Planning to Invest Terrenas Samana

If you go out to AirBnB and search for apartments in Las Terrenas, you will see over 1,000 listings! And that is just AirBnB! A lot of owners use other platforms. The most important piece of advice I give to anyone asking about investing here (or anywhere, for that matter) is do not do it if you will have to rely on rental income to pay the mortgage, HOA, maintenance, etc. We saw so many "fire sales" when COVID hit, and short-term rentals weren't allowed. There were people losing their properties in a matter of months.

We had an apartment at Playa Bonita Beach Residences from 2017 to 2021. We kept meticulous records, and we netted about 4%  annually after all the fees, taxes and expenses. Many people will tell you they get 10%, 15%, or even 30% returns on their rental investments, but once you start asking questions, they are clueless! They can't tell you their gross rental income, they can't tell you occupancy rates, they can't tell you how much their HOA fees are, they don't know what percentage AirBnB takes, they are basically pulling numbers out of the air, or using the number that some real estate agent told them to expect.

Las Terrenas is dealing with a glut of properties on the market. Even during high season this year, owners reported (anecdotally) that their occupancy was down. Power outages are more common and longer lasting, the water supply is sketchy at best - and I mean whether water will come out when you turn on the tap or flush the toilet, because it's never potable here. In our 4 years here, we know of at least half a dozen times when INAPA was not sending water for at least a week at a time. We built our house with rainwater reclamation so that we don't have to depend on INAPA.

The problems with infrastructure and the oversupply of properties will only get worse as developments like Blu, Reef, Silver Beach, and others are built, and units start hitting the rental market. And don't even consider buying a ground-floor apartment! Flooding has become a major issue here. We have several friends who have lost just about everything they own to floods in the past year.

So...If you want an apartment here as a landing place when you are in town and want to rent it out to help offset the costs a bit, be sure you pick a place that you like! And then, if you don't get renters, you aren't scrambling to keep it up!

There are platforms that will help you make decisions based on data.  We used AirDNA (https://www.airdna.co) to help inform our decisions around AirBNB investment.  The service isn't free, but it does allow you to see a plethora of information about the specific market you are interested in.  This will include data like days available for rental, rental income generated, occupancy rates, seasonality, etc.  For us, it is worth the monthly fee as it can directly and dynamically change the rates you want to charge for your rental based on market competition.  Hearsay is hearsay.  Data doesn't lie.

@ddmcghee Thank you so much for your clear response. That's really true everyone we asked about rentability or occupancy % says its between 40 to 50% even 60% throughout the year. The water problem is news for us, but I know about the flooded areas. We did picked a second floor because of that. We really wanted to buy a place to go vacation, but also wanted to short rent it.

@MTPinCCa Hey thank you this is good to know, I look at that site then.

    @ddmcghee Thank you so much for your clear response. That's really true everyone we asked about rentability or occupancy % says its between 40 to 50% even 60% throughout the year. The water problem is news for us, but I know about the flooded areas. We did picked a second floor because of that. We really wanted to buy a place to go vacation, but also wanted to short rent it.
   

    -@Adalharis

Even if you can get good solid occupancy data, that isn't the complete picture! All of the expenses need to be accounted for. Having renters means having to have a property manager since you won't be onsite. Some work for monthly rates, others on percentage of rental income. Cleaners will vary based on occupancy, but even during times when the property is empty, you'll need them to come in and air out the unit, check for leaks, etc. And we had so much incidental damage! Broken dishes/glassware, bar stools, ceiling fans, lamps, and linens that just disappeared! Our property manager had a binder with pictures of everything in the apartment, and the cleaners were supposed to do an inventory at every checkout. We visited a few times a year and were always shocked to find out that the blender was broken, or we were down to 3 forks, or the dryer wasn't working, or there were suddenly no lamps in the bedroom!

In my personal experience AIRBNB has completely saturated the market in the DR with far more available apartments than there are clients to rent them.  My wife has been with AIRBNB since it started and that is how I know this.  At the start, there were 3 times more clients than could be rented to.  Now, forget about it. 

So is buying a place to rent it out on Airbnb only a good idea?  I would say absolutely not.

If you don't also live here, I would NEVER trust anyone to manage such a rental.

That said, I would be interested in seeing the results of the paid for company that does such analysis.

@Adalharis

Best % have bayahibe  or bavaro

Terrenas is not popular

No big market apart of terrenas

Nothing

Big crime on all penisula

Where exactly are you getting your info? Big crime? Back this up please.

There is no "big crime". People just like saying this for whatever reason.

Is lots of robbery like a phone or wallet by some arm use

I hear that from 7year resident and trip guide from punta cana

Iza good friend

I was planing to buy some near terrenas and she told me samana is poor, so many people go to crime 😔 for get anything, and other things

Infrastructure is worst every time while more residentials are building.

How about asking people who actually live in Las Terrenas? Like me and RockyM! Is there crime here in LT? Sure, but no more than in any othet part of the country! Having lived here for over 4 years now, i have never felt scared, threatened, or in danger (except crossing the street!)

I've left the key in my pasola and had someone track me down in the grocery store to return it. i dtopped a 2 mil note on the sidewalk and had someone behind me chase it down before the wind carried it away and returned it to me.

We use the same precautions we did in the US - never flashing cash, keeping wallets and phones in our bags/pockets rather than on tables/bars, locking the car, locking the doors and windows to our house when we leave, etc.

Most of the thefts I hear of are people not using common sense! Drink all night at the bar, get up to go to the restroom, return to the bar to find your wallet and phone gone. Leave your wallet and phone on the beach while you frolic in the waves, and return to find your towel but your valuables (and sometimes your shoes) are gone! Pack up your car or quad with a cooler and everything you need for a day at the beach and then leave your condo windows and balcony door wide open, come home to find any valuables gone!

Please check your facts before you spread misinformation from people who don't even live here!