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Short-term rental via Airbnb in San José can be profitable for well-positioned properties in high-demand neighborhoods. The Costa Rican capital offers steady occupancy rates around 57%, with premium locations like Downtown and Barrio Escalante achieving 65-71% occupancy rates. However, realistic projections must factor in platform fees, cleaning costs, and regulatory compliance that can significantly impact net returns.
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Airbnb properties in central San José neighborhoods generate gross monthly income ranging from $989-$3,200 depending on property type, with 1-bedroom condos earning around $1,100 monthly and family homes reaching $3,200.
After accounting for Airbnb's 14% platform fee, cleaning costs, and utilities, net monthly income typically ranges from $750-$2,500, with short-term rentals potentially outperforming long-term rentals in prime locations if occupancy exceeds 65%.
| Property Type | Gross Monthly Income | Net Monthly Income | Typical Occupancy Rate |
|---|---|---|---|
| Studio/1BR Condo | $989-$1,100 | $750-$900 | 57-67% |
| 2BR Apartment | $1,800-$2,500 | $1,300-$1,800 | 60-70% |
| 3BR Family Home | $2,700-$3,200 | $2,000-$2,500 | 55-65% |
| 4BR Luxury Home | $3,500+ | $2,600+ | 50-60% |
| Downtown Premium Unit | $5,500+ | $4,000+ | 65-71% |
What types of properties in San José are most commonly listed on Airbnb and how do they perform?
Apartments and condos dominate the San José Airbnb market, representing the most popular choice among both hosts and guests.
One-bedroom apartments make up 42.4% of all listings in San José, primarily targeting couples and solo travelers who prefer central locations with easy access to the city's attractions. These units consistently show strong performance with occupancy rates reaching 57-67% in well-positioned neighborhoods.
Single-family homes and townhouses also perform well, particularly 2-4 bedroom properties that appeal to families and larger groups. Three-bedroom homes represent nearly 29% of the market, offering higher gross income potential but requiring increased investment in furnishing and maintenance. Family homes with amenities like pools, gardens, or garages command premium nightly rates and attract longer stays.
Luxury properties with 4-6 bedrooms capture the high-end market segment, fetching $189+ per night and generating gross monthly income exceeding $3,500. However, these properties require substantial upfront investment and typically achieve lower occupancy rates of 50-60% due to their specialized target market.
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Which neighborhoods in San José tend to attract the highest demand for short-term rentals?
Downtown San José leads the market with the highest occupancy rates, reaching up to 71% due to proximity to major attractions, business centers, and transportation hubs.
Barrio Escalante has emerged as a hotspot for Airbnb demand, recognized globally as one of the coolest neighborhoods and known for its vibrant gastronomy scene and cultural attractions. Properties in this area benefit from both tourist and local demand, creating steady occupancy throughout the year.
Japantown maintains strong performance with occupancy rates around 67%, particularly for 1-bedroom units that appeal to professionals and cultural tourists. The neighborhood's unique character and central location make it consistently attractive to visitors seeking authentic local experiences.
Willow Glen and Naglee Park attract young professionals and families, showing lower vacancy rates and solid rental income potential. These residential neighborhoods offer a quieter alternative to downtown while maintaining good accessibility to the city center.
Properties located near universities, major hospitals, and business districts also show consistent demand, particularly for mid-term stays from visiting professionals, medical tourists, and academic visitors.
How does property size and layout impact occupancy and income potential?
Property size directly correlates with gross income potential, but the relationship with occupancy rates varies significantly by location and target market.
| Property Size | Median Annual Revenue | Average Occupancy Rate | Target Market |
|---|---|---|---|
| Studio/1BR Apartment | $39,000-$41,000 | 57-71% | Solo travelers, couples |
| 2BR Apartment/Condo | $55,000-$58,000 | 60-70% | Small families, business travelers |
| 3BR Apartment/House | $72,000-$75,000 | 55-65% | Families, small groups |
| 2BR House | $65,000 | 55-65% | Families seeking privacy |
| 4BR House | $105,000 | 50-60% | Large groups, extended stays |
What are the current average nightly rates for Airbnbs across different property types in San José?
Nightly rates in San José vary significantly based on property type, location, and amenities, with downtown premium units commanding the highest prices.
Standard apartments and condos typically charge $56-$64 per night for average listings, but prime downtown locations can command $183 per night due to their premium positioning and proximity to major attractions. These rates reflect the strong demand for centrally located accommodations among business travelers and tourists.
Houses and townhomes generally fetch higher rates, with 2-bedroom units in popular suburbs averaging $149 per night. The premium reflects the additional space, privacy, and often included amenities like parking and outdoor areas that appeal to families and longer-stay guests.
