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Accommodation in Dominican Republic: scams you should look out for

Last activity 22 August 2022 by Tippj

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Bhavna

Hi,

Committing to renting or buying accommodation when you’re new to or have not moved to the Dominican Republic just yet is always a stressful endeavour. Would you like to help us in putting together a handbook of what to look out for when house hunting in Dominican Republic?

What are the most common scams in Dominican Republic?

What are the red flags to look out for when scanning through adverts?

Is there a list of registered or accredited landlords or real estate agencies in Dominican Republic?

What authorities should be sought should one come across an accommodation scam?

Please share your experience,

Bhavna

cruffman

i am not well versed in matters such as the real estate horse trading, in the DR, but i am sufficiently familiar with the culture to proffer this bit of advice....

DO NOT cut corners trying to save money on attorney fees.  do your research, and make sure you get a reputable, COMPETENT attorney. you cannot throw a rock in the DR without hitting an ''abogado''. every guy who drove past a university campus is a lawyer. most of them are barely paralegals, but, by their admission, they are supreme court judges.

get a good lawyer...it is the best money you will ever spend in this country. fail to do that, and you will discover, in due course, that the house you think you own has 10 other owners. it is the Wild Wild West out there.

nantucket

Hi Bhvana how are you?Do your dew diligence on a good Attorney. It is best to spend extra for guaranteed security.I use Guzman Ariza.
They have offices all over the country and are bilingual.The majority of Expats who have purchased land/property in my area and have further inquires have used this company for a number of years.
All the best john

planner

A good topic for discussion. We have covered much of this already.

1. What are the most common scams in Dominican Republic?   NONE really its buyer beware period. They will tell you its a quiet neighborhood and it won't be. They will tell you the electricity is  24 hours and it won't be. ETC.    Basically they will tell you what they think you want to hear in order to rent a place.

2. What are the red flags to look out for when scanning through adverts?   Most places are not rented via adverts. Most are BOOTS ON THE GROUND -  identify an area you like, walk or drive it and look for signage. Call and follow up.

3. Is there a list of registered or accredited landlords or real estate agencies in Dominican Republic?
NO that does not exist here.

Make sure you know the areas you want to rent or buy in. IF buying and you have just arrived, please rent for  6 to 12 months first. It is not easy to sell if you decide you don't want to live here.

Take your time!   Do your research,  check the  availability of water,  electricity  circuits,  which cell phone service works,  which  internet  suppliers are in the area etc etc. Take NOTHING for granted like at home!   

Make sure your lawyer looks over the rental contracts!

LZoe

Planner already answered this pretty well!

I will add just a little more based on my experience as a renter.

The best and most effective way to find a rental property is to go to the neighborhood where you wish to rent and look for "se alquila" signs. Make sure you look up and not just at street level. Oftentimes the sign will be on the railing of the balcony of the actual unit for rent and therefore the sign could be pretty high up. Ask people on the street if they know of any rentals nearby. Stop in at the colamados (small neighborhood stores) and ask.

I would reiterate that you should do your own research and absolutely do not rely on anything that is said to you by your potential landlord. It is indeed common to find out after the fact that most of what you have been told is a lie unfortunately.

Read your contract thoroughly. Ensure everything you agreed upon is included (water, parking, maintenance, etc). Does it address who is responsible for maintenance issues? Check to make sure the contract addresses quite clearly what condition the apartment should be in for you to get your deposits returned. If any language is vague, ask for clarification and then have the contract revised. Landlords are notorious for attempting to keep your deposit at the end of the contract. Also, oftentimes it is not sufficient to simply clean the apartment before you vacate, many landlords will expect you to paint as well.

If you do find yourself in a dispute with your landlord, you may file a claim at the fiscalia (prosecutor).

planner

It is quite normal to have to paint when you leave IF it was freshly painted when you arrived.

And most renters here live out their deposit rather than try to get it back.

thecolonel

Here's what I did once to get my 10k deposit back.  When I came in, the landlord insisted that I pay it up front, and promised he would pay apy when I left.  But he tried to worm out of it, saying it would take a couple of weeks to get.  Of course, most gringos will just walk away.  What I did was to contract with a local man, one I pretty much trusted, to come with me to the landord....I said that I sold my deposit money to this local friend, thus the landord now owes 10k to this really tough looking young guy,  The landlords face turned white, and said no problem to my friend.   Within a week my friend got the 10k, and I gave him the 1k commission I promised him for this service.

planner

Hahahahaha  this is brilliant!!!!   And clearly it works.

Recently the law changed and landlords are required to place deposit money in  a special account blah blah blah.  OF course none of them do that.  Big commercial companies, maybe. Even they are unlikely.

