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