“Usually, the person who buys their first property for Airbnb multiplies it, and the recurring exclusive investor already comes with the experience of the results obtained from the previous ones and therefore makes a chain where one investment supports the next.”.
SANTO DOMINGO– The success of the short-term rental platform Airbnb has sparked a boom in investors and property owners listing their properties on the platform, some without prior knowledge of how it works, taking advantage of the attractive business. This high demand makes the trend increasingly varied and competitive.
Simón Soto, from Rentropical, ventured into this model in 2019 and assures that the rental market under the Airbnb platform in Punta Cana is growing and that every day more people are interested in buying because the occupancy rates of the units range between 80% and 90% per month, which makes it a very safe return when investing.
“Currently, developers are building and promoting their projects as Airbnb friendly, and their success has contributed to a more varied and competitive trend.”.
In Punta Cana, the average nightly rental price is US$80 for a one-bedroom apartment. Two-bedroom units average US$130, while luxury villas average US$600 per night.
Soto states that measures are being taken to prevent the proliferation of complaints generated by some condominiums being used for this purpose, even though they weren't designed for it, especially in Santo Domingo. "This point is very important because many people list an apartment on the platform without knowing how to manage it effectively." His agency specializes in this type of rental in Santo Domingo and Punta Cana.
He assures that his company has made agreements with builders to establish the logistics that guarantee the coexistence of the entire condominium with the security controls implemented by the company he manages.
Although the Rentropical representative does not control the total percentage of units being built in the tourist area intended for these purposes, he manages projects where 70% of the units have been acquired for rent through that platform, because "from one apartment a chain of referrals is formed in the same building.".
“Usually, the person who buys their first property for Airbnb multiplies it, and the recurring exclusive investor already comes with the experience of the results obtained from the previous ones and therefore makes a chain where one investment supports the next.”.
When asked whether or not to impose a tax in the Dominican Republic on digital platforms that offer services and sell goods, he understands that some countries have already started pilot programs and favors the measure in the country.
Soto sees the Airbnb business model as having a bright future because it's a win-win situation for both the user and the investor who acquires the unit to list. “According to figures provided by the central bank, in La Altagracia province alone, where Punta Cana is located, the platform has 3,382 active rental properties with an average occupancy rate of 33%.”.
