The association has called on owners, hosts, managers, investors, and developers to actively participate in the review process, and until then it will not be known how much of this original scheme will be maintained and how much will be adjusted based on the technical observations raised by ADORECO and other stakeholders
SANTO DOMINGO– According to figures from the Ministry of Tourism cited by ADORECO, the country currently has about 60,000 short-term rental properties and more than 140,000 rooms under that modality, an ecosystem that involves owners, hosts, administrators, property management companies, investors and service providers.
Although the regulations have been placed on the negotiating table, it is necessary to understand what they proposed in their original version, because that first draft is the basis on which the next proposal will be built, and because it anticipates the type of obligations that will probably reappear, with adjustments, in the final version.
The original draft, actor by actor
Owners. They had to individually register each property they rented, even if they did not manage it directly, providing liability insurance, identity document, detailed location and contact information.
The most sensitive point for those living in condominiums: they were subject to what the owners' assembly decided, so if it objected to short-term rentals, the property could not be registered, even if it was already operating under that modality before the resolution.
Property managerswere required to individually identify and register each property owner whose properties they managed, with requirements that varied depending on whether the owner was an individual, a legal entity, or a non-resident. The latter group faced an additional burden: designating a "Service Provider" with legal representation in the country. Individual property managers were also required to be up-to-date with the DGII (General Directorate of Internal Revenue) and present a certificate of no criminal record.
Hosts. The draft defined them broadly as any "managing person" who interacts with the guest, either in person or through automated means. Non-residents, like administrators, depended on a Service Provider who was responsible for them locally.
Digital platforms. They went from being commercial intermediaries to de facto regulators: they had to require RENATUR proof for all new properties, give 60 days of grace to those already listed and, after that period, stop advertising those that were not registered.
They were also required to report to MITUR any "incidents" resulting from bad practices, which could lead to the revocation of a property registration.
Guests. On paper, the resolution sought to guarantee minimum standards of safety, hygiene, and contractual protection, in line with Law 358-05 on Consumer Protection. The risk, however, was that the friction of the registration process would temporarily reduce the available formalized supply while the sector adjusted.
The sector as a whole. The draft set a three-month transition period for thousands of properties to complete registration, raising concerns that bona fide operators would be excluded from the platforms simply for not completing the process on time.
Added to this was an internal contradiction pointed out by specialists: the text defined "Short Stay" requiring "non-commercial" purposes, but in practice regulated an entire commercial industry.
What happened and what's next?
The Ministry of Tourism (MITUR) withdrew on Monday, July 20, the draft resolution that sought to create the National Registry of Tourist Accommodations (RENATUR), to make way for a dialogue table with the actors of the short-term rental ecosystem.
The decision was communicated by the institution's Legal Consultant, Brenda Morales, who reported that the project will be removed from the institutional portal while the consensus process is developed, to which the Dominican Association of Short Rents (ADORECO) was invited.
The union, which had requested an extension of the public consultation period days earlier because it considered the technical and legal analysis of the draft insufficient, described the withdrawal as "an important step towards building a modern, balanced regulation with greater legal certainty.".
According to the organization, its own multidisciplinary team, made up of lawyers, public policy specialists, property managers and hosts, had conducted a technical analysis of the project before its withdrawal was announced.
With the process now moved to a dialogue table, the question for the coming months is how much of this original scheme will be maintained and how much will be adjusted based on the technical observations that ADORECO and other actors have raised.
The industry has called on owners, hosts, managers, investors, and developers to actively participate in the review process.
Recommended readings:
- MITUR opens dialogue to listen to business leaders regarding proposal to regulate short-term rentals in the Dominican Republic
- ADORECO asks the Ministry of Tourism to extend the public consultation on short-term rental regulations and warns of risks to the sector
- Ministry of Tourism proposes agency for mandatory registration of short-term rental operations in the Dominican Republic
