What is needed to rent a house in the Dominican Republic?

As an investor focused on the tourist rental market, you are probably wondering what requirements you must meet in order to rent a house in Dominican Republic.

And not only the legal requirements, but also the tips and recommendations that you should take into account if you want to rent your apartment in Punta Cana and you want to do it with the maximum guarantees to obtain the highest profitability.

In this post we will clarify everything you should take into account.

Requirements for renting a house as a homeowner

To rent a house you must be the owner or usufructuary of the property, in addition to meeting certain requirements.

Reasons to invest in properties in Punta Cana

Let's look at some of the reasons for investing in Punta Cana real estate and that make this city one of the reference points to build your investment portfolio in apartments and tourist properties.

Registered housing. The property must be registered in the Registry of Titles of RD (this is a procedure that is done when you buy the property) and you must have the property title.

Identity card or passport. If you are a foreigner, in order to rent your house you must be of legal age and present your identity card (if you are a Dominican citizen) or passport (if you are a foreigner).

Sign the lease contract. It must be notarized and must include the identification data of both parties, description of the property, rent, terms and forms of payment, deposit clauses, rent adjustment, early termination conditions and tenant's responsibilities. It must be executed in compliance with Law No. 4314 on Rentals and Evictions.

Warehouse. If it is a long-term rental, generally the tenant must give you a deposit, which you must deliver within 15 working days to the Rentals Department of Banco Agrícola.

Signature. The lease must be signed by both parties.

Here it is important to note, however, that tourist rentals are subject to different rules, so there are important considerations to be made.

Differences between vacation rentals and long-term renting a house

Rent a tourist housing is subject to different conditions, so the formalities are much simpler than when it comes to signing a long-term lease.

Mainly, two points should be taken into account:

Tourist rentals are governed by the tourist regulations and the Dominican Civil Code, and not by Law 4314 on rents.

With a tourist rental you are not obliged to present the deposit at the Agricultural Bank's Rentals Department, although it is advisable to request a deposit according to the length of time the tenant will be staying.

The rental terms are short term oriented, unlike long term rentals, which usually have a duration of 1 year.

If you delegate the management of the property to a hotel brand, you don't have to take care of the paperwork. You don't have to worry about reservations, administrative tasks or cleaning and maintenance services.

Renting a house as a tenant, is it advisable?

Renting a house as a tenant is an option for those who plan to reside and work permanently in the Dominican Republic..

In addition to signing the lease contract, it is logical that you may be asked to sign a proof of income, collateral and references.

If, on the other hand, you only plan to stay for a season, the most suitable option is a tourist rental, which is what many digital nomads and investors tend to use. Punta Cana as its “base of operations”.”, The tax conditions for foreigners are excellent.

There are many people who nevertheless come quite frequently to the Dominican Republic, particularly to the beach areas in Punta Cana. Or who are even thinking of staying and living here, as pensioners and retirees, who can obtain excellent conditions to obtain residency or even naturalization quickly.

Ideally, you should be able to buy an apartment in Punta Cana for when you decide to visit the island, perhaps during the vacation months.

In this way, for the rest of the year, you could have it rented, delegating the property management in a hotel brand so you don't have to worry about anything.

How much does it cost to rent a house in the Dominican Republic?

The costs of renting a house in the Dominican Republic can be high, especially if we are talking about luxury apartments in the beach areas of Punta Cana, near the main golf courses and tourist areas.

However, renting a house can be much more economical than many other places in the world. areas of Miami and the United States. In Punta Cana you can find monthly rentals from $750 USD in the case of the most economical ones, to $3000 or $3500 USD per month, most of them very spacious.

These prices make buy a house in Punta Cana The investment can be much more attractive in the long term, since in this way you become the owner of the property, and you can recover the investment through rent or wait for a new valuation and make the sale.

If you are thinking of buying an apartment in the Dominican Republic, Vivantia invites you to learn more about our Punta Cana real estate opportunities.