Isabela municipal gov’t shores up $80K a month from short-term rentals
The town has around 500 active hosts offering homes for rent.
Isabela Mayor Miguel Méndez-Pérez announced that the town’s initiative to charge a fee on short-term rentals (STRs) has generated approximately $80,000 per month for the municipal coffers.
The initiative, implemented on July 1, 2023, requires STR owners to obtain an annual license, with fees ranging between $250 and $1,000 depending on the business’ capacity. This measure is based on field research, legal provisions and feedback from four public hearings held in local communities, the mayor said.
Isabela’s Project Development and Internal Revenue Management Office is responsible for overseeing this initiative in accordance with Act 107 of August 14, 2020, also known as the Puerto Rico Municipal Code. This act grants municipalities the authority to regulate industries like STRs “to protect the general welfare,” provided the regulations are reasonable.
“Here in Puerto Rico, as in the rest of the world, short-term property rentals have become an industry that generates a very prosperous economic activity, both for companies and for landlords or hosts,” said Méndez-Pérez.
“Isabela, known as the ‘Garden of the Atlantic,’ is a first-rate tourist center. Certainly, the Puerto Rican entrepreneurial spirit has effectively inserted itself into this global trend, offering rooms, apartments and homes of all kinds for rent,” the mayor added.
The regulation is enforced through Ordinance #20 Series 2022-2023, and as of May 15, 2022, Isabela had around 500 active STR hosts, according to Airbnb data. The town has also created a registry of STR owners and available facilities as a first step in organizing and regulating this sector.
