How to Choose a Property Manager in Costa Rica: A Practical Guide for Owners

You bought a beautiful property in Costa Rica. Maybe it’s a condo in Los Sueños, a hillside villa near Manuel Antonio, or a beachfront home in Guanacaste. Now comes the question that will determine whether this investment makes you money or slowly drains it: who manages it when you’re not there?

Choosing the wrong property manager is one of the most expensive mistakes an owner can make in Costa Rica. The right one keeps your property booked, maintained, and legally compliant. The wrong one can cost you tens of thousands in lost revenue, deferred maintenance, and tax headaches.

This guide covers what property managers actually charge, what you should expect for those fees, the red flags that experienced owners wish they’d spotted earlier, and the specific questions to ask before signing anything.

What Do Property Managers in Costa Rica Charge?

Let’s start with the numbers. Property management fees in Costa Rica vary depending on whether you’re renting long-term or short-term, and on the level of service included.

Long-Term Rental Management

For properties rented on annual leases, management fees typically fall between 10% and 15% of monthly rent. A property renting for $1,500/month would cost roughly $150–$225/month in management fees. Services at this level usually include tenant screening, rent collection, and basic maintenance coordination.

Vacation Rental Management

This is where most Costa Rica property owners land, and where fees are higher for good reason. Short-term vacation rental management typically runs 20% to 30% of gross rental income. For luxury properties in premium markets like Guanacaste, fees often settle in the 15% to 25% range depending on the scope of services.

Why the premium over long-term management? Vacation rentals involve dramatically more work: marketing across multiple platforms, professional photography, dynamic pricing, guest communication before and during stays, turnover cleaning after every checkout, restocking supplies, managing reviews, and coordinating maintenance between guests.

Flat Fee vs. Commission-Based

Some managers charge a flat monthly fee (commonly $100–$200/month for basic oversight), while most vacation rental managers use a commission structure based on a percentage of rental income. Each has trade-offs:

Commission-based (most common for vacation rentals):

Manager earns more when you earn more, aligning incentives
No cost during vacant periods
Typical range: 20–30% of gross rental income

Flat fee:

Predictable monthly cost
Less incentive for the manager to maximize bookings
Better suited for long-term rentals or owners who handle their own marketing

Hybrid models combine a lower base fee with a smaller commission percentage. These can work well but read the fine print to understand what’s included in the base versus the commission portion.

Watch for Hidden Fees

Beyond the headline management percentage, some companies layer on additional charges that can significantly increase your total cost:

Maintenance markup: Some managers add 10–20% on top of contractor invoices
Onboarding or setup fees: One-time charges of $500–$2,000 for photography, listing creation, and initial property assessment
Linen and supply fees: Charged per turnover or monthly
Technology fees: For channel management software, smart locks, or pricing tools
Early termination fees: Penalties for leaving before a contract term expires

None of these are inherently unreasonable, but they should be disclosed upfront. A manager who quotes “25%” but charges separately for cleaning coordination, maintenance oversight, and listing management may actually cost you 35% or more.

What Services Should Be Included?

A competent vacation rental property manager in Costa Rica should cover these core areas. If any of these are missing or cost extra, factor that into your total cost comparison.

Marketing and Distribution

Your property should be listed on multiple booking platforms: Airbnb, Vrbo, Booking.com at minimum. A good manager also maintains a direct booking website to capture repeat guests without platform commissions.

Listings need professional photography (refreshed annually at minimum), compelling descriptions optimized for search, and accurate availability calendars synced across all platforms. Ask to see example listings they currently manage. The quality will tell you a lot.

Dynamic Pricing

Seasonal demand in Costa Rica swings dramatically. High season (December through April) and the “mini high season” in July can command rates two to three times what the green season brings. Your manager should use dynamic pricing tools that adjust nightly rates based on demand, local events, competitor pricing, and booking windows.

A manager who sets one rate for “high season” and one for “low season” is leaving money on the table.

Guest Communication

From the moment a guest inquires to their post-checkout review, every interaction shapes your property’s reputation. Response times matter enormously on platforms like Airbnb, where Superhost status (and the algorithm boost that comes with it) requires responding to 90% of messages within 24 hours.

Your manager should handle pre-arrival information, check-in coordination, mid-stay questions, local recommendations, checkout instructions, and review management. Ideally in both English and Spanish.

Cleaning and Turnover

This is where many managers fall short. Vacation rental cleaning isn’t residential cleaning. It requires hotel-standard protocols: fresh linens, restocked consumables, inspected appliances, and a walkthrough checklist that catches issues before the next guest arrives.

