedroom unit in Tulum, not verified data
for a specific property; they vary by area, building and season. Return figures are
before taxes. This article is not tax or legal advice.
Versión en español: El mismo departamento de Tulum en Airbnb y en renta anual, doce meses · Versão em português: O mesmo apartamento em Tulum: Airbnb ou aluguel anual por 12 meses · Version française: Tulum: même appartement, Airbnb ou location à l’année, 12 mois
