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Short-term rents versus Law 85-25: a necessary dialogue between investment and regulation

“Not all 'short' rentals are tourist rentals, nor is every 'guest' a tourist.”.

Short-term rentals have become one of the most dynamic drivers of real estate investment in various destinations in the Dominican Republic, not only in Punta Cana or other traditional tourist centers.

This model combines innovation, mobility and access, allowing Dominicans and foreigners to find flexible housing solutions —whether for work, studies, sports, weddings, corporate or real estate activities, medical treatments or family changes.

However, its rapid growth poses an unavoidable challenge: how to guarantee legal certainty in a model that does not yet have specific regulations?

The rise of a model without clear borders

Short-term leasing has opened up extraordinary opportunities for landlords, developers, and investors.

However, it has also generated tensions with residential condominiums, local authorities, and actors in the traditional tourism sector.

At the heart of the discussion is Law 85-25 on Rentals and Evictions, which regulates traditional residential and commercial leases.

Although this law does not prohibit short-term rentals, it also does not define them precisely, leaving room for legal interpretation that can affect the legal security of owners, users, and real estate agents.

A legal framework that is still seeking its balance

From a legal perspective, the big challenge is to distinguish between residential rental and tourist accommodation.

When a property is used for short-term stays—managed through digital platforms— its nature is generally understood to change; it ceases to be a rental and becomes accommodation, although in practice this isn't always the case. In many instances, it's not a hotel service, but rather a modern form of residential leasing that combines flexibility with civil, tax, and community rights and obligations distinct from traditional lodging.

Article 51 of the Dominican Constitution recognizes the right to property, but also establishes that "property has a social function that implies obligations."

This means that the exercise of that right must be harmonized with the residential environment, coexistence, and the internal rules of each community.

A necessary and urgent debate

In industry discussions, the importance of clearly distinguishing between permanent and temporary or short-term residential rentals has been raised, because not all short-term rentals are tourist or vacation rentals.

This modality, which combines collaborative and multi-sectoral economy, technology and hospitality, deserves a legal framework adapted to its nature, which promotes its formalization, guarantees rights and strengthens coexistence.

Legally recognizing short rents is not a concession: it is a natural step towards a more orderly, transparent and sustainable market.

A country that aspires to attract reliable investment needs to offer regulatory clarity and fair rules for all stakeholders.

Between freedom and regulation

From a real estate perspective, the lack of specific regulations can represent significant risks:

  1. Ambiguities regarding the applicable type of contract.

  2. Conflicts in condominiums due to non-residential use or vice versa.

  3. Difficulties arise in resolving conflicts without a clear legal basis.

    But this also opens an invaluable opportunity: to promote constructive dialogue between the government, developers/builders, hosts, real estate agencies, and professional associations such as ACOPROVI, AEI, and ADORECO.

Only through this consensus can intelligent policies be designed that balance economic freedom, coexistence, and legal security.

Short-term rentals are now part of the new language of Dominican real estate investment. Each project, each host, and each visitor are part of an ecosystem that generates activity, trust, and employment.

The challenge is not to stop them, but to integrate them with responsibility and a vision for the future, because when that growth is built on solid legal foundations, investment is transformed into progress.

 “Every well-designed short-term rental building is a factory of jobs and opportunities.”.

Behind every responsible investment are families, communities, and destinations that thrive.

Therefore, legal certainty is not a hindrance to investment, it is the firm ground where it flourishes.

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The content and opinions expressed here are solely those of the author. Inmobiliario.do assumes no responsibility for these statements and does not consider them binding on its editorial view.
Reyna Echenique
Reyna Echenique
She is a real estate lawyer, real estate entrepreneur, CEO of Echenique Group, coach, trainer and speaker certified by John Maxwell and Tania Báez, Secretary of the Board of Directors AEI 2024-2026, and a realtor specializing in the Dominican and international real estate sector.
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