Ask how cleaning quality is verified. Do they use checklists? Photo documentation? Post-cleaning inspections? The difference between a 4.5-star and a 4.8-star property often comes down to cleaning consistency.

Maintenance and Property Care

Costa Rica’s tropical climate is unforgiving. Humidity, salt air (on the coast), insects, and rainy-season moisture create maintenance demands that temperate-climate owners often underestimate. Your property manager should conduct regular inspections, manage preventive maintenance schedules, and have reliable relationships with local contractors for plumbing, electrical, HVAC, and pool maintenance.

Ask whether they handle emergency repairs and what the response time looks like. A broken air conditioner in Guanacaste in March isn’t a minor inconvenience. It’s a one-star review waiting to happen.

Financial Reporting

You should receive detailed monthly statements showing gross revenue, all deductions (management fees, cleaning costs, maintenance, platform commissions), and your net payout. Transparent reporting also simplifies tax compliance, which brings us to an increasingly important topic.

Tax Compliance: Why It Matters More Than Ever

Costa Rica has significantly tightened tax enforcement on vacation rentals. Starting in 2026, digital platforms like Airbnb are required to report property owner transaction data to Costa Rica’s tax authority (Dirección General de Tributación). Property owners must collect 13% VAT (IVA) from guests and issue electronic invoices. Income from vacation rentals is subject to Costa Rican income tax, with quarterly filing obligations.

A good property manager should either handle VAT collection and electronic invoicing on your behalf or clearly explain how they support your compliance. This isn’t optional. Non-compliance carries real penalties, and the era of flying under the radar with vacation rental income in Costa Rica is over.

If your prospective manager waves off tax questions or seems unfamiliar with electronic invoicing requirements, that’s a serious red flag.

For more on the financial picture of owning rental property in Costa Rica, see our real estate investment guide.

Red Flags to Watch For

Experienced property owners in Costa Rica learn to spot these warning signs. Save yourself the tuition:

1. No Verifiable Track Record

Ask for occupancy data. A management company should be able to share average occupancy rates for properties similar to yours. Any company that won’t provide verified occupancy statistics should raise immediate concern. Talk is cheap; data isn’t.

2. Long Lock-In Contracts

Be cautious of contracts requiring 12+ month commitments with steep early termination fees. A confident manager doesn’t need to trap you. Look for contracts with 60- to 90-day cancellation notice periods or, better yet, month-to-month agreements after an initial onboarding period.

3. Vague Fee Structures

If you can’t get a clear, written breakdown of every fee before signing, walk away. “We’ll figure it out as we go” is not a fee structure. Ask for a sample owner statement from an existing property to see exactly how revenues and expenses are reported.

4. No Local Presence

Managing vacation rentals in Costa Rica requires boots on the ground. A manager operating remotely from another country (or even from San José for a coastal property) will struggle with cleaning oversight, emergency maintenance, and the relationships with local vendors that keep costs reasonable.

5. Poor Online Reviews on Their Own Listings

Search for properties they manage on Airbnb and Vrbo. Read the reviews. If their managed properties consistently score below 4.7, that tells you more than any sales pitch. Pay particular attention to comments about cleanliness, communication, and accuracy of listings.

6. They Don’t Mention Taxes or Licensing

As of 2026, Costa Rica requires vacation rental operators to register with the tourism board (ICT) and comply with tax obligations. A manager who doesn’t proactively discuss compliance is either uninformed or hoping you won’t ask. Neither is acceptable.

7. No Insurance Requirements

Your manager should carry liability insurance and require (or strongly recommend) that you maintain adequate property and liability coverage. Costa Rica’s legal landscape around vacation rentals is evolving, and operating without proper insurance is a gamble.

15 Questions to Ask Before Hiring a Property Manager

Use this list in your interviews. The answers will separate professionals from amateurs.

Performance and Track Record:

What is your average occupancy rate for properties similar to mine? Can you share data?
How many properties do you currently manage, and how many staff support them?
Can I speak with two or three current property owners you manage for?

Marketing and Revenue: 4. Which booking platforms do you list on? Do you have a direct booking website? 5. How do you handle pricing? Do you use dynamic pricing tools? 6. What does your professional photography package include, and how often is it updated?

Operations: 7. What is your cleaning and turnover process? How is quality verified? 8. How do you handle maintenance emergencies? What’s your average response time? 9. Do you conduct regular property inspections? How often, and do I receive reports?

