in the Dominican Republic
Manage Rental PropertiesHow to
Denise Besspresented by
Why the DR???
Management Options
Investment Options
and Potential Income
IDEAS TO EXPLORE . . .
why
Own Rental Property in the
Dominican Republic???
~ incredible weather…
~ warm, open and hospitable people
~ beautiful world class tropical beaches
~ easy travel
~ varied economy and stable government
The DR Has It All !
Don’t just take my word…
Rental Income Potential
The Dominican Republic has great rental income
potential:
~ 7 International Airports brought over 5,599,859 non-
resident foreigners to the Dominican Republic in 2015.Punta Cana (PUJ), Santo Domingo (SDQ, JBQ), La Romana
(LRM), Santiago (STI), Puerto Plata (POP), Samaná (AZS, ABA)
and Barahona (BRX).
~ the DR boasts nearly 1,000 miles of coastline
~ there are beaches, mountain and ocean views that will
appeal to a wide range of tourist and ex-pat
who
Visits the DR
In 2016, most tourists visiting the country by air came from:
United States 41.6%
Canada 15%
Germany 5%
France 4.3%
Venezuela*3.2%
United Kingdom 3.2%
Spain 3.1%
Professional Management Company:
Definition: Company is a separate entity than the rental property. May
provide additional concierge services and work with several properties
and is paid by a monthly and/or commission basis.
Management Options
PROS CONS
CLEAR ROI OBJECTIVES ADDITIONAL EXPENSE
TRANSPARENCY
RESPONSIBILITY
PROFESSIONALISM
BOOK RENTERS OR CLIENTS
FOR PROPERTY
MARKETING
Definition: Companies or employees that work for the Condo
Association and have facilities on the premises. Varying levels of
duties. Payment is usually included in Association dues.
On-Site Management
Companies
PROS CONS
PRICE INCLUDED IN DUES MARKETING LIMITED
MARKETING INCLUDEDLACK OF COMMISSION MAY
AFFECT OCCUPANCY RATE
TURN-KEY OPERATION MORE OWNER INVOLVEMENT
TRANSPARENCY
PROFESSIONALISM
Management by Cleaning Lady, Gardner, nice Dominican neighbor,
etc.
Mistake of Many Expats
PROS CONS
INEXPENSIVE LACK OF PROFESSIONALISM
FEELING OF HELPING
LESS-ADVANTAGEDLANGUAGE BARRIERS
INCLUSION IN DOMINICAN
CULTURELACK OF MARKETING
Property Management to
Maximize Return on Investmentinclude (handout)
~ provide an on-line listing of the owner's property
~ rental contract agreements, deposits and refunds
~ collect and disburse funds
~ record keeping
Property Management to
Maximize Return on Investmentinclude (handout)
~ conduct inspections of the property
~ arrange and supervise cleaning schedules
~ payment of utility bills
~ supervision and payment of staff
~ key holder
~ local contact number
Property Management to
Maximize Return on Investmentinclude (handout)
~ damage reports
~ arrange and coordinate repairs of the damages
~ arrange airport pick-up/drop-off
~ special services such as child care, personal cooks,
~ service relationships for repairs
how to
Calculate Rental Income
First purchase of the home is on a cash basis:
~ How to calculate Yields for your investment property.
Property Price - $200,000
Monthly Rental - $2000
Annual Rental $2,000 x 12
Annual Rental $24,000
Yield = (Annual Rental Property Price ) x 100%
Yield = (2400/200,000) x 100% = 12%
keys to
Successful short-term vacation
rentals
RESEACH
FIND THE PERFECT
PROPERTY
RENOVATE AND
FURNISHINGS
BOOKING PROGRAMS
Gross income potential –
legalities ad neighborhood
restrictions
Property that has “wow” factor
Turn key or fixer upper – quality
furnishings – think high end
home away from home!
Airbnb, HomeAway and VRBO
types of
Rental Properties in the DRLuxury Villa Rental
Sales Price: $350,000
Rental Rates:
Nightly $250 to $400
Monthly $2,500
Expenses: $700
Association Dues, Management,
Internet, Cable TV, Electricity,
water, gardener and
housekeeper
Profit with long term renter at
$2,500 month = $1,700 net
income est.
Villa Los Arcos
La Catalina
2 night
vacation
stay
drawing
prize!
types of
Rental Properties in the DRLuxury Villa Rental
Sales Price: $375,000
Rental Rates:
Nightly $250 to $400
Monthly $2,500
Expenses: $700
Association Dues, Management,
Internet, Cable TV, Electricity,
water, gardener and
housekeeper
Profit with long term renter at
$2,500 month = $1,700 net
income est.
Casa Om
La Catalina
CASA OM
CASA OM
CASA OM
types of
Rental Properties in the DRLuxury Villa Rental
Sales Price: $299,000
Rental Rates:
Nightly $200 to $300
Monthly $2,000
Expenses: $600
Association Dues, Management,
Internet, Cable TV, Electricity,
water, gardener and
housekeeper
Profit with long term renter at
$2,000 month = $1,400 net
income est.
Casa Bigras
La Catalina
Beachfront Condo (Economical)
Sales Price: $75,000 1 bedroom/
1 bath
Rental Rates:
Nightly $70 to $80, Monthly $700
Expenses: $300 Association Dues
Includes: Management, Internet,
Cable TV, Electricity and water
Avg. 60 % (high season) Owner
occupancy for low season
2015 Net Profit $5,000 est.
types of
Rental Properties in the DR
Orilla del Mar
Cabarete
types of
Rental Properties in the DRUltra- Modern Luxury Condo
Rental
Sales Price: $260,000
1 bedroom/850 sq.ft.
Rental Rates: Nightly $150 to
$200
Expenses: Association Dues
$700 / month
Includes: Management, rental
and reservation agents, Internet,
Cable TV, Electricity, water, etc.
Avg. 70 - 100% (high season)
60% (low season) occupancy
2014 Net Profit per unit $14,000
est.
Millenium
Cabarete
types of
Rental Properties on the North Coast
Luxury Detached Homes
2 to 4 bdr Villas
Sales Price: Starting as low as $119,000
Rental Rates:
Nightly between $125-$550 per night
Expenses: Association Dues
$225 a month
Includes: Management, rental and
reservation agents, Internet, water,
security, parking and common area
maintained
6-10% of your purchase
price: guaranteed to you in rental
income. Risk free investment and piece
of mind. For all new villas!
Casa Linda Residential
DR North Coast
types ofRental Property – The Fixer Upper
Fixer Upper
7bdr/4ba 2,800 sq. ft.
Sales Price: $260,000
Rental Rate Potential – after
$75,000 investment:
Nightly $350 to $500USD
Monthly $3,000
Monthly Expenses:
Incredible appreciation potential!Villa Peninsula
Now is the time . . .The Dominican government has been working hard to invest back in the
country.
Areas like Puerto Plata with the new cruise ship Port, Playa Grande, and all
along the North Coast have benefited. The Dominican is the gem of the Caribbean for investing!.
Questions ?Visit our table in the Exhibition Hall and sign up for a
DR Oceanview Property and Rental Tour …
AMANERA RESORT
Playa Grande, DR