The New Rental Law in the Dominican Republic: A Necessary Balance
The recent approval of the Law on Real Estate Rentals and Evictions in the Dominican Republic represents a fundamental transformation after nearly seven decades of outdated regulations. Its main objective is to modernize the legal framework, guarantee legal certainty, and balance the interests of both landlords and tenants.
Its main provisions include:
•Limit on price adjustments: increases must be agreed upon by both parties; in case of disagreement, they cannot exceed 10% in housing contracts.
•Maximum deposit of two months’ rent.
•Disputes over guarantees are resolved in magistrates’ courts.
•The landlord is responsible for maintenance, and the tenant must report any damage.
•Obligation to respect contracts after a change of ownership.
•Maximum period of 30 calendar days for a ruling in cases of rental and eviction.
•Penalties for illegal evictions in accordance with Law 396-19.
•Formalization and registration of contracts, creation of specialized jurisdiction, penalties for eviction without order, and prohibition of discrimination.
Advantages
•For the landlord: greater legal certainty and clear procedures for evictions. The limit on deposits reduces the risk of abuse.
•For tenants: protection against arbitrary evictions, formal contracts and registration, strengthened rights, and anti-discrimination rules.
Disadvantages
•For landlords: possibility of severe penalties—including prison sentences in cases of eviction outside the legal framework—which may be excessive and create insecurity. Likewise, the absence of tax incentives or compensatory mechanisms raises reluctance to formalize contracts.
•For tenants: although they receive greater protection, some bureaucratic aspects—such as mandatory formalization and rigid deadlines—could hinder access in informal or high-demand areas.
Conclusion: The new law marks a necessary milestone that updates the Dominican rental system, offering legal protection, order, and fairness. However, its success will depend on effective regulation, clear institutionality, and a pragmatic approach that avoids excessive bureaucracy. Only then can a fairer, more transparent, and more functional rental market be consolidated, balancing the right to housing with respect for private property.