In the four years, we have lived in Boquete I have seen rents become too high. In many cases, owner/developers tell people that they can get 7% or more return on their investments. Seldom the case. Not only does it depend on the type of amenities, it also depends on location, neighbors, privacy, noise levels, parking, and pet policies, community standards etc.
Here there are landlords that think the barest essentials, including four plates, four cups and so on are considered furnished, One bed in a two bedroom is NOT fully furnished. Not having coffee tables and end tables, lamps, rugs, curtains, nightstands, no closets doors, no washer and dryer when plumbed for them are also not furnished. Being built to American standards is a lie in most places. No dishwashers, not useable bathroom vanities, no patio furniture and calling a place 1450 square feet, when in truth the actual living area is more like just over 900 square feet is laughable The cheapest light fixtures and plumbing that is held together with a prayer are just not worth the price they ask for some places. Roofs that leak, roofs that pour, doors that have gaps enough for bugs and lots of dust to come inside are common. No paved parking areas. Many residents have two cars, but only one assigned parking space without any other designated location to park in are problematic. Pets are a problem often and when the power is not on, the gate doesn't open, too bad if you have a medical emergency. Grease traps that stink to high heaven of sewer odors that have not been professionally or routinely cleaned out right outside your window are an embarrassment and offensive if not possible a health risk. The overflow is no doubt causing the foundation of the building to weaken. Water tanks that have been cleaned once in four years, no one checks to see if the water is clean enough for humans to drink. No chlorine is added. Not enough water pressure for the number if units being serviced. Loud traffic noises. This is to name a few issues, I fail to get inside the construction issues, but rents over $800 are nothing more than highway robbery for anything less than the finest, most well appointed, and beautifully furnished apartment homes in pristine landscaped areas. Wake up and start realizing it is mostly Expats raising the rents out of site in Boquete.
Leases must be in Spanish, filed in the proper offices and the deposit also filed there as well in order to have a legal and binding legal document.
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People come to Boquete with impossible expectations and do nothing but complain.
I want, I want full service to American standards with high speed internet and u.s. TV.
I owned a condo in FL on the beach I rented it three months a year for $5,300.00 a month with no wi-fi!
There was service for 4 and if the tenants wanted to complain I didnt care.
For you complainers here if you dont like it leave.
Boquete doesnt need any more broke ass gringos.
I have read every post in this thread about rents and greedy landlords. There has been only one mention of the word "inflation," and that was in conncection with imported automobiles.
But inflation is a very big factor in the equation. Real inflation in the past ten years has averaged 7% in the US (despite the lies of the government number crunchers to the contrary). That means that from 2006 (when we bought our house here) through 2015 inflation has increased average costs about 96.7% Panama may state that its unit of currency is the Balboa, but it is really the US dollar, pegged at one to one. Panama's imports from the US have increased in cost. Generally speaking (because inflation tends not to be equal across all goods and services) something (or a basket of things) that cost $1,000 ten years ago now costs about $1,976.
I have remarked about some things beinq "expensive" here in Panama. But recently I returned for a short visit in the US for the first time in eight years and discovered that things in the US are often just as expensive, though a few are not.
Since the Income Tax Act and the Federal Reserve Act were enacted in 1913, the dollar has seen a steady decline, or, in other words, inflation has seen a steady increase. On average, something you could by for one dollar back in 2013 will now cost you about $33 today. Banks and the Federal Reserve create money from thin air and loan it to people or governments. But they only loan the principal amount. No money is loaned to pay the interest, so later on more money needs to be borrowed to pay the interest. But there is interest payable on that loan also. And so it goes. Therefore prices are too high, and wages are too high but often still not enough. And the United States is beyond bankrupt, with over $19 trillion in debt and short around $200 trillion for paying for promised Social Security and Medicare benefits. Student loan balances now exceed total credit card balances. One significant part of the problem is that no one wants to cut back and control spending or decrease their standard of living. Everything LOOKS so good it should really BE good, but it's not. Unemployment in the US has been worse for several years than it was in all except two years of the great depression. But we cover that up with lies, food stamps and other benefits paid with money taken from the people who are working. The country is an economic wreck. That is possibly one reason a lot of expats are here. We escaped some of the high prices, but we cannot escape US inflation while we use US currency (or any currency that is mismanaged, as most of them are).
