Condo Short Term Occupancy Rates

Eriic welcome to the forum.  There are lots of good folks here with lots of good information for you.

Not living in LT I cannot give you specific information on that area but can comment on condos on the north coast in the Sosua/Cabarete area.

Depending on actual location, easy beach access, amenities of the condo, condition of the condo, electric situation, does it have cable and internet, security, and such it most certainly can rent well and cover expenses.

We have  a condo about 150 yards from the beach in a beach front complex in Cabarete that we use as a rental unit. It is a 2 bedroom unit, new, and all of the bells and whistles. Last year we ran about a 75%-80% occupancy rate. In fact it has been 100% rented since the second week in November and will be so till mid March. We manage our own unit but there are management companies that are good as well. So the answer to your question is YES with the right circumstances.

Again welcome

Bob K

I would also do a search the area where you want to invest. Cabarete where Bob has his condo is a popular destination, so if you have good place for good price, it will be rented well. If you invest in the area that doesn't get as many tourists, it will be harder to get your investment back. I live on the south coast in Bayahibe / Dominicus (La Romana area) and the condos in Dominicus are doing well too. Some people here use a management company, some rent it by themselves or use friends for that and their units have about the same occupancy rate as Bob's. So all depends on what you offer, where and for how much

Good luck
Denise

Like anything in Real Estate it is all about...LOCATION, LOCATION, LOCATION

Bob K

Thanks for the replies. I'm sure Las Terrenas has many less visitors than Punta Cana, Cabarete, and maybe Domincus as well, but I'm assuming there are also less properties to rent at the moment, so hopefully rental occupancies are still pretty good (all other factors being equal of course). I wonder what the trends are. I've been looking on the net, but can't seem to find visitor statistics for the DR broken down by region. Do you think a Real Estate office that has properties all over DR would have these numbers?

A friend of mine who was a Realtor in DR for few years once told me that the offices do not have centralize data base (like MLS in  Canada or USA), so I don't think you can find any info like that.
Denise

Demi is correct there is no MLS nor any central reporting agency to keep track of numbers.

Bob K

I will weigh in on this discussion, I am from the capital Santo Domingo, but I spent 7 years on the north coast. Yup location location location. Second -  realtors are not regulated here! Don't just trust anything you are told. I don't know a good realtor in Samana/Las Terrenas area but we can ask  our friends there.

Tourism in general is up!  Some of that is a factor of the horrible winter in North America but we have an upward trending visit rate anyway.

Samana and Las Terrenas is a growth area!  How much more growth we will see there I don't know but it will continue to grow! It is now serviced by a nearby airport and the highway from Santo Domingo to the area services a huge local population.

Rental rates -  you need to be on the ground to see.   Any occupancy rate about 70% is excellent.  Understand the seasons of tourism here is very important as well and how that may effect your rates - both rental amount and occupancy!

Do lots of research!  Ask a lot of questions and ask more then one person the same question!!!!!  Double check things like water supply, electrical rates and availability, cell phone reception, cable tv, internet availability etc.

Once you decide where and what to buy - make sure you have a damn good lawyer! You want to make sure of your title etc! 

We are here to help when you have more questions!

Thanks everyone for the replies so far! Still hoping to hear from someone with knowledge of the Las Terrenas area.

Basically, if we can break even on rental income vs. taxes/condo fees/utilities, we'd be happy.

One advantage - I'm thinking of using it more in the summer (I'm a teacher), so it would be available to rent during the Nov-April(?) high season.

Another question - what do you think would get more rentals, 1 bdrm on the beach or 2 bdrms a bit farther from the beach? I imagine this would be similar in all the beach areas.

Thanks again!

6 of one half dozen of the other.  two bedrooms allow couples with friends or families,  groups etc.  one bedroom on the beach would likely rent for about the same amount of money as the 2 bedroom a bit off the beach.

looking to purchase a condo very near or on the beach-we have looked at punta cana, but did not get to see much else of DR.  We like to scuba dive and snorkel.  Most important would be rental income-return on investment (ROI), occupancy rates and a good attorney!  We have grown kids and grand-kids that would want to use the condo at times, so must be family friendly.  Not really interested in remote locations or mountains.

1) What areas would you recommend?
2) What areas would you avoid?
3) Names on any attorneys that you have used that were very good?

thanks in advance
Bob G

Answered your other post

Bob K

Thx...will look into them