Luxury properties with 4-6 bedrooms consistently achieve $189+ per night, with unique amenities or exceptional locations pushing rates even higher. These properties target high-end travelers, corporate groups, and special occasion bookings willing to pay premium prices for exceptional experiences.
Seasonal variations typically see rates increase during peak tourist periods in January and December, while October shows the lowest rates due to reduced demand during the rainy season.
How do occupancy rates vary by season, weekday vs. weekend, and neighborhood?
San José shows relatively stable occupancy patterns throughout the year, with average citywide occupancy around 57%, though central neighborhoods consistently outperform suburban areas.
Seasonal variations are less pronounced than in many tourist destinations, with demand peaks in January and December coinciding with holiday travel and the dry season. October typically shows the lowest occupancy rates due to the rainy season, but the impact is moderate compared to purely seasonal destinations. Business travel provides steady baseline demand throughout the year.
Weekend demand significantly exceeds weekday occupancy, particularly for family homes and group accommodations. Properties targeting leisure travelers see substantial rate premiums and higher occupancy on Fridays and Saturdays, while business-oriented properties in downtown areas maintain more consistent weekday performance.
Neighborhood location dramatically affects occupancy patterns, with Downtown and Japantown regularly exceeding 65% occupancy while suburban areas may struggle to reach 50%. Proximity to attractions, restaurants, and transportation hubs directly correlates with occupancy stability and rate premiums.
Holiday periods and local festivals create short-term spikes in both occupancy and rates across all neighborhoods, providing opportunities for hosts to maximize revenue during peak periods.
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What is the typical gross monthly income range for an Airbnb in San José?
Gross monthly income for San José Airbnb properties ranges from $989 for studio units to over $3,200 for large family homes, with performance heavily dependent on location and property management quality.
Studio and 1-bedroom condos generate $989-$1,100 monthly gross income, making them attractive entry-level investments for new hosts. These properties benefit from lower operating costs and steady demand from business travelers and couples, though income potential remains limited by space constraints.
Two-bedroom apartments typically earn $1,800-$2,500 monthly, representing a sweet spot for many investors balancing income potential with manageable operating complexity. These units appeal to small families and business travelers requiring additional space.
Three-bedroom family homes reach $2,700-$3,200 monthly gross income, targeting larger groups and families willing to pay premiums for space and privacy. However, these properties require higher initial investment in furnishing and ongoing maintenance costs.
Premium downtown units can generate $5,500+ monthly, but this performance requires exceptional location, professional management, and high-quality furnishing and amenities.
After accounting for cleaning fees, platform fees, and utilities, what does the net income usually look like?
Net income after all expenses typically ranges from 70-80% of gross income, with platform and cleaning fees representing the largest deductions from revenue.
Airbnb charges a 14% platform fee on all bookings, which significantly impacts net returns. Additionally, cleaning fees of $50-$175 per stay (depending on property size and location) must be factored into realistic income projections, especially for properties with high turnover rates.
Monthly utilities and maintenance costs typically range from $100-$400 depending on property size, usage patterns, and included amenities. Properties with pools, gardens, or extensive electronics see higher ongoing costs that must be balanced against premium pricing potential.
Professional management services, if utilized, typically charge 8-20% of gross revenue but can improve occupancy rates and guest satisfaction while reducing host workload. The decision to self-manage versus hiring professionals significantly impacts net returns.
Realistic net monthly income ranges from $750-$900 for 1-bedroom units, $1,300-$1,800 for 2-bedroom apartments, and $2,000-$2,500 for 3-bedroom family homes after accounting for all operating expenses.
How does the net yield of an Airbnb compare to a long-term rental yield for similar properties in San José?
Short-term rental yields can exceed long-term rental returns in high-demand locations, but the advantage diminishes when accounting for increased operating costs and vacancy risks.
Prime downtown and Barrio Escalante properties can achieve 6-8% net yields through Airbnb when occupancy consistently exceeds 65%. However, this performance requires active management, optimal pricing strategies, and excellent guest service to maintain high occupancy and rate premiums.
Long-term rental yields in San José typically range from 5.5-7.5%, offering more predictable returns with significantly lower management requirements. Traditional rentals eliminate the costs and complexity of constant turnover, cleaning, and guest services that characterize short-term rentals.
The break-even point for short-term rentals versus long-term typically occurs around 50-60% occupancy, depending on location and operating efficiency. Properties unable to consistently achieve this threshold often perform better as traditional rentals.
Risk considerations favor long-term rentals for passive investors, as Airbnb performance can fluctuate based on tourism patterns, seasonal demand, and regulatory changes that don't affect traditional rental markets.
It's something we develop in our Costa Rica property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Costa Rica 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 the startup and ongoing costs specific to running an Airbnb in this city?
Initial startup costs for a San José Airbnb typically range from $6,000-$15,000, with ongoing monthly expenses adding $300-$600 to operating budgets.