Getting back your deposit is NOT easy to do and landlords will find any and all excuses to hold onto it. I always take  photos when I look at the place first time.  Photos the day I move in, seriously detailed photos. Then I take photos of ANY and ALL improvements I make. Then when I move I take another set of photos.  Document EVERYTHING!

thecolonel

Yes, the photos idea should be done as well, so they can't say say you destroyed any tiles or whatever.  And with my solution about the deposit,  to get a local, they would never dare try to reneg on a 10k debt to a local man.

planner

Yup, its brilliant.

One issue you run into when renting a location.  How do you check water,  outlets etc when there is no electricity? AND you cannot get electricity without a rental contract!

So you have to have a clause that says you will sign off on the state of the property AFTER you arrange utilities and you will meet with the landlord and check everything.   THEN once you check and come to agreement then and only then to you finalize the Addendum to the contract!

Case in point, I recently rented a house.  WE knew there were some issues.  However  once the electricity etc were one we discovered the water pump did not work and had not worked for months.  2 story house imagine no water on the second floor.

And because they had no used either shower on 2nd floor in months,  or maintained anything, none of the taps worked.  Toilets had issues.  Sinks had issues.  Taps and showers did not work. All of it had to be repaired.  The landlord is on the hook for this.

Once I signed off and took full possession then I am responsible for maintaining this.    Make sure if you are renting you understand if something breaks then normally you are fixing it......

Guest123956

Wow! Planner, l have been reading the threads on renting and buying in the DR. And l have decided to rent and not bother buying. I didn’t know that you had to worry about so much when simply renting. I am aware of the culture and the corruption in the DR.  I have visited and vacationed in Puerto Plata many times and l like the city. Also l think that Santiago De Los Caballeros is a much better and cleaner place to live. The streets are better and the city overall appears to be better maintained. What Are your thoughts about these two cities? Is it cheaper, are the apartments better?  Also I am looking at shipping my car to the Dominican Republic. Can you tell me if possible what I can’t expected to pay for car insurance?

planner

There is a lot to look out for. 

Both Puerto Plata and Santiago have a lot going for them.  Puerto Plata has more expats, beaches,  more tourism type activity.

Santiago has more culture and the  population tends to be better educated.  Rentals should be less expensive in Santiago.  That said you need to look around.   Yes it is cleaner  in my opinion. 

Do not import your car!  IF you do it with residencia it will still cost you a lot of money. Without residencia its going to seriously cost you money!   Far better to get  our local expert (whose name escapes me)  to help you find a local vehicle! 

Car insurance is based on the type of insurance and the value of the vehicle.

Karin1
@thecolonel

This is very good, wish I read that before. Abit amusing but effective too.  Perfect for a private deal,  but how do you get around something like the local power company asking for a deposit?   

I signed directly with the power company and after leaving to go to another location in less than 1 year (and giving them notice)  I waited patiently for 2 months and then when they finally settled the account, they said I will not get the deposit money back, because they had to use it for a "setup fee".  I asked them to show me where in the contract it said that and they just ignored me, never replied.   I thought it was better to have control of the power by having my name on the contract.  I thought about going to court but the legal fees seemed to be outrageous, its going to take a very long time, and maybe its another waste of money.
Karin1
@cruffman


Thats very amusing Cruffman.  Thank you for your excellent advice, experience counts.  When I get to your area next time we can do lunch if it suits you.
Have a great day!   
Karin1
@planner

Thanks for this post.  I know its an older post, but wondering, if this happened to me, can I request the deposit be returned if the issues are not resolved in 1 week or 2.  I imagine this would be alot of work to repair, and what if you have to move out of your old place and you cant get in the new place.
modaisky1971
As far as getting deposits back, I'm just not paying last month's rent here.  It would take them 30 days to do anything with the courts and it wasn't even signed by a lawyer.  We put so much money into this house on repairs and maintenance (replaced toilet seats, replaced rotten cupboard hinges, repaired leaky pipes that were put on backwards, infestation issues etc.).  We had no hot water for the first 3 months because they kept trying to repair the old hot water heater before they finally replaced it.  We had the seized taps repaired so we could put in a working washer.  We took pictures of everything.  I'm sure the landlord isn't going to be happy with us, but I don't trust they will give it back saying they had to replace the hot water tank, etc.  Not my problem.
Tippj
..??? I thought when I decided to rent I’ll just hand them ( tenets )the electric bill
That’s address to their apartment…. If they don’t pay it they’ll have no electricity
If they move without paying it their deposit and security and month in advance will pay
For it…….🤔
planner
@tippj when tenants move in it is best to transfer the services out of your name! Otherwise you are still legally responsible for them not paying the bill. It reflects on you.

