ARBNB in Punta Cana, Dominican Republic.
Orange CT · Member since 2016 · 105 posts · 25 votes
Hey guys,
Im buying a condo in Punta Cana in area nearby "EL Cortecito" 5 min walking from the beach. I have my whole portfolio in CT and would like to expand markets. Im from Santo Domingo but I have lived in CT since 2012. This condo will also be used by my family and myself as well.
Does anybody wants to share their experience owning a condo in PUNTA CANA, Dominican Republic and rent it out thru ARBNB , other short term rental platform or with a property manager?
Any tips on filling Vacancies, Arbnb experience, high or low rental season strategy? Any advice will be highly appreciated.
Following this… I own in Puerto Plata (north coast of Dominican Republic) and it’s great thus far. Been in the market 18 months at this point. Starting ‘23 strong, already booked solid through March. https://www.airbnb.com/h/casac...
Hi Andres,
I’ll be watching this too. We just bought a penthouse closer to Santo Domingo (Guayacanes), but it hasn’t gone live yet. Perhaps in the coming months we will be able to commiserate with eachother about our experiences! We’ll be there in the first week of September to finalize the property for renting.
Let us know how you're doing. The Dominican Republic can be a great place to invest but, personally, Punta Cana would be the last place I'd invest in.
Two years ago, during a meeting I had at the Ministry of Tourism in Santo Domingo, one of the head honchos there clearly told me "If I were you, I wouldn't invest in Punta Cana". Now, he's responsible to bring tourism and investment into the country so why would he say that? Punta Cana accounts for 66% of the country's tourism. This is very unhealthy so the government is now investing elsewhere now and Punta Cana is pretty much done anyway, as the path of progress pretty much has run its course there.
That's not my main problem with Punta Cana though. Punta Cana is first and foremost an all-inclusive destination and there's no way an Airbnb can compete against those. There is nothing much to do in there apart from the beach and partying and therefore there's no drawbacks to be in an all-inclusive and no advantages to be in an Airbnb. Many people go there in (large) groups, which most short-term rentals can't accommodate. Finally, most people I've met in the country (and elsewhere) who love to stay in short-term rentals and dislike all-inclusive generally dislike Punta Cana.
Of course, it's another story if you buy (partly) for lifestyle purposes, as you might just be happy enjoying your property and covering your costs.
Let us know how you're doing. The Dominican Republic can be a great place to invest but, personally, Punta Cana would be the last place I'd invest in.
Two years ago, during a meeting I had at the Ministry of Tourism in Santo Domingo, one of the head honchos there clearly told me "If I were you, I wouldn't invest in Punta Cana". Now, he's responsible to bring tourism and investment into the country so why would he say that? Punta Cana accounts for 66% of the country's tourism. This is very unhealthy so the government is now investing elsewhere now and Punta Cana is pretty much done anyway, as the path of progress pretty much has run its course there.
That's not my main problem with Punta Cana though. Punta Cana is first and foremost an all-inclusive destination and there's no way an Airbnb can compete against those. There is nothing much to do in there apart from the beach and partying and therefore there's no drawbacks to be in an all-inclusive and no advantages to be in an Airbnb. Many people go there in (large) groups, which most short-term rentals can't accommodate. Finally, most people I've met in the country (and elsewhere) who love to stay in short-term rentals and dislike all-inclusive generally dislike Punta Cana.
Of course, it's another story if you buy (partly) for lifestyle purposes, as you might just be happy enjoying your property and covering your costs.
Thank you for the insight, I know a few friends making money there thru Airbnb and I was looking for more insights
I’m assuming you don’t own real estate? in punta cana? Or have you owned and sold?
Andres, I've indeed stayed clear of investing there given what I wrote. I followed the advice from the insiders I'm connected with, which happened to corroborate my own judgement.
Personally, I much prefer to stay in a short-term rental than an all-inclusive resort. I had to travel to Punta Cana last year and, because of the pandemic, I thought it was safer to stay at Club Med. I met some people there who were staying in the cheapest type of "rooms" and they basically had a little 2-bedroom apartment all for themselves. Add the fact that you're basically by you're private beach there, you have all the sporting activities, food and your flight included and you get to meet people. I'm not sure how you can compete against that and make some serious money, unless you own an expensive villa by the ocean but I'd love to learn if your friends have a recipe.
To be clear, I never suggested that you can't make money with a short-term rental in Punta Cana. A few years back, I was asked by Airbnb to take part in a worldwide hosting study and, as a result, they shared the conclusions with me. One of the most striking conclusions was that the bulk of the money was made by a minority of professional hosts and that the large majority of hosts wasn't making much. So, you can find successful hosts pretty much everywhere but I'm interested in what the average host makes because I have to be conservative in my assumptions.
