What a D'Avenue Residence Earns as a Rental, With the Numbers Shown

Every buyer asks the same question in the first ten minutes: what would this rent for? Most answers in this market are a nightly rate somebody remembers. Ours is a data pull, and it comes with its assumptions attached.

The zone

We drew a polygon over Fluvial Vallarta and Versalles, the neighbourhoods around the site, and pulled every entire-place short-term rental listing inside it from AirDNA: 912 listings, 876 with a full year of metrics. They rent about 59 percent of the year at an average nightly rate around USD 96, figures that have been flat for three years while supply stayed flat and rates rose about five percent. February is the best month, September the worst, and about 43 percent of the year's revenue lands between December and March.

That zone-wide rate is diluted by older budget apartments: seven in ten rated listings sit in the budget and economy tiers. The product D'Avenue joins, a new building with a rooftop pool and a gym, is the top of that market, and it behaves differently.

Three levels of performance

We rank the listings by revenue potential (a listing's own nightly rate times its occupancy, over a full year of availability) and read three levels for each bedroom count.

A typical one-bedroom listing grosses about USD 12.4k; the top quarter about USD 18k. The top ten percent is where the buildings D'Avenue competes with sit: Zoho Skies, Deck 12, Valarte, Roma Encore, Manyara, Verdemar and their peers, all within two kilometres of the site.

What is left

Gross is not what you keep. Professional managers in the bay charge about twenty percent of the gross; the platforms and the cleaning take another twelve; the HOA at D'Avenue is 45 pesos per square metre per month; utilities, the predial and the bank trust fee are fixed costs every owner pays. We also take five percent off the gross for D'Avenue's three-night minimum stay.

On those assumptions a one-bedroom residence in the top ten percent nets about USD 7.4k a year and a two-bedroom about USD 7.7k; a three-bedroom penthouse nets about USD 17k. A typical listing, after the same costs, nets close to nothing. That is the honest reading of this market: the rental case is real for a residence that is run well, in a building people search for, and it is not a case for a residence that is run as an afterthought.

What we do not calculate

Two things are deliberately outside the arithmetic. Closing costs, which the notary quotes for each purchase, and income tax, which depends on the owner's tax position. Both come on top of every figure above. And one thing we do not do: Boardwalk does not manage rentals. We sell the residence; the owner chooses the manager.

The full document

The complete D'Avenue Rental and Returns document carries the zone data, the comparable buildings listing by listing, the model for every floor plan, the running costs line by line, and the return scenarios by payment plan, with every assumption stated. It is available on request from any residence type page on this site.