Guide
What does it cost to own a property in Tulum each year?
The short answer
Every year: a bank-trust fee of about $500–$800 USD, a property tax (predial) that is low by US standards, HOA fees, electricity, insurance and maintenance — and, if you rent it out, management and Mexican tax on the rental income. HOA fees vary the most between buildings, so check them before you offer. Budget as if the property earns nothing.
What does owning cost each year?
- Fideicomiso annual fee — about $500 – $800 USD a year in most published estimates, for as long as you own it.
- Predial (property tax) — annual, and low compared with the US or Canada.
- HOA / condo fees — the big variable. Ask for the exact figure in writing before you offer.
- Electricity — air conditioning in a humid climate is a real bill.
- Water, gas and internet.
- Insurance, including hurricane cover on this coast.
- Property management, if you are not here.
- Maintenance and repairs — salt and humidity are hard on buildings.
- Tax on rental income — if you rent it out, you have a Mexican tax obligation.
How do I check a building’s HOA fees?
In many Tulum buildings the fee is quoted per square meter, and it varies a lot between buildings that look alike. Before you make an offer, we ask two questions for you:
- What is the current monthly fee, in writing, for this exact unit?
- What percentage of the building is behind on payments?
When many owners are behind, a building raises everyone else’s fees or lets upkeep slip. Chasing unpaid HOA accounts is a service we provide, so we know what to look for.
HOA fees in Tulum, in detail →
Will rental income cover the costs?
It depends on occupancy, and the data services disagree. The three best-known trackers put average annual short-term-rental occupancy in Tulum at 29% (AirROI), 46% (AirDNA) and 47% (Airbtics), mostly because they count active listings differently.
High-end villas are reported to net about 8% a year. Ordinary condos are widely reported to just cover their costs. Occupancy also moves with the season: in AirROI’s data, about 42% in the best month and about 23% in the worst.
How should I budget?
Build your budget as if the property earns nothing. If the numbers still work — because you want to use it, or because you can carry it — rental income is extra rather than a requirement, and you choose when to sell.