Last Tuesday, a German investor walked into my office with a problem that costs about $18,000 to fix. He owns a beachfront condo in Ocean Village, Cabarete. Beautiful unit. Ocean views. Fully furnished. He rented it to a Canadian couple on a six-month lease he downloaded from LegalZoom and translated using Google. The lease expired eight months ago. The tenants stopped paying three months ago. They're still living there. And under Dominican law, because he accepted one payment after the contract expired, he accidentally created a new indefinite lease with full tenant protections under Decree 4807.
The eviction will take at least a year. Probably longer if they appeal. His legal fees will run $3,000 to $3,500. He'll lose another $15,000 in unpaid rent during the process. All because he saved $500 by not hiring a local attorney to draft the original contract.
This is the reality of Dominican Republic property management that the glossy investment brochures don't mention. The North Coast offers legitimate rental yields—Q1 2025 data shows an average of 7.12% gross returns, significantly higher than the 3-4% you'd see in most U.S. markets. Sosúa specifically sees yields between 6-9% annually, while Cabarete's kitesurfing crowd drives returns of 7-14% for well-managed beachfront condos. But those numbers assume you actually collect the rent. They assume you can remove a non-paying tenant without spending a year in court. They assume your lease was written by someone who understands that Dominican law operates on the Napoleonic Code, not Common Law, and that the entire system is designed to protect the "weaker party"—which is always the tenant, never you.
Most investors look at the North Coast and see 7% returns, but they often miss the fine print that can wipe those profits out in a single season. Managing a rental here is not just about handing over keys; it is a legal tightrope walk between the Civil Code and a tenant who might know the system better than you do. We have seen too many Sosúa real estate investment dreams turn into year-long eviction nightmares simply because the landlord relied on a handshake or a generic online template. Effective Dominican Republic property management requires a defensive strategy that starts long before the tenant moves in.
Key Takeaways
- Tenant Protection Reality: Decree 4807 (1959) prohibits eviction even after a contract expires unless you can prove specific cause in court—a process that typically takes 6-12 months minimum
- The Guarantor Requirement: Without a solvent "Fiador Solidario" (co-signer who is jointly liable), collecting unpaid rent from a foreign tenant who leaves the country is practically impossible—international arbitration or judgment domestication costs exceed the value of most rental debts
- Tax Compliance: All rental income must be reported to the DGII; foreign individuals pay 15-25% income tax on net earnings, while properties held in Dominican companies face a 27% corporate rate
- Occupancy Math: Average Airbnb occupancy in Sosúa has declined to 43%, while Cabarete performs slightly better at 53%—meaning your yield projections need to account for significant vacancy periods
- Maintenance Budget: Coastal properties require $200-700 USD monthly maintenance (excluding HOA) due to salt air corrosion and humidity levels of 78-81% year-round
The Civil Code Doesn't Care About Your Business Plan
Here's what happens when you rent property in the Dominican Republic without understanding the legal framework. You think you're entering a landlord-tenant relationship. The Civil Code thinks you're entering a quasi-permanent arrangement where the tenant has more rights than you do.
The governing statute is Decree 4807, passed in 1959. It was designed to prevent landlords from arbitrarily evicting tenants during a housing crisis. Sixty-seven years later, it's still the law. And it still freezes rents and prohibits eviction without specific judicial cause, even if your contract has expired, even if the tenant hasn't paid, even if you want to move into the property yourself.
Under Article 1738 of the Civil Code, if a tenant remains in your property after the lease ends and you accept even one payment, you've automatically created a new indefinite lease under the same terms. This is called "Tácita Reconducción"—tacit renewal. The new tenancy is regulated by Article 1736, which typically implies an indefinite term requiring specific notice periods for termination. Once that happens, you're stuck. You can't just change the locks. You can't cut off utilities. Both actions are criminal offenses in the Dominican Republic, punishable by fines and potential jail time.
The law also requires landlords to deposit rental security deposits at Banco Agrícola under Law 4314. This isn't optional. If you skip this step—and most foreign landlords do because they've never heard of it—you forfeit your legal standing to sue for eviction or unpaid rent. The court will dismiss your case. The strict legal penalty is a surcharge of 10% for each month of delay, capped at 50% of the deposit amount. But in practice, by the time you realize you need to deposit the money to file a lawsuit—often 1-2 years into a tenancy—the surcharge has hit the 50% cap, and legal and administrative costs bring the total cost to fix close to double the deposit amount. You'll have to pay before you can refile. And the clock starts over.
