New rent control law proposed in Dominican Republic
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Santo Domingo.– A new draft law aimed at regulating real estate rentals and evictions has been approved in its first reading by the Chamber of Deputies. The proposed legislation introduces several key provisions, including shared legal costs for rental contracts and a limit of two security deposits.
The Dominican Republic has long lacked comprehensive regulations governing rental agreements, often leaving tenants responsible for various legal expenses, including a third deposit to cover potential contract-related costs.
The new bill seeks to address this imbalance by stipulating in Article 7 that “legal costs associated with rental contracts shall be shared equally between the landlord and the tenant.” Additionally, the bill specifies that brokerage fees will be borne by the party who engages the services of a real estate agent.
Another common practice in the Dominican Republic has been for landlords to demand three security deposits from tenants, with the third deposit often non-refundable.
To address this issue, the proposed law mandates that landlords may only collect a maximum of two months’ rent as a security deposit. These deposits must be placed in an escrow account at the Banco Agrícola and can be withdrawn upon termination of the tenancy.
Article 13 of the bill states, “Landlords may require tenants to pay a security deposit of no more than two months’ rent to guarantee payment of rent.”
The legislation also aims to standardize rental contracts by requiring that agreements specify the lease term, the intended use of the property, and the monthly rent amount, among other details.
Although the bill’s momentum had slowed, its sponsor, Alfredo Pacheco, has pledged to reintroduce the legislation in August and push for its approval.
Why is this rent control law proposed now? Who will it benefit? I may ask?
DUH……TENANTS
its been on the works for years
When a law is aim to benefit the people it take forever to be approved… Only in the Dominican republic
What about laws when the tenants have 6 months or more without paying rent, which is very common in Dominican Republic.
Pay someone to take care of the squatter, use the security deposit for that. ????????
Yes very common, I have five tenants right now that owes 11 months rent. And the court process is so slow
As you all know work is very hard to find in DR, especially for single mothers. Until the government establish a better support system for these women. The paying of rent in a timely manner will continue to be a problem. They really need a rent assistance program for single mothers. Desperate people do desperate things. ????
That won’t work
Remember that the Dominican Republic is only 1/2 of an island and big government is required for social services like is the USA that model simply doesn’t work here.
Exactly, where are the protection for owners of property? The law protects squatters and eventually the owner losses the property to them.
These new provisions in the rental laws say nothing about protection to the landlord. In DR it is common for tenants to stay months if not years without paying rent. With little to no consequences. Tenant’s very seldom pay for damages they’ve incurred to the property prior to them leaving. Last but not least. DR is also famous for having tenants taking over someone’s home after renting it for sometime. With the corruption that is systematic in the country it,’s going to be a long time from now before new laws are enacted that will benefit all Dominicans ( tenants as well as landlords.)
Rent Control creates a Black Market.
The Landlords are not stupid.
Rent control never works.
The role of the government is to collect taxes.
The market determines the price of Rent not a bureaucrat who has never run a lemon stand .
If the government wants cheap rent…let it build it at its own expense not at the expense of the investors.
A free market brings efficiency and investment…. innovation and development…..
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