Overview: Are Short-Term Rentals Allowed in San Juan, PR?

Yes, short-term rentals (STRs) are allowed in San Juan, Puerto Rico under specific regulations enacted by the Municipality of San Juan. STRs are defined as property rentals for less than 90 days and are regulated by Ordinance Number 39, Series 2022-2023, which became enforceable on May 29, 2023. The municipality has established a comprehensive licensing and oversight framework that balances economic development opportunities for property owners with community coexistence and safety requirements.

How to Start a Short-Term Rental Business in San Juan

Step 1: Entity and Tax Setup

1. Form a Legal Entity: Establish an LLC or corporation to separate personal and business liabilities
2. Obtain Merchant Registration: Register with the Puerto Rico Treasury Department for tax compliance
3. Register with Puerto Rico Tourism Company: Complete innkeeper ("hostelero") registration to legally operate accommodations

Step 2: Property and Permit Preparation

1. Secure Property Documentation: Obtain deed or lease agreement proving legal property status
2. Apply for Single Permit (Permiso Único): Through Puerto Rico's Office of Management and Permits (OGPe), which consolidates:
   • Use Permit
   • Fire Prevention Certificate
   • Sanitary License
   • Certification of Environmental Compliance by Categorical Exclusion
3. Submit Application via Single Business Portal (SBP): Use the online platform to track and manage applications

Step 3: Municipal Licensing

1. Register for STR License: Apply through San Juan's Permits Office at alquilercortoplazo.sanjuan.pr/signin
2. Pay Annual Fees: $100 for shared residential units, $500 for non-shared units
3. Display License: Print and place in visible area within the property
4. Include License Number: Ensure unique STR license number appears in all property listings

Step 4: Compliance and Operations

1. Verify Association Approval: Confirm STRs are permitted under condominium bylaws or homeowners' association rules
2. Set Up Tax Collection: Implement 7% occupancy tax collection system (often handled by platforms like Airbnb)
3. Establish Operations: Create guest management systems, house rules, and maintenance protocols

Required Documents, Permits, Licenses, and Guidelines

Municipal Requirements (San Juan)

• STR License Application through Permits Office
• Proof of Hotel Registration and ID number
• Merchant Registry Certificate (when applicable)
• Single Permit (Permiso Único) from OGPe (when necessary)
• Property number certification
• Sworn statement of compliance with community standards and property documents
• Declaration of compliance with condominium, urbanization, or homeowners' association regulations
• Identification of digital platforms used for rentals

State-Level Requirements (Puerto Rico)

• Innkeeper Registration with Puerto Rico Tourism Company
• Merchant Registration with Puerto Rico Treasury Department
• Single Business Portal application for consolidated permits
• 7% Occupancy Tax compliance and remittance
• Insurance coverage (host liability and homeowners insurance including STR activities)

Documentation Checklist

• Property deed or lease agreement
• Business registration certificates
• Property sketches or plans including dimensions and parking
• Fire safety compliance certificates
• Health regulation compliance evidence
• Emergency signage and safety equipment certifications

Specific Regulations for Short-Term Rentals

San Juan Municipal Regulations

Licensing Structure

• Shared Residential Units: $100 annual fee (principal residence where portion is used for STR)
• Non-Shared Residential Units: $500 annual fee (entire unit used for STR, no portion as principal residence)
• Movable Property: $500 annual fee
• License Validity: Annual renewal required
• Display Requirement: License must be printed and visible in property

Operational Restrictions

• Commercial Activities Prohibited: STR properties cannot host commercial events or activities
• Community Compliance: Must adhere to all local laws regarding noise, parking, and community impact
• Residential Character: The residential nature of the community cannot be altered
• Event Restrictions: Social events must not interfere with community peace through excessive noise

License Content Requirements

The issued license must contain:

• Authorized individual's contact information
• Physical property address
• Property number
• Available parking spaces
• Number of rooms and maximum occupancy
• Puerto Rico Tourism Company Registry Number
• Validity date
• Copy of Single Permit (when applicable)

Digital Platform Compliance

• Information Sharing: San Juan has established Memorandums of Understanding with platforms like Airbnb and Vrbo
• License Number Display: Unique STR license number must be included in all online listings
• Platform Registration: Digital platforms used for rentals must be identified in license application

Puerto Rico State-Level Regulations

Tax Obligations

• 7% Occupancy Tax: Applied to all rentals under 90 days
• Income Tax: Potential benefits under Act 60 (formerly Act 20 and Act 22)
  • Eligible investors may pay as little as 4% on business income
  • Capital gains exemptions for qualifying investors
  • Tourism tax credits up to 40% for properties in designated tourism zones

Safety and Health Standards

• Fire Safety Compliance: Certified fire extinguishers and emergency signage required
• Health Regulations: Sanitary license and health compliance certifications
• Environmental Compliance: Certification of Environmental Compliance by Categorical Exclusion

Fines and Penalties Structure

San Juan Municipal Penalties

• First Violation: $500 fine
• Second Violation: $1,000 fine with possible license revocation for 1 year
• Third Violation: $2,500 fine with license revocation for 3 years
• Operating Without License: $250 to $5,000 depending on unit type

Enforcement Process

• Tenant Responsibility: Initial fines imposed on tenants, with copy delivered to property owner within 10 days
• Owner Liability: If tenant doesn't pay within 30 days, owner responsible for payment within additional 15 days
• Municipal Police Authority: Municipal police and agencies have inspection and enforcement powers

Transition Period and Deadlines

• Original Ordinance: Approved May 19, 2023, with 180-day transition period
• Current Deadline: Extended to May 31, 2025, for hosts and operators to complete registration
• Temporary Licenses: Available for up to 1 year for applicants who certify they've applied for required Unique Permit (PU)

Contact Information for Local Authority

San Juan Municipality

• Permits Office: Primary authority for STR licensing
• Registration Portal: alquilercortoplazo.sanjuan.pr/signin
• Phone: Contact through municipality main lines
• Address: Municipality of San Juan offices

Professional Legal Assistance

Delgado & Fernández, LLC (Mentioned in source materials)

• Phone: (787) 274-1414
• Fax: (787) 764-8241
• Address: T-Mobile Center at San Patricio, Suite 1000 (10th Floor), B7 Tabonuco St., Guaynabo, PR 00968-3028
• Website: delgadofernandez.com/

Industry Support

Viva Puerto Rico Short-Term Rental Alliance

• Website: vivapralliance.com/
• Contact: Through website membership and resources
• Services: Industry advocacy and member support

Puerto Rico Tourism Company

• Registration: Required for innkeeper status
• Phone: Contact through main tourism office lines
• Website: Through Puerto Rico government portals

Links to Source Pages

Primary Regulatory Documents

• Enmienda Ordenanza Núm. 39
• PO 24 2024-2025 Enm Reglamento ACP
• Ordenanza-39

Registration and Official Sources

• San Juan STR Registration Portal

Industry and Legal Resources

• Viva PR Alliance - STR San Juan Regulations Update
• Delgado & Fernández Legal Analysis
• Christie's Real Estate PR - STR Guide
• News is My Business - Senate Bill Coverage

Additional Context

• Viva PR Alliance Homepage
• Christie's International Real Estate Puerto Rico

This comprehensive guide provides investors and operators with the essential information needed to legally establish and operate short-term rentals in San Juan, Puerto Rico, while ensuring full compliance with both municipal and state-level regulations.