The president of the Dominican Short-Term Investors Association says the market has become more competitive, professional, and strategic
SANTO DOMINGO – For years, short-term rentals were seen by many as a quick way to generate income in the real estate market. However, increased competition, new guest demands, and the evolution of the sector itself have changed the dynamics of this business model in the Dominican Republic.
In that context, the president of the Dominican Association of Short Rentals (ADORECO), Yajaira Sosa, stated that currently success within this industry depends much more on planning, administration and the ability to adapt than on simply acquiring a property and placing it on a digital platform.
During an interview with El Inmobiliario, Sosa explained that the market has evolved into a more complex and professionalized ecosystem, where location, guest experience, operation, and strategy play a determining role in the profitability of an investment.
“It is no longer enough to acquire a property and list it; today’s success demands analysis, operational structure and a long-term strategic perspective,” he stated.
A market that changed after the pandemic
The representative of the trade association explained that so-called “vacation rentals” are no longer focused solely on tourist destinations and today respond to multiple needs related to mobility, remote work, health, studies and corporate stays.
According to him, after the pandemic there was a considerable increase in demand for furnished spaces for short and medium stays, driven by new work dynamics and lifestyles.
“Today, guests compare quality, design, location, service, reputation, and price,” he noted, while highlighting that the market has become much more competitive and demanding.
“Platforms are tools, not the business”
One of the points the businesswoman emphasized was differentiating the business model of the technological platforms used to market properties.
“When we talk about short-term rentals, we are not talking about a platform. Platforms are technological tools within a much broader sector,” he said.
In his opinion, behind this type of investment there is a daily operation that requires maintenance, constant communication, supervision and immediate response capacity.
“Rather than an automatic income stream, short-term rentals work best when understood as a well-structured real estate and service operation,” he added.
The areas that show the greatest dynamism
Sosa explained that, although properties near beaches and recreational areas maintain high demand, there is also currently significant activity in urban areas near hospitals, universities, airports, and corporate centers.
He also mentioned that cities like Santo Domingo and Santiago have a stable demand linked to people who travel for work, health or studies, while destinations like Punta Cana, Samaná, Puerto Plata and Miches continue to attract investors, tourists and digital nomads.
“Today, location alone does not guarantee profitability. The key is understanding who will use the property and adapting the experience to that need,” he stated.
Regulation, competition and new challenges
The executive also considered that the growth of the sector requires moving towards balanced regulatory schemes that allow the formalization of the activity without limiting a model that, she indicated, energizes multiple areas of the economy.
“Imposing regulations based solely on a holiday rental perspective can lead to repeating mistakes seen in other countries,” he argued.
He also noted that the current level of competition has raised operating standards and forced many owners to professionalize the management of their properties in order to remain competitive in the market.
An investment that requires strategy
As a recommendation for those considering investing this year, Sosa indicated that it is essential to study the behavior of each area, understand the guest profile, and prioritize functionality over luxury.
“Often, a comfortable, clean, and well-managed property achieves better results than more expensive but poorly managed options,” he concluded.
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