SANTO DOMINGO. – In a country where informality often dictates the rules, the recently approved Law on Real Estate Rentals and Evictions presents some challenges.
We cite as an example the case of a lower middle class "salon owner", who seeks to earn a few bucks by offering manicure, haircut and hair washing services in some inconspicuous place in her rented home, without advertising to the outside.
The success of the "salon" spreads by word of mouth among neighbors, friends, and family in the neighborhood because the prices of the services are more affordable for a low-income clientele.
If so, does the salon owner inform the homeowner beforehand of the decision to set up a business on their property, or can they do so without consent? Let's see what the new regulation says:
The new Rental Law recently approved by the National Congress establishes in Chapter II, Article 4 the following: "The destination or use of the property subject to rental will be for housing, commercial or non-profit activity purposes and will be expressed in the rental contract.".
Paragraph 1 states: "In the absence of an express stipulation in the contract, the purpose of the property will be the same as that for which it has served before or that which corresponds to it according to its own nature.".
The following, paragraph 11, states: "The change of use of the property that the owner
has not expressly authorized, even if it does not cause him harm, entitles him to invoke the termination of the contract."
The question is, will the micro-entrepreneur agree with the homeowner to set up the business? Given the high level of informal employment in the country and the disregard for agreements in any commercial activity governed by regulations, it's likely the homeowner is completely unaware that hair is being dyed and nails are being done in the "back" of his house.


