How Does the Wyndham-Operated Rental Program at Makai Work?

Rental income at Makai Residences is generated through a unified, hotel-managed program operated by Dolce Hotels & Resorts by Wyndham, which projects a 7-11% annual return for owners. Unlike properties where renting is an owner's responsibility, every rental at Makai is handled by the on-site hotel operator, creating a seamless, hands-off investment structure.

What is the projected return, and what does it include?

Makai projects a 7-11% annual return on investment for owners participating in the rental program. This figure is based on the developer's proforma, which assumes an average annual occupancy rate between 60% and 85%. It's important to understand that these are projections, not guarantees, and actual performance will vary with seasonality and market demand.

The projected return is quoted net of most major operating expenses. Rental revenue first covers the program's costs, which include a management fee for the Wyndham operation, 35% for general operating costs (like utilities, housekeeping, and in-unit maintenance), and a reserve for furniture replacement. What remains is the net income distributed to the owner. This structure means the day-to-day costs of running the rental are handled within the program before you receive your distribution.

How does a hotel-managed program differ from renting on my own?

At Makai, an owner who chooses to rent out their residence does so through the single, professionally managed program operated by Dolce Hotels & Resorts by Wyndham. This is not an optional, third-party service but the integrated operational model for the entire community of 216 residences. This structure provides consistency in service, marketing, and guest experience, leveraging Wyndham's global distribution channels and loyalty program.

This contrasts sharply with a traditional condo where each owner acts as an independent landlord. A self-managing owner would be responsible for marketing their unit on booking platforms, managing reservations, communicating with guests, arranging check-ins and cleanings, and handling any maintenance issues. At Makai, the hotel operator manages all of these logistics. The trade-off for this hands-off experience is that independent rentals are not permitted; the goal is to operate the property as a cohesive, branded hotel.

What taxes apply to rental income for a non-resident owner?

When a non-resident owner earns rental income in the Dominican Republic, that income is subject to specific taxes. It is crucial for a buyer to understand these obligations, as they are separate from any property tax exemptions. Your attorney can provide definitive guidance for your situation, but the general framework is as follows.

The primary taxes on short-term rental income are a withholding tax and a value-added tax (known as ITBIS). These are levied on the rental revenue generated by your property.

Does the CONFOTUR tax exemption affect my rental income?

What CONFOTUR (Law 158-01) is documented to exempt is the transfer tax and the IPI; rental income is taxed separately under its own rules. This is a common point of confusion for buyers. Makai's CONFOTUR registration provides significant tax savings related to the property itself, not the income it generates.

Specifically, CONFOTUR gives first buyers from the developer an exemption from the 3% transfer tax at purchase and an exemption from the 1% annual property tax (IPI); it does not pass to a resale buyer. The law provides this IPI exemption for a fifteen-year term for qualifying projects. These benefits reduce your acquisition and holding costs significantly. However, the income you earn from renting the property is treated separately and is subject to the income tax regulations described above. A property-tax exemption should not be read as improving what a rental earns after tax; how the two interact in your case is a question for your tax advisor.

What features of Makai are designed for a hotel guest experience?

Because Makai operates as a hotel, its amenities are designed to meet the expectations of resort guests paying a nightly rate. The entire community is built around a hospitality-focused experience, which in turn supports rental demand and potential occupancy.

Key features include a large walk-in sand pool with a swim-up bar, a separate rooftop infinity pool, a full-service spa, and a fitness center. For recreation and entertainment, the property offers padel and pickleball courts, a private 23-seat cinema, a co-working space for business travelers, and a private dock on the adjacent lake. Furthermore, every one of the 216 residences is delivered fully furnished to a consistent, hotel-grade standard, ensuring every guest has the same quality experience, regardless of the unit they book.

Can I still use my residence if it's in the rental program?

Yes, owners retain the right to use their own residence for a portion of the year, even while it is part of the Wyndham-managed rental program. This allows you to enjoy your Cap Cana property for personal vacations while it generates income the rest of the time.

The specific terms, including the number of weeks available for personal use and any blackout dates during peak season, are defined by the rental program agreement. This ensures that the hotel operation can effectively manage inventory and maximize occupancy across all 216 residences. For the current owner-use policy and a copy of the program agreement, please ask your advisor.