If you have friends who are hosting successfully there, I'm not sure why you don't ask them your questions. By having friends on the ground already hosting there, you have access to their knowledge and you have a competitive advantage. Bear in mind though that, when people say their short-term rental is profitable, the question is how profitable. You can be profitable by barely covering your costs, by making loads of money or anything in between.
Hi Andres,
I’ll be watching this too. We just bought a penthouse closer to Santo Domingo (Guayacanes), but it hasn’t gone live yet. Perhaps in the coming months we will be able to commiserate with eachother about our experiences! We’ll be there in the first week of September to finalize the property for renting.
Hello @Allan Smith how are things going? How was your experience? I have my first property tour next week.
@Andres Bernal hey Andrea how are you I’m also in the process of purchasing in Los corales/cortecito área , a 2br vacation property . It should be done in march so I’ll keep you posted. I’ve contacted some property managers and I think it’s a good investment. Las terrenas is beautiful and growing as well but for family and short term rentals is an ideal place being that it’s close to la romana, Santo Domingo, miches, bayahibe, and to the airport as well. I’ve contacted banks in regards to Ioans and as you know rates are a bit higher than in US and you have to go through much more hoops to get one. I’m new to the DR market as well but I think it’s very lucrative also being that tourism has grown so much in the area .
Following this… I own in Puerto Plata (north coast of Dominican Republic) and it’s great thus far. Been in the market 18 months at this point. Starting ‘23 strong, already booked solid through March. https://www.airbnb.com/h/casac...
Hi Andres,
I’ll be watching this too. We just bought a penthouse closer to Santo Domingo (Guayacanes), but it hasn’t gone live yet. Perhaps in the coming months we will be able to commiserate with eachother about our experiences! We’ll be there in the first week of September to finalize the property for renting.
Hello @Allan Smith how are things going? How was your experience? I have my first property tour next week.
how were your experience?
@Andres Bernal hey Andrea how are you I’m also in the process of purchasing in Los corales/cortecito área , a 2br vacation property . It should be done in march so I’ll keep you posted. I’ve contacted some property managers and I think it’s a good investment. Las terrenas is beautiful and growing as well but for family and short term rentals is an ideal place being that it’s close to la romana, Santo Domingo, miches, bayahibe, and to the airport as well. I’ve contacted banks in regards to Ioans and as you know rates are a bit higher than in US and you have to go through much more hoops to get one. I’m new to the DR market as well but I think it’s very lucrative also being that tourism has grown so much in the area .
how is so far?
Following this… I own in Puerto Plata (north coast of Dominican Republic) and it’s great thus far. Been in the market 18 months at this point. Starting ‘23 strong, already booked solid through March. https://www.airbnb.com/h/casac...
perfect, if you are looking to invest in Punta cana let me know I do investment to rent and build to sell
I have owned a condo in Punta Cana since 2016. The first year it was fine (mostly because of the contract we signed) but has been a headache since. Apparently they can just break contracts without recourse if builders / owners are well connected and I even engaged a lawyer. That said, I now have it on airbnb and break even. Do your research on the location very well. I do like el corticito as there are many restaurants and groceries in walking distance so perhaps that can work. Also, there are many snow birds that go down that stay for months which would not go to all inclusive. That said, my experience has not been great.
Following this… I own in Puerto Plata (north coast of Dominican Republic) and it’s great thus far. Been in the market 18 months at this point. Starting ‘23 strong, already booked solid through March. https://www.airbnb.com/h/casac...
Hello Luis, I have a property near Puerto Plata and am looking to continue to grow my portfolio in that area. How does financing work in the DR? Do you have any recommendations on lenders or someone investing in real estate in the area?
How is your Dominican Republic investment? I’m interested for 2024.
How is your Dominican Republic investment? I’m interested for 2024.
Hi, I am a local real estate agent and investor in the Dominican Republic 🇩🇴.
What's your question about?
Following this… I own in Puerto Plata (north coast of Dominican Republic) and it’s great thus far. Been in the market 18 months at this point. Starting ‘23 strong, already booked solid through March. https://www.airbnb.com/h/casac...
Hello Luis, I have a property near Puerto Plata and am looking to continue to grow my portfolio in that area. How does financing work in the DR? Do you have any recommendations on lenders or someone investing in real estate in the area?
If you need help with financing I will be happy to share the list of lenders and banks we’ve worked with before
Let us know how you're doing. The Dominican Republic can be a great place to invest but, personally, Punta Cana would be the last place I'd invest in.
