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Costs of Property Management in Panama

By in Blog with 2 Comments

Property management is an important consideration and a key factor in the success of an investment in Panama.  Bad property managers will cost you money in the form of lost tenants from unresponsiveness and general negligence, so it is important to have a trusted partner for property management services, especially if you do not live in Panama.  The cost of property management in Panama is generally 10% of the gross rental income, and most property managers will cap that amount after a certain level.

The costs of Property Management in Panama

There are different levels of services provided by different property management agencies.  For the purpose of this article, we will only refer to property managers on long term rental properties (more than six months).

The property manager will generally act as the owners representative in Panama, meaning they will be responsible for collecting the rent, paying the building association fees, handling routine and emergency maintenance issues, and dispersing funds to the owners.  We do not advise owners to act as property managers if they are not in Panama, as this may have an adverse effect on response times for major issues that need to be addressed immediately.

Costs for long term property management generally range from 8% – 12% of the gross monthly rent

About The Author

Kent Davis, founder and Managing Director at Panama Equity real estate, has been widely quoted in publications such as Wall Street Journal, Time Magazine, The Miami Herald and the Financial Times for his unabashed views on the Panama real estate market. Panama Equity is regarded as one of the most active real estate agencies in Panama and Kent’s articles, reports, and market research projects have been syndicated by press agencies including Bloomberg and the Associated Press.   Connect with the Author via: Email | LinkedIn | Facebook | Google+

2 Comments

  1. Yul Gomez says:

    I have been in the hotel business for 25 years as a night auditor. I am interested in Property management and would like to know how to get into it. Courses etc. I will be relocating to panama in 2 to 3 months. I also have a International business degree. I have dual citizenship Panamanian and U.S.

    • Kent Davis says:

      Yul, not quite sure what to tell you about how to “break in” to the property management business in Panama. Im sure there are some great courses on the subject online. Sounds like you are well suited with your Panamanian citizenship! How is your Spanish?

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