The quiet alternative to short-term rental chasing

Most foreign investors arrive thinking Airbnb is the only rental strategy. Long-term residential leases (12+ months) are a legitimate, often-overlooked path. The yields look smaller on paper. The total return after time, tax, and aggravation is sometimes better.

How long-term leases work in DR

Standard contract length: 12 months, renewable. Common landlord-favorable terms:

• 1 month security deposit + 1-2 months rent paid in advance
• Tenant pays utilities (electricity, water, gas, internet)
• Tenant covers minor repairs under a threshold (typically $100-$200)
• Annual rent adjustment tied to DR inflation index
• Furnished vs. unfurnished significantly affects rate

What you'd actually charge

Punta Cana 2BR comparable to a $250K Airbnb unit:

• Furnished long-term: $1,200-$1,800/month
• Unfurnished long-term: $900-$1,300/month

Annual gross: $14K-$22K furnished, $11K-$16K unfurnished. About 50-65% of Airbnb potential gross.

Why the lower gross can be the better deal

Operating costs collapse:

• Management fee: 8-12% (vs. 22-25% for Airbnb)
• No turnover cleaning ($30-50 per stay × 50-80 stays = $1,500-$4,000 saved)
• No platform fee (3% of Airbnb)
• No furniture wear
• No marketing time

Tax treatment is simpler:

• No ITBIS on long-term residential
• No monthly DGII filings
• Eligible for the Régimen Simplificado at lower thresholds
• No CONFOTUR requirements to maintain

Occupancy is steadier:

• Vacancies in steady markets run 0-30 days/year, not the seasonal 90-130 days of Airbnb
• Less risk of slow seasons

The realistic net comparison

$250K Punta Cana 2BR:

Airbnb: $26,000 gross. After 22% management + HOA + maintenance + ITBIS reporting: ~$14,000 net.

Long-term furnished: $18,000 gross. After 10% management + HOA + minimal maintenance + zero ITBIS: ~$12,000 net.

The Airbnb is ~$2,000 better on paper. But factor in:

• 30+ hours/year of guest issues (even with management)
• Higher furniture replacement costs (5-7 years vs. 10-12)
• Vulnerability to seasonality and external events (a hurricane = no bookings for 2-3 months)
• Higher capital required upfront for full furnishing ($15K-$30K)

For passive investors who want simplicity, long-term is often a better risk-adjusted return.

Who long-term works best for

• Off-shore owners who can't visit frequently
• Yield investors prioritizing simplicity over absolute maximum
• Lower-budget properties where Airbnb yields don't scale as well
• Markets with strong year-round expat demand (Punta Cana Village, Santo Domingo, Las Terrenas)

Where long-term struggles

• Pure tourist markets with no resident demand (some beachfront condos)
• High-end luxury (very limited long-term demand at $4K+/month)
• Buildings with restrictive bylaws that require minimum stays

What we recommend

If you're new to DR investing and value simplicity, start with long-term. Once you've owned for 12-18 months and understand the market, you can pivot a unit to Airbnb if the math is compelling. The reverse direction is harder.