The maximum legal rent under Decree 4807 is technically capped at 1% of the property's value (including land) per month. This rule is rarely enforced in the luxury market, but it remains a valid legal defense for tenants. The Rent Control entity can reduce rent if it exceeds this threshold—I've seen tenants cite it successfully to reduce their rent obligation during eviction proceedings, often as a stalling tactic to negotiate lower payments.
Foreigners have the same rights as citizens to own and rent property—that's guaranteed by the Constitution and Foreign Investment Law 16-95. But those same rights don't protect you from a legal system that assumes you, as the property owner, have more resources and therefore need fewer protections than the person living in your condo.
What a Bulletproof Lease Actually Looks Like
A U.S. or Canadian lease template is worthless here. I don't mean it's suboptimal. I mean it has no legal effect. In Dominican courts, only the Spanish version of a contract is binding. English translations are for your convenience, not for enforcement.
The single most important clause in any Dominican lease is the Fiador Solidario. This is a co-signer who is jointly and severally liable for the rent. Not just morally obligated. Legally liable. If the tenant doesn't pay, you can sue the Fiador directly without first exhausting remedies against the tenant—but only if you explicitly waive the "beneficio de excusión" (benefit of excussion) in the contract.
The Fiador must be solvent. That means they need to own property in the Dominican Republic or have verifiable income. A friend in Canada doesn't count. A cousin in Miami doesn't count. The Fiador needs to be someone you can actually collect from if things go wrong. And things go wrong more often than you think.
Without a Fiador, recovering unpaid rent from a foreign tenant who has left the country is practically impossible. The Dominican Republic does not have reciprocal wage garnishment treaties with the US or Canada for civil rental debts. If a foreign tenant leaves without assets in the DR, the cost of international arbitration or domestication of a judgment exceeds the value of unpaid rent—typically $5,000-$15,000. Collection agencies won't touch it. You're just out the money.
The second critical clause is the waiver of tacit renewal. You need explicit language stating that if the tenant remains in the property after the lease expires, no new lease is created. This directly contradicts Article 1738 of the Civil Code, but it's legally enforceable if both parties sign it. Most tenants will sign it because they don't understand what they're signing. That's not your problem. Your problem is protecting your asset.
Third: jurisdiction. You must specify the Justice of the Peace (Juzgado de Paz) in Sosúa or Cabarete as the venue for disputes. If you file in the wrong jurisdiction—say, the main court in Puerto Plata—your case will be dismissed immediately. You'll have to refile in the correct court, losing months in the process.
Fourth: maintenance responsibility. The Civil Code defines "locative repairs" (reparaciones locativas) as the tenant's responsibility, but it doesn't define what those are. Your contract needs to specify. A common clause assigns repairs under $100-200 USD to the tenant. Anything above that is your responsibility as the landlord. This prevents the tenant from calling you at 2 a.m. because a lightbulb burned out.
Fifth: the Banco Agrícola clause. State explicitly that the security deposit will be deposited at Banco Agrícola as required by Law 4314. Include the account number if you have it. This protects your right to sue later.
The contract must be notarized. A Notary Public in the Dominican Republic charges between $50 and $150 USD to legalize signatures. This prevents the tenant from claiming "that's not my signature" later, which is a common delay tactic that adds three months to litigation.
For the contract to be effective against third parties—say, if you sell the building or die—it must be registered at the Title Registry. This costs extra and takes time, but it's the only way to ensure the lease survives ownership changes.
One more thing: if your tenant is a company (e.g., you're renting to a business), that tenant must withhold 10% of the rent and pay it to the DGII as an advance on your income tax. This is non-negotiable. If they don't do it, you're still liable for the tax. Include a clause making the tenant responsible for this withholding.
The Tax Reality Nobody Mentions in the Brochures
The "tax-free" Caribbean is a myth. Rental income in the Dominican Republic is taxable. The Dirección General de Impuestos Internos (DGII) is aggressive. Failure to pay can result in liens on your property.
First, you need an RNC (Registro Nacional de Contribuyentes). This is your tax ID number. You cannot legally pay taxes or issue valid invoices without it. The registration process takes 5-10 business days. You'll need your passport, a reference letter, and proof of income. Some banks will also require this to open an account.