Two years ago, during a meeting I had at the Ministry of Tourism in Santo Domingo, one of the head honchos there clearly told me "If I were you, I wouldn't invest in Punta Cana". Now, he's responsible to bring tourism and investment into the country so why would he say that? Punta Cana accounts for 66% of the country's tourism. This is very unhealthy so the government is now investing elsewhere now and Punta Cana is pretty much done anyway, as the path of progress pretty much has run its course there.
That's not my main problem with Punta Cana though. Punta Cana is first and foremost an all-inclusive destination and there's no way an Airbnb can compete against those. There is nothing much to do in there apart from the beach and partying and therefore there's no drawbacks to be in an all-inclusive and no advantages to be in an Airbnb. Many people go there in (large) groups, which most short-term rentals can't accommodate. Finally, most people I've met in the country (and elsewhere) who love to stay in short-term rentals and dislike all-inclusive generally dislike Punta Cana.
Of course, it's another story if you buy (partly) for lifestyle purposes, as you might just be happy enjoying your property and covering your costs.
I am a real estate agent and a local investor as I said and investing in tourism sector in DR has different benefits:
1- tax benefit ( no paying tax for 15 years )
2- ROI +8%
3- Great Appreciation (natural and forced)
4- financing 0%
by the way, some residences are working with international tour operators and resort administrations like Windham who guarantee +60% occupancy over the year on your property. ( this is for long-distance investors )
If you or anyone on this topic has any questions about it pls answer or DM me
I have owned a condo in Punta Cana since 2016. The first year it was fine (mostly because of the contract we signed) but has been a headache since. Apparently they can just break contracts without recourse if builders / owners are well connected and I even engaged a lawyer. That said, I now have it on airbnb and break even. Do your research on the location very well. I do like el corticito as there are many restaurants and groceries in walking distance so perhaps that can work. Also, there are many snow birds that go down that stay for months which would not go to all inclusive. That said, my experience has not been great.
Cortecito is the best place for short-term rentals cause everything is close but downtown is getting developed and other areas too.
But talking about your agreement with the builder couldn't understand very well
Following this… I own in Puerto Plata (north coast of Dominican Republic) and it’s great thus far. Been in the market 18 months at this point. Starting ‘23 strong, already booked solid through March. https://www.airbnb.com/h/casac...
Wow sounds good
@Andres Bernal hey Andrea how are you I’m also in the process of purchasing in Los corales/cortecito área , a 2br vacation property . It should be done in march so I’ll keep you posted. I’ve contacted some property managers and I think it’s a good investment. Las terrenas is beautiful and growing as well but for family and short term rentals is an ideal place being that it’s close to la romana, Santo Domingo, miches, bayahibe, and to the airport as well. I’ve contacted banks in regards to Ioans and as you know rates are a bit higher than in US and you have to go through much more hoops to get one. I’m new to the DR market as well but I think it’s very lucrative also being that tourism has grown so much in the area .
You are right banks are higher than in the US but properties are lower too (depending on the area and comparing ROI )
Hi Andres,
I’ll be watching this too. We just bought a penthouse closer to Santo Domingo (Guayacanes), but it hasn’t gone live yet. Perhaps in the coming months we will be able to commiserate with eachother about our experiences! We’ll be there in the first week of September to finalize the property for renting.
Hey guys,
Im buying a condo in Punta Cana in area nearby "EL Cortecito" 5 min walking from the beach. I have my whole portfolio in CT and would like to expand markets. Im from Santo Domingo but I have lived in CT since 2012. This condo will also be used by my family and myself as well.
Does anybody wants to share their experience owning a condo in PUNTA CANA, Dominican Republic and rent it out thru ARBNB , other short term rental platform or with a property manager?
Any tips on filling Vacancies, Arbnb experience, high or low rental season strategy? Any advice will be highly appreciated.
Hey did you get the property?
I love the Dominican Republic and its history and culture but, as far as I've seen, there's hardly any of it in Punta Cana or around. And, as everybody knows, people go there the beach, the weather, nightclubs,.... and, most importantly, the all-inclusive resorts. As for the gastronomy, you can find nice restaurants like anywhere in the world really but, out of personal experience, you can't beat the food of the better all-inclusive resorts there and that's precisely one of the reasons people go for that option.
To answer your question, as you know, Punta Cana accounts for 2/3 of the tourism in the Dominican Republic so, the first time I went, I was wondering about buying a short-term rental there. I emailed a poll to a large group of friends and acquaintances and I asked them the following question: "Would you ever rent a short-term rental in Punta Cana and would you ever go there if it wasn't for an all-inclusive" and not a single person answered yes to either of those questions! Many explained why and it made total sense to me. So no, I don't own property there.
