Is Mexico, New York Good for Airbnb Investment?

To start an Airbnb in Mexico, New York, begin by researching local regulations as New York has strict short-term rental laws requiring hosts to register with the city, obtain a Multiple Dwelling Registration if applicable, and comply with Local Law 18 which mandates host presence during stays under 30 days. Research Mexico's zoning laws and HOA restrictions, then obtain necessary permits including a business license from Mexico town hall, sales tax permit from New York State, and potentially a special use permit depending on your property type. Find a suitable property by analyzing local demand, competition, and proximity to attractions like Mexico Point Park or Fair Haven Beach State Park, ensuring the property allows short-term rentals in the lease or deed. Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, safety equipment like smoke detectors and fire extinguishers, and local guidebooks. Create your Airbnb listing with professional photos, detailed descriptions highlighting nearby Oswego County attractions, competitive pricing based on local market research, and clear house rules. Manage your property by responding quickly to inquiries, maintaining cleanliness standards, coordinating check-ins/check-outs, collecting and remitting required taxes to New York State and Oswego County, and continuously monitoring reviews and adjusting your approach based on guest feedback while ensuring compliance with all local, state, and federal regulations including income tax reporting.

For identifying profitable short-term rental properties in Mexico and New York, focus on locations within 15-20 minutes of major tourist attractions, beaches, or business districts, prioritizing neighborhoods with strong walkability scores and reliable infrastructure including consistent WiFi and water supply. Target properties with 2-4 bedrooms, modern amenities, outdoor spaces like balconies or patios, and unique architectural features that photograph well for listings, while ensuring compliance with local STR regulations which vary significantly between Mexican municipalities and New York's strict registration requirements. Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates, occupancy rates, and seasonal demand patterns, aiming for properties that can achieve 65%+ occupancy with rates 20-30% above long-term rental yields. Research competition density through Airbnb and Vrbo searches within 1-mile radius, avoiding oversaturated markets while identifying gaps in property types or amenities. For Mexico specifically, utilize MercadoLibre, Inmuebles24, and Vivanuncios for property searches, partner with local property managers familiar with PROFECO regulations and tax obligations for foreign investors, consider proximity to expat communities in areas like Playa del Carmen, Puerto Vallarta, or Mexico City's Roma Norte, and factor in currency exchange risks and seasonal migration patterns of North American tourists and digital nomads.

To obtain an Airbnb/STR permit in Mexico, New York, you must first register with the New York State Department of Taxation and Finance for sales tax collection, then apply through the Town of Mexico's Code Enforcement Office located at 3045 Main Street, Mexico, NY 13114, submitting a completed short-term rental application form, property deed or lease agreement, certificate of occupancy, floor plan showing maximum occupancy, proof of liability insurance ($1 million minimum), fire safety inspection certificate from the local fire department, and septic system inspection if applicable. Required fees typically include a $150 application fee, $75 annual renewal fee, and approximately $200 for required inspections. You must also obtain a Certificate of Authority from NYS Tax Department (free online), register for local occupancy tax collection with Oswego County, and ensure compliance with zoning regulations which may restrict STRs in certain residential areas. The approval timeline ranges from 30-60 days depending on inspection scheduling and document completeness. Additional Mexico-specific requirements include maintaining a local contact person available 24/7, posting maximum occupancy limits visibly, providing emergency contact information to neighbors, and adhering to noise ordinances with quiet hours typically from 10 PM to 7 AM, while parking must be limited to designated areas only.

Short-term rentals (STRs) are legal in Mexico at the federal level, but regulations vary significantly by state and municipality, with popular tourist destinations like Mexico City, Playa del Carmen, and Tulum implementing specific licensing requirements and zoning restrictions since 2019-2022. Most areas require STR operators to obtain municipal permits, register with tax authorities (SAT), collect tourist taxes, and comply with safety standards, while some residential zones in Mexico City and certain areas of Quintana Roo have restricted or prohibited STRs to address housing shortages and community concerns. Recent changes include Mexico City's 2022 regulations limiting STRs in historic neighborhoods, Quintana Roo's 2021 licensing system requiring environmental compliance, and various municipalities implementing occupancy limits and noise restrictions. Unlike New York, which has severely restricted STRs through registration requirements that effectively ban most short-term rentals under 30 days as of 2023, Mexico generally maintains a more permissive approach while increasing oversight and taxation compliance requirements.

The best Airbnb investment areas in Mexico include Playa del Carmen's Quinta Avenida district due to its proximity to beaches, nightlife, and the ferry to Cozumel, attracting millions of tourists annually; Mexico City's Roma Norte and Condesa neighborhoods which draw business travelers, digital nomads, and cultural tourists with their trendy restaurants, galleries, and central location; Tulum's beachfront zone capitalizing on the boho-chic tourism boom and Instagram-worthy cenotes; Puerto Vallarta's Zona Romántica for its gay-friendly tourism market and consistent year-round visitors; and San Miguel de Allende's historic centro attracting American retirees and cultural tourists. In New York, prime areas include Manhattan's Lower East Side and East Village for their nightlife and restaurant scenes attracting young professionals and tourists; Williamsburg and DUMBO in Brooklyn offering Manhattan skyline views while being more affordable than Manhattan proper; Long Island City in Queens providing easy Manhattan access for business travelers at lower price points; Park Slope in Brooklyn appealing to families and longer-term stays; and Astoria in Queens attracting budget-conscious travelers and young professionals working in Manhattan, with these areas benefiting from New York's 65+ million annual visitors, constant business travel, and diverse event calendar.