If you're an individual (Persona Física), you pay Income Tax (ISR) on a progressive scale ranging from 15% to 25% on net taxable income. You can deduct proven expenses—maintenance, administration, property management fees—from your gross rental income. Or you can opt for a standard deduction if you qualify for the Simplified Tax Regime (RST), which applies to individuals with income under approximately RD$11.1 million annually (about $185,000 USD).
If you hold the property in a Dominican company (SRL), the corporate income tax rate is a flat 27% on net taxable income. This is higher than the individual rate, but it offers other benefits—primarily liability protection and easier inheritance planning.
There's also the IPI (Impuesto Patrimonio Inmobiliario), which is a 1% annual tax on the value of the property exceeding approximately RD$10.19 million (adjusted annually for inflation, roughly $172,000 USD as of 2025/2026). This applies regardless of whether you're renting the property or living in it. The only exception is if you qualify for the CONFOTUR exemption (which applies to specific new developments) or the retiree exemption under Law 171-07, which offers a 50% reduction on property taxes if you move your pension residency to the Dominican Republic.
Then there's ITBIS—the 18% value-added tax. Long-term residential rentals are exempt. But short-term tourist rentals (Airbnb-style) are technically subject to ITBIS. The law is vague on this point, and enforcement is inconsistent, but the risk is there. If you're renting furnished properties on a short-term basis, you should be collecting and remitting ITBIS. To do that, you need to issue a Comprobante Fiscal (fiscal receipt) with a valid NCF number, which requires RNC registration.
If you're registered for ITBIS, you can deduct the ITBIS you pay on expenses (internet, maintenance supplies, utilities) from the ITBIS you collect from guests. This is called an "input tax credit." It reduces your effective tax burden, but it also increases your paperwork.
One more wrinkle: if you're remitting rental income directly abroad to a non-resident without a local agent, the withholding tax can be as high as 27%. This is a definitive payment, meaning it's not an advance—it's the full tax liability. To avoid this, you need to structure your affairs so that income is received by a local entity (either you as an individual resident or a Dominican company).
The penalty for non-compliance is steep. The DGII can impose fines equal to 100% of the unpaid tax, plus interest. They can also place a lien on your property, preventing you from selling or refinancing until the debt is cleared. I've seen properties stuck in limbo for years because the owner ignored a $3,000 tax bill that ballooned into a $15,000 liability.
The Eviction Process Is Not a Process—It's a War of Attrition
Let's say you did everything right. You hired a lawyer. You drafted a proper lease. You registered it. You deposited the security deposit at Banco Agrícola. You got a Fiador. And the tenant still stops paying.
Now what?
In theory, the eviction process is straightforward. You file a complaint with the Justice of the Peace. The tenant is served. A hearing is scheduled. The judge rules in your favor. You get a writ of eviction. The bailiff executes it. Total time: 30 days.
In practice, the process takes 6 to 12 months minimum. If the tenant appeals, it can take three years or more.
Here's why. Before you can even file a lawsuit, you need to obtain a "Certification of No Deposit" from Banco Agrícola. This proves that the tenant hasn't deposited rent there (which they're allowed to do if they claim you're refusing to accept payment). If you didn't deposit the security deposit at Banco Agrícola in the first place, you're stuck. The court will dismiss your case. You have to pay the surcharge—which has likely hit the 50% cap by now, plus legal and administrative costs that bring the total close to double the deposit amount—before the court will hear your case.
Once you file, the tenant is served by a bailiff (Alguacil). The tenant has a right to respond. If they claim they did pay rent (even if they didn't), the judge will schedule a hearing to review evidence. This can take 2-3 months just to get on the calendar.
At the hearing, the judge will often grant the tenant a "grace period" (plazo de gracia) of 15-30 days to vacate, even if the evidence clearly shows non-payment. This is a humanitarian gesture. It delays possession.
If the tenant appeals, the case moves to a higher court. Under the old system, this stopped the eviction entirely. New reforms attempt to make non-payment evictions "provisionally enforceable," meaning you can execute the eviction while the appeal is pending, but this is inconsistently applied.
Even after you win, you can't physically remove the tenant yourself. You must hire a bailiff and request the Public Force (police) to execute the eviction. The bailiff will schedule a date. If the tenant isn't home, the bailiff will reschedule. If the tenant has children, the judge may grant another grace period. If the tenant claims they have nowhere to go, the judge may grant another grace period.