Of course, this isn't necessarily a representative sample statistically speaking and my friends and acquaintances could be a bunch of weirdos so I could be wrong. Well, people needn't listen to you or me. They can just go to Airdna and check how much money the average short-term rental in Punta Cana makes and they'll have an objective answer.
Finally, I'm getting bombarded by messages from Dominican developers building short-term rentals in Punta Cana so, when looking at the statistics, bear in mind that the supply and therefore competition is going to increase significantly.
hey @Junior Jaquet Hernandez, I own and manage vacation rental properties in Punta Cana along with my team. Let's connect sometime as we can potentially help each other out. For other member curious, I've been hosting in Punta Cana through various platforms and its a heavy traffic areas, but short term renting here only works if you have a great team in place.
Following this… I own in Puerto Plata (north coast of Dominican Republic) and it’s great thus far. Been in the market 18 months at this point. Starting ‘23 strong, already booked solid through March. https://www.airbnb.com/h/casac...
I love the Dominican Republic and its history and culture but, as far as I've seen, there's hardly any of it in Punta Cana or around. And, as everybody knows, people go there the beach, the weather, nightclubs,.... and, most importantly, the all-inclusive resorts. As for the gastronomy, you can find nice restaurants like anywhere in the world really but, out of personal experience, you can't beat the food of the better all-inclusive resorts there and that's precisely one of the reasons people go for that option.
To answer your question, as you know, Punta Cana accounts for 2/3 of the tourism in the Dominican Republic so, the first time I went, I was wondering about buying a short-term rental there. I emailed a poll to a large group of friends and acquaintances and I asked them the following question: "Would you ever rent a short-term rental in Punta Cana and would you ever go there if it wasn't for an all-inclusive" and not a single person answered yes to either of those questions! Many explained why and it made total sense to me. So no, I don't own property there.
Of course, this isn't necessarily a representative sample statistically speaking and my friends and acquaintances could be a bunch of weirdos so I could be wrong. Well, people needn't listen to you or me. They can just go to Airdna and check how much money the average short-term rental in Punta Cana makes and they'll have an objective answer.
Finally, I'm getting bombarded by messages from Dominican developers building short-term rentals in Punta Cana so, when looking at the statistics, bear in mind that the supply and therefore competition is going to increase significantly.
You're very good at promoting your beautiful country and, anyway, as a local real estate agent, we would expect you to be positive because, if you aren't, who will?
I was just pointing out that I know plenty of people who have been to Punta Cana, including myself, and all of us have been in an all-inclusive resort and not in an Airbnb. None of us, including the many people I've met there have done cultural excursions or gone there for the local food. We've just been there for the beach, the food and resting at the resort. Granted, that's not a representative sample but I bet that's what most visitors do.
A few points regarding what you mentioned:
1. They guarantee 60% occupancy. For how long? I know large and (until then) reputable developers who have done that and then, when occupancy was below the level, they unilaterally cancel the guarantee. Nothing the owners could do. Then, you generally have to pay hefty management fees, whereby your returns oftentimes end up being less that what you can get in your home country. So why taking the risk?
2. 0% interest rate. For how long? They probably include the interest costs in the price, like the US homebuilders do with the rate buy downs. Anyway that 0% could be great if the deal is good but it doesn't made a bad deal good.
3. The tax exemption benefits are useless to most of us foreign buyers and a pure marketing tool used by the local developers. Indeed, we are taxed in our home country on our worldwide income and capital gains. So, anything we don't have to pay to the Dominican Republic tax authorities (the tax exemptions), we have to pay them to our home tax authorities because those exemptions don't apply. Local developers who market that benefit won't tell you that.
Also, I regularly see ads for large new condo developments so, if I was a buyer, I'd be concerned about overbuilding, especially given my previous remark. We have seen that movie elsewhere.
Finally, yes the Dominican Republic has it all indeed but, sadly, that includes sargassum, especially Punta Cana. We haven't found any solution to that problem. If it gets worse, which it could given that the assumed reasons are pollution and global warming, it could eventually wreak havoc on the country's tourism industry, especially Punta Cana. I know people who have been there when the beach was covered by that stinking toxic algae and they mentioned they'll never go back because of it.
To conclude, it's great that people here have different opinions. It makes for a good debate and that's what creates a market between buyers and sellers. Investing in Punta Cana might be right for the right kind of buyers (like maybe lifestyle buyers interested in getting a little bit of extra income) but they should make sure they know what they're getting into and don't look at the opportunity with rose-tinted glasses.