I recently accompanied an international client through their installation process in Santo Domingo.
After visiting more than five properties, they chose an entire floor in a Class A tower within the financial district. The space was ideal: spectacular views, ample parking, good density, and all the amenities one expects from a corporate building.
But the story didn't end there. The real negotiation began when it came time to sign the rental agreement.
And here I want to make something very clear: I am not a lawyer. My recommendation is always that every rental agreement, regardless of the size of the property or the company's track record, should be reviewed by the lawyer who represents your interests.
What I can contribute, from my experience as a broker specializing in the corporate market, are tips and best practices that often make all the difference.
This article is intended for both:
- Experienced companies and owners, who may have been renting or developing projects for years and already master these issues, can find adjustments that strengthen their contracts.
- Companies renting for the first time or infrequently. I encounter many cases of large, medium, or small companies that have been in the same location for 15 or 20 years, and now that they need to move, they face lease agreements that have changed significantly over time. Sometimes, the person who signed the original contract is no longer with the company. For these companies, this checklist is a starting point for updating their leases and making informed decisions.
What happens after choosing the tower
The client was already convinced about the location, but the question was: how to ensure the contract protected both the landlord and the tenant? Based on that case, and many others like it, I'm sharing the key points I always recommend reviewing:
1. Deposits and advances
The new Rental Law in the Dominican Republic establishes as a rule two security deposits plus one month's rent in advance. However, in the commercial, corporate, and industrial markets, the conditions are much more flexible.
- Some foreign or new companies offer longer deposit periods to build trust.
- Sometimes, tenants negotiate a discount on the first year's rent in exchange for a larger down payment.
- In long-term contracts, the parties often reach hybrid agreements as needed.
The important thing is that everything is detailed in the contract, leaving no room for interpretation.
Currency and payment method
Define from the outset whether payments will be made in Dominican pesos (DOP) or US dollars (USD). If in dollars, agree on the exchange rate conditions. An error in this definition can seriously impact the profitability of the contract for both parties.
Legal, notary, and broker fees
One aspect that is often forgotten: who covers each expense and when?
- Lawyer and notary fees.
- Broker commissions.
- Taxes associated with the contract.
Making it clear avoids arguments when signing or registering the contract.
Delivery and adjustments
This is where most doubts usually arise:
- Delivery condition: gray work, first use, second use or ready to occupy.
- Tenant Improvements (TI): improvements that the landlord pays for directly (flooring, bathrooms, air conditioning, fire protection system). Sometimes these are reflected in a rent increase, other times they are absorbed as part of the price.
- Tenant Allowance (TA): a type of loan from the landlord to the tenant, which is then repaid in installments along with the rent. It's used to convert a space from a shell to a finished product or to create a plug-and-play space with lighting, air conditioning, and finishes.
- Plans and photographs: document the initial and final state of the premises. Any modification must be approved in writing by the owner.
- Return conditions: Should it be returned as received or with the improvements made? Some contracts go so far as to specify even the color and quality of the paint.
Duration and increases
Contracts typically stipulate annual increases of 3% to 5%, generally indexed to the US CPI, always applying the higher rate.
But more sophisticated schemes also exist:
- Increases with a "floor" (minimum) and a "ceiling" (maximum).
- Fixed increases in amounts: +US$1 or +US$2 per m² each year.
- Staggered increases: every 2, 3 or 5 years.
- Deferred adjustments: increases begin from the second year.
Critical contractual clauses
- Guaranteed contracts: define whether the contract primarily protects the tenant (right to remain), the landlord (guarantee of payment), or whether it is binding on both for a minimum period.
- Permitted use and density: activity to be carried out and number of m² per person according to the building regulations.
- Subletting and early departure: conditions under which they are permitted.
- Modifications and repairs: who authorizes, who pays, and what is considered acceptable.
- Mandatory insurance: civil liability, fire and condominium policies.
- Default and non-compliance: surcharges and enforcement proceedings.
- Force majeure: how the parties protect themselves against unforeseen events.
Parking and access
- Number of parking spaces included in the rent.
- Rates and conditions for add-ons.
- Building access hours, including restrictions for overnight stays or night shifts.
Corporate image and coexistence
- Signs and signage: permitted location and condominium approval.
- Rules of coexistence: use of common areas, safety and conduct.
Final reflection
That international client was able to move in smoothly because every detail was documented and negotiated beforehand. In the corporate market, location and square footage are only the first part of the story. What truly ensures the sustainability of a landlord-tenant relationship is a well-structured contract, reviewed by lawyers and facilitated by a specialized broker who understands the local market dynamics.
This article aims to serve as a practical guide for both experienced professionals, who can reinforce aspects they may have overlooked in previous contracts, and those less experienced, who are not involved in the day-to-day rental market and need to catch up on current practices.
My final advice is clear: every contract should be reviewed by your trusted lawyer. And every negotiation should seek a balance between flexibility, legal certainty, and financial sustainability.
In this way, landlords and tenants build transparent relationships and successful corporate projects.
