how to manage rental properties · 2017-05-25 · calculate rental income ... $2,500 month = $1,700...

in the Dominican Republic

Manage Rental PropertiesHow to

Denise Besspresented by

Why the DR???

Management Options

Investment Options

and Potential Income

IDEAS TO EXPLORE . . .

why

Own Rental Property in the

Dominican Republic???

~ incredible weather…

~ warm, open and hospitable people

~ beautiful world class tropical beaches

~ easy travel

~ varied economy and stable government

The DR Has It All !

Don’t just take my word…

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, mountain and ocean views that will

appeal to a wide range of tourist and ex-pat

who

Visits the DR

In 2016, most tourists visiting the country by air came from:

United States 41.6%

Canada 15%

Germany 5%

France 4.3%

Venezuela*3.2%

United Kingdom 3.2%

Spain 3.1%

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.

Management Options

PROS CONS

CLEAR ROI OBJECTIVES ADDITIONAL EXPENSE

TRANSPARENCY

RESPONSIBILITY

PROFESSIONALISM

BOOK RENTERS OR CLIENTS

FOR PROPERTY

MARKETING

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.

On-Site Management

Companies

PROS CONS

PRICE INCLUDED IN DUES MARKETING LIMITED

MARKETING INCLUDEDLACK OF COMMISSION MAY

AFFECT OCCUPANCY RATE

TURN-KEY OPERATION MORE OWNER INVOLVEMENT

TRANSPARENCY

PROFESSIONALISM

Management by Cleaning Lady, Gardner, nice Dominican neighbor,

etc.

Mistake of Many Expats

PROS CONS

INEXPENSIVE LACK OF PROFESSIONALISM

FEELING OF HELPING

LESS-ADVANTAGEDLANGUAGE BARRIERS

INCLUSION IN DOMINICAN

CULTURELACK OF MARKETING

Property Management to

Maximize Return on Investmentinclude (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

how to

Calculate Rental Income

First purchase of the home is on a cash basis:

~ How to calculate Yields for your investment property.

Property Price - $200,000

Monthly Rental - $2000

Annual Rental $2,000 x 12

Annual Rental $24,000

Yield = (Annual Rental Property Price ) x 100%

Yield = (2400/200,000) x 100% = 12%

keys to

Successful short-term vacation

rentals

RESEACH

FIND THE PERFECT

PROPERTY

RENOVATE AND

FURNISHINGS

BOOKING PROGRAMS

Gross income potential –

legalities ad neighborhood

restrictions

Property that has “wow” factor

Turn key or fixer upper – quality

furnishings – think high end

home away from home!

Airbnb, HomeAway and VRBO

types of

Rental Properties in the DRLuxury Villa Rental

Sales Price: $350,000

Rental Rates:

Nightly $250 to $400

Monthly $2,500

Expenses: $700

Association Dues, Management,

Internet, Cable TV, Electricity,

water, gardener and

housekeeper

Profit with long term renter at

$2,500 month = $1,700 net

income est.

Villa Los Arcos

La Catalina

2 night

vacation

stay

drawing

prize!

types of



Rental Rates:


Monthly $2,500

Expenses: $700



water, gardener and

housekeeper


$2,500 month = $1,700 net

income est.

Casa Om

La Catalina

CASA OM

types of



Rental Rates:


Monthly $2,000

Expenses: $600



water, gardener and

housekeeper


$2,000 month = $1,400 net

income est.

Casa Bigras

La Catalina

Beachfront Condo (Economical)

Sales Price: $75,000 1 bedroom/

1 bath

Rental Rates:

Nightly $70 to $80, Monthly $700

Expenses: $300 Association Dues

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

Orilla del Mar

Cabarete

types of

Rental Properties in the DRUltra- Modern Luxury Condo

Rental


1 bedroom/850 sq.ft.

Rental Rates: Nightly $150 to

$200

Expenses: Association Dues

$700 / month

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.

Millenium

Cabarete

types of

Rental Properties on the North Coast

Luxury Detached Homes

2 to 4 bdr Villas

Sales Price: Starting as low as $119,000

Rental Rates:

Nightly between $125-$550 per night

Expenses: Association Dues

$225 a month

Includes: Management, rental and

reservation agents, Internet, water,

security, parking and common area

maintained

6-10% of your purchase

price: guaranteed to you in rental

income. Risk free investment and piece

of mind. For all new villas!

Casa Linda Residential

DR North Coast

types ofRental Property – The Fixer Upper

Fixer Upper

7bdr/4ba 2,800 sq. ft.


Rental Rate Potential – after

$75,000 investment:

Nightly $350 to $500USD

Monthly $3,000

Monthly Expenses:

Incredible appreciation potential!Villa Peninsula

Now is the time . . .The Dominican government has been working hard to invest back in the

country.

Areas like Puerto Plata with the new cruise ship Port, Playa Grande, and all

along the North Coast have benefited. The Dominican is the gem of the Caribbean for investing!.

Questions ?Visit our table in the Exhibition Hall and sign up for a

DR Oceanview Property and Rental Tour …

AMANERA RESORT

Playa Grande, DR

how to manage rental properties · 2017-05-25 · calculate rental income ... $2,500 month = $1,700...

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