In a recent article, we explored the concept of property appreciation. Today, we shift our focus to another significant source of income for tokenized property investors: rental dividends. With NOVA’s Holiday Home and Long-Term Rent strategies, rental dividends are a cornerstone for generating consistent income. Let’s dive deeper into this concept.

What are rental dividends?

Rental dividends are the income generated from a property when it is occupied by tenants who pay rent. This can come from long-term lease agreements or daily stays, depending on the rental strategy employed.

Dividend period

Currently, NOVA distributes rental dividends either monthly or quarterly, depending on the specific investment project. For investors, this means the first payout is typically received one or three months after the property’s funding is complete. If there are any changes to the dividend schedule, NOVA keeps investors informed through social media and its application.

For Hot Tokens, dividends are paid out according to the project’s payout schedule immediately after the token is purchased. 

For example, if a project’s first dividend payout occurs three months after funding is complete and you purchase a Hot Token a day before this payout, you will receive all dividends for the preceding quarter as the current token owner.

Long-Term Rent vs. Holiday Home: Key differences

While both strategies generate rental dividends, they cater to different investor priorities:

Long-Term Rent

  • Stability and confidence define this strategy. Tenants sign leases for extended periods, usually 11 months or more, and may renew or move out after the lease term.
  • It offers steady, predictable income with lower risk and higher occupancy rates.
  • However, rental income is typically lower compared to short-term rentals.

Holiday Home

  • This strategy offers higher rental income potential by catering to short-term tenants who book properties for days, weeks, or occasionally months, often via short-term rental platforms.
  • While lower and less predictable occupancy rates make this strategy riskier than long-term rent, the potential reward for taking on these risks and more intensive management is higher rental income.
  • For a more detailed review, explore NOVA’s article on the Holiday Home strategy.
Factors influencing rental dividends

Choosing the right location and property is critical for both Long-Term and Holiday Home strategies. However, short-term rentals face additional challenges such as economic downturns, offseasons, and unpredictable events. For instance, a ski lodge’s demand could plummet during a snowless winter, not to mention global events like the 2020 pandemic. Effective management and proficiency play a crucial role in mitigating these risks.

Understanding occupancy rates

Occupancy rate is the percentage of time a rental property is occupied by tenants or guests compared to the time it is available for occupancy. This metric directly impacts rental dividends. Simply put, if a property is vacant, it does not generate income.

While external factors affect occupancy rates, effective management is essential for maintaining high performance. A higher-than-market occupancy rate signals good management, while consistent vacancies suggest potential areas for improvement.

For long-term rentals, occupancy rates are generally higher, more stable, and easier to predict. However, both strategies may experience vacancies due to property maintenance, tenant turnover, or planned renovations.


At NOVA, we prioritize maximizing occupancy rates to provide investors with stable rental dividends. Start investing with NOVA now 💚

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