Starting February 1, there will be hearings regarding short-term rentals in Puerto Rico, and certain companies like Airbnb are already sending up warning flags about any radical changes. There is a general feeling that short term rentals are more lucrative for landlords, thus creating a shortage of long term rentals. One focus of the hearings will be whether short term rentals should be allowed in residential zoned neighborhoods. As reported in El Nuevo Dia this past week, Airbnb states that if Airbnb is outlawed in those areas, it will be detrimental to the economy of Puerto Rico. Here is a link to the article, which is in Spanish:
Those that follow Puerto Rican politics think that the end result of these hearings is that homeowners will be allowed to rent out their residential properties as short-term rentals for 30% of the year. If they rent out for more than that percentage, they will then be considered commercial entities. Classifying the property a commercial entity opens new tax revenue for municipalities and the PR government, which ultimately is what the Puerto Rican politicians are most focused on. As to what this means from a zoning change basis, no one seems to know. The professionals we have spoken with think these hearings have more to do with reviewing current taxation and collection procedures.
Stay tuned.