3
Mar

Given that there is a large percentage of people living in rented houses in the Dominican Republic, it is very important to take into account a series of obligations and rights that both the tenant and the owner need to abide by. This comes as a result of the fact that the majority of the population does not have sufficient knowledge regarding this topic, despite how ubiquitous it is.

Through this article, we will list the general requirements and recommendations when renting a property.

Homeowners:

Despite the fact that the owner can complete the process without the help of the tenants, it is always advisable to receive guidance by a professional in the area, with a real estate agent or lawyer who will guide you through the process.
The most important things you should do as an owner when you decide to put your house or apartment for rent are the following:

• • Review the tenant:   You need to be mindful of who you will select as your tenant. This should be a person who can prove their financial solvency and takes care of your property as if it was theirs. You should review their background and request references from previous owners. This process may take time, but it is very necessary.
  • Negotiation Process:   During the negotiation process, the price and general rental conditions must be outlined.
  • Lease agreement:  The lease agreement is vital, due to the fact that once all the details of the lease are agreed upon, each of the conditions must be established in writing in the contract.
  • Supervision:   It is necessary to verify the state of the house or apartment from time to time, just to ensure everything is in order.

Tenants:

• • Research the area:   We strongly suggest you obtain information about the area where the house or apartment is located in. It would be ideal to schedule an appointment with the owner, in order to get familiar with the place, seeing as you should never rent blindly.
  • Property damage:   In case you notice property damage and are still interested, you have to inform the owner of all the damages. A contract should be drafted specifying when the repairs will be made and how they will be paid.
  • Utility Payments:   You would need to ascertain if the utilities are up to date, to ensure that the previous tenants did not leave any debts.
    Verify the owner’s reliability: Make sure that a lessor is a person qualified to receive the payments you will be making since there is a possibility that the owner may not be who they claim to be.
  • Read the contract:   Make sure you understand the contract and ensure that all the clauses that were agreed upon are in place.
    

    Deposits and payment of Legal Expenses:

  • If you have ever rented a property, it is very likely you have heard about the 2+1 arrangement. Although each owner has their own requirements, currently the most common arrangement is the requirement of 2 deposits plus 1 month in advance.
  • Individuals renting a property are not obliged to pay the real estate agent for their services, given that this agent already has a previous agreement with the owner.
  • On the other hand, what the tenant usually does have to pay for is the drafting and notarization of the lease agreement.

Regulation:

Law 4314 from October 29, 1955, as amended by Law 17-88 on February 5, 1988, is the Law that regulates everything related to rentals, in the Dominican Republic.

Additionally, the country has a Lease Control Department, which oversees conflicts over evictions and price increases of housing between owners and tenants (Decree 4807 from May 1959).