Furnishing represents the largest startup expense, ranging from $4,000 for a basic studio setup to $12,000+ for a fully equipped family home. Quality furniture, appliances, and decor significantly impact guest satisfaction and review scores, making this investment crucial for long-term success.
Technology requirements include smart locks ($100-$300), professional photography ($200-$500), and initial supply inventory ($200-$400) for linens, toiletries, and cleaning supplies. These upfront costs are essential for professional operation and guest safety.
Ongoing monthly expenses include utilities ($100-$400), cleaning services ($50-$175 per turnover), minor repairs and maintenance ($50-$200), and supply replenishment ($30-$100). Properties with higher turnover rates experience proportionally higher ongoing costs.
Professional management services, if utilized, typically charge 8-20% of gross revenue but can improve occupancy rates and reduce owner workload. The decision between self-management and professional services significantly impacts both costs and returns.
What local regulations, taxes, and licensing requirements apply to Airbnb hosts in San José?
San José requires all short-term rental hosts to obtain proper licensing and comply with specific operational restrictions that significantly impact profitability calculations.
A municipal license is mandatory for all short-term rentals, with STRs permitted in single-family, two-family, multi-family homes, mobile homes, live/work units, and guest houses. Accessory dwelling units are specifically excluded from short-term rental use.
The host-absent rule limits rentals to maximum 180 days per year when the owner is not present on the property, potentially restricting income for investment properties. This regulation significantly impacts properties purchased specifically for Airbnb use.
Tax obligations include a 10% city transient occupancy tax plus 8% county transient tax, totaling 18% additional cost passed to guests or absorbed by hosts. Airbnb collects and remits these taxes on behalf of hosts, simplifying compliance but impacting competitive pricing.
Hosts must maintain three years of documentation and comply with HOA rules and lease agreements where applicable. Notification requirements mandate informing neighbors when hosts are absent, creating potential community relations challenges.
Are there any risks of restrictions tightening in the near future that could affect profitability?
As of September 2025, San José maintains relatively lenient short-term rental regulations compared to other California cities, but hosts should prepare for potential tightening if housing pressure increases.
Current regulations appear stable with no imminent changes reported, but the regulatory environment remains subject to review based on community complaints about noise, parking, and housing availability. Cities across California have implemented stricter controls in response to housing affordability concerns.
Enforcement of existing regulations may become stricter even without new legislation, particularly regarding the 180-day host-absent rule and guest occupancy limits. Hosts should ensure full compliance with current requirements to avoid penalties or license revocation.
Community relations represent a key risk factor, as neighbor complaints about noise, parking, or property maintenance can trigger regulatory scrutiny and potential restrictions. Proactive management and good neighbor relations help mitigate this risk.
Hosts should monitor local government meetings and community discussions about short-term rentals to stay informed about potential regulatory changes that could impact profitability or operational requirements.
Given all of the above, is short-term rental on Airbnb more profitable than renting long-term in San José right now?
Short-term rental via Airbnb can be more profitable than long-term rentals in San José's prime neighborhoods, but success requires realistic expectations and active management commitment.
Properties in high-demand areas like Downtown, Barrio Escalante, and Japantown show clear profitability advantages when occupancy consistently exceeds 65%. Well-managed 1-3 bedroom units in these locations can achieve 6-8% net yields compared to 5.5-7.5% for long-term rentals.
However, many investors overestimate occupancy rates and underestimate operating expenses, leading to disappointing returns compared to initial projections. Realistic financial modeling must account for platform fees, cleaning costs, utilities, maintenance, and potential vacancy periods.
For suburban family homes, the gross yield advantage of short-term rentals often disappears when accounting for higher turnover costs, increased maintenance, and lower occupancy rates. These properties may perform better as traditional rentals.
Long-term rentals remain the better choice for passive investors seeking stable, predictable returns without the complexity of constant guest management, cleaning coordination, and pricing optimization that successful Airbnb operation requires.
It's something we develop in our Costa Rica 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.
Airbnb profitability in San José depends heavily on location, property type, and management quality, with prime downtown and Barrio Escalante properties offering the best returns for active investors.
While short-term rentals can outperform long-term yields in high-demand areas, realistic projections must account for 18% tax burden, platform fees, and significant ongoing operational costs that can erode profit margins.
Sources
- BnBCalc - San Jose Airbnb Market Data
- AirROI - San José Costa Rica Report
- Airbtics - Annual Airbnb Revenue San Jose Costa Rica
- AirROI - San Jose California Report
- Baselane - Best San Jose Neighborhoods
- Benoit Properties - Barrio Escalante Airbnb Potential
- AirDNA - San Jose California Overview
- Airbtics - Airbnb Rules San Jose