In Mexico, Airbnb hosts are subject to a 16% VAT (IVA) on rental income, with collection and remittance handled directly by Airbnb for most bookings, though hosts must register with SAT (tax authority) and may need to file monthly returns depending on their tax regime; additionally, some municipalities like Mexico City impose local lodging taxes of 2-4% that are typically collected by Airbnb and remitted to local authorities. In New York, Airbnb rentals are subject to state sales tax of 4% plus local taxes that vary by location (8.25% in New York City for a combined rate of approximately 12.25%), along with a $1.50 per night occupancy tax in New York City; Airbnb collects and remits these taxes automatically for most bookings, though hosts may still need to register for tax permits and file returns with the New York State Department of Taxation and Finance and local tax authorities, with exemptions typically applying to stays over 30 days and certain types of accommodations like owner-occupied homes with fewer than four units in some jurisdictions.

Starting an Airbnb in Mexico typically requires a total investment of $85,000-$120,000, including property purchase at a median price of $65,000-$85,000 in popular tourist areas like Playa del Carmen or Puerto Vallarta, furnishing costs of $8,000-$12,000, initial setup expenses of $2,000-$3,000 for photography and listing optimization, permits and fees of $500-$1,500 including business registration and tourist permits, insurance costs of $800-$1,200 annually, utilities setup and deposits of $300-$500, and first six months operating costs of $8,400-$16,800 covering cleaning, maintenance, property management, and marketing. In contrast, starting an Airbnb in New York requires $650,000-$950,000 total investment, with property purchase median prices of $550,000-$750,000 for a one-bedroom apartment in Manhattan or Brooklyn, furnishing costs of $15,000-$25,000 due to higher quality expectations and costs, initial setup of $3,000-$5,000, permits and fees of $5,000-$15,000 including short-term rental registration, multiple city permits, and legal compliance costs, insurance of $2,500-$4,000 annually, utilities setup of $500-$1,000, and first six months operating costs of $24,000-$42,000 covering higher cleaning fees, maintenance, property management, city taxes, and competitive marketing expenses.

Airbnb properties in Mexico generally demonstrate higher profitability margins compared to New York, with Mexican coastal destinations like Playa del Carmen and Tulum showing average annual revenues of $25,000-$45,000 per property with profit margins of 35-50%, primarily due to lower operational costs averaging $800-$1,200 monthly including property management, utilities, and maintenance. In contrast, New York Airbnb properties face significantly higher expenses with average monthly costs of $3,500-$5,500 for Manhattan properties, resulting in profit margins of 15-25% despite higher nightly rates of $150-$300 compared to Mexico's $80-$150. Success factors in Mexico include proximity to beaches, cultural attractions, and lower regulatory barriers, while New York properties benefit from consistent year-round demand and premium pricing but struggle with strict regulations implemented in 2023 that limited short-term rentals. Case studies show that a 2-bedroom condo in Cancun purchased for $180,000 in 2022 generated $38,000 in annual revenue with $22,000 in expenses, yielding a 42% profit margin, while a similar property in Brooklyn generated $65,000 in revenue but incurred $48,000 in expenses, resulting in only a 26% margin, making Mexican markets more attractive for investors seeking higher returns despite lower absolute revenue figures.

Airbnb investments in Mexico typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15%, while New York properties generally yield 6-10% annual ROI with cash-on-cash returns of 4-8% due to higher property costs and stricter regulations. Mexican markets like Playa del Carmen, Tulum, and Puerto Vallarta often reach profitability within 18-24 months, with properties averaging $150-300 per night occupancy rates of 65-75%, whereas New York City properties may take 3-4 years to achieve profitability given average nightly rates of $200-400 but occupancy rates of 55-65% and significantly higher initial investment requirements. Mexico's favorable exchange rates, lower property acquisition costs averaging $80,000-250,000, and growing tourism infrastructure contribute to faster break-even periods, while New York's $500,000-1,500,000 average property costs and complex regulatory environment including Local Law 18 restrictions create longer payback periods despite higher absolute rental income potential.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties across multiple markets including Mexico and New York. In New York, RedAwning and AvantStay provide comprehensive Airbnb investment services, while local firms like NYC Airbnb Advisors and Empire State Realty Partners specialize in navigating the city's complex short-term rental regulations. For Mexico, companies like Mexico Real Estate Solutions, Playa Realtors, and Tulum Investment Properties focus on popular tourist destinations, with agents like Carlos Mendoza Real Estate and Riviera Maya Property Experts offering specialized Airbnb investment guidance. National services including Mashvisor, AirDNA, and Rabbu provide market analysis and property identification tools for both markets, while BiggerPockets connects investors with local experts. Additional Mexico-focused services include Cancun Airbnb Investments, Puerto Vallarta Vacation Rentals, and Cabo Property Solutions, which have emerged since 2018 to serve the growing demand for Mexican short-term rental investments, particularly in markets like Tulum, Playa del Carmen, and Mexico City where Airbnb regulations are more investor-friendly than New York's restrictive 2023 legislation.