NOI (net operating income)
Net operating income is gross rental income minus the costs of operating the property: management, HOA, utilities paid by the owner, insurance, IPI, maintenance and a realistic vacancy allowance. It excludes mortgage payments, income tax and capital expenditure such as replacing furniture. NOI is the honest cashflow line for comparing two properties.
Why a Punta Cana buyer should care
Punta Cana operating costs are heavier than most buyers assume: dollar HOA fees, management taking a share of gross, salt-air wear on furniture and appliances, and demand concentrated in high season. Building NOI forces every one of those into the spreadsheet, which is exactly why brochures quote gross instead.
Common mix-up
Furniture replacement is treated as a one-off. In short-term rental it is a recurring reserve. Leaving it out overstates NOI year after year and makes a mediocre unit look like a good one.
NOI FAQs
- Does NOI include the mortgage?
- No. Financing sits below NOI. Two buyers with different loans should still compute the same NOI for the same unit.
- What vacancy should I assume?
- Use realised data from comparable units in the same building rather than a market average — occupancy varies sharply by tower and manager.
Go deeper
2026 orientation, not guarantees and not legal advice. No guaranteed ROI, no invented occupancy.