The average "bad tenant" scenario results in eight months of lost rent before eviction is successful. If you add legal fees ($1,000 to $3,500), you're looking at a total loss of $20,000 to $30,000 on a property that might only net $30,000 per year in rent.
This is why the Fiador is so important. With a solvent Fiador, you can sue them directly and collect from their assets while the eviction is pending. Without a Fiador, you're just bleeding money.
One more thing: squatters. If someone occupies your property without a lease—say, a caretaker who refuses to leave—they're classified as an "Intruso" (intruder), not a tenant. This is legally distinct. Evicting an intruso is handled by the State Prosecutor (Fiscal), not the Civil Court. The process is faster, but it requires proving that no landlord-tenant relationship ever existed. If you ever accepted payment from them, even once, they're a tenant, not an intruso, and you're back in Civil Court.
Self-Management vs. Professional Management: The Math You Need to See
Professional property management companies in Sosúa and Cabarete charge 20-30% of gross rental income for short-term vacation rentals. For long-term leases, the fee drops to 5-10% of the monthly rent, or one month's rent as a placement fee.
Is it worth it?
Let's do the math on a $350,000 condo in Sosúa. Assume you're renting it short-term on Airbnb. Gross rental income: $2,500/month ($30,000/year). Occupancy rate: 43% (the current Sosúa average). Actual gross income: $12,900/year.
If you self-manage, you keep 100% of that. But you also handle guest communication, cleaning coordination, maintenance emergencies, and tax filings. Cleaning costs you $20-50 per turnover. If you have 20 bookings per year, that's $400-1,000 in cleaning fees. Maintenance emergencies—a broken AC, a clogged drain—cost $100-300 each. Budget $1,500/year for those. Internet and utilities: $1,200/year. HOA fees: $1,800-4,800/year depending on the community. Property insurance (including hurricane coverage): $400-2,500/year. Total operating expenses: $5,300-11,500/year. Net income: $1,400-7,600/year.
If you hire a professional manager at 25%, they take $3,225. But they also handle the cleaning, the maintenance coordination, the guest communication, and often the tax filings. Your net income drops to $4,375-9,375/year after their fee and operating expenses. But you don't spend 10 hours per month dealing with guest complaints and broken water heaters.
The real value of professional management isn't the time savings. It's the occupancy rate. Top-tier professionally managed properties in Cabarete achieve 70%+ occupancy. That's the top 10%. The median is 32%. If a professional manager can push your occupancy from 43% to 60%, your gross income jumps from $12,900 to $18,000. Even after their 25% fee ($4,500), your net income is higher than if you self-managed at 43% occupancy.
The other advantage: they maintain rosters of vetted tradespeople. When you call a plumber yourself as a foreigner, you get "gringo pricing"—inflated costs. A local manager negotiates in Spanish and pays local rates.
The disadvantage: not all management companies are competent. Some list your property on 15+ channels (Airbnb, VRBO, Expedia, Booking.com). Some list it on one or two and hope for the best. Some respond to guest inquiries within an hour. Some take three days. Some coordinate "face-to-face" check-ins to explain house rules and prevent party violations. Some just send a code for the lockbox and hope the guest reads the manual.
You need to vet them. Ask for references from other foreign owners. Ask how many properties they manage. Ask how many staff they have. Ask what their average occupancy rate is. Ask if they provide monthly financial statements. Ask if they handle tax filings or if you're responsible. Ask what their cancellation policy is if you're not happy.
For long-term leases, management is simpler. The fee is lower (5-10%) because there's less turnover. But the tenant screening is critical. Professional managers in the DR typically require a Fiador, the last three months of bank statements, a police record (Certificado de No Antecedentes Penales from the Attorney General's office, which costs RD$600), and a reference from a previous landlord with a phone number for verbal verification.
They also enforce the "2+1" rule: two months deposit plus one month advance rent. This filters out tenants with low liquidity. It's a financial screening tool.
If you're renting long-term to expats or retirees, the risk is lower. Sosúa is home to one of the Caribbean's largest German and Canadian expat communities. These tenants are often retired, have stable income, and are less likely to skip out on rent. But they're also more likely to know their rights under Decree 4807. They'll push back on clauses they don't like. They'll demand repairs. They'll cite the Civil Code if you try to raise rent mid-lease.
Tenant Screening When Credit Scores Don't Exist
The Dominican Republic has a credit bureau—DataCrédito. But many foreign tenants and informal workers won't have a file. So how do you screen tenants?
