SANTO DOMINGO-The Association of Real Estate Tourism Companies -ADETI- and the National Association of Hotels and Restaurants -Asonahores-proposed four essential adjustments to the General Rental Law project, arguing that they would protect the dynamics of real estate tourism and investment in formal rentals.
The unions propose a legal definition of short-term rentals, specifically contracts of up to six months, and their exclusion from the general rental regime due to their distinct nature compared to primary residences. They argue that long-term rentals, commercial premises, and properties rented through Airbnb to tourists for three nights are not the same. They believe this homogenization jeopardizes a real estate ecosystem that is crucial to the national economy.
Furthermore, they request that guarantee deposits can be made in any regulated financial entity , instead of the Agricultural Bank, as implicitly stated in the bill currently before the Chamber of Deputies.
They also advocate for establishing a clear differentiation between the types of use (residential, commercial or tourist) within the legal scope of the regulation and insist on maintaining an expedited eviction procedure for non-payment, which guarantees legal certainty and protection of private investment.
In an intervention before the legislative committee studying the aforementioned bill, Alba Russo of Asonahores and Michael Lugo of ADETI argued that the law, as it is written, does not distinguish between types of rental or their specific uses, which could place them under the same legal regime.
What does the bill say, and what are the industry associations' observations? The most relevant points of the debate are explained below: 1. Legal scope: one law for different uses. Bill (Articles 1 and 2): Regulates all rental contracts, including properties used for housing, commerce, industry, or any other economic activity, without differentiating between them. Asonahores/ADETI proposal: They request that a distinction be made between residential, commercial, and especially short-term tourist rentals, as these contracts have different logics and require appropriate regulations, not a single, unified approach. 2. Tourist rentals: Should they be regulated the same as primary residences? The bill neither considers nor defines the category of "short-term rentals," nor does it recognize tourist rentals as a special regime. Industry proposal: That short-term rentals be specifically defined as contracts of up to six months and that these cases be excluded from the application of this law, given their connection to tourism and not to use as permanent housing. They argue that this would protect investments linked to models such as vacation rentals, villas, or tourist residences. 3. Security deposits: Modernize or maintain the traditional system? The bill (referring to Law 4314/1955): The obligation for deposits to be made in the Agricultural Bank is implicitly maintained. The trade associations' proposal: They believe this is an outdated system and propose allowing deposits to be made in any regulated financial institution, modernizing the system and facilitating compliance for investors and professional landlords. 4. Eviction for non-payment: Immediate execution or legal proceedings? Article 35 of the bill establishes that the landlord can contact the municipal inspector if the tenant defaults, with a 30-day period to rectify the situation. Eviction is then authorized. ADETI and Asonahores request that immediate enforcement for non-payment be preserved , without lengthy bureaucratic processes, to maintain legal certainty and confidence in the formal rental market.
Context
According to figures handled by the trade associations themselves, real estate and residential tourism represents a segment in full growth, both for the purchase of second homes by foreigners and for temporary rental, especially luxury, in tourist areas.
In 2024, tourism real estate projects in the Dominican Republic mobilized over US$10 billion in investments, including 6,000 new rooms contributed by ADETI, as well as renovations. Furthermore, these initiatives generated approximately 34,000 direct jobs and added some 124,000 non-hotel accommodation rooms, according to Eduardo Read in August of last year.
They argue that applying an inappropriate legal framework could create legal uncertainty and discourage these investments, directly impacting the development of tourism and real estate projects in destinations like Punta Cana, Las Terrenas, and Cap Cana.
Furthermore, the rise of platforms like Airbnb, Vrbo, and Booking has redefined rentals in tourist destinations, generating contracts that don't fit the traditional logic of residential leases. Therefore, industry associations are seeking to ensure the law recognizes this reality and doesn't hinder its expansion.
The proposal from Asonahores and ADETI, their representatives stated, doesn't aim to oppose rental regulation, but rather to adapt it to a country whose economy relies heavily on tourism and foreign investment in real estate. They insist that Congress must rethink the project's approach and create a modern, flexible legal framework adapted to market realities.
Comparative table: ASONAHORES/ADETI proposals vs. current project
| Issue | Asonahores / ADETI | Bill – Relevant Articles |
| Short-stay tourist rentals | They propose excluding short-term (up to 6 months) and operations with a tourist logic. | There are no exclusions. The law applies to “dwellings or other uses” (Art. 1–2), without distinction of type or duration. |
| Rentals for commercial purposes | They must be excluded, due to their nature being different from residential use. | Article 2 explicitly includes “commercial, industrial, artisanal activity…”. There is no exclusion. |
| Security deposit | They require you to deposit it in any bank, with flexibility. | Article 2 (and references to Law 4 314/1955) refers to the Agricultural Bank without flexibility. |
| Enforcement of judgments (eviction) | They demand immediate enforcement of the non-payment. | Article 35 and the specific chapter provide for action via inspector with deadlines: 30 days and immediate execution after authorization. |
| Distinction according to property use | They propose differentiated regulatory frameworks (residential, tourist, commercial). | The law only establishes a general framework “for all contracts… intended for housing or activity…” without distinctions (Art. 1–2). |
| Definition of “short stay” | Proposal to extend to 6 months. | There is no specific definition of "short stay". It does not appear in the legal text. |
