Authored by the expert who managed and guided the team behind the Colombia Property Pack
Yes, the analysis of Cartagena's property market is included in our pack
Cartagena's short-term rental market offers compelling investment opportunities for international buyers seeking higher yields than traditional rentals.
The historic port city attracts over 2 million international tourists annually, with prime neighborhoods like Getsemaní and Bocagrande achieving occupancy rates above 75% during peak season and average nightly rates of $90-180 USD.
If you want to go deeper, you can check our pack of documents related to the real estate market in Colombia, based on reliable facts and data, not opinions or rumors.
Cartagena's Airbnb market shows strong profitability with breakeven rates around $77-93 per night at 60% occupancy, while top neighborhoods achieve $7,000-14,000 annual net cash flow.
Investment setup costs range $180,000-350,000 for properties plus $12,000-30,000 for furnishing, with cash-on-cash returns reaching 18% in prime locations.
| Neighborhood | Average Nightly Rate (USD) | Peak Season Occupancy | Annual Revenue Potential | Property Price Range |
|---|---|---|---|---|
| Getsemaní | $82-150 | 75-80% | $18,000-24,000 | $180,000-350,000 |
| Bocagrande | $99-200 | 65-75% | $20,000-28,000 | $150,000-300,000 |
| Walled City | $100-200+ | 70-80% | $24,000-35,000 | $220,000-500,000+ |
| City Average | $83 | 63% | $16,836 | Varies |
Which neighborhoods and property types should I target for the highest short-term rental demand in Cartagena?
Getsemaní stands out as the top neighborhood for Airbnb investments with proven guest demand and strong occupancy rates.
This bohemian cultural hub achieves 63% average occupancy with nightly rates ranging $82-150 USD, particularly appealing to international travelers seeking authentic Colombian experiences. During peak season (January and December), Getsemaní properties reach 80% occupancy rates, significantly above the city average.
Bocagrande offers the second-best investment opportunity with its modern beachfront location generating 65% occupancy and $99-200 nightly rates. The area attracts guests seeking beach access and modern amenities, making 1-2 bedroom condos on higher floors particularly profitable due to ocean views and premium positioning.
The Walled City (Centro Histórico) commands the highest nightly rates at $100-200+ but requires larger initial investments for historic properties. This UNESCO World Heritage site attracts luxury travelers and cultural tourists, making it ideal for unique or upscale properties targeting premium market segments.
Target 1-2 bedroom apartments or boutique homes with essential amenities including reliable Wi-Fi, air conditioning, and walkable locations to maximize guest satisfaction and repeat bookings.
What total acquisition and setup costs should I budget for launching an Airbnb in Cartagena?
Property acquisition costs vary significantly by neighborhood, with total setup investments ranging $200,000-380,000 including furnishing and permits.
In Getsemaní, expect to pay $180,000-350,000 for a suitable 1-2 bedroom historic apartment or refurbished home. Bocagrande properties cost $150,000-300,000 for modern condos, while Walled City historic properties command $220,000-500,000+ for premium locations.
Closing costs typically add 5-7% of the purchase price, covering legal fees, taxes, notary services, and property registration. For a $250,000 property, budget $12,500-17,500 for closing expenses.
Furnishing and décor costs range $12,000-30,000 depending on quality and style preferences. Mid-range furnishing suits Getsemaní and Bocagrande properties, while Walled City investments often require luxury finishes to justify premium nightly rates.
Permits and legal setup require $2,000-8,000 for tourism licenses, HOA permissions, registry fees, consultants, and any necessary property improvements to meet short-term rental regulations.
What nightly rates and occupancy can I realistically achieve throughout the year?
| Season | Occupancy Rate | Getsemaní Rates (USD) | Bocagrande Rates (USD) | Walled City Rates (USD) |
|---|---|---|---|---|
| Peak (Jan, Dec, holidays) | 75-80% | $140-180 | $110-150 | $170-220 |
| Shoulder (Mar, Jul, Oct) | 55-65% | $90-130 | $85-120 | $120-160 |
| Low (Sep, May) | 40-55% | $60-90 | $65-95 | $100-140 |
| Annual Average | 63-75% | $97 | $92 | $143 |
How much monthly revenue can I expect across different seasons?
