Sat. Sep 30th, 2023
    The Debate over Regulating Short-Term Tourist Rentals

    With the rise of platforms like Airbnb, there is an ongoing debate about the need to regulate short-term tourist rentals. Under current legislation, these rentals are exempt from the minimum three-year leasing period and are often contracted in dollars.

    Some argue that these temporary rentals compete with long-term rentals and drive up prices in the rental market. However, comparing a foreign tourist who rents an apartment for a few days to the urban rental market is absurd.

    It is paradoxical to propose de-dollarizing these tourist rentals when there is talk of implementing the dollar as a single currency or adopting a dual-currency system. Furthermore, these tourist rentals generate foreign currency for the country.

    Attempting to regulate short-term tourist rentals through a new registration system is absurd. Measures like these violate property rights and may have hidden interests.

    On the other hand, temporary rentals for tourism purposes are often more affordable than hotel rates. Therefore, regulating these rentals could harm tourists and limit competition in the market.

    Instead of regulating temporary rentals, lawmakers should focus on repealing the current rental law. The desirable goal is deregulation, contract freedom, and respect for property rights with minimal state intervention.

    Sources:
    – La NaciĆ³n

    Definitions:
    – Short-term tourist rentals: Accommodation rented by tourists for a short period, usually for a few days or weeks.
    – Long-term rentals: Lease agreements for a minimum period of three years.
    – Property rights: The legal rights and protections individuals or entities have over their tangible and intangible possessions.
    – Deregulation: The process of reducing or eliminating government regulations on a particular industry or activity.
    – Contract freedom: The ability of individuals or entities to enter into voluntary agreements without undue interference or restrictions from the government.
    – State intervention: The extent to which the government interferes with or regulates economic or social activities within a society.