How Property Management Works at Moon Garden 2

As an owner at Moon Garden 2 — one of 108 residences — you have two primary options for managing your property: you can manage it yourself from abroad, or you can appoint a property manager to handle it for you. An optional, hands-off managed rental program is also available to owners, providing a turnkey solution for generating rental income.

What Are My Property Management Options as an Owner?

Choosing how to manage your residence at Moon Garden 2 is a key decision that shapes your experience as an owner. Your involvement can range from completely hands-on to entirely hands-off. The two fundamental paths are managing the property yourself or engaging a professional property manager. Each approach has distinct advantages and responsibilities, and the right choice depends on your goals, your availability, and your comfort with remote oversight.

For owners seeking to maximize their direct control and potentially save on management fees, self-management is a viable route. This path gives you final say on everything from nightly rates to guest selection. Conversely, for those who prioritize convenience and a passive investment, appointing a manager—whether a third-party company or through the optional in-house program—removes the day-to-day operational burdens of renting out a property in Punta Cana.

If I Manage the Property Myself, What's Involved?

Opting to self-manage your Moon Garden 2 condo gives you ultimate control, but it also means taking on all the responsibilities of a landlord. This can be a rewarding option for proactive owners who enjoy being involved in their investment.

Your primary tasks will include:

• Marketing and Bookings: Creating and managing listings on platforms like Airbnb and VRBO, handling inquiries, and managing the booking calendar.
• Guest Services: Being the main point of contact for guests before, during, and after their stay. This includes answering questions and addressing any issues that arise.
• Operations: Coordinating with local service providers for cleaning between stays, performing routine maintenance, and handling any necessary repairs. You will also need a system for guest check-in and check-out.
• Tax Compliance: As the host, you are legally responsible for collecting and remitting the 18% ITBIS tax (similar to VAT) on all short-term rental revenue. For non-resident owners, a 27% withholding tax is also levied on gross rental income.

Successful self-management from abroad hinges on having a reliable team on the ground in Punta Cana. This includes cleaners, handymen, and potentially a local contact for emergencies.

What Does a Professional Property Manager Handle?

Engaging a property manager is the preferred path for owners who view their condo as a passive investment and want to minimize their personal involvement. A manager takes over all the operational work, leveraging their local expertise and resources to keep your property booked and well-maintained.

Moon Garden 2 offers an optional managed rental program designed for this purpose. The developer projects annual returns in the 10-13% range for owners who enroll. Treat that as the developer's projection rather than a guarantee — we hold no published derivation for it — and note that real income varies with occupancy and seasonality.

Generally, a full-service property manager's responsibilities include:

• Marketing the property across various booking channels.
• Managing all guest communications and reservations.
• Handling check-ins, check-outs, and professional cleaning.
• Coordinating all maintenance and repairs.
• Providing regular financial statements detailing income and expenses.

The specific services included, the management fee, and the terms for owner use are defined in the management agreement. It is essential to request and review these terms in writing to understand exactly what the program covers.

What Are the Tax Implications of Renting My Property?

Understanding the tax landscape is crucial for any property investor in the Dominican Republic. When you rent out your condo, the income is subject to specific taxes that are separate from property taxes.

First, a value-added tax known as ITBIS, set at 18%, applies to short-term tourist accommodations. Under Dominican law, the property owner (the host) is liable for collecting and remitting this tax, not the booking platform. Second, for non-resident owners, rental income is subject to a 27% withholding tax on the gross amount, with no deductions. This is considered a single and definitive payment to the tax authority (DGII).

It is a common misconception that the benefits of CONFOTUR reach rental income. What is documented is that CONFOTUR's exemptions are recorded against the 3% transfer tax and the 1% annual IPI, and that rental income is assessed under a separate part of the tax code. Nothing we can cite rules on how the two meet for a given unit and owner, so treat it as a question for your attorney rather than as settled. Your attorney or accountant can provide guidance on structuring your affairs to ensure full compliance.

How Does CONFOTUR Affect the Costs of Buying and Holding?

CONFOTUR's documented savings are on the costs of buying and owning your property. As a qualifying project, Moon Garden 2 offers these benefits to its first buyers. The law, known as Law 158-01, is designed to encourage tourism investment.

The two primary advantages are:

1. Exemption from the 3% Property Transfer Tax: This tax is normally paid by the buyer at the time of purchase to transfer the title. The CONFOTUR exemption eliminates this closing cost entirely.
2. Exemption from Annual Property Tax (IPI): The law provides a fifteen-year exemption from the 1% annual property tax for qualifying projects. This tax (IPI) is only levied on the value of a property above an annually adjusted threshold, not its full value.

It is important to note that the exemption must be filed for and recorded on your property's title; it is not automatic. How the law's provisions apply to a specific unit and its owner should be confirmed by your Dominican attorney during the purchase process.

Common questions

Does the optional rental program at Moon Garden 2 guarantee income?

No. The 10-13% annual return is the developer's projection, not a guarantee, and we hold no published derivation for it. Actual income will vary depending on factors like your specific unit, occupancy rates, seasonality, and program terms.

Who is responsible for paying taxes on rental income?

The property owner is legally responsible for all taxes on rental income. This includes the 18% ITBIS tax on short-term stays and the 27% income tax withholding for non-residents. While a property manager may facilitate payments, the liability ultimately rests with the owner.

Can I use my condo myself if it's in the rental program?

Policies for personal use are determined by the specific rental management agreement. Owners should review the contract to understand the rules for booking their own unit, including any potential blackout dates or fees for personal stays.

Do I need a special permit to offer short-term rentals?

While national law permits short-term rentals, the most important rules are often found in a condominium's own bylaws. At present, there is no active national registration system like RENATUR for tourist rentals. An attorney can confirm any project-specific requirements at Moon Garden 2.