Monthly revenue fluctuates significantly between peak, shoulder, and low seasons, requiring careful annual planning for cash flow management.
Peak season months (January and December) generate the highest returns with Getsemaní properties averaging $3,234 monthly revenue, Bocagrande achieving $3,465, and Walled City properties reaching $4,140+ monthly income.
Shoulder seasons (March, July, October) produce moderate revenue with Getsemaní averaging $2,133, Bocagrande $2,160, and Walled City $2,880 monthly. These months offer stable bookings without peak season premium pricing.
Low season months (September, May) significantly impact revenue with Getsemaní dropping to $1,116, Bocagrande to $1,074, and Walled City maintaining $1,606 monthly revenue due to its premium positioning and cultural attractions.
Annual average revenue ranges $18,000-24,000 for Getsemaní and Bocagrande properties, while Walled City properties can achieve $24,000-35,000 annually depending on property quality and positioning.
What platform fees, taxes, and charges apply to my Airbnb bookings?
Multiple fees and taxes impact your net revenue, with platform fees, local taxes, and service charges reducing gross booking income by 15-25%.
Airbnb charges approximately 3% host service fee on each booking, while guests pay up to 14% in guest service fees. If you accept bookings through alternative platforms or direct channels, expect 3-4% payment processing fees via Stripe or PayPal.
Colombian VAT (IVA) applies at 19% on Airbnb service fees, while transient lodging tax ranges 8-10% depending on local municipal regulations. These taxes are typically passed to guests through platform pricing structures.
Cleaning fees of $30-100 per stay are usually paid by guests but set by hosts, providing additional revenue while covering turnover costs. HOA or building fees of $60-250 monthly are owner responsibilities regardless of booking activity.
Income tax applies to short-term rental profits under Colombian tax law, requiring consultation with local accountants for proper compliance and optimization strategies.
What fixed monthly expenses should I budget for property operations?
| Expense Category | Monthly Range (USD) | Notes |
|---|---|---|
| Mortgage Payment | $600-1,400 | Based on 20-30% down payment |
| HOA Fees | $60-250 | Higher for premium buildings |
| Insurance | $30-90 | Property and liability coverage |
| Utilities | $50-120 | Electricity, water, gas |
| Internet | $25-60 | High-speed for guest satisfaction |
| Total Fixed Costs | $765-1,920 | Varies by property tier |
What variable costs should I expect per booking?
Variable costs per booking typically range $60-180, directly impacting your profit margins and requiring careful budgeting for each guest turnover.
Cleaning costs $30-100 per turnover depending on property size and local cleaning service rates. Laundry expenses add $10-20 per booking for fresh linens and towels.
Consumables including toiletries, coffee, welcome snacks, and basic amenities cost $5-15 per guest stay. Maintenance reserves of $20-50 per booking help cover routine repairs, touch-up painting, and minor replacements.
Restocking costs for linens, towels, and household items average $10-30 quarterly or as needed based on wear and guest usage patterns. Welcome items and local recommendations typically cost $3-10 per arrival.
It's something we develop in our Colombia property pack.
What regulations and licensing requirements apply to short-term rentals in Cartagena?
Cartagena requires specific permits and compliance measures for legal short-term rental operations, with initial costs ranging $2,000-8,000.
All properties must obtain Registro Nacional de Turismo (RNT) from Colombian tourism authorities. Building or HOA bylaws must explicitly permit short-term rentals, making property selection crucial for legal operations.
Properties must be located in tourist-zoned areas or buildings with appropriate zoning permits for vacation rental use. Fire safety, emergency evacuation, and building code compliance may require property modifications or certifications.
Initial compliance costs include permit applications, legal consultations, required property upgrades, and municipal licensing fees totaling $2,000-8,000. Annual renewal fees typically cost $100-300 for maintaining legal status.
Municipal regulations continue evolving, requiring ongoing monitoring of local law changes and potential impacts on short-term rental operations in historic districts like the Walled City.
Don't lose money on your property in Cartagena
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Should I self-manage or hire a property management company?
Property management decisions significantly impact profitability, with self-management maximizing returns while professional management reduces time commitment at 15-25% revenue cost.
Self-management provides full control over guest experience, pricing strategies, and operational decisions while eliminating management fees. However, this requires significant time investment for guest communications, cleaning coordination, maintenance oversight, and 24/7 availability for emergencies.
