A group of 20 Jamaicans has come together to convert smaller hotels into strata-managed condos. The venture, according to real estate investor and realtor Maura Wilson, is a response to changes in the market.

“Many smaller hotels have suffered over the years due to competition with the all-inclusives. We have a shortage of housing and an increase in Airbnb business so this new concept of conversion from hotel to strata condo is an excellent solution to offer affordable investment,” Watson told the Jamaica Observer.

“We have purchased a 30-room, two-acre seafront Negril property which we are going to convert to strata units and do short-term rentals. As a group we sourced US$3 million and are looking forward to doing this same concept with other smaller hotels islandwide. Our group has been told the conversion can take about six months. The investor group was formed from the Throp X real estate conference [held last November],” she added.

Originally from Boston, Watson has lived in Jamaica for 16 years. A realtor with DC Tavares & Finson Realty Ltd, she has emerged as a major player in the real estate market, with a focus on Negril. She’s already done deals for about six hotels and she is currently working with a group of Italian investors who intend to build an 800-room hotel at the 70-acre plus Rhodes Hall Plantation in Green Island.

Now, Watson said, is an “excellent time to invest” in property that will be used to generate rental income. This includes the short-stay segment, despite recent rumblings that there may be legislation coming soon that may likely impact profit margins.

“Jamaica is booming. Many of my clients are buying or building new villas to enjoy and to rent. Jamaica is a big vacation destination. To have a vacation property to enjoy and to earn an income is a win-win,” she said.

Watson earns income from Ivy’s Cove, a luxury quadplex on the beach in Negril. A popular wedding spot, it welcomes local and international guests and has also been the venue for several music video shoots. She’s not the only one taking advantage of the bullish real estate market.

“Many of my clients have bought several condos in the Negril area and successfully rent short term and some long term. Real estate prices have jumped and doubled in the last few years,” Watson told the Sunday Observer.

“At Point Village, I was selling studios for about US$50,000 to US$100,000. Now they are US$200,000 to US$500,000. I sold Whitehouse beach club land to developers, The Moorlands. Houses started at US$390,000; now they are US$790,000 in a matter of four years. COVID helped jump prices and most people thought they would go down, but real estate increased,” she added.

She sees real estate as a way to build generational wealth and her daughters Emma and Sydney, who are in their 20s, lend a hand with her Airbnb listing and bookings.

“Emma has formed a villa management company and helps several villa owners rent their villas to tourists and locals,” said Watson.

She has a wealth of knowledge from her years in the business. She has tips, for example, on factors to consider when mulling over whether to use a purchase for short stays or long-term rental income. The first one, of course, is to always use a licensed, experienced realtor.

“If your target is the short-stay market, buy in resort areas; for long-term rentals focus more on corporate areas such as Kingston. However, Kingston has become a short-term stay area with attractions such as the Bob Marley Museum, its great nightlife, restaurants, and music venues,” said Watson.

Both segments of the market, she said, have their pros and cons.

“Short-term has a lot of wear and tear. You also need housekeeping frequently, and usually utilities run higher — especially electricity. However, the income is usually greater on short-term. For short stays the owner has to manage the property daily and communicate with renters and staff, keep the property fresh and clean, manage online booking engines and pay all the bills on time,” Watson said.

“Long term is usually pretty easy as long as tenants pay on time and keep the property well maintained. Long-term takes much less time. The owner usually just collects monthly rents and sometimes do minor repairs,” she added.

She cautioned, however, that it is important to choose the right long-term tenants as they can present their own set of challenges.

“I manage a local property and have a tenant that is always behind in rent. I filed a complaint and it’s before the court. So be very selective who you rent to. Corporate rentals are usually the best as the company guarantees the rent and professionals are great tenants. They are hardly there and very neat,” said Watson.