Property Management Costs in Los Cabos: The Full Monthly Breakdown

What Nobody Puts on the Brochure

Every development brochure shows the projected rental income. Almost none of them show the costs. I have watched buyers project 8% yields on paper, then clear 3% after management fees, cleaning, maintenance, HOA, insurance, and utilities eat through the gross. The yield is real — but only if you budget honestly.

Three Management Models

Model 1: Full-Service Vacation Rental Management (15–35%)

This is the most common model for absentee owners who want rental income. A management company handles everything: listing on Airbnb/VRBO, guest communication, check-in/checkout, cleaning, maintenance, supply restocking, and owner reporting.

The fee structure varies, but most Cabo management companies charge 20–25% of gross rental revenue as a baseline, with some going as high as 35% for fully turnkey operations. That percentage typically covers:

• Listing management and photography
• Guest communication and booking management
• Check-in and checkout coordination
• Monthly owner statements and tax reporting
• Maintenance coordination (repair costs are separate)

What it usually does NOT cover (billed separately):

• Cleaning between guests: $50–$200 per turnover depending on property size
• Laundry and linen service: $30–$80 per turnover
• Consumable supplies (toiletries, cleaning products, coffee): $50–$150/month
• Pool maintenance: $100–$250/month
• Repairs and maintenance: billed at cost

For a 3-bedroom villa generating $8,000/month in gross rental revenue during peak season, a 25% management fee equals $2,000. Add cleaning, pool, and supplies, and your total management cost is $2,500–$3,000/month. Off-season revenue drops, but so do management fees since they are percentage-based. See our rental management companies guide for company recommendations.

Model 2: Long-Term Rental Management (8–12%)

For properties leased to long-term tenants (6+ months), management is simpler. The company finds and vets tenants, collects rent, coordinates maintenance, and handles lease renewals. Fees run 8–12% of monthly rent.

On a property renting for $3,000/month long-term, management costs $240–$360/month. Lower revenue than vacation rentals, but dramatically lower operating costs and hassle. No turnovers, no cleaning fees, no supply restocking, no guest communication.

Model 3: Caretaker Only (Non-Rental)

If you are not renting the property, you still need someone watching it. Salt air corrodes, pools turn green, gardens die, and vacant properties attract problems. A caretaker visits 2–3 times per week and handles:

• Property walkthroughs and security checks
• Pool chemical balance and cleaning
• Garden and landscape maintenance
• Running water and AC systems periodically to prevent stagnation
• Storm preparation and aftermath inspection
• Coordinating vendor access for repairs
• Opening and closing the property for owner visits

Cost: $250–$600/month depending on property size and whether pool and garden are included. See our absentee owner guide for the complete checklist.

Fixed Monthly Costs (All Owners)

Regardless of how you use your property, these costs are fixed:

Item	Monthly Cost	Notes
HOA fees	$250–$800	Varies by community; covers security, amenities, common areas
Property insurance	$100–$300	Comprehensive including hurricane + earthquake
Property tax (predial)	$50–$150	~0.1% of assessed value, paid annually but amortized
Fideicomiso annual fee	$40–$80	$500–$1,000/year to the trust bank
Utilities (CFE, water, internet)	$150–$400	Higher with AC usage; electricity can spike

Total fixed costs: approximately $600–$1,700/month before any management or maintenance. For the full property tax breakdown, see our property tax guide. For insurance details, see our insurance guide.

The Maintenance Reserve: Budget $5K–$10K/Year

Cabo's salt air, humidity, and intense sun wear on everything. Budget a dedicated maintenance reserve of $5,000–$10,000 per year for:

• AC servicing: Twice annually, $200–$400 per service
• Exterior paint/sealant: Every 2–3 years, $3,000–$8,000
• Pool equipment replacement: Pumps, heaters, and salt systems last 5–8 years. Budget $1,500–$4,000 for replacement
• Appliance replacement: Salt air shortens appliance life by 20–30% versus inland locations
• Pest control: Monthly service, $30–$60/month
• Water heater replacement: Every 5–7 years in the coastal environment

The biggest mistake I see: buyers who budget for purchase and management but not for maintenance. Year one is fine. Year three, the AC compressor fails, the pool pump dies, and the exterior needs resealing — all at once. The reserve prevents that from being an emergency.

A Real Pro Forma: $1M Vacation Rental Villa

Here is what a $1 million, 3-bedroom villa in the Tourist Corridor actually costs to own and operate per month:

Line Item	Monthly (Avg)
Management fee (25% of ~$5,000 avg gross)	$1,250
HOA	$450
Insurance	$200
Property tax	$100
Fideicomiso	$60
Utilities	$250
Cleaning/turnover	$400
Pool maintenance	$175
Supplies/consumables	$100
Maintenance reserve	$625
Total Monthly Cost	$3,610
Average Monthly Revenue	$5,000
Net Monthly Cash Flow	$1,390

That is a net yield of approximately 1.7% monthly, or roughly 5% annualized after all costs — on a property that also appreciates. For the revenue side of this equation, see our rental income ROI analysis and our cap rates guide.