Long-Term Real Estate Rental in the Dominican Republic

Published on October 3, 2025 and written by Cyril Jarnias

The Dominican Republic, with its white sand beaches, tropical climate, and relaxed lifestyle, is attracting an increasing number of foreign real estate investors. Renting out property long-term in this Caribbean paradise can prove to be a highly profitable venture, provided you have a good understanding of the local market specifics and current regulations. In this article, we guide you step by step to succeed in your long-term rental venture in the Dominican Republic.

The Dominican Rental Market: Untapped Potential

Before diving into long-term rental in the Dominican Republic, it is essential to understand the dynamics of the local real estate market. In recent years, the country has experienced sustained economic growth and a tourism boom, which has positively impacted the real estate sector.

An Expanding Market

Demand for long-term rentals is constantly increasing, particularly in tourist areas like Punta Cana, Puerto Plata, or Las Terrenas. This demand is driven by several factors:

• The influx of expatriates and foreign retirees looking to settle permanently in the country
• The development of residential tourism
• The growth in the number of international students
• The rise of remote work, allowing more people to work remotely from the Dominican Republic

Attractive Rental Yields

Rental yields in the Dominican Republic are particularly interesting, potentially reaching between 5% and 8% per year depending on the area and type of property. These figures are significantly higher than those observed in many Western countries, explaining the growing appeal of this market to foreign investors.

The Legal Framework for Long-Term Rental: What You Need to Know

To succeed in your rental investment in the Dominican Republic, it is crucial to understand the legal framework governing long-term rentals in the country.

Property Rights for Foreigners

Unlike some countries, the Dominican Republic allows foreigners to buy and own real estate without any particular restrictions. You can therefore legally acquire a property to rent it out.

Types of Lease Agreements

In the Dominican Republic, there are two main types of long-term lease agreements:

• The standard lease agreement: typically lasting between 1 and 5 years
• The lease-to-own agreement: which allows the tenant to purchase the property at a pre-agreed price at the end of the lease

Landlord Obligations

As a landlord, you have certain legal obligations to comply with:

• Providing a property in good condition and compliant with safety standards
• Ensuring major repairs (roof, structure, etc.)
• Respecting the tenant’s right to peaceful enjoyment

Establishing a Solid Lease Agreement: The Keys to Success

A well-drafted lease agreement is the cornerstone of a successful landlord-tenant relationship. Here are the essential elements to include in your contract:

Basic Information

• Full identity of the landlord and tenant
• Detailed description of the rented property (address, square footage, number of rooms, etc.)
• Lease duration and renewal conditions

Financial Aspects

• The rent amount and payment terms
• The security deposit amount
• Distribution of expenses between landlord and tenant

Specific Clauses

• Conditions of property use (prohibition of subletting, etc.)
• Responsibilities for maintenance and repairs
• Lease termination conditions

Contract Language

Although the contract can be drafted in English, it is recommended to also have a version in Spanish, which is the official language of the country. In case of a dispute, the Spanish version will prevail in Dominican courts.

Setting the Right Price: Finding the Balance Between Profitability and Attractiveness

Determining the right rent for your property is a delicate exercise that requires a good knowledge of the local market.

Analyze the Local Market

Start by studying the prices charged in your area for similar properties. You can check online listings, contact local real estate agencies, or hire a real estate appraisal expert.

Consider Your Property’s Specifics

Several factors can influence the rent:

• Location (proximity to the beach, shops, etc.)
• Overall condition of the property and its amenities
• View (ocean, mountain, etc.)
• Included services (pool, 24/7 security, etc.)

Anticipate Expenses and Taxation

Remember to factor in the various expenses that will fall on you as the landlord:

• Property tax (IPI – Impuesto a la Propiedad Inmobiliaria)
• Homeowners association fees if your property is in a condominium
• Insurance

Managing Your Property Effectively: Keys to a Harmonious Landlord-Tenant Relationship

Effective management of your property is essential to ensure the longevity of your investment and maintain good relations with your tenants.

Tenant Selection

Take the time to choose your tenants carefully. Don’t hesitate to:

• Request professional and personal references
• Verify the tenant’s financial capacity
• Conduct an in-person or video conference interview

Property Condition Report

Perform a detailed property condition report at move-in and move-out. Document the property’s condition with photos to avoid any future disputes.

Regular Maintenance

Ensure you maintain your property regularly to prevent major problems. This includes:

• Checking air conditioning systems
• Maintaining green spaces
• Painting and minor repairs

Remote Management

If you do not reside in the Dominican Republic, it may be wise to hire a local property management agency. They can handle:

• Rent collection
• Management of daily issues
• Compliance with local regulations

Optimizing Your Investment: Winning Strategies

To maximize the profitability of your real estate property in the Dominican Republic, here are some strategies to consider:

Target the Right Market

Identify your target market (expatriates, long-stay tourists, students, etc.) and adapt your offering accordingly. For example, if you are targeting expatriate families, prioritize spacious homes with multiple bedrooms in quiet residential neighborhoods.

Invest in Quality

Don’t hesitate to invest in quality equipment and comfortable furniture. This will allow you to justify a higher rent and attract more stable tenants.

Offer Additional Services

Differentiate yourself by offering additional services such as:

• A regular cleaning service
• Personalized welcome upon arrival
• Advice on local life

Optimize Taxation

Inquire about the tax benefits available for real estate investors in the Dominican Republic. Some areas benefit from interesting tax incentives to encourage real estate development.

Renting out a property long-term in the Dominican Republic can be an excellent investment opportunity. With a good understanding of the local market, a solid legal framework, and effective management, you can benefit from attractive returns while contributing to the economic development of this magnificent Caribbean country.

Remember that every investment carries risks and it is crucial to research thoroughly and surround yourself with competent local professionals before getting started. With the right approach and a little patience, your real estate investment in the Dominican Republic could well become a stable and sustainable source of income.