By Yamalie Rosario
El Inmobiliario
SANTO DOMINGO.- The controversial issue of regulating short-term rentals in the Dominican Republic should be included in a full chapter of the much-demanded Rental Law.
At least that's what real estate law expert Héctor Alies Rivas suggests, who, when interviewed about the topic by El Inmobiliario, highlighted the importance of regulating this type of service in the rental law.
“Airbnb is like Uber, it’s like any other sharing economy platform, which in its nature isn’t bad. What it needs is regulation. So in this city, in Santo Domingo, I think throughout the country… this has gotten out of control because people buy and then see strangers in their elevator, and their children have to see it,” analyzed the partner at the law firm Puello Herrera & Alies.
He recommended that the legislation, which was reintroduced in the Chamber of Deputies during the current legislative session, include a full chapter dedicated to rentals through platforms like Airbnb or any other short-term rental arrangement. The aim is to modernize the legislation and ensure it reflects current realities.
The university professor also believes that "separate regulations to govern Airbnb... could be excessive.".
Héctor Alies Rivas, expert in real estate law. (External source).
He noted that there are successful experiences in regulating short-term rents in other countries.
He cited France as an example, especially the city of Paris, where the number of days per year allowed for such rentals is limited.
He stated that Germany has established regulations and that in Portugal the number of licenses to operate through the Airbnb platform has been controlled.
"In other words, not everyone can be on Airbnb; you need a license to be on that platform or not," he said.
He also specified that these types of licenses must be reviewed periodically, for example, every four, five, or six years.
Alies Rivas cited the experience with this issue in Barcelona where renting private rooms for short periods was prohibited as a way to establish controls.
He stated that among the rules established in that European country is the limitation that a room within a building cannot be rented for a period of less than 31 days.
The lawyer specializing in real estate law stated that there are many nations that are fighting to prevent short-term rentals from being offered in their historic centers.
He stated that some cities in the United States have established limitations on permits and regulations.
Just yesterday, Tuesday, New York City began implementing a series of restrictions on short-term rentals, which the tourist accommodation platform Airbnb considered a “de facto” ban on its business.
Similar actions to regulate these services have been implemented in the city of California, according to the real estate expert.
Mentioning other examples of regulation, he said that Asia and Australia have also implemented bans, some of which have been total.
In the case of the city of Tokyo, he indicated that Airbnb is legal but that existing regulations have discouraged demand for these services.
There are other control practices successfully established in that Asian country, as detailed by Alies Rivas, such as the fact that property hosts collect essential data that must be reported to the Japanese authorities.
What to do in case of mixed incomes?
The real estate expert was consulted about the case of the complaint, made through El inmobiliario, by Mrs. Niulvi Ramos, who is living in a desperate situation as she has to endure residing in a property where short-term tenants live and do not comply with essential rules of good conduct.
When asked about this drama, published under the title "When a short-term tenant becomes a misfortune," lawyer Héctor Alies Rivas revealed that he frequently receives cases like these.
For him, the rise of Airbnb, which is unregulated in the Dominican Republic, “raises interesting legal questions about the scope of property rights, rentals, and life in condominiums. The issue goes beyond matters of coexistence and warrants an analysis of the fate of condominium owners' rights.”.
He indicated that condominium regulations do not prohibit these types of rentals and that a homeowner has the right to rent their property for the time and amount they deem appropriate because they are exercising their property rights.
However, he emphasized that Article 4 of Law 5038 on Condominiums establishes that each owner, for the enjoyment of their exclusive property, may freely use the common things according to their purpose, without prejudice to the rights of the other owners.
Furthermore, he cited that according to article 7 of the aforementioned legal provision, the condominium unit description form established by the General Regulations for Cadastral Surveys specifies the destination that each sector will have.
He added that once this condominium is registered, that chosen purpose becomes enforceable, which is why he states that, in principle, if the purpose of a condominium unit is residential, it could be understood as a legal impediment for the owner who wishes to use it for short-term rentals.
Analyze that “The controversial and regulatory issue is to determine whether the condominium owner, upon entering the Airbnb dynamic, due to the evident profit and commercial (not residential) purpose, becomes: a hotelier or a common landlord? Does this violate the internal regulations of the condominium?”.
He stated that it should not be forgotten that every condominium has its purpose, just as rentals in a commercial plaza have a specific use because they could never be for housing.
“A residential condominium is a residential condominium. The moment rentals are short-term, then it's no longer considered residential use, even though it may appear that way, but rather it becomes a hotel business, and that's why Asonahores is advocating for this to be regulated because it creates unfair competition in that market,” he reflected.
While regulations are being developed in the Dominican Republic, the expert suggests seeking alternatives to address potential problems in mixed-use rentals. He proposes limiting short-term tenants' access to common social areas and using smart cards to control entry and exit, thus preventing inconveniences.
