SANTO DOMINGO –The possibility of state intervention in the rental market and the application of new sanctions for tenants who fail to pay long-term rent have been among the aspects debated by the special commission studying the draft law on Real Estate Rentals and Evictions, which is currently before the Chamber of Deputies.
After the public hearings, the team met again twice and discussed both possibilities, two majority proposals put forward by the real estate sectors that attended the public consultation in the National Assembly, says a publication by Diario Libre, released in its edition of July 12.
The project could be approved before the current congressional session ends on July 26, as the legislators analyzing the bill are in the final phase of their studies.
After holding public hearings on June 27 to listen to the opinions and observations of the sectors involved, the commission is working on analyzing the positions of each group that came to the National Congress to present their possible modifications to the legislative piece.
Once the positions are analyzed, the commission would be ready to present a report to the plenary and achieve approval of the project in a second reading, since the legislative piece was sanctioned in a first discussion on May 24.
Closing of the congress cycle
The first congressional period concludes on July 26 and will remain closed until August 16. The special commission of deputies explained that it is working on possible modifications to the report to present it in the upcoming sessions so that it can be approved and sent to the Senate for its review.
The Speaker of the Chamber of Deputies also intends to pass the bill before the end of the legislative session, since, according to Alfredo Pacheco, the situation regarding income tax in the country "is a disaster" that must be resolved. As the bill's proponent, he valued the attention the bill has received and the intention for its approval
The initiative aims to regulate the legal conditions arising from the rental of real estate intended for housing or other uses.
Some observations from the real estate sector
The Association of Real Estate Agents and Companies (AEI) proposes that when a tenant unilaterally terminates a rental agreement before the stipulated term, they should pay 50% of the price of one month's rent if there is no damage to the property, and two months' rent when there is deterioration in the property, under the same circumstances.
The project approved last May in its first reading in the Chamber of Deputies, stipulates in article 14 that in case of unilateral termination of the contract by the tenant before the stipulated term, the tenant will be obliged to pay the owner 20% of the rental price for the remaining time until the expiration of the contract.
Likewise, the Association of Real Estate Agents proposes that when the owner decides not to renew, he will give the tenant three months' before the end of the lease if the property is occupied by a commercial or industrial establishment, and two months' notice if it is occupied for housing purposes.
ACOPROVI, the Dominican Association of Housing Builders and Developers, suggests that landlords may increase the rental price when improvements are made to the homes.
The new article proposed by the builders' association, however, stipulates that the increase should not exceed 20% of the current rental price, and also orders that the increase for improvements be distributed proportionally when it is a condominium building.
