There are around 500 active hosts in the city who offer houses for rent.

Isabela Mayor Miguel Méndez-Pérez announced that the city’s initiative to impose a fee on short-term rentals has generated about $80,000 per month for municipal coffers.

The initiative, which will take effect on July 1, 2023, will require STR owners to purchase an annual license, with fees ranging from $250 to $1,000 depending on the size of the business. The measure is based on field research, legislative requirements and feedback from four public hearings in local communities, the mayor said.

Isabela’s Office of Project Development and Fiscal Administration is responsible for overseeing this initiative under Law 107 of August 14, 2020, also known as the Puerto Rico Municipal Code. This law grants municipalities the authority to regulate industries such as STRs “to protect the general welfare,” provided the regulation is appropriate.

“Here in Puerto Rico, as in the rest of the world, short-term property rentals have become an industry that generates very lucrative economic activity for both companies and landlords or hosts,” said Méndez-Pérez.

“Isabela, known as the ‘Garden of the Atlantic’, is a first-class tourist center. The Puerto Rican entrepreneurial spirit has certainly successfully integrated itself into this global trend, offering rooms, apartments and houses of all kinds for rent,” added the mayor.

The regulation is enforced through Ordinance No. 20, Series 2022-2023, and according to Airbnb data, there were around 500 active STR hosts in Isabela as of May 15, 2022. The city has also created a registry of STR owners and available establishments, as a first step toward organizing and regulating this sector.

This content was created by News is my Business staff. Send questions, comments and suggestions to (email protected).