Airbnb vs. Long-Term Rental: Profitability in the Dominican Republic

Published on April 22, 2026 and written by Cyril Jarnias

As the rental market rapidly evolves, many property owners in the Dominican Republic are questioning whether it’s more profitable to rent their property through Airbnb or opt for long-term leasing.

This analysis, focused on the country’s main cities, explores key profitability factors such as occupancy rates, seasonal fluctuations, and hidden costs, enabling investors to make informed decisions based on their location.

With the rise of the sharing economy, Airbnb offers unbeatable flexibility, but traditional rentals continue to appeal through their financial stability.

This study compares concrete data to provide insight into the most lucrative investment strategies within a dynamic and expanding economic context.

Analysis of Short-Term Rental Returns in the Dominican Republic

The comparison of occupancy rates and rental returns in the Dominican Republic reveals significant disparities depending on the rental model, city, and tourist season.

City	Airbnb Occupancy Rate (%)	Long-Term Occupancy Rate (%)
Punta Cana / Bavaro	65–75	85–95
Las Terrenas	60–70	80–90
Santo Domingo	55–65	90–98
Sosua / Cabarete	60–70	85–95

• Airbnb rentals show an average occupancy rate of 60 to 75% in coastal areas, with strong dependence on the tourist season.
• Long-term rentals generally benefit from a higher rate (80 to 98%) in urban or residential areas, driven by local demand (expatriates, students).

Average monthly and annual revenues:

Rental Type	Monthly Revenue (USD)	Annual Revenue (USD)
Airbnb (Punta Cana)	$1,200 – $2,500	$14,000 – $28,000
Long-term	$700 – $1,100	$8,400 – $13,200

• Short-term rentals often yield an annual gross return between 10% and 15%, compared to approximately 6% to 8% for long-term rentals in major cities.

Factors Influencing Short-Term Rental Profitability:

• Tourist Seasonality: The peak occurs between December and April as well as July/August. Prices increase by up to +40% during these periods.
• Location: Tourist areas like Punta Cana or Las Terrenas generate higher revenues but experience greater volatility.
• International Holidays: The influx of foreign tourists causes a significant rise in Airbnb occupancy rates during global holidays or foreign school breaks.

Impact of Local and International Tourism Market:

• The record arrival of over 7 million international visitors per year strongly boosts the Airbnb market in beach resorts.
• Annual tourism growth (+15%) leads to increased short-term demand but also exposes property owners to global economic uncertainties or health crises.

Seasonal Price Variations:

• During the European/North American winter and Caribbean summer: marked increase in daily rates (+30 to +50%).
• Low season (May/June; September/October): significant drop reaching up to -20% in monthly rental income.

Strategies to Maximize Returns in Short-Term vs. Long-Term Rentals:

• Dynamic price adjustment based on supply/demand through specialized platforms
• Investment in integrated hotel services (concierge/cleaning)
• Targeted promotion in international markets
• Contract flexibility allowing quick adaptation to tourist variations

Advantages & Disadvantages

	Short-Term Rental (Airbnb)	Long-Term Rental
	Potential for high returns	Income stability
	High dependence on tourism	Less exposed to tourist fluctuations
	Complex logistics management	Simplified management
	Evolving regulations	Stable legal framework

Key Takeaways:

The higher profitability observed for Airbnb rentals largely relies on the country’s growing international appeal. However, this strategy requires adaptability to sudden changes in the global tourism market. Conversely, the long-term model offers more financial security but potentially limits return on investment.

Comparison of Airbnb and Long-Term Rental Revenues by City

City	Monthly Airbnb Revenues (2024-2025)	Annual Airbnb Revenues	Airbnb Occupancy Rate	Average Daily Rate (ADR) Airbnb	High Season	Monthly Long-Term Rental Revenues*	Annual Long-Term Rental Revenues*
Santo Domingo	$1,037	$12,000	53%	$65	April	~$600–900	~$7,200–10,800
Punta Cana	$1,616	$19,000	49%	$114	February	~$850–1,300	~$10,200–15,600
Santiago de los Caballeros (estimate)	$450–700	~$5,400–8,400

* Long-term rental revenues are indicative ranges, varying by neighborhood, property condition, and housing type.

