Does the highest rent always deliver the best return?

Rental prices in Curaçao have become an increasingly important topic. For property owners, the logic may seem simple: the higher the monthly rent, the better the return.

In practice, it is not always that straightforward.

Asking rent vs. actual return

Consider a property listed at XCG 3,000 per month. On paper, that represents XCG 36,000 in annual rental income.

But if the property remains vacant for two months because of its price, the gross rental income for that year drops to XCG 30,000.

A comparable property rented at XCG 2,700 per month with little or no vacancy, could generate XCG 32,400 over twelve months.

In this example, the property with the lower monthly rent actually produces the higher annual rental income.

And that is before considering additional costs associated with vacancy, marketing, maintenance and tenant turnover.

What makes a rental price realistic?

A suitable rental price should not be based solely on what an owner would like to receive.

Location, condition, size, number of bedrooms, amenities, furnishings and comparable properties in the area all play a role.

But there is another factor that should not be overlooked: what can the target market realistically afford?

A property may have a certain value, but if the corresponding rental price falls outside the financial reach of a large part of its intended market, the pool of suitable tenants becomes smaller.

That can result in a longer vacancy period.

The Curaçao market requires balance

According to Curaçao’s Central Bureau of Statistics, the average gross personal monthly income among employed residents was XCG 3,218 based on Census 2023 data.

This does not mean that every rental property should be positioned at the lower end of the market. Curaçao has different rental segments, from more affordable housing to luxury properties and homes aimed at international tenants.

It does mean that the asking price should make sense for the segment in which the property is being offered.

A higher rental price can be justified when the location, quality, amenities and target market support it.

Simply looking at the prices of other properties advertised online is not always enough. An advertised price does not tell us whether the property was actually rented at that amount, or how long it remained on the market.

A good tenant has value too

For a property owner, return is about more than the monthly rental amount.

A reliable tenant who has been properly screened, pays on time, takes good care of the property and remains for a longer period can provide significant value.

Lower vacancy and fewer tenant changes can create greater stability and more predictable rental income.

The right price is not always the highest price

At Greenleaf Real Estate, we believe rental pricing should be based on more than the property itself. We consider its location, comparable properties, target market and overall position within the current rental market.

The objective is not simply to place the highest possible rental price on a property.

The objective is to establish a realistic market price that fits the property, its target tenant and the owner’s rental strategy.

Because ultimately, a successful rental is not about achieving the highest asking price. It is about finding the right balance between price, occupancy, tenant quality and long-term return.

Greenleaf Real Estate Curaçao
Real Estate Insights

Does the highest rent always deliver the best return?

Asking rent vs. actual return

What makes a rental price realistic?

The Curaçao market requires balance

A good tenant has value too

The right price is not always the highest price

Greenleaf Real Estate Curaçao

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Does the highest rent always deliver the best return?

Asking rent vs. actual return

What makes a rental price realistic?

The Curaçao market requires balance

A good tenant has value too

The right price is not always the highest price

Greenleaf Real Estate Curaçao

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