Short-term or long-term rental in the Dominican Republic?

Author: Paweł Bączkowski
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When buying an apartment in the Dominican Republic, one of the most common questions is: is it better to opt for short-term or long-term rental? There is no single answer for every investor. Location, property standard, seasonality, and how much time the owner wants to devote to rental management after purchase all play a significant role. Short-term rental can generate higher income, especially in popular tourist areas, but it is more dependent on the season and requires efficient management. Long-term rental is usually calmer, more predictable, and less time-consuming. Therefore, when choosing a rental model, it is worth looking not only at potential profit but also at your own expectations for the investment.

Comparison assumptions

For simplicity, we assumed a 1BR apartment at the beginning of the high season, from December 1 to 8, plus a simulation for a full month. The comparison covers three types of locations: Bávaro near the beach, Dominicus / Bayahibe with walking access to the beach, and Vista Cana as an example of a more residential than typical vacation community. The data is indicative. Its purpose is to show the direction and differences between individual rental models, not to provide a rigid income guarantee. The result depends on the season, occupancy, apartment standard, management method, and current demand in a given location.

Bávaro near the beach

Bávaro, especially the areas of El Cortecito, Los Corales, and Costa Hermosa, has very high vacation potential. In the analyzed examples, prices for 7 nights in a 1BR apartment near the beach were around $450-800 USD, and the average of similar offers hovered around $600 per week. For monthly stays, rates appeared at around $1,800-2,700 USD. For comparison, long-term rental of a newer standard apartment in this area is usually around $1,200-1,300 USD per month. The conclusion is simple: a good beach location strongly favors short-term rental. However, it must be remembered that such a model requires active guest service, cleaning, maintenance, and work on occupancy outside the high season.

Dominicus and Bayahibe

Dominicus and Bayahibe form a smaller and quieter market than Punta Cana / Bávaro. The location works well for tourism, especially for those looking for beaches, diving, trips to Saona, and a more intimate atmosphere. In the analyzed examples, 1BR apartment offers for a week ranged widely from about $430-1,200 USD. For monthly stays, rates started at around $1,600 USD and reached up to $4,400 USD in better locations. The long-term rental market here is shallower, but 1BR apartments often appear around $600-900 USD per month. This means that short-term rental can yield higher results in season, but requires a well-prepared product and good visibility on booking channels.

Vista Cana and Cocotal

Vista Cana has a different investment profile than typical beach locations. It is a community more geared towards living, remote work, and longer stays than classic vacation rentals. In the analyzed examples, 1BR apartments for 7 nights cost around $400-520 USD, and for a monthly stay around $1,350-1,870 USD. At the same time, long-term rental of a 1BR in Vista Cana is usually around $950-1,150 USD per month, and a 2BR around $1,400-1,500 USD per month. In Cocotal, rates are often higher: a decent 1BR apartment is around $1,200 USD per month, and a 2BR can reach $1,800-2,000 USD. Older apartments, however, can be cheaper. In such locations, long-term rental often offers a better peace-to-profit ratio. So it’s not always about the highest possible nightly rate, but about stability, less involvement, and income predictability.

The most important conclusion

From the numbers alone, it is clear that short-term rental has greater gross potential. A good 1BR near the beach in Bávaro can generate around $2,500-3,500 USD per month in the high season. However, it must be remembered that not every month is like December, January, or February. When calculating the annual result, it is safer to assume around 50-60% occupancy. Higher results are possible, but they usually apply to properties in the Dominican Republic that are really well-located, excellently prepared, and professionally managed. In such a case, one can even talk about 80% occupancy per year. Therefore, short-term rental should be evaluated not only through the lens of the best months but throughout the whole year. Only then can you see whether the higher income potential actually balances out the greater seasonality and greater involvement in rental management.

Short term or long term?

Short-term rental is worth considering primarily for apartments near the beach, in good condition and with strong tourist potential. This model can yield higher gross income, but usually involves greater volatility, seasonality, and more involvement in rental management. Long-term rental works better where stability is more important. This applies, among others, to Vista Cana, Cocotal, quieter communities, and apartments intended for people staying in the Dominican Republic for several months or longer. On an annual basis, a well-run short-term rental can yield around 70-90 thousand PLN gross, but with greater income fluctuations. Long-term for 1BR and 2BR apartments often gives around 45-75 thousand PLN per year, but more stably, with less work and less risk of empty days.

In summary…

There is no single best strategy for every property. An apartment by the beach naturally works better in a vacation model, while a residential community often suits long-term rental better. Therefore, before buying, it is worth calculating both scenarios: short-term potential, actual occupancy, management costs, maintenance, portal commissions, and possible long-term rent. Only such a comparison shows whether a given investment fits the owner’s goal.

If the priority is maximizing income, a well-managed short-term rental may make more sense. If peace, predictability, and less involvement are more important, long-term rental may be the more sensible choice.

Paweł Bączkowski | +1 (849) 564-6630

pawel@casa-dominicana.com

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