Panama rentals Archives | Panama Relocation Tours

Last Updated on November 13, 2020 - by Jackie Lange

Finding a Rental in Panama

The process of finding a rental in Panama is different than what you are familiar with. There is not one website like Zillow where you can see a lot of available rentals. You can’t just walk into one real estate office and ask to see all the rentals in your price range. Instead, you’ll need to take a much more proactive approach to find a rental in Panama. Listen to the replay of a conference call discussing how to find a rental. You’ll learn what NOT to do too!

See the top 10 takeaways from the call below. Listen to the replay for many other tips and tricks for finding a rental in Panama.

1. You’ll need to take a much more proactive approach to find a rental. Check Facebook groups in the area you want to move to. Check craigslist Panama and other websites like Encuentra for rentals. Rent a car and drive around looking for rental signs or hire a driver to take you.

2. The best rentals are usually found by word-of-mouth and rented directly from the owner. Don’t be afraid to ask people you meet if they know if any rentals.

3. Never ever rent something without seeing it first. It’s good to see the neighborhood during the day time and at night before signing a lease. Listen for barking dogs, roosters, noisy neighbors.

4. Don’t assume that it has hot water at every faucet. Verify.

5. Most rentals come completely furnished including dishes, pots, pans, tv, coffee pot, sheets, towels, and furniture.

6. Verify that the house has a reserve water tank.

7. Make sure there is a written lease. Write down everything they told you would come with the house (like electricity, water, gardener, etc) then very that those things are listed in the lease.

8. For condo/apartment complexes, ask if there is a generator and what it powers in your unit (hopefully the elevator too). East versus the west side of the building can make a big difference too!

9. Beware that some landlords charge twice as much during high season. You can avoid this if you rent before or after high season.

10. Insist that you be able to talk to the owner to verify what the correct rent is so you can avoid a net listing.

Our Online Panama Relocation Guide contains all the information you need to know to relocate to Panama. It also has a list of reliable property managers/real estate agents who can help you find a rental. It’s a good idea to contact the agents about a month before you come to Panama so they can have some rentals lined up for you to see.

Last Updated on October 29, 2020 - by Jackie Lange

Beware of NET Listings in Panama

In Panama, some things are done in a different way than you are familiar with. A good example is real estate sales and rental listings. In Panama, it’s common to see the same house listed at several different prices with different agents. Sometimes the “spread” can be as much as $100,000 difference for the same house!

Just this week, October 2020, a couple saw the same rental for $1800, $1500, and $1300. What’s the right price? The only way to know is to talk to the owner.

A few months ago, after a Panama Relocation Tour, a lady looking at a house for sale in Dolega, about halfway between David and Boquete. The real estate agent quoted the sales price at $100,000 more than the seller was asking. How did she find out? She drove by the house the next day and saw the owner outside. He told her what the right sales price was.

In North America, most houses for sale are listed as an exclusive listing. This means that one real estate office has the exclusive right to market the property. If that same office finds a buyer, they will typically take about a 6% commission. If an agent from a different office produces a qualified buyer, the “listing” agent will usually agree to split the 6% commission. In North America, a real estate agent has a fiduciary responsibility to the seller/buyer so all the dealings for the transaction are revealed: “on top of the table.”

There are some exclusive listings in Panama too. But most listings are NOT exclusive. Instead, the seller has agreed to pay a commission to whoever produces a qualified buyer. This is why you will see the same house listed with several different offices and at different prices. A typical commission in Panama is 5-6% of the sales price.

But sometimes, the seller has told the agent(s) that they need to NET a certain amount at closing and anything the agent can sell it for over that amount will be their profit. This is called a net listing. Net listings are illegal in most of North America, but it is business as usual in Panama. Here’s an example:

Joe and Mary need to walk away with $150,000 on the sale of their property. Real estate agent Sue advertises it for $220,000 – with room for negotiations, she’s hoping it will sell for $200,000 so she can walk away with a $50,000 commission versus the $12,000 commission she would have earned at 6%.

Maybe $200,000 is the right price for the house. But perhaps $150,000 is the right price. It’s hard to know in Panama because there is not a reliable MLS system to show comps of recent sales in the area. We do have an MLS system but most agents don’t use it and that’s why it’s not reliable.

HOW WIDESPREAD IS THE PROBLEM? [Read more…]

Last Updated on March 28, 2019 - by Jackie Lange

Where Will You Live in Panama?

During a Panama Relocation Tours I go to a variety of beach and mountain communities that have a variety of different price points. I do this so you can see the huge variety of what’s available in Panama. Some areas are more expensive than others. Some areas are more “high end” than others. Some areas are much more affordable. Some areas are definitely rough around the edges.

Too often, people read about a certain town in Panama then decide that is exactly where they want to live… without even visiting first or looking at other areas in Panama. That’s a huge mistake! Sadly, when someone actually sees the area they have read about, they are sorely disappointed because the article they read was so sugar-coated.

I know from nine years of experience doing Panama Relocation Tours that 50% of the people who think they want to live in a beach community change their mind after spending a day or two in the heat and humidity. And 50% of those who think they want to live in the mountains change their mind thinking the weather is too cool for them. That’s why it is so important to visit a variety of different areas before you decide where you want to live.

Luckily, there are plenty of towns that are half way between the beach and the mountains. So there is always a good compromise between the beach and the mountains. The temperature at sea level is 90 degrees +/- 5. Without an ocean breeze it can feel like 100! For every 1000 feet above sea level, the temperature drops 4 degrees. You can do the math to determine your ideal temperature. If you think 80-82 is your ideal temperature you will enjoy living at 2000 feet above sea level. If you like it a bit cooler, at 75-78, then you will want to search our communities in the 3000 – 3500 foot elevation. Pick the wrong elevation and it will be too hot or too cold for you.

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