Investor Presentaiton
In some cases, based on the property type and location, a combination of
short term rentals during the high season and mid/long term rental during
the low season can be the best strategy.
Short Term Rental Strategy
A critical factor to consider for short term rentals is seasonality. Rental demand can
fluctuate dramatically through the year. Some periods such as December-March,
are usually high season, and nightly rates and occupancy rates are higher. Other
periods, such as April-November, can be considered mid to low season. Nightly
rates and occupancy rate will likely be lower than what you can expect during high
season. There are some specific periods (eg. Easter weekend) where we can expect
the absolute best results with a short term rental strategy.
Short term rentals will feed on tourism, both domestic and foreign. The most
common length of stay would probably be one to two weeks for foreign tourists.
Dominican nationals tend to come from larger cities to the coastal areas and stay
for weekends, long weekends, and holidays. Both villas and condos work well on a
short term rental strategy, but location is key. Properties that are close to the
beach and amenities will yield better results, since many tourists will prioritize
properties in which a car rental is not needed.
The most effective platforms for this strategy are travel companies like Airbnb.
DOMINICAN REPUBLIC INVESTORS GUIDE
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