Keys to setting up a tourist apartment business in the Dominican Republic

The atourist apartments are a type of business that works especially well in places with a large influx of people. The main hot spots in the Dominican Republic are mainly in Santo Domingo and especially in Punta Cana, which is a beach resort city and the main entry point to the country thanks to its incredible international airport.

We are talking about a market that receives almost 12 million tourists per year, It has many attractions of great interest for those seeking maximum well-being, such as its white sand beaches, its warm climate, its Caribbean waters and its calm and exciting lifestyle, with the possibility of having fun and practicing sports in a thousand ways, with its golf courses and a multitude of recreational activities.

If you are going to create a Dominican Republic tourist apartment business, If you have a project, it is important that you take into account several aspects in order for your project to be successful.

What is a tourist rental apartment business?

It consists precisely of invest in housing with the objective of renting it to tourists and obtaining a return, generally for short-term rentals.

The objective of this DR business would be to provide quality living space for people who come to enjoy the beach or tourism in the Dominican Republic.

In this way, you recover the investment you have made in your investment apartments and, on the other hand, you get a steady source of income in a growing real estate market.

Tips for setting up a tourist apartment business

There are several aspects that you must take into account in order to create a tourist apartment company in Dominican Republic.

Define your business model

The first thing is to be clear about what product you offer, because depending on the properties you buy you can attract a different type of guest. The ideal for us is to focus on the luxury apartment market, with people who are looking to enjoy maximum wellbeing and have a high purchasing power, This will allow you to set higher prices per night and make you more resistant to changes.

In addition, it is important to define the type of lease you wish to follow: short term or long term. The short-stay options may generate higher profitability peaks, especially in times of high seasonality, but a month-to-month or long-term rental can be a stable option.

Opt for homes with high perceived value

For rent luxury homes in Dominican Republic, You do not need to invest in properties that are extraordinarily large. It is enough that you opt for properties that have a high perceived value. For example, units located within a condominium, with access to all the amenities of the complex, such as swimming pool, garden, coworking area, etc.

From Vivantia Homes we recommend you to know our real estate projects in Oasis Bay, Oasis Bay Boutique y Oasis Lake.

Decide your legal form

Some owners manage their apartments individually and others prefer to create a company. Whatever your objective is, it is important that you inform yourself if you want to operate from the Dominican Republic or abroad, so that you can find the best formula for earning income and paying minimum taxes.

Delegates property management

One of the major handicaps of rent housing in Dominican Republic is that you do not have staff hired here to manage the apartments, attend to the guests and carry out the formalities and procedures.

In your case, the most advisable thing to do is to delegate the property management in a hotel brand, which can help you to save a lot of time and costs, It also allows you to develop a more flexible and adaptable type of business.

Study taxation

Be aware of the taxation of your rental income. Some properties are subject to the Confotur Law, This provides important benefits and tax exemptions, as explained above.

Be very clear about all the aspects related to the tax management will help you avoid problems and maximize transparency.