Category: Investor News/Analysis

Over the past few weeks, I’ve been busy opening up a property I have on the coast of Ecuador as a short-term vacation rental.

As I write this, my place is rented…

Today’s post is about what I’ve learned…

Why would someone choose a vacation rental over a hotel that has more services and security due to the 24 hr reception?

There’s pluses and minuses to staying in both.

Vacation rentals are great for people looking for a bit more privacy, and those looking to have guests sleep over and not have to pay extra for them like you would staying in a hotel.

They’re great for families who pay one price for the whole place and can then pack all the people they want inside. They’re also good for people who like to cook they’re own meals and those looking to get a real feel for what life would be like in Ecuador, not just from a hotel window.

Why rent your place short-term as a vacation rental when you can rent to a long term renter when it’s obviously more hassle?

More money. At least here in Ecuador, the same place you could rent for $250/300 a month you could rent as a short-term rental for $35, $55 even $75 or more a day.

Here are 7 keys I’ve learned to make your vacation rental in Ecuador successful.

7. WIFI. Get WIFI internet installed in your place, it is THE first thing guests ask for. Everything else is just secondary.

6. Know your market. I’ve found the tastes of Ecuadorian and foreign renters very different. Who are you targeting? This will determine how you furnish your house. Ecuadorians who rent on the coast often look for places with TV’s and Cable. They also like AC. Foreigners ask for WIFI first, TV’s and AC aren’t priorities.

5. Password locks. Many renters will not return your keys or simply lose them. To avoid that, you can charge a hefty deposit (which deter renters) or install a password lock you can change via the internet. You can often find them in hardware stores in the US. Visit Kwikey Locksmith Services, INC. for more information.

Alarm Monitoring is the need of hour which is why you should visit the website of SecureX avail their security services. Check out the latest home automation options to stay protected and to control your security equipment, lights, locks, thermostats, and cameras with a single app.

4. Know your limits. While not particularly “hands on”, I don’t recommend trying to run a VR business from a distance, especially if you’re out the country. I don’t recommend being too quick to work with most property managers in Ecuador either, the good ones are few and far between.

Most will not manage your property well to say the least. Many good ones will pay you a fixed monthly rent and then sublease. Overall, if you’ll be out of Ecuador, just rent longer-term.

3. Advertise on the net. Most tourists these days plan their trips at least a few weeks in advance researching on the net. HomeAway.com and Windsor Hills vacation home rentals are a great places to begin advertising your property. If they had a Super Bowl commercial with Chevy Chase last year, you know they sell.

2. Get a local on your team. It will help your business a lot if you can get a trustworthy local to come clean your place and receive the keys from guests. In Ecuador, you can often pay them to clean your whole 2 bedroom house for $10-15. They will also often help keep an eye on your house when you aren’t around. Yes, many Ecuadorians are trustworthy, while some aren’t.

1. Charge a deposit in advance to hold the reservation. Don’t accept people’s “word” that they are coming. You will lose business this way! Many say they’ll come and never show up while you turn other renters down.

Require they leave the security deposit ahead of time via Bank transfer or even a PayPal payment online (what I use.) Don’t try to charge the security deposit upon arrival either, many will try to weasle their way out saying they’ll pay later or that they simply forgot putting you in a precarious position.

Reference: Access Locksmiths of Brisbane.

If you liked this, you’d absolutely love my Weekly Ecuador Insider´s Newsletter, where you’ll learn everything YOU NEED TO KNOW before you invest in Ecuador, you can unsubscribe at any time:

First Name
* Email
	* = Required Field

This week one reader asked…

“Hey Dom, what would you do with $100k in Ecuador, right now?”

Good question.

Well, Stocks both in and out of Ecuador are too volatile for me at the moment.

Currencies? Child please, when I bet my money I go to www.EasyMobileCasino.com.

Bonds? I’m too old for that sh*t. At my age, you better show me the money quick.

OK. Well, there’s A LOT you can do with $100k in Ecuador.

What I’d do right now with $100k is I’d immediately take $80k and invest it in 3 month Letters of Credit with my bank here in Ecuador.

With that I can tie up the money while I decide what to do with it, and make 9% interest guaranteed in the meantime.

There’s nothing more dangerous than a lot of free cash at hand.

Especially if you have a girlfriend.

Then, I’d buy two properties under $50k.

One, a 2 bedroom apartment in Cuenca, and the other a beach house in the Olon area of the coast.

In both areas there is currently heavy demand from both local and foreign buyers.

And in both areas prices have already jumped a bit over the last 2 years, but deals can still be found.

I’d buy right so that in one year I can resell for a 20-40% capital gain profit. And in the meantime I would rent the properties to short term, primarily foreign renters for around $500 per month each.

You see, in Ecuador, certain areas are hotter than others. And certain price segments are moving MUCH faster upward than others… for instance, the lower end of the market, properties under $75k, are moving at an exponential clip.

That’s what I’d do now. Now, if I had $200k my strategy would completely change.

Learn that and much more by signing up for my weekly newsletter on everything Ecuador… sign up below, you can unsubscribe at any time:

First Name
* Email
	* = Required Field

This week I got an angry comment from a reader.

“The bottom line in all of this is that if you do not buy now you will be priced out of the market. The Americans Have literally driven the prices up so high that prices are ridiculously higher than they were even 5 years ago. What I do not like is how the Americans went into Ecuador and bought properties for 15, 20 ,25 thousand dollars and are reselling them for 150, 200, 250 thousand dollars. The people in Ecuador at the time were not aware of how valuable their houses were and when they were shown so much cash, and for them 15 thousand at the time was a lot of money they went for it. Now many of them feel duped. But the President of Ecuador is becoming aware of this and he could step in at any time and do whatever he wants to do, to expats. So do not under-estimate a president that graduated from an American school in Ecuador to take care of his own first.”

My take?

Truth is…

I recently left Ecuador for a year to go live and work in China and India.

Came back a few months ago.

And within a few weeks found a liveable place with a beautiful ocean view for under $20k… that, yes, needed a lot of work.

No biggie.

The “Ecuador dream” of finding a desirable piece of real estate CHEAP is still out there.

But you have to know how to look!

As more foreigners buy up places the prices will naturally rise.

But they don’t rise across the board down here because there is no nationwide MLS system, most people have NO IDEA what true market values are when they buy or list homes.

It’s a free for all.

A crap shoot.

But it’s fun for those who know how to play the game.

Fact is, most of you will come down and think prices have already risen or that there is simply not much available.

Bull sh#t.

You can still find deals well under $50k if you are patient and know how to find them.

This was an example of one of my weekly Ecuador Insider emails, if you’d like to start receiving them sign up below, you can unsubscribe at any time:

First Name
* Email
	* = Required Field