How Does Property Management Work for an Owner at Makai?

At Makai Residences, property management is a fully integrated service handled by Dolce Hotels & Resorts by Wyndham, not an external service you need to find. For owners who choose to rent out their property, participation in this professionally managed rental program is the exclusive method, ensuring a consistent, high-quality experience for guests and a hands-off investment for you. This structure is designed to leverage Wyndham's global hospitality network to maximize occupancy and returns.

What Does a Wyndham-Operated Program Mean for Owners?

Owning a residence at Makai means you are part of a community that operates with the seamlessness of a high-end resort. The entire building functions as a single hotel operation under the Dolce Hotels & Resorts by Wyndham brand. For owners in the rental program, this is a completely hands-off experience.

As the on-site operator, the Wyndham program centrally handles the critical aspects of renting your property. According to the program details, “bookings, housekeeping and guest services are handled centrally, and occupancy leans on Wyndham's distribution and loyalty demand rather than on an owner marketing one unit alone.” This means you are not competing with other owners; instead, your residence benefits from a global marketing engine and a professional team dedicated to keeping it booked and maintained.

Do I Have to Put My Residence in the Rental Program?

Owners at Makai have two clear paths. The choice depends on how you intend to use your property. While joining the rental program is the default for those seeking investment returns, it is not a requirement for all owners.

As our sales information clarifies, “a small number of owners opt out and live at Makai year-round.” However, for any owner who wishes to generate rental income, the rule is firm: “an owner who does rent, rents through the Wyndham program rather than independently.” You cannot list your residence on platforms like Airbnb or hire an outside manager. This policy ensures a uniform standard of service and guest experience across all rented units, protecting the brand and the value of your investment.

How Are Management and Operating Costs Handled?

Transparency in costs is key to understanding your net return. The rental program at Makai is designed to simplify this. All major operating costs associated with renting your unit are settled directly from the gross rental revenue before any income is distributed to you. The projected 7-11% annual return comes from the developer proforma at 60% to 85% occupancy. These are projections, not guarantees, and actual performance varies with season, demand and nightly rate.

These deductions cover the homeowners association (HOA) fee, which funds the maintenance of common areas like the four pools and the 23-seat cinema, as well as direct operational costs for your unit. The program covers expenses for “housekeeping, upkeep, electricity, water and internet among them.” This consolidated approach means you receive a net payment without needing to manage multiple bills and service providers from afar.

What Taxes Apply to Rental Income for Non-Residents?

Understanding the tax implications of rental income is a critical part of property management in the Dominican Republic. For non-resident owners, rental income is subject to two primary taxes.

First, there is a 27% withholding tax levied on gross rental income, with no deductions permitted. This is considered a single and definitive payment on that income. Second, a value-added tax known as ITBIS, at a rate of 18%, applies to short-term tourist accommodation services. It is the host's responsibility to ensure this tax is paid.

It's also important to note what is not covered. The significant tax benefits of CONFOTUR, such as the 3% transfer tax exemption and the 15-year property tax (IPI) exemption, apply to the purchase and ownership of the property itself. These incentives do not extend to taxes on rental income. Your attorney and a local accountant can provide specific guidance on tax compliance for your situation.

How Do I Prepare My Unit for the Rental Program?

One of the most significant advantages of the Makai management structure is the seamless transition from owner to rental investor. There is virtually no preparation required on your part. Every one of the 216 residences at Makai, from a 759 square foot one-bedroom to a 1,489 square foot two-bedroom, is delivered fully furnished and completely turnkey.

This means your residence is finished to the hotel-grade standard required by Dolce Hotels & Resorts by Wyndham from the moment you take possession. All furniture, kitchen appliances, fixtures, and soft goods are included and installed. On the day of handover, starting with Phase 1 in Q2 2028, your property is ready to either welcome you for a personal stay or immediately enter the rental program and begin generating income.

Common questions

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

Yes, owners in the rental program retain the right to use their residence for personal stays each year. The specific terms, including how many days are allotted and how to book them, are outlined in the rental program agreement. Your advisor can provide the current owner-use terms.

Who is responsible for paying taxes on rental income?

The owner is ultimately responsible for tax compliance. While the 27% withholding tax is deducted from gross income, owners should work with a Dominican accountant to ensure all obligations, including the 18% ITBIS (VAT), are met correctly and on time.

What happens if my property needs maintenance?

The Wyndham-operated program handles day-to-day upkeep and coordinates any necessary maintenance for residences in the rental pool. The costs for these services are considered part of the program's operating expenses, which are settled from the gross rental revenue.