Costa Rica, a gem of Central America, has long been celebrated for its lush rainforests, pristine beaches, and laid-back "Pura Vida" lifestyle. Over the past decade, this tropical paradise has also emerged as a hotspot for real estate investment, particularly in the realm of short-term rentals. With the rise of platforms like Airbnb, Vrbo, and Booking.com, property owners in Costa Rica are capitalizing on the growing demand for unique, immersive vacation experiences. In this blog, we’ll explore why short-term rentals are booming in Costa Rica, the best regions for investment, key considerations for success, and tips for navigating the market.

Why Short-Term Rentals Are Thriving in Costa Rica

Costa Rica’s appeal as a tourist destination is undeniable. In 2023 alone, the country welcomed over 2 million visitors, drawn by its biodiversity, adventure opportunities, and eco-friendly ethos. The tourism industry has rebounded strongly post-pandemic, with travelers seeking private, flexible accommodations over traditional hotels. Short-term rentals—whether beachfront villas, jungle cabins, or modern condos—fit this demand perfectly.

Several factors contribute to the success of short-term rentals in Costa Rica:

1. Year-Round Tourism: Unlike seasonal destinations, Costa Rica attracts visitors throughout the year. The dry season (December to April) brings sun-seekers to the coast, while the green season (May to November) appeals to nature lovers and budget travelers with its lush landscapes and lower rates.
2. Digital Nomad Boom: Costa Rica introduced a Digital Nomad Visa in 2022, allowing remote workers to live and work in the country for up to a year. Many nomads prefer short-term rentals over long-term leases, creating a steady stream of mid-term bookings (1-6 months).
3. Eco-Tourism Appeal: Travelers increasingly prioritize sustainable stays. Properties that blend into the natural environment—think treehouses, solar-powered homes, or rentals near national parks—resonate with Costa Rica’s eco-conscious visitors.
4. Proximity to the U.S.: With direct flights from major U.S. cities taking just 3-5 hours, Costa Rica is an accessible escape for North American travelers, who account for over half of its tourism market.

For real estate investors, this translates to high occupancy rates and strong rental yields, often surpassing those of traditional long-term rentals.

Top Regions for Short-Term Rental Investments

Costa Rica’s diverse geography offers a range of investment opportunities. Here are some of the most promising areas for short-term rentals:

1. Guanacaste (Tamarindo, Nosara, Playa Flamingo)
   Known as the "Gold Coast," Guanacaste boasts some of Costa Rica’s most stunning beaches and a well-developed tourism infrastructure. Tamarindo is a bustling surf town with a vibrant nightlife, while Nosara offers a quieter, wellness-focused vibe. Properties here—especially ocean-view condos or villas with pools—command premium rates, often $200-$500 per night. The region’s international airport in Liberia makes it a convenient entry point for tourists.
2. Manuel Antonio
   This coastal gem near Quepos combines luxury with nature. Manuel Antonio National Park, with its abundant wildlife and white-sand beaches, is a major draw. High-end villas perched on hillsides with panoramic views can fetch $500-$1,000+ per night, especially during peak season. The area’s established reputation ensures consistent bookings.
3. Jaco and Playa Herradura
   Just an hour from San José, Jaco is a lively beach town popular with surfers and partygoers. Nearby Playa Herradura offers a more upscale, tranquil experience with resorts like Los Sueños. Condos and townhouses here appeal to families and groups, with nightly rates averaging $150-$300.
4. Arenal/La Fortuna
   Inland, the Arenal Volcano region attracts adventure seekers with hot springs, zip-lining, and hiking. Cabins and boutique homes near the volcano or Lake Arenal cater to couples and small groups, typically renting for $100-$250 per night. The area’s natural beauty ensures year-round interest.
5. Southern Zone (Dominical, Uvita)
   The less-developed Southern Zone is gaining traction for its rugged charm and whale-watching opportunities. Investors can find more affordable properties here, with potential for growth as infrastructure improves. Rates range from $100-$400 per night, depending on proximity to the coast.

Key Considerations for Success

Investing in a short-term rental property in Costa Rica can be lucrative, but it requires careful planning. Here’s what to keep in mind:

1. Legal Framework
   Foreigners can own property in Costa Rica with the same rights as citizens, but navigating the legal system can be tricky. Work with a reputable local attorney to ensure clear title and compliance with zoning laws. Some areas restrict short-term rentals in residential zones, so verify regulations before buying.
2. Property Management
   Unless you live nearby, hiring a property manager is essential. They’ll handle bookings, guest communication, cleaning, and maintenance. Management fees typically range from 20-30% of rental income, but a good manager can boost occupancy and reviews, maximizing returns.
3. Design and Amenities
   Standout properties book faster. Think Instagram-worthy features: infinity pools, outdoor showers, hammocks with jungle views, or proximity to surf breaks. High-speed Wi-Fi is a must, especially for digital nomads. Eco-friendly touches like solar panels or rainwater collection can also attract guests.
4. Marketing
   Listing on multiple platforms (Airbnb, Vrbo, direct booking sites) increases visibility. Professional photography and detailed descriptions highlighting nearby attractions—like sloth sightings or waterfall hikes—set your property apart. Positive guest reviews are gold; prioritize excellent service.
5. Operating Costs
   Factor in utilities, internet, insurance, property taxes (relatively low at 0.25% of assessed value), and maintenance. Coastal properties may need extra upkeep due to humidity and salt air. Budgeting 20-30% of revenue for expenses is a safe estimate.

Challenges and Risks

While the rewards are enticing, short-term rentals come with challenges:

• Seasonal Fluctuations: The green season can see lower occupancy, especially in less-established areas. Offering discounts or targeting digital nomads can offset this.
• Competition: Popular areas like Tamarindo and Manuel Antonio are becoming saturated. Unique properties or untapped regions offer a competitive edge.
• Regulation Changes: The Costa Rican government occasionally debates stricter rental laws. Stay informed through local real estate networks.
• Natural Risks: Hurricanes, earthquakes, and flooding are rare but possible. Invest in insurance and resilient construction.

Tips for Getting Started

1. Research the Market: Analyze occupancy rates, average nightly rates, and property prices in your target area. Websites like AirDNA provide data on rental performance.
2. Start Small: If you’re new to the game, consider a condo or small home rather than a sprawling villa. It’s easier to manage and requires less upfront capital.
3. Visit First: Spend time in Costa Rica to understand the culture, climate, and tourist preferences. Renting a few properties as a guest can reveal what works.
4. Build a Team: Assemble a local network—realtor, lawyer, manager, contractor—to streamline the process.

The Future of Short-Term Rentals in Costa Rica

As of April 2025, the outlook for short-term rentals in Costa Rica remains bright. Tourism continues to grow, infrastructure is improving (think better roads and internet), and the country’s reputation as a safe, sustainable destination keeps it on travelers’ radars. For investors, the key is adaptability—catering to evolving guest preferences like wellness retreats, remote work setups, or off-grid experiences.

Whether you’re dreaming of a beachside bungalow or a jungle retreat, Costa Rica offers a rare blend of lifestyle and profit potential. With the right strategy, a short-term rental here isn’t just an investment—it’s a ticket to the Pura Vida way of life.

What do you think? Ready to dive into Costa Rica’s short-term rental market? Let me know if you’d like more details on a specific region or aspect!