Main Factors Influencing Revenues

• Seasonality:
  – Short-term rentals via Airbnb experience strong seasonality in Punta Cana (peak in February, low in September/October), moderate in Santo Domingo.
  – Demand remains more stable for long-term rentals.
• Property Type:
  – One-bedroom apartments generate lower average revenues than villas or family homes, but have less vacancy and lower costs.
• Tourist Fluctuations:
  – Tourist influx directly impacts occupancy rates and prices on Airbnb in beach areas like Punta Cana. In Santo Domingo, the clientele is more diverse (tourism & business).
• Individual Performance:
  – High-end or highly-rated properties can significantly exceed the average (up to >$5,000/month for the top decile in Sosúa).

Specific Additional Costs

List of main costs for each mode:

• Short-term rental / Airbnb:
  – Management/concierge fees: typically between 10% and 20% of gross revenue
  – Regular maintenance/cleaning after each stay
  – Increased expenses for consumables/utilities
  – Platform commission (~3%)
• Long-term rental:
  – Less routine maintenance included
  – Agency fees during tenant change (~one month’s rent)

Regulatory Constraints

• In the Dominican Republic, the legal framework for short-term rentals remains lenient, with no general ban or quotas in these main cities.
• For long-term rentals (>12 months), there is regulation of security deposits under Dominican law as well as certain minimum protections for tenants.

Comparative Visual Summary

Synthetic comparison table:

Criterion	Short-Term Rental (Airbnb)	Long-Term Rental
Potential Revenue	High (+30% to +60% vs long-term if well managed/located)	Average/stable
Vacancy	High seasonal variability	Rare with judicious choice
Management	Requires time/organization or paid outsourcing	Simplified management
Regulation	Currently lenient	Standard legal framework

To optimize rental returns in the Dominican Republic, it’s therefore necessary to balance the higher potential with Airbnb – at the cost of increased personal or financial investment – and the secured stability offered by traditional annual leasing.

Rental Contracts in the Dominican Republic: Implications and Benefits

Local Regulations and Legal Obligations

• Rental contracts are governed by Dominican legislation, applicable to both nationals and foreigners.
• Two main types of contracts:
  – Long-term rental (1 to 5 years or with purchase option): the lessor must provide a compliant dwelling, ensure major repairs, and guarantee the tenant’s peaceful enjoyment.
  – Short-term rental (Airbnb type): subject to specific regulations in certain municipalities; obligation to obtain special permits and comply with strict hygiene and safety standards.
• All rental income is subject to tax on Dominican territory; mandatory tax declaration to avoid penalties.

Contract Type	Duration	Main Owner Obligations	Specific Regulation
Long-term rental	1 to 5 years	Dwelling in good condition, major repairs	Written contract strongly recommended
Short-term rental	Nights/weeks/months	Safety, hygiene, administrative compliance	Municipal authorization depending on region

It’s highly recommended to consult a local specialized lawyer to ensure each contract complies with the latest legal requirements.

Differences Between Short-Term (Airbnb…) and Long-Term Rentals

Criterion	Short-Term Rental (Airbnb…)	Long-Term Rental
Profitability	Potentially higher	Regular but lower revenues
Flexibility	High (rental by night/week)	Low to moderate
Risk	Higher: possible vacancy, active management needed. Increased regulatory risks.	Lower: income stability; risk of non-payment or disputes with tenants.

Advantages for Owners/Investors

• Short-term rental
  – Maximization of returns in attractive tourist areas.
  – Great flexibility to adapt property use according to seasonality or personal needs.
  – Suitable for dynamic markets like Punta Cana where tourist influx remains strong.
• Long-term rental
  – Financial stability through fixed monthly rents.
  – Simplified management if entrusted to a local specialized company (particularly recommended for non-residents).

Impact on Local Real Estate Market & Investment Decisions

The rapid growth of short-term rentals has pushed some coastal cities like Punta Cana or Las Terrenas to strengthen their regulations to protect the traditional hotel sector while guaranteeing minimum quality of accommodations offered. In Santo Domingo and Santiago, residential demand remains strong: these markets often favor long-term rentals due to local economic dynamism.

List of main effects:

• Overall increase in real estate prices in tourist hubs under the combined effect of foreign investment and Airbnb development
• Growing professionalization of the real estate sector: increased digitalization, strengthened controls
• Strategic diversification: some investors choose a hybrid strategy combining seasonal rental during high tourist season then switching to traditional lease during off-season

Before any rental investment in the Dominican Republic – especially through digital platforms – it’s essential to regularly inform yourself about the local evolution of municipal regulations as well as tax implications.