An apartment that charged US$90 per night 4 years ago is now being offered at US$60 per night
SANTO DOMINGO. - Businessman Francisco Irizarry raised the need for short-term rentals in the Dominican Republic to be regulated and licensed in order to stabilize market prices and guarantee minimum safety standards.
Irizarry made this position known when he was interviewed on the weekly program "La Ventana de El Inmobiliario " , where he also acknowledged that in the country there is an oversupply of properties under this rental model, causing a drop in nightly rental prices.
“We are in favor of regulation and also of having licenses because that will help to cleanse the market a bit of people who engage in bad practices, and it will also help to stabilize prices, which is something that has had a big impact,” he stated.
He noted that, in the last four years, rental prices have fallen due to the amount of supply in the market, causing an apartment that was worth $90 per night to be rented for as little as $60.
Francisco, who has been a member of the Association of Real Estate Agents and Companies (AEI) since 2017, indicated that one of the positive aspects that regularization would bring is that there will be a greater “filter of properties”.
From their perspective, owners who do not comply with these guidelines will be "forced out" of the market, which will reduce the supply of units and, consequently, cause prices to rise in the face of increased demand.
On the other hand, he stated that the lack of regulation and licenses has allowed the entry of people who are not professional hosts or involved in short-term rental hospitality, which has ended up affecting the credibility within the sector.
Regulation, the way to stabilize prices
Francisco Irizarry, co-founder of Yellow Key Rentals, explained that the license must guarantee compliance with minimum safety standards, as is the case in Colombia and European countries.
“I understand that a license must require minimum safety requirements: that there are fire extinguishers in the units and smoke detectors because when a guest comes from abroad they are not very used to working with propane gas in the stoves,” he explained.
In addition to security, the real estate advisor specializing in luxury properties highlighted that another key factor in the success of short-term rentals is the effective relationship with the companies that manage the condominiums.
In that regard, he criticized some board members for mistakenly assuming that monitoring guests is not part of their duties, when in reality it is their responsibility to monitor who enters, track their behavior, and report any non-compliance.
“Unfortunately, there are many buildings where the building managers say, ‘That’s not my job.’ We raise awareness and explain that it’s a building where short-term rentals are permitted, and that it’s not just about sitting in the lobby. You have to follow this protocol: have them sign in at the entrance, and if they reported two guests and you see there are more, notify them immediately. This would prevent many problems,” he commented.
He warns that without protocols it is difficult to stop cases of prostitution
The broker owner referred to one of the topics discussed in the previous episode, which focused on cases of prostitution occurring in short-term rental apartments.
He explained that it is something that “can happen”, noting that similar situations have also been recorded with long-term tenants, whose origin, he indicated, is usually due to the lack of control exercised by the lobby.
“If there is no control from the lobby, prohibiting entry or notifying what is happening, it is very difficult to be able to control one hundred percent,” he warned.
Regarding the procedures for handling these cases, he explained that they contact the platforms to report the incident and prepare a report. Subsequently, both parties are heard, and once the situation is confirmed, the guest is asked to leave.
“Ultimately, we are not here to cause headaches, but to manage good accommodations for the guest and ensure that the owner continues to receive their expected cash flow
Short-term leases: a model that promotes the circular economy
The benefits of short-stay accommodation are numerous: they not only benefit the property owner, but also the entire surrounding environment.
He explained that this type of rental, unlike all-inclusive hotels, encourages people to move around the city and spend money in restaurants, supermarkets, cafes and other businesses in the area, becoming a form of 'circular economy' in specific sectors of the country.
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