OCEANVIEW How To Manage A Rental Property In The Dominican Republic Learn: Why is the DR a great investment for Rental Properties? Management options for your property Denise Bess Investment Options and Potential Income
Why the DR for Rental Properties? The Dominican Republic HAS IT ALL!!! Incredible weather Warm and Hospitable People Beautiful World class Beaches Easy Travel with variety of activities Varied Economy and Stable Government
DR HAS IT ALL
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 and oceanviews that will appeal to a wide range of tourist and ex-pat.
Who Visits the DR In 2015, most tourists visiting the country by air came from: United States 41.4% Canada 15.4% Germany 5.1% France 4.7% Spain 3.6%
Management Options 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. PROS CLEAR ROI OBJECTIVES TRANSPERANCY RESPONSIBILITY PROFESSIONALISM BOOK RENTERS OR CLIENTS FOR PROPETY MARKETING CONS ADDITIONAL EXPENSE
On-Site Mangement Companies 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. PROS PRICE INCLUDED IN DUES MARKETING INCLUDED TURN KEY OPERATION TRANSPERANCY PROFESSIONALISM CONS MARKETING LIMITED LACK OF COMMISSION MAY AFFECT OCCUPANCY RATE MORE OWNER INVOLVEMENT
Mistake of Many Expats Management by Cleaning Lady, Gardner, nice Dominican neighbor, etc. PROS INEXPENSIVE FEELING OF HELPING LESS ADVANTAGED INCLUSION IN DOMINICAN CULTURE CONS LACK OF PROFESSIONALISM LANGUAGE BARRIERS LACK OF MARKETING
Property Management to maximize return on investment include (Handout): Provide an on-line listing of the owner's property Rental contract agreements, deposits and refunds Collect and disburse funds Record keeping
Conduct inspections of the property Arrange and supervise cleaning schedules Payment of utility bills Supervision and payment of staff Key holder Local contact number
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
Types of Rental Properties in the DR Luxury Villa Rental Sales Price: $350,000 Rental Rates: Nightly $250 to $400USD Monthly $2,500 Expenses: $700 Villa Los Arcos La Catalina, DR Association Dues, Management, Internet, Cable TV, Electricity, water, gardner and housekeeper Profit with long term renter at $2,000 month = $1300 net income est.
Types of Rental Properties in the DR Beachfront Condo (Economical) Sales Price: $75,000 1 bedroom/ 1 bath Rental Rates: Nightly $70 to $80USD Monthly $700 Expenses: $300 Association Dues Orilla Del Mar Cabarete, DR 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 Ultra- Modern Luxury Condo Rental: Sales Price: $260,000 1 bedroom/850sq. ft Rental Rates: Nightly $150 to $200 Expenses: Association Dues $700 a month Millenium Cabarete, DR 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.
Types of Rental Properties in the DR Sport Condo Rental: Sales Price: $165,000 2 bedroom - 1 bedroom/900sq. ft Rental Rates: Nightly $80 to $150 Expenses: Association Dues $400 a month Agualina Kite Beach Cabarete, DR Includes: Management, rental and reservation agents, Internet, Cable TV, Electricity, water, etc. Avg. 60-80% (high season) 50% (low season) occupancy 2014 Net Profit per unit $20,000 est.
Types of Rental Properties Colonial Zone DR Luxury Condo Rental 2bdr/2ba 1,200 sq. ft. Sales Price: $240,000 Rental Rates: Nightly $125 to $200USD Monthly $1,500 Narai Residences Colonial Zone, DR Expenses: Association Dues $250 a month Includes: Management, rental and reservation agents, Internet, water, security, parking and common area maint.
Types of Rental Properties Colonial Zone DR Fixer Upper 4bdr/2ba 2,000 sq. ft. Sales Price: $260,000 Rental Rate Potential: Nightly $125 to $200USD Monthly $1,500 Expenses: TBD Colonial Zone, DR Incredible appreciation potential!
Now is the time. The government of the DR has been working hard to invest back in the country. Areas like the Colonial Zone, Las Terranas and all along the North Coast have benefited. The DR is still a GREAT real estate deal in the Carribbean.
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