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Vacation rentals are a popular option for groups traveling together and they are popping up all the time in major vacation destinations, but a recent report has shown that 60 of those operating in Cancun and the Riviera Maya are doing so illegally. This means that the owners have not registered with the Ministry of Finance and Planning and have not gone through the process of getting their operating license. Not only does this mean that these vacation rental owners are not paying certain taxes and fees, but also that there is no guarantee regarding the safety of their properties, and ultimately their guests either.
There has been some tension in Cancun between the hotel and the vacation rental industries, as hotel owners want to see vacation homeowners be held to the same standards and rules. Recently the President of the Association of Hotels of Cancun, Puerto Morelos, and Isla Mujeres, Jesús Almaguer Salazar, stated in response to the competition between the hotel and vacation rental industries that they “have always said that any type of vacation rental is welcome, but that it is on an equal footing with us; we have no problem that there is competition for the market, but that it is honest, that they also pay taxes, that the authorities regulate them and that the agencies see that they have the required quality of service.”
There are rules in place that require owners in the vacation rental industry to register their properties, but according to recent information, only about 37 percent of these hosts have done it. So out of about 80,000 vacation rental properties in the Riviera Maya and Cancun areas, only about 30,000 are registered. This leaves nearly 50,000 properties not registered with the Ministry of Finance and Planning, according to Bernardo Cueto Riestra, Secretary of Tourism in Quintana Roo.
Information provided by the Ministry of Finance shows that since 2019 the number of people who own properties that are used for vacation rentals, through everything from Airbnb to Booking.com, has increased significantly. The number of foreigner and resident-owned properties used for this purpose has increased nearly six times since then. This makes it obviously difficult for authorities to keep up with regulation.
Bernardo Cueto Riestra explained that “they are trying to locate these accommodations that are not registered on any platform, but are offered through means such as Facebook, to guarantee a level floor compared to established hotels, in addition to verifying that comply with all security measures.” This likely provides little comfort for those booking vacations now, knowing that they have to worry about possibly renting an unregulated property.
Two major risks come with booking a vacation rental that is not registered. One is the fact that the customer may be defrauded by the individual offering the rental. And the other is that the safety of the guest may be at risk if a vacation rental is not maintained correctly, or if certain safety features are not present.
Many Cancun tourists stay in hotels, particularly in the very popular Cancun Hotel Zone, but vacation rentals in the area are popular too. There are approximately 100 hotels in the city, with new ones being added all the time. These hotels have strict rules and regulations that they must comply with, some of which apply to the vacation rental industry as well.
Officials are currently working on getting those vacation rentals all registered so they are held accountable just like hotels. This way anyone who vacations in Cancun can have a comfortable and safe vacation in the popular Mexican Caribbean vacation destination that the city has become.
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