What’s the most important factor when considering a potential rental property purchase overseas? The pleasure potential for you and your family. You should always buy what and where you want. You want to balance that objective, though, against what matters most for short term rental in your chosen market. This is key to maximizing cash flow.

Property type and size are universally important rental factors. In most markets, a one- or two-bedroom property is more rentable than a three- or four-bedroom place. The incrementally higher rental rates you should be able to charge for a three-bedroom usually don’t compensate for the higher cost of purchasing the larger apartment. While a super-high-end property might suit your personal preferences, a higher-end (read: more expensive) property probably means a lower rental return. To keep your occupancy up, you’ll likely have to compete on price with the general (not high-end) market.

The pleasure potential for you and your family. You should always buy what and where you want for short term rental.

Investing in short term rentals from abroad can be a lucrative opportunity, but it can also come with some challenges. Here are a few things to consider:

  1. Research the market: It’s important to understand the demand for short term rentals in the area you’re interested in investing in. Look into occupancy rates, average rental prices, and any regulations or taxes that may impact your investment.
  2. Choose a reliable property management company: If you’re investing in a property from abroad, you’ll need to have someone on the ground to manage the property, handle maintenance issues, and deal with guests. Make sure you choose a reputable property management company that you can trust.
  3. Consider the legal and tax implications: Depending on the country and location you’re investing in, there may be specific laws and regulations around short term rentals that you’ll need to follow. You should also consult with a tax professional to understand the tax implications of your investment.
  4. Be prepared for unexpected costs: Investing in a property from abroad can come with unexpected costs such as currency exchange fees, international wire transfer fees, and property taxes. Make sure you have a plan in place to handle these costs.
  5. Understand the risks: Like any investment, there are risks involved in investing in short term rentals. You may experience low occupancy rates, damage to the property, or other unexpected issues. Make sure you understand the risks and have a plan in place to manage them.

Overall, investing in short term rentals from abroad can be a profitable opportunity, but it’s important to do your research, understand the risks, and work with trusted professionals to ensure your investment is successful.

The pleasure potential for you and your family. You should always buy what and where you want for short term rental.

If you’re considering investing in short term rentals in the Dominican Republic from abroad, here are a few things to keep in mind:

  1. Research the market: The Dominican Republic is a popular tourist destination, so there may be a high demand for short term rentals in certain areas. However, it’s important to do your research and understand the market before investing. Look into occupancy rates, average rental prices, and any regulations or taxes that may impact your investment.
  2. Hire a reliable property management company: If you’re investing in a property from abroad, you’ll need to have someone on the ground to manage the property, handle maintenance issues, and deal with guests. Make sure you choose a reputable property management company that you can trust.
  3. Consider the legal and tax implications: The Dominican Republic has specific laws and regulations around short term rentals that you’ll need to follow. You should also consult with a tax professional to understand the tax implications of your investment.
  4. Be prepared for unexpected costs: Investing in a property from abroad can come with unexpected costs such as currency exchange fees, international wire transfer fees, and property taxes. Make sure you have a plan in place to handle these costs.
  5. Understand the risks: Like any investment, there are risks involved in investing in short term rentals. You may experience low occupancy rates, damage to the property, or other unexpected issues. Make sure you understand the risks and have a plan in place to manage them.

The key to success with a rental of any kind but especially with a short-term rental is the rental manager. Unfortunately, Airbnb, Vacation Rentals by Owner (VRBO), Booking.com, and other online marketing outlets for short-term rentals have convinced many people that they can manage their rentals themselves. That’s true, in theory, and I know many people who do manage their own rental properties.

The pleasure potential for you and your family. You should always buy what and where you want for short term rental.

However, if you decide to handle the management role yourself, your rental property is no longer an investment. It’s a job. You should calculate some value for your time spent marketing, checking in guests, overseeing cleaning, maintenance, and repairs, taking inventory of the property’s contents after each booking, and so on. That doesn’t sound like fun to me but can work if you’re living in the country where the rental is located. If you’re not, I recommend against trying to self-manage. Engage local professional help.

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