Many property owners enter vacation rental management agreements expecting simplicity — only to discover months later that their returns are lower than expected.
In most cases, the issue isn’t occupancy. It’s hidden or poorly explained fees.
Here are the most common ones — and how to avoid them.
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- Repair and Maintenance Markups
One of the most widespread practices in vacation rental management is adding a percentage markup to repairs and purchases.
Examples: • A plumber charges $100 → owner pays $130 • A replacement part costs $80 → billed at $110
These markups are often justified as “coordination fees” but are rarely disclosed clearly.
How to avoid it: Ask directly whether repairs are billed at cost and whether receipts are shared.
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- Undocumented Inspections
Many companies say they “inspect properties,” but provide: • No photos • No timestamps • No written reports
This makes it difficult for owners — especially remote ones — to know the true condition of their unit.
How to avoid it: Require documented inspections with visual proof.
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- Platform or “Administrative” Fees
Vague line items such as: • “Admin fee” • “Platform handling” • “Operational costs”
These charges often lack detail and vary month to month.
How to avoid it: If a fee can’t be explained clearly in one sentence, it shouldn’t exist.
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A Different Way to Manage Rentals
At Caribbean Beach Properties, the management philosophy is built around one principle:
If an owner can’t verify it, it shouldn’t be charged.
That means: • No repair markups • Direct-cost billing for purchases • Receipts kept and shared • Photo-documented inspections • Clear, upfront management fees
This approach isn’t just about fairness — it’s about long-term trust and protecting the asset itself.
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Why Transparency Matters More for Foreign Owners
For owners living outside Mexico, transparency isn’t a “nice to have.” It’s essential.
Clear documentation: • Reduces stress • Prevents disputes • Protects property value • Makes financial planning possible
And most importantly, it allows owners to feel confident — even from thousands of miles away.
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Final Thought
Hidden fees don’t usually look dramatic month to month. But over a year — or several years — they quietly erode returns.
The safest question any owner can ask a property manager is:
“Can I see proof of every expense?”
The answer tells you everything you need to know.