In the last few years, several regulations have been implemented concerning properties used for short-term tourist rentals, such as those found on Airbnb or Booking.com, which investors should keep in mind when searching for a property suitable for an Airbnb business in Colombia.

Rentals under 30 days need permission from the building or community by-laws

Some apartments or houses are prohibited from being rented out for a time period of less than 30 consecutive days due to the community by-laws which bind the property. These community by-laws, called the Reglamento de Propiedad Horizontal, function much like Home Owner Association by-laws in the US, charging monthly administration fees to care for common areas, security, and amenities, and enforcing rules regulating noise levels, building appearance, and rental activities.

By Colombian law, any property that is bound by a Reglamento de Propiedad Horizontal must have permission to rent for less than a 30-day period written into the by-laws themselves. If a Reglamento de Propiedad Horizontal is silent on the issue, the default rule is that rentals for less than 30 days at a time are prohibited. Keep in mind however, that the Reglamento de Propiedad Horizontal can also place additional restrictions such as rentals less than 90 or 120 days can be prohibited.

By-laws regarding Property Managers

In buildings and communities where under 30-day rentals are allowed, the Reglamento de Propiedad Horizontal sometimes may dictate that any future short-term rentals must use a specified Property Management Company. The ostensible reason for this is security. That one company keeping track of, and gatekeeping, the short-term renters that will be entering the building makes it safer for the long-term residents of the building. This may or may not be true, but often the real reason behind these restrictive clauses are that the Property Management Company owns or manages enough of the apartments in the building to be able to swing the vote at the Association meetings.

Short-Term Tourist Rentals require a Tourism License

Colombian law also states that landlords who rent to the short-term tourist market must obtain a tourism license, called a Registro Nacional de Turismo. This law was created to put Airbnb hosts on a level playing field with hotels and hostels, which were already required to obtain this license.

Airbnb and Booking.com in Colombia require that a property owner now input and display their Registro Nacional de Turismo on their apps or they will be locked out from renting their property.

Advice: Property Managers

Finding a good property manager in Colombia is tough. Many of our clients who rent out high-end Airbnbs have had to switch property managers several times, one went through 3 in a year. The issues generally stem from not understanding what is and is not acceptable to foreign guests and not adapting even if they are told. An example is not responding to a complaint about a leaking ceiling because it is a three-day holiday in Colombia. Another is to set up a time for an appointment and then keep delaying in showing up and wasting the guest’s day. This kind of irresponsibility is something most Colombians have grudgingly accepted as part of normal landlord behavior but it has resulted in our clients getting negative reviews and the loss of Superhost status on Airbnb. Our advice is: if you do find a good property manager, hang on to them. Pay them more if you have to as they are worth their weight in gold.

At Restrepo Legal, we can help you through every step of your property purchase to make sure it is problem free. From title searches to the drafting of a real estate contract, from fund transfers to the handing over of the keys, we will help you protect your investment and make sure you will be able to enjoy it for years to come. Contact us now if you want peace of mind regarding your real estate purchase in Colombia.