I have managed a lot or rental property in Nashville, Tennessee. Early on, a decent two bedroom duplex could rent for around $200 per month. Today in Nashville, the average one bedroom apartment rents for $1,234 per month and the average two bedroom for $1,522. It ain't just Panama!
I would like to rent a 2BR place, on the beach in Malibu for under $500/month. Preferably with a 10 year lease and guaranteed no rent escalation. I'd consider a beach on Hawaii if maid service is thrown in.
All the greedy people who own property there just won't rent to those of us who like the beach and can't afford it. Do those greedy people think they own the ocean too?
Guess, I will just have to find a place I can afford... and complain.
Many Landlords may be Greedy but many Renters may be Loca. I have a friend who rents out a small house and was constantly being called upon to correct one thing or another. One renter, entertaining some guests from abroad, called to complain about the toilet seat being too small for one of the guest's. The guest was a very big person. Whenever the Cable (or a utility) went down, instead of calling the provider they would call the owner to call the provider (I know, most renters don't speak Spanish but also most owners don't also). Some renters damage things and never notify the owners of the damage and not discovered until the new renters notice things. A lease is not only protection for the renters but also the owners. If you have a long lease agreement than you may be stuck with a problematic renter for a very long time. I am sure that rental owners can supply a long list of Loca-ness stories. Let's hear some more stories. Just saying.
Patrick, I believe (although not 100% sure) you cannot have a lease that stipulates a term longer than a month in Panama. The contracts I had with Panamanians did not mention a term, but simply the monthly payment. These were contracts that were registered in David along with the deposit.
I stand corrected.
HollandAmerica and Robert both made good points.
Then level of rents in Boquete are very relative.
As pointed out, Boquete is a tourists destination - even if it is not obvious this year - so a 700 USD rent may seem high, but it is like 25´USD a day, which is very cheap on the short term lodging market. Just have a look at the airbnb rates...and it actually functioning quite well in Panama - despite the legal threats - 25 USD is a minimum for just a room in a Panamanian house in David...And travelers consider it cheap...that is for 1 room with breakfast in a Panamanian house in David,
HA rightfully reminded us that Boquete can be crowded by Tourists, and that a single room in a well situated house can be rented up to 50 dollars or more.
In this perspective to rent a 2/2 house or even a 4/2 house for 500 to 700 USD is not a steal, but reflects the opportunity given to the renter.
This problem is to be found in every single popular touristic destination in the world, Try finding a long term lease in Saint Tropez in France, that is a normal long term normal rent. Why would any owner do that when they can get the equivalent of a yearly rental in just two months?
This situation - which is international - is source of abuses, that is no secret. The locals are no fools in this regards...Even 9 years ago, a cabana on a beach could cost up to 75 a night,,,and that was a shithole...but on Santa Clara beach.
IMPORTANT POINT BEING that is not a GRINGO EXPATS EFFECT, but a TOURIST ONE. And it affects any touristic destination on the planet. Because in the rent is included the so called Business opportunities. Then of course, most people tend to over value those opportunities, hence the crazy level of the number of shops and restaurants around here, but that is another problem...it is called saturation, and Boquete is clearly saturated.
I am in my 9th year here and i am still amazed by the spread belief that the rising cost of living in Panama is only due to the expat community,
One more thing that you guys don't realize. Boquete is a tourist town, with expats staying short term. This also has an affect on rental prizes.
What is artificial? If it rents for $700 it's reality because of supply and demand and not artificial. Sure there are two markets in Boquete, those for expats and those for locals. As Robert pointed out, you too can get a local price if you speak the language and don't mind doing some repairs. This post was about finding a house to American standards that is not overpriced. That is just something you cannot expect in Boquete.
Expats created the increase in car prices? Seriously on what planet have you been living? Cars are imported and thus the inflation is imported. This has absolutely nothing to do with expats living in Panama. Cheeze.
Sure prices of real estate are higher in Boquete because of expats, but don't blame car prices or other cost of living to be higher because of expats. For your information, a car or a bag of rice has also increased in areas where there are no expats.
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