Short-Term Rental Platforms in Condominium Property

#### By Dr. César Pazos, Of Counsel in Environmental and Urban Planning Law


In recent years, short-term rental platforms like Airbnb, Booking.com, and Expedia have revolutionized the tourism sector in Colombia and around the world. These platforms let owners rent out their properties for short periods, giving travelers an alternative to traditional hotels. However, their growing popularity has raised various challenges and controversies, particularly within condominium property (propiedad horizontal).

Economic and Social Impact

The use of these platforms has had a significant impact on the economy and on property management in Colombia:

• Additional income: Owners can earn extra income by renting out their properties for short periods.
• Boost to tourism: These platforms offer flexible and varied lodging options, promoting tourism.
• Flexibility: They benefit both owners and travelers by offering diverse lodging options.

Challenges in Condominium Property

That said, using short-term rental platforms also creates challenges within condominium communities:

• Peace and security: The constant turnover of guests can affect the community's peace and security.
• Property upkeep: Managers must ensure units are kept in good condition.
• Legal and regulatory conflicts: Properties under a condominium regime can run into legal trouble if they don't comply with applicable rules.

Regulation in Colombia

In Colombia, regulation of short-term rental platforms has been the subject of ongoing debate and development. The main rules include:

• The Tourism Law (Law 2068 of 2020)
• Condominium Property Rules (Law 675 of 2001)
• Municipal regulations

These laws aim to prevent conflicts over short-term rentals within condominium property. Condominium bylaws must expressly allow tourist use of units for that use to be lawful.

Managers' Obligations

Condominium managers whose community offers tourist-housing services must:

• Report to the SIC: Notify the Superintendency of Industry and Commerce about these services when they aren't authorized under the bylaws.
• National Tourism Registry (RNT): Ensure tourist-service providers are registered with the RNT.

Failure to comply can result in penalties, including fines of up to 3 monthly minimum wages.

Penalties

Owners who offer tourist services without complying with these rules can be penalized both within the condominium community and by the SIC. The legal basis for these penalties includes:

• Decree 2590 of July 9, 2009, Ministry of Trade, Industry and Tourism
• Law 1558 of 2012, as amended by Decree 2106 of 2019

Recommendations

It's essential for condominium bylaws to expressly authorize tourist use of units, in compliance with the law, including obtaining the National Tourism Registry. The general assembly of co-owners has the authority to prohibit, allow, and regulate tourist use of units.

Consulting and Legal Advice

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