Why Location and Design Matter: Building Successful Vacation Rentals in Costa Rica

A vacation rental in Costa Rica can be a lucrative investment. There is high demand from tourists coupled with construction issues in building large hotels by the beach. Tourism in Costa Rica has risen every year since the pandemic and is on track to hit all time highs in 2025. More tourists means more people exploring different locations, and more people building to accommodate the new tourists.

Construction can take a long time, even just to get the permits. Large hotels with 50+ rooms are difficult to build because of the availability of water. Locations with large amounts of vacation rentals like Santa Teresa, have almost no large hotels like you’ll find further up the pacific coast in Papagayo. But that doesn’t mean you can pick any location and expect success.

Choosing the right location is the most important decision to make at the beginning of your Costa Rican investment journey. There is a reason for the classic real estate adage “location, location, location”. You want somewhere that’s not too off the beaten path, because access, logistics, and appeal matter, but still in a place where tourism is rising rather than oversaturated. Aim for a balance: a region with growing visitor interest but where supply of vacation rentals and hotels is still somewhat constrained. That gives you room to differentiate, command better rates, and avoid competing head-to-head with dozens of identical properties.

But location alone isn’t enough to make a rental truly standout. To capture attention on platforms like AIRBnB and VRBO, exceptional service plus a physical wow factor is a great starting strategy. Ocean views, volcano views, anything with a view is always a strong starting point. Dramatic architecture, unique settings, or a “wow factor” guests will post about are also important to consider at the start of your Costa Rican vacation rental journey. How can you dazzle? The solution doesn’t always have to be expensive! Outside showers, murals on the outside walls, hammocks, or even just a viewing deck with a telescope, anything to make you stand out is an advantage.

Some examples of properties doing all this right are properties such as Xanadú in La Fortuna! A region on the rise in the country for tourism, and vacation rentals are clearly lacking a luxury market. Xanadú has a clear view of the Arenal Volcano from every room and the pool. It also has a waterslide which is unique and uncommon in the area. Another example, this time in Manuel Antonio, Puntarenas, are the Manuel Antonio Tree House Villas. These Villas are right in the canopy of the rainforest, and an infinity pool! The design of the home and the pool make very attractive photo spots for guests, and breakfast is also included. There are many ways to find value in what many think is an oversaturated rental market in Costa Rica, but creativity, boldness and a solid advisory team are a great place to start!