Owning in Aruba - pros and cons

[tigi]

We’re in Hoboken. What about yourselves?

For us it varies from year to year. We don't need to rent, so what we get, we get. It is usually a week or two a month in the of season. When we see we have large gaps between renters, we usually have a few things maintenance items done if they were not done while we are here.

What area in NJ doing you live?

[tigi]

We also didn’t look at rental income as the primary reason to buy, especially since the goal was to be in Aruba during the most in-demand time (Dec-Feb). It seems though rentals during off season are almost a must, even if just to keep the place occupied.

Anyway, I’m amazed at the wealth of knowledge and experience on this forum. Thank you all again for all the info!

We also, like Robin and Stu, did not buy to earn rental income, but we both rent.

The off season for us, is generally slower. Fortunately, being close to the hospital has worked well in the off season, as our management company has a relationship with them. We will get medical professionals and students, that will rent months at a time or more. It is a reduced rate, compared to vacation rentals, but it generates income and keeps the unit occupied. It is generally one person, that just wants a place to lay their head and relax from a long day. They respect the utility usage and our considerate of our furnishings.

It would stand to reason, that ownership closer to the water, would be more attractive to vacation renters in the off season, as rental rates are generally lower and vacancy rate is higher. Robin and Stu's unit is a good example, our unit is a quarter mile inland, with no water view.

[robin]

We are usually here Jan.-March.

We are at the opposite end-Vineland.

[tigi]

Sorry, another question - based on something I saw on a different thread. Somebody mentioned a 20-page tax form in Dutch that all property owners who generate rental revenue must now file, declaring their worldwide income and assets. Is that true? If so, was the form easy enough to complete without professional help?

[Aruba4ever]

Do you need to report your income to the Aruba government and be taxed on it as well as well as the US? So many questions and so many GREAT resources here, thanks!!! NO I don't work for the IRS, lol.

[robin]

I've heard rumors, but have never filled it out or seen it. I don't know if our management company takes care of it or not.

[ArubaAce]

I don't own anything in Aruba but I remember a horrible story on this board about a family from England I believe who owned a house in Aruba. They would travel every year and stay for a few months at a time. One year they did not go to Aruba and some people moved into their home which they discovered a year later. They had a difficult time getting them out of their home on account that they were living there for a year and there was some Aruban squatters law that protected them. I think it took them 6 to 9 months to get them out legally.

[Aruba4ever]

I remember that or a similar story for sure. I myself would only feel comfortable owning a condo WITH a management company. I like the set-up a number of places have including Blue and Oceania with a prestige person in-house taking care of things. I am sure its not perfect but it would make me feel comfortable.

I don't own anything in Aruba but I remember a horrible story on this board about a family from England I believe who owned a house in Aruba. They would travel every year and stay for a few months at a time. One year they did not go to Aruba and some people moved into their home which they discovered a year later. They had a difficult time getting them out of their home on account that they were living there for a year and there was some Aruban squatters law that protected them. I think it took them 6 to 9 months to get them out legally.

[tigi]

So we’re in Aruba now, renting a house this time to try it out. It’s very nice here in Boroncana, but it seems electric and water for a house with a pool can easily run $1k/mo or more. At least that’s what our hosts told us, and they manage 20+ properties, so they have a decent data set to work with. And yes, all of their houses have split AC units... I wonder if the costs would be significantly lower with a condo or townhouse, which wouldn’t need water and electricity constantly running for the pool and irrigation. Also, is anybody familiar with Jardines Del Mar? Seems like an older development, but very well kept and walking distance to Eagle Beach.

[Aruba4ever]

That seems like a huge number to me and I honestly have issues thinking its accurate. I can ask a couple of friends who own houses if you want their figures...but these seem a bit over the top.

So we’re in Aruba now, renting a house this time to try it out. It’s very nice here in Boroncana, but it seems electric and water for a house with a pool can easily run $1k/mo or more. At least that’s what our hosts told us, and they manage 20+ properties, so they have a decent data set to work with. And yes, all of their houses have split AC units... I wonder if the costs would be significantly lower with a condo or townhouse, which wouldn’t need water and electricity constantly running for the pool and irrigation. Also, is anybody familiar with Jardines Del Mar? Seems like an older development, but very well kept and walking distance to Eagle Beach.