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Airbnb in Tulum: is it really profitable?

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Authored by the expert who managed and guided the team behind the Mexico Property Pack

property investment Tulum

Yes, the analysis of Tulum's property market is included in our pack

Tulum's Airbnb market offers net yields of 8-15% for well-located properties, with 1-2 bedroom units in Aldea Zama and La Veleta delivering the strongest returns for their entry cost.

Operating an Airbnb in Tulum requires careful attention to expenses like property management (20-25% of gross rent), utilities ($200-400 monthly), and Mexican tax obligations including 16% VAT and 3% state lodging tax. Properties in prime neighborhoods achieve 70-75% annual occupancy rates, with peak season rates commanding 25-40% premiums over shoulder periods.

If you want to go deeper, you can check our pack of documents related to the real estate market in Mexico, based on reliable facts and data, not opinions or rumors.

How this content was created 🔎📝

At THE LATINVESTOR, we explore the Mexican real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Tulum, Playa del Carmen, and CancĂșn. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Which neighborhoods in Tulum offer the best Airbnb opportunities and occupancy rates?

Aldea Zama leads Tulum's Airbnb market with occupancy rates of 70-75% and commands premium nightly rates due to its modern infrastructure and strategic location between the beach and town center.

La Veleta follows closely as the second-best performing neighborhood, attracting digital nomads and longer-term visitors with strong 10-12% ROI potential. This trendy area offers lower entry costs while maintaining solid demand throughout the year. Properties here typically achieve 65-70% annual occupancy rates.

The Tulum Beach Zone delivers the highest absolute rental income but requires significantly larger initial investments. Beachfront properties achieve 75% occupancy rates during peak periods and can charge $300-1,000 per night, though purchase prices start at $600,000 for condos and reach $2 million for luxury homes.

El Pueblo (Downtown) serves as the most affordable entry point with properties starting at $80,000 for studios. While nightly rates remain lower at $50-250, consistent occupancy from budget travelers provides steady returns of 8-10% annually.

It's something we develop in our Mexico property pack.

What property types generate the highest Airbnb returns in Tulum?

One and two-bedroom units dominate Tulum's most profitable Airbnb segment, offering the optimal balance between purchase price and rental income potential.

Two-bedroom properties consistently outperform with net yields of 11-13% and monthly profits of $3,500-6,000. These units attract families and small groups willing to pay $250-400 per night while requiring manageable initial investments of $150,000-450,000 depending on neighborhood.

One-bedroom condos deliver strong 10-12% returns with lower entry costs, making them ideal for first-time investors. Studios perform adequately at 8-10% yields but face increasing competition from new developments targeting the digital nomad market.

Luxury villas and beachfront properties generate the highest absolute income at $6,000-15,000 monthly profit, but their percentage returns of 12-17% don't always justify the $1-2 million investment requirement. These properties also demand professional management to maintain their premium positioning.

How much do properties cost to purchase in different Tulum neighborhoods and sizes?

Neighborhood Studio/1BR 2BR Condo/House Villa (3+BR) Beachfront Home
Aldea Zama $180K-$280K $280K-$450K $450K-$1M+ N/A
La Veleta $100K-$160K $150K-$300K $300K-$500K N/A
Tulum Beach $400K+ (rare) $600K+ $1M-$2M+ $1M-$2M+
El Pueblo $80K-$140K $130K-$250K N/A N/A
Selvazama $300K-$450K $450K-$700K $700K-$1.5M N/A

What nightly rates can Airbnb properties command in Tulum by property type?

Beachfront properties command the highest rates at $250-1,000+ per night, with luxury villas consistently booking at the upper end during peak season from December through April.

Aldea Zama properties achieve $150-500 nightly rates, with two-bedroom units averaging $250-350 and villas reaching $400-500 during high demand periods. Peak season adds 25-40% premiums to these base rates.

La Veleta properties rent for $100-400 per night, making them attractive to longer-term visitors and digital nomads seeking value. One-bedroom units typically earn $150-250 nightly, while houses can reach $300-400.

Downtown Tulum properties capture the budget market with rates of $50-250 per night. Studios start at $50-100, while two-bedroom units reach $150-250, maintaining steady occupancy despite lower rates.