The Fiador is the primary tool. If a tenant can't produce a solvent guarantor, they're not worth the risk. End of story.
For foreign tenants, verify the entry stamp in their passport. If they're on a tourist visa, they're only allowed to stay 30 days (extendable to 120 days with a fee). If they've been here longer than that, they're overstaying. That's a red flag. They're already breaking immigration law. Why would they respect a rental contract?
Request the last three months of bank statements. You're not looking for a credit score. You're looking for liquidity. Can they pay the first two months of rent plus the deposit? Do they have consistent income or are they living off sporadic transfers?
Request a Certificado de No Antecedentes Penales (Certificate of No Criminal Record) from the Attorney General's office. It costs RD$600 and validates the tenant's good conduct. Most foreigners won't have one because they don't know it exists. That's fine. The request itself is a screening tool. If they refuse, walk away.
Check if they have a history with Banco Agrícola. If they've been part of a formal, compliant lease before, there will be a record. If not, they've only rented informally, which means they don't respect the system.
Request a "Carta de Referencia" from a previous landlord. But don't just accept the letter. Call the landlord. Verify the phone number. Ask specific questions: Did the tenant pay on time? Did they maintain the property? Did they cause any complaints from neighbors? How long did they stay? Why did they leave?
The "2+1" rule (two months deposit plus one month advance rent) is non-negotiable. This filters out tenants with low liquidity. If they can't come up with three months of rent upfront, they're a risk.
For corporate tenants (businesses renting for employees), request a copy of the company's RNC registration and proof that they're current on tax filings. If they're not registered with the DGII, they're operating informally, and you have no recourse if they stop paying.
Maintenance in a Climate That Wants to Destroy Your Property
Coastal properties in Sosúa and Cabarete face two enemies: salt air and humidity. The salt air (salitre) corrodes metal, accelerates the aging of electronics, and degrades paint. Humidity levels hover between 78% and 81% year-round, creating ideal conditions for mold.
Budget $200-700 USD per month for maintenance, excluding HOA fees. This is not optional. This is the cost of owning property in the tropics.
Air conditioning units require professional cleaning and servicing every 3-4 months. The cost is $30-50 per unit. If you skip this, the unit will fail. Replacement costs $800-1,500 depending on the size.
Exterior paint lasts 2-3 years on coastal properties, compared to 5-7 years inland. Repainting a two-bedroom condo costs $1,500-3,000. If you wait too long, the wood underneath will rot, and you'll be looking at structural repairs.
Cabarete receives an average of 1,025 mm (40 inches) of rain annually, with November being the wettest month (288 mm). Roof waterproofing must be inspected and resealed every 2-3 years. The cost is $500-1,000. If you skip this, you'll have leaks, which lead to mold, which leads to uninhabitable units.
Mold prevention requires dehumidifiers or proper ventilation. A good dehumidifier costs $200-400 and uses electricity. Electricity on the North Coast averages $0.124 per kWh, but in gated communities with private grids, it's often higher. Budget $50-100/month for electricity just to run dehumidifiers and fans.
For villas with pools, monthly pool care (chemicals plus labor) averages $80-130 USD. This is non-negotiable. Algae growth in the tropical heat is rapid. A neglected pool becomes a swamp in two weeks.
Property insurance (including hurricane coverage) costs $400-2,500 USD per year, depending on the property's value and proximity to the ocean. This is not optional. The Dominican Republic is in the hurricane belt. The 2024 season saw multiple storms. If you're not insured, you're gambling with your entire investment.
HOA fees in gated communities range from $150 to $400+ USD per month. This covers 24/7 armed security, which is the primary service you're paying for. Security expenses typically consume 40-60% of a gated community's entire HOA budget. Without security, your property is a target.
The Occupancy Reality That Kills Most Projections
Average Airbnb occupancy in Sosúa has declined to 43% as of 2025. Cabarete performs slightly better at 53%. This is not a temporary dip. This is the market reality.
Top-tier properties (Top 10%) in Cabarete achieve 77%+ occupancy. These are Superhost-rated, professionally managed, well-maintained units with fast internet, backup power, and prime locations. The median occupancy is 32%. That's the middle of the pack.
