The short-term rental market in Colombia is booming, offering lucrative opportunities for property owners and investors alike. However, navigating the complex legal landscape is crucial to ensure not only profitability but also sustainability in this competitive industry. Compliance with national regulations is not just a legal obligation but a cornerstone of building trust with your guests and partners.
In this blog post, we'll delve into 10 essential points that every short-term rental operator in Colombia must keep in mind to run a successful and fully compliant business.
1. Secure a Lodging Contract with Every Guest
Requirement: It's mandatory to have a signed lodging contract for each guest who stays at your property.
Why It Matters: A well-drafted contract outlines the terms of the stay, house rules, and liability clauses. This legal document protects both you and your guests by setting clear expectations and responsibilities.
Tip: Ensure your contract is comprehensive and complies with Colombian law. Consider consulting with a legal expert to draft or review your contract template.
2. Maintain a Valid National Tourism Registry (RNT)
Maintenance: Your RNT is not a one-time registration. It must be updated annually to remain valid.
Display: Always include your RNT number in all advertising materials, both online and offline.
Why It Matters: The RNT legitimizes your business in the eyes of authorities and guests. It's a critical component of legal compliance and boosts your property's credibility.
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Contact Us3. Prominently Display Your RNT in All Advertising
Visibility: Your RNT number should be easy to find in all your marketing efforts.
Credibility: Displaying your RNT number builds trust with potential guests, assuring them that your operation is legitimate and compliant with Colombian tourism regulations.
Tip: Include the RNT number in your property descriptions, social media profiles, and any print materials.
4. Practice Truthful and Transparent Advertising
Transparency: Provide accurate and complete information about your property and the services you offer.
Consistency: Ensure all online listings, photos, and descriptions match the actual accommodations.
Why It Matters: Misleading advertising can lead to dissatisfied guests and legal repercussions. Transparency fosters positive reviews and repeat bookings.
5. Register Every Guest in the TRA System
Obligation: The Registro de Turismo (TRA) system requires you to register every guest staying at your property.
Accuracy: Make sure all guest information is correct and up-to-date.
Why It Matters: Proper registration is essential for legal compliance and contributes to national security efforts.
6. Report Foreign Guests to SIRE
Foreign Guests: You must report both the check-in and check-out dates of all foreign guests to the Sistema de Información para el Reporte de Extranjeros (SIRE).
Legal Compliance: Failure to report can result in significant fines and legal issues.
Tip: Automate this process or set reminders to ensure timely reporting.
7. Keep Detailed Fontur Payment Records
Documentation: Retain all payment receipts for the parafiscal contribution to Fontur, Colombia's tourism fund.
Audit Preparedness: Being organized with your records ensures you're ready if audited by authorities.
Why It Matters: Proper documentation demonstrates your commitment to legal obligations and financial transparency.
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Contact Us8. Cooperate Fully with Authorities
Compliance: Provide authentic documents and accurate information promptly when requested by government officials.
Responsiveness: Timely cooperation can prevent legal complications and foster a good relationship with regulatory bodies.
Tip: Designate a point of contact who is responsible for handling all communications with authorities.
9. Obtain Property Horizontal Authorization (If Applicable)
Disclosure: If your property is part of a horizontal property regime (e.g., condominiums or apartment complexes), you must disclose this status.
Authorization Proof: Have documentation that proves you have approval from the homeowners' association or relevant governing body for tourist use.
Why It Matters: Unauthorized use can lead to disputes or legal action from the property administration or other residents.
10. Secure Comprehensive Liability Insurance
Coverage: Obtain a liability insurance policy that covers damages or injuries to guests and third parties.
Providers: Consider reputable insurance companies experienced in tourism and hospitality, such as Colasistencia.
Why It Matters: Insurance protects your investment and provides peace of mind, ensuring that unforeseen incidents don't become financial burdens.
Conclusion
Navigating the regulatory landscape of Colombia's short-term rental market can be challenging, but adherence to these essential points will position your business for success. Compliance not only safeguards you from legal issues but also enhances your reputation among guests and peers in the industry.
At SomeNook, we specialize in real estate consulting and short-term rental management across Colombia. Our expertise ensures that all aspects of your rental operation are handled professionally and in full compliance with Colombian laws.
Ready to elevate your short-term rental business? Contact us today to find out how we can help you achieve success while staying compliant.