Summer months (July-September) typically see 10-15% rate decreases, while shoulder seasons (May-June and October-November) maintain rates closer to annual averages.

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What occupancy rates should investors realistically expect throughout the year?

Annual occupancy rates in Tulum average 65-75% for well-managed properties, with significant seasonal variations that directly impact profitability calculations.

Peak season from December through April delivers exceptional 85-95% occupancy rates as North American and European visitors escape winter weather. Properties with pools and unique features consistently achieve the higher end of this range.

Shoulder seasons in May-June and October-November maintain respectable 60-70% occupancy rates. These periods offer opportunities for property maintenance while still generating meaningful income.

Summer months (July-September) present the greatest challenge with 55-65% occupancy rates. However, weekend bookings remain strong year-round, and properties near cenotes or offering unique experiences often outperform averages during this period.

Properties in Aldea Zama and beachfront locations consistently achieve occupancy rates 5-10 percentage points above market averages due to their premium positioning and infrastructure quality.

How much gross rental income can investors expect monthly and yearly?

Monthly gross rental income varies significantly by property type and location, ranging from $2,000-8,000 for most successful Airbnb properties after accounting for all operating expenses.

One-bedroom properties in La Veleta generate $2,500-4,000 monthly net profit, while similar units in Aldea Zama earn $3,000-5,000 due to higher nightly rates and occupancy. Two-bedroom units in these neighborhoods typically produce $3,500-6,000 monthly.

Luxury villas and beachfront properties achieve the highest absolute income at $6,000-15,000 monthly net profit. Annual profits for these properties can exceed $150,000, though they require professional management and substantial initial investments.

Annual net profits typically range from $24,000-60,000 for most investors, with exceptional properties and prime locations pushing returns higher. Studios and smaller units in El Pueblo generate $15,000-30,000 annually but offer lower entry costs.

These figures represent net income after deducting all operating costs including property management, utilities, maintenance, and taxes.

What are the main operating costs that reduce Airbnb revenue in Tulum?

Property management fees consume 20-25% of gross rental income as the largest single operating expense for most Airbnb properties in Tulum.

Utility costs range from $200-400 monthly for typical properties, with larger homes featuring pools and extensive air conditioning pushing bills to $600+ during peak summer months. Water and electricity rates in Tulum exceed many other Mexican markets.

Cleaning and maintenance expenses average $30-60 per guest turnover, typically representing 5-7% of total gross revenue. Professional cleaning becomes essential for maintaining high ratings and repeat bookings in Tulum's competitive market.

HOA and condo fees range from $200-500 monthly, with luxury developments in Aldea Zama and beachfront communities charging premium rates for enhanced security and amenities. Insurance costs $1,200-3,000 annually depending on property value and coverage levels.

Tax obligations include 16% VAT, 3% state lodging tax, and income tax rates of 15-25%. Smart investors reserve an additional 10% of gross revenue for unexpected repairs and property upgrades to maintain competitive positioning.

What do net yields look like compared to gross yields after all expenses?

Gross yields frequently advertised at 12-16% significantly overstate actual returns, while realistic net yields after all operating expenses typically range from 8-15% in Tulum's Airbnb market.

Operating expenses consume approximately 30-35% of gross rental income for most properties. This includes property management (20-25%), utilities (8-12%), maintenance and cleaning (5-7%), taxes (8-10%), and insurance plus HOA fees (3-5%).

Two-bedroom properties in Aldea Zama and La Veleta consistently deliver net yields of 10-13%, representing the sweet spot for risk-adjusted returns. These properties benefit from strong demand while maintaining manageable operating costs relative to income.

Luxury villas and beachfront properties can achieve 13-16% net yields in absolute terms but require professional management that adds complexity and reduces hands-off investment appeal. Studios and smaller units typically net 8-10% but offer lower absolute income potential.

It's something we develop in our Mexico property pack.

infographics rental yields citiesTulum

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Mexico 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.

How do financing costs and mortgage rates impact overall Airbnb profitability?

Cash purchases dominate Tulum's real estate market with over 90% of foreign buyers paying in full, largely due to Mexico's challenging mortgage landscape for international investors.

Mexican bank mortgages for foreigners carry interest rates of 9-12% APR with maximum loan-to-value ratios of 50-80% and terms typically limited to 5-30 years. Strict approval requirements and extensive documentation make qualifying difficult for many international buyers.

