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The End of Airbnb in Medellin? (March 2024)
Airbnb crackdown or banned in Medellin?
If you have a property in Medellin or you are planning to buy one this post it's for you.
Medellín, as we’ve stated before, is trending. Not only is tourism booming in the city, but this burgeoning city has also become a business hub for LATAM, as well as a retirement destination for many expats from Europe and the United States. This, as has always happened anywhere in the world, has had a direct effect on rental prices in Medellín, thus generating an issue with locals whose salaries are insufficient to afford living spaces, leading to complex phenomena like gentrification.
This situation led the current mayor to announce drastic measures against unregulated Airbnb in the city, pointing out an estimated 1,600 properties that would be utilizing these short-term rental services without being authorized to do so, either because the property’s location doesn’t permit such rentals or because the co-owners of the property (meaning each owner of each apartment) decided not to allow this type of rental.
But is it the end of Airbnb in Medellin?
Of course not, and in this post, I will explain the consequences of the current Mayor’s statements.
1. Illegal Airbnbs:
Prior to the mayor’s statements, authorities in the city were already shutting down Airbnbs that didn’t comply with legal requirements. For over 5 years, only property owners or tourist administrators have been permitted by law to rent properties through short-term contracts if the property meets certain requirements.
The primary requirement is that the property, from its location, can engage in this type of economic activity. Medellín, like most major cities worldwide, has regulations regarding permitted activities by zone. For example, not every part of the city can have a casino or open a nightclub.
Since 2014, the city has been governed by the updated Territorial Planning Plan (POT). This extensive and intricate document determines which areas can enable certain services like tourist rental of properties. In this sense, and for the past 10 years, it was determined that apartments or tourist properties can only be authorized in specific zones of the city.It’s important to note that by zone, we’re not just referring to neighborhoods like El Poblado. In reality, there are many areas in El Poblado where regulations don’t allow these activities, and others where they do. The analysis is so complex that there are areas where it’s permitted on one street and not on the street opposite.
Additionally, besides the zone, it will be necessary to review other documentation, such as the horizontal property regulations, shareholder meeting minutes that have addressed the issue, as well as verification of formal requirements, such as the issuance of the RNT, Chamber of Commerce (if applicable), among others.
2. What are the consequences of renting an illegal Airbnb?
The quick answer is that you could be fined, have your property sealed or even closed for several days, be summoned to a hearing, and potentially lose your license permanently in that property. However, it’s more complex than it seems. On one hand, the penalty could come from the same co-ownership (meaning the group of owners of each of the apartments that make up the building), and at the same time, it could also be issued by the Tourism Police if, during an operation, it confirms that the property doesn’t comply with the legal requirements to operate. Additionally, there’s the possibility that the Ministry of Tourism initiates an investigation with punitive character, so, in summary and for the purposes of this post, a series of sanctions and procedures could be combined that would significantly complicate your life. It’s important to note that, in the case of a police sanction, this could amount to $5,000.
3. How do I know if my property is on the list of the 1,600 properties that the Mayor plans to close down?
This is the first question several clients have asked me recently in the city. The answer is that we’ll have to analyze each property case by case to determine if it complies with all legal requirements to operate within the short-term rental mechanism. At Start In Colombia, we take care of conducting a thorough review to analyze the type of area where the property is located in terms of urban planning and zoning regulations, the horizontal property regulations, and the respective shareholder meeting minutes, as well as the existence of the RNT and other documents required for the legal operation of this type of short-term rental.
4. Do the measures only apply to Airbnb?
No, the measures apply to any type of short-term rental, whether through the famous Airbnb platform, Booking, Trivago, or other similar platforms.
5. What if my property isn't suitable for short-term rental?
The first thing is not to panic. From Start In Colombia, the first recommendation is to suspend the reception of new reservations and schedule a meeting with a legal advisor. We are experts in this issue, as since 2018, we have resolved legal situations due to this unregulated activity. The next step will be to identify if there are no legal possibilities to enable the property or in other words, make it suitable for Airbnb, and if so, to propose the best divestment strategy or its replacement, in which we will advise you so that you don’t lose money and, on the contrary, can redirect your investment into a property that meets your needs.
6. I want to buy a property in Medellín, how do I know if it will be suitable for Airbnb?
Essentially, it will be the same answer as in item 4; the best advice is to seek legal advice. We will not only guide you through the entire negotiation process with the seller but also conduct a specialized title study beforehand to determine if your property is suitable or not for short-term rental, so that you can determine if that investment is convenient for you or not, according to your needs.
7. I was wrongly advised by a lawyer and bought a property where I can't have Airbnb:
Don’t worry, schedule a free consultation with us, and we will indicate the steps to follow. Depending on the conditions, we may have divestment alternatives and, if necessary, request damages from the seller and the lawyers who made the mistake.
8. I was fined by the Tourism Police, they sealed my apartment, and summoned me to a hearing, what should i do?
Contact us as soon as possible, we will review your case, and if necessary, represent you to request a reduction in the sanction or, in any case, annul the fine and order the reopening of the property.
