To Rent or Not to Rent….
It’s a big decision. For some buyers renting makes ownership possible. Other waffle on whether it’s worth it. Below are some pros and cons and things to think about….
The big pro to renting is not having any bills here in the DR – and likely earning an income over and above monthly expenses. It’s great to make your initial investment in a condo or villa, and then have the property carry itself. Most buyers find they earn a tidy sum over and above expenses and use the money for their vacations, or even have it wired back to their home countries. We caution buyers to keep a realistic mind set. It’s a rare rental property anywhere that can be expected to carry all its monthly expenses, additional mortgage financing costs, and also have $$ left over.
For people that own property in two countries, most find that their real estate in their home country costs them money every month. It’s nice if their DR property doesn’t dip into their wallet. We even have a few developers offering a rental guarantee.
Because all properties we sell have full management services and a rental component, it’s not necessary to source renters or worry about the actual “renting” of the property personally. The DR is a solid tourist destination, and management/rental companies are good at putting properties and renters together. Check ins/outs, maintenance, marketing, and renter services are all handled by the rental program – usually in-house at many developments. You can supplement your income by doing additional marketing yourself on sites like Airbnb, VRBO, and in your own area.
The cons to renting include wear and tear, having strangers in your home, and being unable to truly personalize the property. While rental companies are good at ensuring your condo or villa doesn’t sustain damage, normal wear and tear like paint marks, furniture deterioration, loss of dishes, etc. is a normal occurrence. Expect to purchase a lot of towels, sheets, and glasses! These are all considered a cost of doing business. Actual damages are not acceptable: broken lamps, bbq’s, stereos, etc. Renters are charged for any actual damages they cause.
When Rental Ends:
There comes a tipping point for everyone; I’ve seen it many times over the years. Once a buyer starts using their condo or villa for many months per year, or they start feeling like the DR is as much their home as Canada or the US, then they make the decision to stop renting. There comes a point for most people when they simply don’t want anyone in their home anymore. When that day comes, they lock the door and head to the airport knowing that the only person who will come into their property is a housekeeper to air things out and do minimal monthly cleaning, and maybe a maintenance person to fix something.
This is why we offer properties that have full management and rental programs. It important to have the rental option, as well as the lock up and leave functionality that comes with a good management company. Situations change often. You may rent when you first buy, then stop. You may live here full time, then decide you need to leave – then you may rent your property. It’s all about choices and possibilities.
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