Here are some key things you want to consider before having a vacation rental property in Puerto Rico.

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O 1) Insurance - Vacation Rental property insurance.  This is NOT the same as homeowner's insurance. (Estimate $600 per unit annually, on top of the property insurance).

O 2) Hotel Permit - PR requires a 1-time application to get your "hotelier's permit".  There is a small application fee involved - we are happy to help you through this process.

O 3) Taxes - 7% of the income goes to tourism taxes, specifically it gets written to the PR Tourism Co.  We calculate that each month and submit them for you out of your rental income. (Airbnb bookings pay the tax directly.)

O 4) Mortgage - Is your home owned in conjunction with an FHA or VA loan??   Unless it is a multi-family unit, you will want to check with your mortgage broker.  The terms of those loans do not allow for rental.

O 5) Annual Bond - As part of the hotelier process in PR, you are required to carry a bond that guarantees you will pay taxes annually.  You can expect this to cost approximately $250 per year.

O 6) Keypad entry -  Keypads are REQUIRED in order to qualify for many of the booking categories for vacation rental platforms.  If you are planning to work with us, please chat with us first before buying the system.

O 7) Zoning classification of building - This is for those who are VERY RISK AVERSE, and worried about the future.  While in PR there is no indication of this happening any time soon, both nationally and internationally, some communities have terminated or greatly reduced properties being used for vacation rental.  This has almost exclusively been done on a zoning category basis.  If the building / home you purchase is zoned for commercial or commercial mixed use - you have a much safer investment, if politics on the island were to ever turn against vacation rentals - just something to think about while looking at homes.

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