Pay the acct to zero and go to the electric company with the tenant and transfer it to their name. You need both your and their ID and a rental contract.

Or you close the account and they open a new one!
Tippj
@planner
    👍…. My friend did that w/his tenant and the electric company shut the power off on the tenant ….when he got rid of the tenant, the company wouldn’t turn the power back on for the new tenant until my friend Satisfy said bill , $$ he said if he kept the bill in his name he would have known a month earlier they were behind in payments and would have thrown them out before it got to owing 2 months electric … he only found out when they came to pull the meter……😟thank you , will take under advisement ….👍
planner
So there are a couple things to know - leaving in your name effects your credit. And legally you can't throw anyone out after 30 or 60 days.

They catch you every which way here. That's why being a landlord can be full of stumbling blocks. 

I have had some amazing landlords here and I have had some #-&69_!$# landlords!

I have lived out my deposit on two occasions and I have walked away from one! It was unsafe where I was. All other times I got deposits back when I moved.  FYI - I have lived in a number of locations for a variety of reasons! And I had to learn on the fly
polo1club
All these reasons are why it is so important to have a good property manager taking care of all these things for you! Peace of mind!
Tippj
My friend had a problem with a tenant who wouldn’t pay his rent , so he found a think it was a cop on a motorbike and he talked him into knocking on the door to collect the rent for him for a fee of $100USD ….my friend said he wasn’t even there at the time and heard everything over the phone . he was 😂 because when the cop knocked on the door he told the tenant he was kicking him out Right Now unless he paid in full “Right now” the tenant transferred the money right into my buddy account on the spot
He said it was the best $100 he spent ……he said he has used the same tactic since in other locations because it worked so well…. And he’s putting a few $$ in the cops pocket….and keeping his books straight ….
planner
That is one way of handling it!  😎
DominicanadaMike
You have to be careful about putting utilities into a renter's name, particularly electricity at least here in the "CEPM" Bavaro\Punta Cana area.  If you have any problems with your tenant you may not be able to recover the electricity account and therefore not have a useable property.  This has happened to people I know.  We (CEPM) have the option to have a "pay as you go" account, so I have my apartments with this type of account.  My tenants are responsible to pay electricity and I ask for an electricity deposit.  If I have a problem with them not paying (I haven't in over 8 years) then I stop paying their electricity.  As soon as it runs out of money, no more electricity.  I usually only put in a small amount if I don't know the client.  It has worked for me.

There are a few tricks to ensure that you are getting good clients and I have been very fortunate and lucky, all in all.

Good luck folks!
planner
Wow!  That's great info. I wish the main suppliers would do that! Pay as you go is a good solution to many problems!
Tippj
Yeah that’s really good to know , kudos…, I think just handing them ( tenants ) one of the little pieces of paper ( electric Bill’s) that  they throw in my driveway every month  hoping I will see it is better  …they all get paid automatically by credit card every month
I mean at my age I’m not too worried about credit scores … in the DR … and I doubt it will affect it in the states but I’m never really going to apply for a loan or mortgage … something to ponder ….🤔 and if the bill is not in there name I don’t have to sign a lease w/them and they can pay as they go…. And maybe I could just put a padlock on the door if there’s a problem….. just thinking out loud….
planner
Your credit here has no effect on your American credit. Your American credit has zero effect on your credit here.

You don't have any lease with them?  Please clarify if I read that correctly.  If that is correct then it opens an entire can of worms honey.

By the way, call or visit the electric company and get your bills sent to your email.  That way you always have that record.  I remember seeing the electric bills in the driveway, soaking wet and completely unreadable.
Karin1
@Tippj

What, hiring police to collect the rent not paid.  Good one!
Karin1
Seems the electric bills I have seen are well formatted nice looking documents. My first place as a tenant in DR, the owner had the bill in their name and the management company would forward it to me by whatsapp.  It always arrived just before the due date and I had to pay the management company. 

The second place, the electric bill was in my name by request, but a $450 deposit was required to be able to turn on the power. Deposit will be returned when the apartment is vacated and after the last bill is issued and paid.
DominicanadaMike
@Karin1:  Be careful and aware Karin.  The electric companies do not like to give back money.  You may be able to get it back from the owner or the next tenant but it's risky getting the account in your name.  You may find it difficult to get away from even after your lease has expired...
Tippj
@DominicanadaMike
     Yer know Mike , the woman I bought my house from said she never put the electric bills for the apartments in any ones name in 30 years .. and she said she never sign a lease with anyone …. And never had a problem… she also said not to put one’s name on any  Piece of paper because then your acknowledging the renters have some sort of rights … she said she set the rules about music and late night noise …. Never a problem
Tippj
@Karin1
    What season cop wouldn’t want to make a quick $100 USD ….

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