Financial and Legal: 10. Can I see a sample monthly owner statement? 11. What is your complete fee structure, including all possible additional charges? 12. How do you handle VAT collection and electronic invoicing for tax compliance? 13. What are your contract terms and cancellation policy?

Communication: 14. How will I receive updates? What reporting dashboard or tools do you use? 15. What’s your process when something goes wrong? (A surprisingly revealing question.)

What Your Contract Should Include

Before you sign, make sure the management agreement clearly addresses:

Fee structure: Base percentage or flat fee, plus every additional charge itemized
Services included: Specific list of what the management fee covers
Payment schedule: When you get paid and through what method
Contract term and termination: Duration, renewal terms, notice period, and any exit fees
Maintenance authority: Spending thresholds that require your approval (e.g., repairs over $500)
Insurance requirements: What coverage the manager carries, what you need
Reporting obligations: Frequency and format of financial statements
Listing ownership: Who controls the accounts if you part ways? (This is critical. Some managers create listings under their own accounts, making it difficult to retain reviews if you switch.)
Tax responsibilities: Who handles VAT collection, invoicing, and reporting
Liability and indemnification: Who’s responsible for guest injuries, property damage, or regulatory fines

Have a Costa Rican attorney review the contract before signing. This is not where you save money.

Self-Management vs. Professional Management

Some owners consider managing their property themselves, especially with the availability of tools like Airbnb’s host dashboard, pricing software like PriceLabs or Wheelhouse, and smart lock systems for remote check-in.

Self-management can work if you live near the property (or at least in Costa Rica), speak Spanish fluently enough to coordinate with local vendors, and have the time to handle guest communication across time zones. The savings are real: keeping that 20–30% management fee means significantly higher net income on every booking.

But for absentee owners living in the US, Canada, or Europe, the math usually favors professional management. Consider the hidden costs of self-management:

Lost bookings from slow response times across time zones
Lower rates without dynamic pricing expertise and multi-platform distribution
Deferred maintenance that compounds into expensive repairs
Tax compliance risk when navigating Costa Rica’s invoicing and VAT requirements from abroad
Burnout from managing guest issues at 2 AM during high season

The sweet spot for many owners is starting with professional management while learning the local market, then evaluating after 12–18 months whether the hands-on approach makes sense for their situation and lifestyle.

Regional Considerations

Property management in Costa Rica isn’t one-size-fits-all. The market dynamics differ significantly by region:

Central Pacific (Jacó, Los Sueños, Manuel Antonio): This corridor sees strong year-round demand thanks to proximity to San José (about 90 minutes), a mix of adventure tourism and beach vacations, and the sportfishing community in Los Sueños. Managers here should understand the blend of short weekend stays from domestic travelers and longer international bookings.

Guanacaste (Tamarindo, Flamingo, Papagayo): High season is more pronounced here, with a stronger North American snowbird market. Dry season (November through April) drives the bulk of revenue. Your manager needs aggressive green-season pricing strategies to maintain occupancy during the quieter months.

Caribbean Coast (Puerto Viejo, Cahuita): A different vibe and a different guest profile. Smaller-scale operations dominate, and the infrastructure for property management is less developed. Finding a reliable manager here requires more due diligence.

Southern Zone (Dominical, Uvita, Ojochal): A rapidly growing market with increasing international interest. Managers in this area often handle properties spread across larger geographic distances, so ask about response times and proximity to your specific property.

Making Your Decision

The best property manager for your Costa Rica property isn’t necessarily the cheapest or the most expensive. It’s the one that demonstrates:

Transparency in fees, reporting, and communication
Local expertise with staff and vendors in your property’s specific market
Proven results backed by verifiable occupancy and revenue data
Operational rigor in cleaning, maintenance, and guest experience
Tax knowledge that keeps you compliant with Costa Rica’s evolving regulations

If you’re exploring property management options for a vacation rental in the Central Pacific, including Los Sueños, Jacó, and Herradura, learn about how Nest Stays works with owners or read our owner onboarding roadmap to see what the process looks like.

Property Management Fees in Costa Rica — What managers charge, what should be included, and how to evaluate value.
Property Care in Costa Rica — Maintenance challenges specific to the tropics and what great managers handle proactively.
Vacation Rental Regulations in Costa Rica — ICT registration, permits, and tax compliance your manager should help with.
Los Sueños Market Guide — If your property is in Los Sueños, understand the market dynamics.
Jacó Market Guide — Investment analysis and rental income potential for Jacó properties.

This guide is for informational purposes only and does not constitute legal or tax advice. Consult a qualified Costa Rican attorney or tax professional for guidance specific to your situation.