SANTO DOMINGO. The increase in properties designated for short-term rentals in various destinations across the country is the main reason the government is considering regulating this business model in the Dominican Republic. Currently, the Ministry of Tourism (MITUR) is reviewing an initiative that seeks to improve this experience locally.
Yesterday, President Luis Abinader announced that the Dominican government was considering establishing new rules for short-term rentals offered through platforms like Airbnb, due to the growth of this type of accommodation and its impact on the housing market.
During his appearance on the press program LA Agenda Semanal, the president explained that the authorities were studying the behavior of this segment and the experiences applied in other countries to determine an appropriate regulatory mechanism for the Dominican Republic.
The discussion was taking place while the Ministry of Tourism (MITUR) had submitted a proposal for public consultation to create a mandatory registry of properties intended for this type of accommodation.
Impact on the real estate market
The president explained that more and more people are acquiring apartments with the intention of using them for temporary rentals through digital platforms.
According to what he argued, this behavior could affect housing prices, due to the increased demand for units acquired as an investment and subsequently intended for short-term stays.
MITUR proposed creating RENATUR
As part of this process, the Ministry of Tourism had presented a draft resolution to create the National Registry of Tourist Accommodations (RENATUR).
The proposal included registering apartments, villas, houses, rooms, bungalows and other properties used for short-stay vacation rentals.
The project, which was withdrawn due to concerns raised by business owners involved in this model in the country, sought to establish a mechanism for identifying and controlling these operations and to allow the State to have an updated inventory.
RENATUR was a proposal from MITUR submitted to public consultation, and therefore did not constitute a definitive regulation.
Each property would have to be registered
The project stipulated that owners or managers had to individually register each property intended for holiday rental.
Registration was proposed as a requirement to market the units, both directly and through digital platforms.
The required documents included information about the owner or manager, property details, a title certificate, and a liability insurance policy. If the property was listed on a platform, its identifier also had to be provided.
Condominiums would have to authorize the activity
The proposal also included conditions for apartments located in condominiums.
The owners would have to submit the building's regulations to verify whether short-term rentals were permitted. If there was an explicit prohibition, the property could not be registered.
When the regulations did not cover this activity, it was proposed to submit a declaration from the owners' assembly authorizing it.
Digital platforms would assume new obligations
MITUR had also raised responsibilities for digital platforms.
These would have to request proof of registration in RENATUR before allowing new publications of properties located in the country.
For properties already listed, the project allowed up to 60 days to complete the regularization process. After that period, units that did not comply could be removed from the platforms.
Sector requested greater participation
The proposal had generated reactions among representatives of short-term rental properties. The Dominican Association of Short-Term Rental Properties (ADORECO) had requested an extension of the consultation period and the establishment of a technical working group with owners, administrators, investors, and digital platforms.
The entity supported the formalization of the sector, but considered it necessary to analyze the impact of the measures and take into account that these properties were also used for business trips, academic activities and temporary residences.
The regulation would have a real estate impact
Any new regulations could bring about changes for owners, investors, developers, administrators, and real estate agents.
The main challenge would be to strike a balance between the growth of short-term rentals, tourist activity, real estate investment and the availability of housing for residential rental.
While the Government was analyzing the next steps, the RENATUR proposal presented by MITUR constituted one of the main precedents of the process of regulating short-term rentals in the Dominican Republic.
Recommended readings:
- Ministry of Tourism proposes agency for mandatory registration of short-term rental operations in the Dominican Republic
- DORECOasks the Ministry of Tourism to extend the public consultation on short-term rental regulations and warns of risks to the sector
- Public and private sectors create alliance to promote more sustainable tourism