Professional managers typically charge 15-25% of gross booking revenue plus cleaning coordination fees. Services usually include listing optimization, guest communication, cleaning management, restocking, emergency response, and basic accounting support.
Co-host arrangements offer middle-ground solutions with local partners charging 20-30% plus cleaning fees or flat monthly retainers. This option provides local expertise while maintaining more owner control than full management contracts.
Consider your time availability, local presence, language skills, and profit margin requirements when choosing management approaches for optimal investment returns.
How much should I reserve monthly for capital expenditures and major replacements?
Reserve $60-150 monthly for capital expenditures to cover major appliance replacements, furniture refresh, and property improvements over 5-10 year periods.
Air conditioning systems typically require replacement every 8-12 years at $1,500-4,000 per unit depending on property size and quality requirements. Kitchen appliances need replacement every 5-8 years with costs ranging $2,000-6,000 for complete updates.
Furniture refresh cycles every 3-5 years to maintain guest satisfaction and competitive positioning, requiring $3,000-8,000 depending on property size and style preferences. Technology upgrades including TVs, sound systems, and smart home features need updates every 3-5 years.
Painting and décor updates every 2-3 years cost $1,000-3,000 depending on property size and finish quality. Flooring replacement every 7-10 years ranges $2,000-8,000 based on materials and square footage.
Setting aside $60-150 monthly ensures adequate reserves for these cyclical expenses without impacting cash flow during replacement periods.
What are my breakeven points and profit sensitivity to rate or occupancy changes?
Breakeven analysis reveals critical thresholds for profitability, with typical operations requiring $77 nightly rates at 60% occupancy to cover all expenses.
Assuming total monthly costs of $1,400 (including fixed expenses, variable costs, and capital reserves) and 60% annual occupancy generating 18 nights monthly bookings, breakeven nightly rate equals $77 ($1,400 ÷ 18 nights).
Rate sensitivity significantly impacts profitability: 10% rate decrease to $69 nightly requires 20.3 nights monthly (68% occupancy) to maintain breakeven. A 20% rate drop to $62 demands 22.6 nights monthly (75% occupancy) for breakeven operations.
Occupancy sensitivity equally affects results: 10% occupancy decrease to 50% (15 nights monthly) raises breakeven rate to $93. A 20% occupancy drop to 40% (12 nights monthly) requires $117 nightly rates for breakeven.
Lower-season months often operate below breakeven, requiring annual planning and higher-season profits to compensate for seasonal revenue fluctuations and maintain overall profitability.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Colombia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are my projected returns compared to long-term rentals or selling?
Short-term rental investments in Cartagena significantly outperform long-term rentals and property appreciation, delivering superior cash-on-cash returns for active investors.
Annual net cash flow ranges $7,000-14,000 after all expenses depending on neighborhood, property quality, and management efficiency. With total investment of $280,000 and 20% down payment ($56,000), achieving $10,000 annual net income generates approximately 18% cash-on-cash return before taxes.
Payback periods range 8-12 years on invested capital, comparing favorably to other international real estate investments. Long-term rental yields average only $600-1,200 monthly ($7,200-14,400 annually) with significantly lower management requirements but reduced profit potential.
Property appreciation in Cartagena shows modest growth potential, but short-term rental income substantially exceeds appreciation-based returns when regulations remain favorable. Market volatility and regulatory changes pose primary risks to sustained profitability.
It's something we develop in our Colombia property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Cartagena's short-term rental market offers compelling investment opportunities for international buyers seeking higher yields than traditional property investments.
Success requires careful neighborhood selection, realistic financial planning, and compliance with evolving local regulations to maximize returns while minimizing operational risks.
It's something we develop in our Colombia property pack.
Sources
- Airbtics - Annual Airbnb Revenue in Cartagena
- The LatinVestor - Best Neighborhoods in Cartagena
- Airbnb Help - Tax Information
- AirDNA - Airbnb Cleaning Fees Guide
- Airbnb Help - Local Laws and Regulations
- Restrepo Legal - Airbnb Investment Regulations
- Airbtics - Best Airbnb Markets in Colombia
- The LatinVestor - Cartagena Area Analysis
- Medellin Guru - Airbnb Hosting in Colombia
- The LatinVestor - Cartagena Price Forecasts