If your financial projections assume 70% occupancy, you're setting yourself up for failure. The math doesn't work at 43%. A $350,000 condo generating $30,000/year in gross rent at 100% occupancy only generates $12,900/year at 43% occupancy. After operating expenses ($5,300-11,500), you're netting $1,400-7,600/year. That's a 0.4-2.2% return on a $350,000 investment. You'd do better with a U.S. Treasury bond.
The solution is either to push occupancy higher (which requires professional management, premium finishes, and aggressive marketing) or to target long-term tenants. Long-term leases eliminate vacancy risk. A one-year lease at $1,500/month generates $18,000/year guaranteed. That's higher than the $12,900 you'd get from short-term rentals at 43% occupancy.
But long-term leases come with their own risks. You're locked in for a year. You can't adjust pricing based on demand. And if the tenant stops paying, you're looking at 6-12 months to evict.
The other factor affecting occupancy is infrastructure. Sosúa has officially identified "roads, drainage, and flooding" as critical failures. The main road from Sosúa to Cabarete is drivable, but the potholes near the entrance to most gated communities are a constant complaint from guests. The town itself has drainage issues that cause flooding during heavy rain. This impacts guest satisfaction and repeat bookings.
Cabarete has better infrastructure, but it's also more expensive. Properties there command higher nightly rates, but they also face stiffer competition. The "adventure tourism" market (kitesurfing, windsurfing) is steady, but it's seasonal. Peak season is December through March. The rest of the year, occupancy drops.
The Comparative Reality: DR vs. Dubai, Portugal, and Turkey
The Dominican Republic offers higher rental yields than most "exotic" investment markets. Q1 2025 data shows 7.12% gross yields in the DR, compared to 5-7% in Dubai and 3-5% in Miami. But yields are only part of the story.
The DR's GDP grew by 5.1% in 2024, the second-highest in Latin America. This is a stable, growing economy. The Dominican Peso has depreciated roughly 3-5% annually against the USD—a manageable slide compared to the Turkish Lira's collapse.
The DR offers residency with a $200,000 investment under Law 171-07. This is cheaper than the Portugal Golden Visa (now €500,000+). The residency process takes 4-6 months, not 12-18 months like in Europe.
Foreigners can own land freehold in their own name. This is not true in Thailand or the Philippines. There are no restrictions on foreign ownership. The Constitution guarantees this right.
The CONFOTUR Law offers a 15-year exemption on the 1% IPI property tax for specific new developments. This is a benefit not found in most U.S. or EU markets. But it only applies to newly approved properties in designated tourist zones. If you're buying resale, you don't get it.
Luxury oceanfront property in Cabarete costs $2,200-3,000 per square meter. In Miami, the same property would cost $10,000+ per square meter. The entry point is lower.
But the DR also has higher operating costs. Electricity is expensive ($0.124 per kWh). Maintenance is constant. Security is mandatory. And the legal system is slow.
The DR is not the "Wild West." It's a jurisdiction where paperwork is king. If you respect the process—if you hire the right lawyer, draft the right contracts, and pay the right taxes—you can build a profitable rental portfolio. If you cut corners, you'll spend years in court.
The Checklist You Actually Need
Before you buy:
Demand a "Certificación de Estado Jurídico" (Certificate of Status) from the Title Registry, dated within the last 30 days. This is the only valid proof of ownership. The physical title in hand is not enough.
Hire a private surveyor to verify the Deslinde GPS points match the physical walls. Discrepancies are common. Roughly 15% of unregistered land transactions face boundary disputes.
Before you lease:
Register for an RNC with the DGII using Form RC-01. It takes 5-10 business days.
Open a local bank account. You'll need your passport, a reference letter, and proof of income. Approval takes 2-4 weeks.
Hire a specialized real estate attorney to draft the lease. Not a general practice lawyer. Someone who knows Decree 4807 and the Civil Code.
Ensure the lease includes: a Fiador Solidario with waiver of beneficio de excusión, a waiver of tacit renewal, a jurisdiction clause specifying the Justice of the Peace in Sosúa or Cabarete, a Banco Agrícola deposit clause, and explicit maintenance responsibility definitions.
Notarize the lease. Cost: $50-150 USD.
Deposit the security deposit at Banco Agrícola. This is mandatory under Law 4314.
Create a photo-documented inventory signed by the tenant. "Wear and tear" disputes are the #1 cause of deposit arguments.
Ongoing:
File annual tax returns with the DGII, even if you have a $0 tax bill. Non-filing is penalized.
