Airbnb vs. traditional rental: which pays off more in the Mexican Caribbean?

This is THE question every investor asks me: do I put my property on Airbnb or look for a long-term tenant? The answer, like almost everything in real estate, is: it depends. Here are the numbers so you can decide with data, not intuition.

Vacation rental (Airbnb): in a well-located property in Playa del Carmen — say five blocks or less from the beach — you can expect 70–80% occupancy in high season (December–April) and 50–60% in low season. An average rate of $120 USD a night with 65% annual occupancy gives you roughly $28,000 USD in gross income per year.

Vacation rental costs: from that income, subtract the platform commission (15–20%), cleaning between guests, more frequent maintenance, utilities (electricity, water, internet), a property manager or co-host (10–20% if you don't do it yourself) and quality furniture that needs replacing every 2–3 years. Your net income can drop to $16,000–$18,000 USD a year.

Traditional rental (long term): the same condo rented to a local tenant or expat can bring you $800–$1,200 USD a month. That's $9,600–$14,400 USD a year. Less gross income, but also fewer expenses: no platform commission, the tenant handles cleaning, and maintenance is lower.

The hidden advantage of long-term: stability. A steady tenant gives you predictable cash flow. With Airbnb, a bad hurricane season or a pandemic can leave you at zero. For investors who need to cover a mortgage, long-term is usually the safer bet.

My recommendation: if you can tolerate the variability, combine both. Rent on Airbnb in high season (6 months) and look for a medium-term tenant (3–6 months) for the rest of the year. Many digital nomads pay well for 3–5 month stays in winter.

Want me to analyze a specific property to see which strategy suits it best? Send me the details on WhatsApp and I'll run the numbers for you.