Developer financing offers slightly better terms at 6-10% interest rates, particularly for pre-construction purchases, but requires substantial down payments and shorter 5-10 year terms. As of September 2025, minimum mortgage rates hover around 9.36% with averages near 11.5%.

Financing costs significantly impact returns due to high interest rates. A $300,000 property with 50% financing at 10% interest would require approximately $18,000 annually in interest payments alone, substantially reducing net yields.

Leverage can increase cash-on-cash returns for investors with access to cheaper home-country financing, but the high cost and complexity of Mexican mortgages typically favor cash purchases for optimal returns.

Should investors choose long-term rentals instead of short-term Airbnb in Tulum?

Short-term Airbnb rentals typically generate yields 2-3 times higher than long-term rentals in Tulum, making them financially superior despite additional management complexity.

Airbnb advantages include much higher yields (8-15% vs 4-6%), dynamic pricing flexibility, personal use opportunities, and the ability to capitalize on Tulum's strong tourism demand. Peak season premiums and weekend rates significantly boost annual income potential.

Long-term rental benefits include steady monthly income, reduced property wear and tear, minimal management requirements, and easier self-management for distant owners. Tenant relationships provide predictable cash flow without booking volatility.

Airbnb disadvantages encompass higher management costs (20-25% of income), frequent cleaning and turnover, regulatory compliance requirements, and vulnerability to tourism fluctuations. Properties require constant attention to maintain competitive ratings.

Long-term rental drawbacks include lower yields, difficulty raising rents in Mexico's tenant-friendly environment, limited owner use flexibility, and potential tenant issues including damage or non-payment. Most investors choose Airbnb for superior financial returns despite management complexity.

What regulations govern Airbnb operations in Tulum and how strictly are they enforced?

All Airbnb hosts in Tulum must obtain a state operating license and register for Mexican tax identification (RFC) as of September 2025, with enforcement increasing significantly over recent years.

Tax obligations include 16% VAT on all rental income, 3% state lodging tax, and regular income tax rates of 15-25% depending on total earnings. Proper registration and tax compliance have become mandatory rather than optional.

Licensing requirements involve submitting property documentation, safety certifications, and operational plans to Quintana Roo state authorities. Unlicensed properties face fines, forced closure, or legal action as authorities crack down on non-compliant operators.

Enforcement has intensified compared to previous years when regulations were loosely applied. Authorities now actively monitor platforms and cross-reference property listings with licensed operators, particularly in high-profile areas like Aldea Zama and the beach zone.

While regulations remain less restrictive than CancĂșn or other major Mexican destinations, the trend clearly moves toward stricter oversight. Smart investors ensure full compliance from day one to avoid penalties and operational disruptions.

What key risks could affect Airbnb profitability in Tulum over the next few years?

Market saturation poses the most immediate risk, particularly in Aldea Zama and La Veleta where new developments continuously add supply, potentially compressing margins and requiring enhanced differentiation strategies.

New development pipelines threaten to oversupply certain neighborhoods with generic properties. Investors must focus on unique features, superior locations, or exceptional management to maintain competitive advantages as supply increases.

Regulatory changes represent a significant long-term risk, especially for beachfront properties subject to environmental restrictions. Stricter licensing requirements, higher taxes, or occupancy limits could emerge as local authorities balance tourism growth with resident concerns.

Tourism trend shifts could impact demand patterns, including changes in airline routes, economic conditions in key source markets (US, Canada, Europe), or climate events affecting travel decisions. Tulum's dependence on international tourism creates vulnerability to external factors.

Operational cost inflation particularly affects utility expenses, which have risen faster than rental rates in recent years. Properties with high energy consumption face margin pressure as electricity costs increase throughout Mexico's Caribbean coast.

It's something we develop in our Mexico 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.

Sources

  1. AirROI Tulum Market Report
  2. Riviera Maya Investment Guide
  3. Brevitas Global Airbnb Markets
  4. Awning Management Fee Analysis
  5. Caribe Luxury Homes Financing Guide
  6. Plalla Mortgage Information
  7. Ecovillages Mexico Financing Guide
  8. AirBnB Rules in Tulum
  9. STR Exchange Tulum Data
  10. The Latin Investor Airbnb ROI Analysis