Investor Presentaiton
RENTAL MARKET
If you are purchasing an investment property, it's critical that you
understand the rental market in the specific location where you are
investing.
The most important factor to consider in your assessment is the rental
income you forecast. This is one of the main drivers of the property P&L
(profit and loss statement). You need to assume realistic (even
conservative) assumptions in terms of rental income and occupancy rate.
Assessments need to take into account:
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Strategies that work well (i.e short term rentals, long term rentals, etc.)
The property types that work well (eg. villas, condos, multi-family
properties)
Specific location dynamics (eg. do people need to rent a car in addition
to paying rent?)
The tenant/guest profile
How do you find tenants (i.e. preferred platforms)
Seasonality (will determine rents and occupancy rates)
In the regions where we invest, there are definitely properties that work
well as rentals, but definitely not all of them. Many properties will not make
sense as an investment, since its projected income is not likely to cover its
projected expenses, or the purchase price is too high to deliver an
acceptable rate of return. It's very critical that we pick the right combination
of property type, location and rental strategy that makes sense financially.
DOMINICAN REPUBLIC INVESTORS GUIDE
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