Long-term vs vacation rentals in Sosúa and Cabarete

Sosúa and Cabarete sit a short drive apart on the north coast, both served by Puerto Plata’s Gregorio Luperón airport (POP), and both attract a mix of short-stay visitors and people who stay for months. That mix gives owners a real choice: rent to holidaymakers by the night or week, rent to one tenant for a year, or combine the two. There is no single right answer. It depends on the property, the building’s rules, how involved you want to be and how much variation in income you can live with.

Who rents in Sosúa and Cabarete

• Kitesurfers and surfers: Cabarete is known for kitesurfing at Kite Beach and in the bay, and surfers head to Encuentro. Many stay one to four weeks and want to be close to the water.
• Digital nomads and remote workers: they look for reliable internet, a proper desk and backup power, and often stay a month or more.
• Snowbirds: North American and European visitors escaping winter, roughly from December to April, who often return to the same place every year.
• Families and holiday groups: around school holidays, Christmas and Easter (Semana Santa), mainly in villas with pools and condos near the beach.
• Long-stay residents: retirees, people working locally and families relocating, who want a furnished or unfurnished home on a one-year contract.

Vacation rentals: the trade-offs

Income and seasonality

Short-term rentals can earn more over a year than a long-term lease, but the income is uneven. Winter and holiday periods are busier; some summer and autumn weeks are quiet, and hurricane season (1 June to 30 November) can bring cancellations. Build your budget around the slow months, not the best ones.

Wear and tear, furniture and linen

Frequent turnovers mean more cleaning, more laundry, more breakages and faster wear on mattresses, sofas and appliances. You need at least two or three sets of linen and towels per bed, a well-equipped kitchen and a yearly replacement budget.

Costs and fees

Vacation rental management commonly costs about 15–30 % of booking revenue, with full-service packages (guest communication, check-in, cleaning coordination, linen, pricing) at the higher end. Cleaning is often charged to guests or billed separately. The owner usually pays electricity, water, internet, pool and garden care, plus platform fees. Fees vary by company, property and services, so always ask what is included.

Tax and rules

Furnished homes rented to tourists are not treated as housing, so ITBIS at 18 % generally applies, and the host is expected to register (RNC) and issue fiscal receipts. In May 2026 the DGII announced it was preparing rules for platforms such as Airbnb to collect ITBIS; check the current status. There is no specific short-term rental law yet: a registration scheme put to consultation by the Ministry of Tourism in 2026 was withdrawn in July 2026 to open a dialogue with the sector, so a registration requirement may still come. Your condo’s reglamento may also limit short stays. See our guide to Airbnb and vacation rentals.

Long-term rentals: the trade-offs

Income and effort

A long-term lease gives steadier, usually lower income and far less day-to-day work. The main risk is the gap between tenants, so a careful tenant check matters more than a fast placement.

Costs and fees

Long-term management is often about 8–12 % of the monthly rent, sometimes plus a tenant-placement fee of around half to one month’s rent. Tenants usually pay their own electricity and internet; who pays water, gas and the condo fee should be written into the contract.

Ley 85-25

Long-term housing rentals fall under Ley 85-25 on rentals and evictions (August 2025). In general terms it requires written contracts, limits the deposit for housing to two months’ rent, generally caps annual rent increases at 10 % and allows evictions only through the courts: an owner cannot change the locks or remove a tenant on their own. It does not apply to tourist or recreational stays of less than 90 days. Renting a home as a permanent residence is exempt from ITBIS, but the rental income is still taxed; see our guide to property taxes in the DR.

Side-by-side comparison

	Vacation rental	Long-term rental
Typical guests	Kitesurfers, holidaymakers, snowbirds, remote workers	Residents, retirees, local workers
Income	Higher potential, uneven by season	Steadier, usually lower
Management fee	About 15–30 % of bookings	About 8–12 % of rent, plus placement fee
Utilities	Usually paid by the owner	Usually paid by the tenant
Furniture and linen	Full set, replaced often	Optional, less wear
Owner effort	High without a manager	Low
ITBIS	18 % generally applies	Housing is exempt
Main rules	Condo reglamento, no specific law yet	Ley 85-25
Personal use	Block the dates you want	Not while leased

All fees vary by company, property and services included.

The hybrid option

Many owners in Sosúa and Cabarete combine the two: monthly stays for snowbirds and remote workers in winter, when demand is strongest, and a longer let or their own use for the rest of the year. Monthly guests mean fewer turnovers than nightly bookings, and you can keep your own weeks free.

Points to watch:

• Use a written agreement that reflects the real situation. A tourist stay of less than 90 days sits outside Ley 85-25, but a longer stay used as a home may be covered, so get the contract drafted properly.
• Decide whether utilities are included in the monthly price or metered, and set a fair limit for air conditioning.
• Check that your condo allows the model you choose.
• Make sure your manager handles both kinds of rental, and agree how the fee works for each.

How to decide

Ask yourself:

• Do you want to use the property yourself for several weeks a year?
• Could you cover all the costs in a slow month?
• Does the building allow short stays, and does it suit holidaymakers (pool, beach access, security)?
• Is the home furnished to a holiday standard, or better suited to a resident?
• Do you have a manager on the ground who can deal with guests at short notice?

If you value predictability and low effort, long-term usually wins. If you want flexibility and higher potential income, and accept the extra work and the swings, a vacation rental or a hybrid may suit you better.