In Santiago de los Caballeros, the short-term rental model is taking off and expanding with 25 towers dedicated to placement on the platform, representing around 1,300 housing units.
Isely Almánzar, president of Leev Luxury Stays, a company dedicated to managing Airbnb properties, states that her company, located in the Heart City, receives an average of 900 people per month for short-term rental stays.
The expert was one of the speakers at the first CENI Expo Forum, held on March 8 at the Catalonia Hotel in the Dominican capital, organized by this digital newspaper and the company Ganar-Ganar.
When discussing the topic of “Airbnb as a guarantee of real estate profitability,” Almánzar clarified that this model is profitable, but asked real estate agents to be careful about selling dreams to people who want to invest, because acquiring properties for this purpose involves a series of processes that must be explained to those interested.
Among them, he cited the fact that anyone wishing to invest in the model must be aware that the property must undergo constant renovation and remodeling, take into account that glassware breaks, and that guests must be offered the best possible service.
“The most advisable thing is to invest in one or two bedroom apartments,” Almánzar explained.
He asked those wishing to invest in short-term rental properties to investigate beforehand whether the condominium where the property is located has any restrictions on that type of accommodation.
“You can check the regulations with the residents' association or board to clarify any doubts. There are several ways to analyze whether the property is a good investment as a short-term rental,” he explained.
He advised potential investors to search within Airbnb for the area or city where they plan to start their business, and to set the parameters that best represent the property, such as rooms, guests, pool, jacuzzi, among others.
“Go to all the nearby listings and analyze the prices and the number of reviews each property has. This will give you an indication of demand. Look at the property calendars to see how many days their rooms or the entire property are occupied on average. We recommend reviewing at least 10 similar properties and noting the average prices and occupancy,” suggested the expert, who manages more than 50 properties on the platform.
Following the analysis, Almánzar recommended measuring variables such as monthly and annual operating expenses. This includes measuring the minimum nightly rate, additional revenue per month, monthly reservations, cleaning costs, mortgage payments, utilities, and miscellaneous expenses.
In her presentation, the veteran real estate agent offered participants a set of useful tips for those wishing to invest in listing their properties on the world's most popular platform.
"Provide a small package of coffee, tea, sugar, and Coca-Cola for your guests. To go the extra mile, you could add a rack of assorted condiments. Additionally, guests are usually in celebratory mode when they visit your Airbnb. Therefore, be sure to provide glasses for toasting. These can be plastic if they look good, but they should be glass if possible.".
According to the expert, “there’s nothing worse than having to rush out to replace a plate or a glass. Establish a space within your property where you can store things and keep them locked away, out of reach of guests. Always keep replacements for fragile items like plates, glasses, and cups in this space,” she advises.
Another useful tip is to use the services of a professional photographer to take the photos.
In closing, Isely Almánzar offered the following recommendations to those present: “Buy the property 10% or more below market value. Put down at least 20% or more of the down payment. Have a loan-value of 70% or less. Buy newer if possible (15 years or less). Buy a studio, or a 1- or 2-bedroom apartment. In stable and well-located areas. Acquire properties under construction for short-term rentals (condo-hotels).”.
