BajaNomad - Rental Prospects: La Ventana v. Los Barriles?

Rental Prospects: La Ventana v. Los Barriles?

jdshipman83 - 12-7-2016 at 07:39 AM

Long-time reader, first time poster

I am planning to buy or build (probably buy) a place in either La Ventana or Los Barriles. I have spent about a year in both places, and love them both.

Here is my x-factor:

I may want to rent my place out for a few months of the year, and I am trying to figure out whether my rental prospects would be better in La Ventana or Los Barriles. My place will be a new or near-new 2 bedroom, on-the-grid, within 4-6 blocks of the beach, with a private pool (rental rate would probably be in the $150/night or $1,800/month range).

I know there are a thousand factors that will affect my rental prospects, but do any of you seasoned baja nomads have thoughts on whether La Ventana or Los Barriles will provide a better rental market for this type of property?

Any advice on this (or any related suggestions) would be greatly appreciated. I think I have read just about every post on this forum

, but if there is already a thread out there on this issue (or something similar), I apologize in advance for missing it!

weebray - 12-7-2016 at 07:56 AM

There is pretty much nothing going on from May to November at both locations so your rental would not appeal to the people that are there during that time. The markets are similar. I would not base my decision on the rental market. I would let my feet hit the street and choose which one "felt" better to me. If you are only a developer then condos seem to be big right now. You can build just about anything anywhere if you have a good lawyer and enough moola.

brucedog - 12-7-2016 at 08:09 AM

I agree with Weebray on both points. Which months you want to rent? Many months are not popular and La Ventana is very dead in the summer with many businesses closed.

I think you should build or buy where you want to be. Each town has its own vibe and also many other things to consider. Do you prefer to be closer to Cabo and the airport or closer to La Paz? If you are into windsurfing or kiting, they are also both very different.

Don't forget that if you rent it out you are required to pay taxes in Mexico. Many people try to avoid this but I have heard that they are cracking down on this.

jdshipman83 - 12-7-2016 at 08:26 AM

Quote: Originally posted by brucedog

I agree with Weebray on both points. Which months you want to rent? Many months are not popular and La Ventana is very dead in the summer with many businesses closed.

That's what I figured - I am operating under the assumption that summer is a dead rental market in both places, although a few folks have told me that Los Barriles would be slightly better in terms of summer rental prospects.

Quote: Originally posted by brucedog

Don't forget that if you rent it out you are required to pay taxes in Mexico. Many people try to avoid this but I have heard that they are cracking down on this.

Yep - that's what I am hearing as well. I have a Mexican lawyer, and will definitely make sure I am on the up-and-up in terms of tax compliance, etc.

jdshipman83 - 12-7-2016 at 08:33 AM

Quote: Originally posted by weebray

I would not base my decision on the rental market. I would let my feet hit the street and choose which one "felt" better to me.

Good advice. The rental issue is definitely just one of many factors I am considering. I am leaning towards La Ventana because I just like that area better. I guess I am just a little concerned about it being such a small area, and whether I would be able to rent my place out during some of the winter months if I needed to come back stateside for a few months.

RnR - 12-7-2016 at 10:13 AM

Quote: Originally posted by jdshipman83

Quote: Originally posted by weebray

I would not base my decision on the rental market. I would let my feet hit the street and choose which one "felt" better to me.

La Ventana has a booming rental market from Dec thru March when all of the visiting kiters are in town.

Set your rent low enough and it will rent. Set your rent average to high and your unit will be lost among the multitude of other available rentals.

There is NO rental market from May thru September. People looking for housesitters/caretakers usually have to pay THEM.

BajaUtah - 12-7-2016 at 10:14 AM

Not an expert on LV at all but I know LB has 2 seasons - windy and fishy.
December through April will have the kite boarders, June through August will have the fishermen. I don't know if LV gets the fisher traffic. Friends of ours that manage property between LB and La Ribera just don't rent during the last 2 weeks of September through August because of the storm potential. Their places are full other than those 6 weeks.

If you look on VRBO you will see a ton of properties so you could get a feel for what types of homes/locations are renting and the going rates.

vandenberg - 12-7-2016 at 12:09 PM

I may be mistaken but $1800.00 a month sounds like the amount of a dreamer. Maybe in Cabo and even there a Maybe.

jdshipman83 - 12-7-2016 at 12:28 PM

Quote: Originally posted by vandenberg

I may be mistaken but $1800.00 a month sounds like the amount of a dreamer. Maybe in Cabo and even there a Maybe.

Fair enough. I pulled that number out of the air as ballpark for high-season, based on what I was seeing on VRBO. But yeah, that number may be high.

weebray - 12-7-2016 at 01:26 PM

I agree that the rental market would be a bit better in LB because of its proximity to Los Cabos. That alone would make me prefer LV. I prefer the more Mexican feel of La Paz and Los Cabos does not appeal to me. The whole area sets off my "new age" bullchit meter. Same with Todos Santos. But, I live in La Paz so my prejudice runs deep. Bear in mind that in LV, during the summer months, everyone hides under a rock and you could shoot a cannon down main st. and not even scare a coyote. It sounds like you may need to rethink what you are looking for because the only real rental market is when you would be most likely to want to be there. One last thought. You'd better LOVE windsports because you are going to be living where, in the winter, the wind is relentless and brutal.

pelone - 12-7-2016 at 03:39 PM

1800 dollars a month for a rental would be a bargain in Loreto. Ask yourself how much one would have to pay for a month in Hawaii. I would think that renting a nice place for a month in LB or LV for 1800 a month would be an unrealistic expectation, where rentals start at 200 per night for a beach front house. One consideration might be, how easily would the house be accessed based upon nearest airport with reliable flights? LV might be a bit of a push for renters.

Loreto beckons---

Bob and Susan - 12-7-2016 at 04:00 PM

before you start a business you should do some homework on what are the REAL tourist seasons and WHO should you market to...

my experience in our area is most vacationing tourists come in the summer...not the winter...campers come in the winter

don't listen to these guys that say the place is dead in summer...
they are never there and are not in the vacation rental business...they don't know

summer just brings a different TYPE of tourist...not americans and Canadians

think out of the box and market your rental
craigslist should NOT be your marketing tool and the members of this board are probably not going to be your customers

weebray - 12-7-2016 at 05:16 PM

Hooooo boy, are you wrong. Sorry, but , LV is dead as a doornail in summer and LB not much better. I have friends with houses in both places and one in the east cape. I am there every year numerous times and I know the area well. I know nothing about the Loreto area except that when I drive through in the summer it LOOKS like not much is going on. Way back when I used to fish in Loreto in the spring to late spring with Alejo Murillo but even he took a siesta in the summer months. Later I discovered the Bravo market in La Paz and that ended my fishing adventures.

vandenberg - 12-7-2016 at 06:19 PM

Quote: Originally posted by weebray

Later I discovered the Bravo market in La Paz and that ended my fishing adventures.

Fishing buddies in Loreto are resorting to triggerfish nowadays.
Sorry for the highjack.