Ley 85-25

In August 2025, the Dominican Republic took a significant step in modernizing its legal framework with the approval of Law 85-25 on Rental of Real Estate and Evictions . This legislation replaces the old Law 4314 of 1955 , which had limitedly regulated rental relationships in the country for more than six decades.

The new law seeks to balance the relationship between landlords and tenants , providing greater legal certainty, transparency, and speed in processes related to rental contracts and evictions.

Why was a new Rental Law necessary in the Dominican Republic?

For years, the country’s rental market operated under an outdated regulatory framework that failed to meet current social, economic, and legal needs. Law 85-25 was created in response to this reality, incorporating modern rules that seek to:

• Ensure fairer and clearer contractual relationships .
• Regulate the security deposit and the limit on rent increases .
• Formalize rental contracts through mandatory registration.
• Establish a faster eviction process, but always under a court order.

Main contributions of Law 85-25

Among the most relevant points introduced by this law are:

Regulation of rental contracts

• All contracts must be in writing and contain complete information about the parties, a description of the property, terms, and conditions.
• The owner may request a deposit of up to two months’ rent .
• Contracts must be registered with the corresponding city council and notified to the MIVED for statistical purposes.

Limits on rent increases

The adjustment in the rental price may not exceed 10% annually of the agreed amount.

Obligations of the owner

• Deliver the property in suitable safety and health conditions.
• Carry out repairs necessary for the maintenance of the property.
• Ensure the peaceful use of the leased space.

Tenant’s obligations

• Pay the rent on time.
• Use the property in accordance with the purpose established in the contract.
• Return it in good condition at the end of the contractual relationship.

Eviction process and judicial jurisdiction

• All evictions must be approved by a judge , eliminating arbitrary practices.
• Disputes over housing contracts will be heard by the Justice of the Peace Courts , while commercial or non-profit institutional contracts will be processed in the Courts of First Instance .

Impact on the real estate sector

Law 85-25 represents a structural change in the Dominican rental market. Its main impacts include:

• Greater formalization and transparency in contractual relationships.
• Increased trust between owners and tenants .
• Boosting real estate investment thanks to legal security .
• Promoting access to decent and fair housing.

Who is excluded from Law 85-25?

The regulations do not apply to:

• Rural estates.
• Guest houses and lodgings.
• Companies located in free trade zones with their own regulations.
• Properties for tourist or recreational purposes (stays less than 90 days).
• State assets for lease.

Conclusion

Law 85-25 on Real Estate Rentals and Evictions marks a turning point in the Dominican legal system, offering a balanced and modern framework that protects both tenants and owners.