How to establish a rental property in Belize

Owning a rental property in Belize can be your best investment yet… or it can be your worst if you aren’t prepared. Preparation includes a handful of factors such as understanding the process to get your home licensed to rent out, costs and expenses and most importantly choosing the right property manager. This article on how to establish a rental property in Belize would describe briefly about the 3 most important points to consider on renting a property in Belize

Note: If your new property is in a condo community in Belize and has an associated property manager, they may already have a blanket hotel license for the entire property. If this is the case, your condo may fall under their license, and you can bypass part 1. 

However, it is best to double-check with the property manager before making any assumptions.  

Part 1. Approvals for establishing a rental property in Belize:

Set up a local Belize 250 Company with an attorney*

1-time payment – cost varies by the attorney but on average it’ll cost: USD 1300

Trade License (annual): 

This license permits you to do business in the district you are in. If you do not have residency or a work permit in Belize, you must hire a property/house manager to act on your behalf.

Fire Department Approval

Health Inspection 

Central Building Authority (CBA) approval

Department of Environment (DOE) approval

Hotel License issued by the Belize Tourism Board (2-year renewal):

Considerations BTB will look for: liability insurance, evacuation plan

Note that it takes about 4-6 months to get approval on all of the above so be sure to pack your patience! In most cases, a property management company can help you out with the details in Part 1, more on that in Part 3. 

Part 2.  Cost of establishing a rental property in Belize:

Fees will vary depending on your property, but you should map out your projected ongoing expenses to ensure a positive rental return will be feasible. If you are buying a resale home, ask the seller to provide utility bills so you can factor in those costs.

Ongoing fees:

1. Belize 250 Annual Renewal Costs
2. Annual Property Tax (due April 1 every day): 1% of unimproved land
3. HOA fees (if applicable)
4. Rental Manager Split (can range from 20-50% to the manager)
5. Referral Agent Fee (sometimes this is covered in the rental management split and other times it is not)
6. Utilities – ranges by usage (if you are long-term renting your home out, your renter typically pays these)
   1. Electricity
   2. Water
   3. Cable & Internet 
7. Insurance
   1. Home
   2. Contents
   3. Liability
8. Furniture (replacement recommended every 7 years) – bear in mind that it is common for both long-term and vacation rentals to be fully-furnished

Part 3.  Importance of having a property manager/management company for establishing a rental property in Belize:

The real question is HOW to pick the right property manager. Here are a series of questions to ask them:

• How do they find their renters?
• Are they using OTAs (online travel agencies)? If so, which ones?
• What is their average occupancy rate for a property similar to what you are going to rent out? Ask to see the P&L.
• How many properties do they manage?
• How many employees do they have?
• What makes them different from other companies?
• Can you talk to some of their homeowners for references?
• How often are rental statements sent out?
• Are they able to offer owners an online portal?
• Will you be paid in Belize Dollars or USD?
• How long is the agreement for?
• What services can they provide? (Can they do accounting for you, can they help you navigate through t he licensing process in part 1, yard cleaning, etc.).

Even though you will have a property manager, paying attention to your numbers is always recommended. Be sure you understand where money is being spent and what is coming in each month.

If renting out your future house in Belize is something you are considering, reach out to us and let us know. We’ll put you in touch with the right folks to get the conversation started.

*We highly recommend using Wrobel & Co for your legal and corporate needs. They are incredibly efficient and have great communication. Do your homework and interview them to see if they’d be the right fit for you to work with.