Regulation needed in short-term rental industry, say stakeholders

Vice-president of the Realtors Association of Jamaica, Gabrielle Grant Gilpin-Hudson and short-term rental operator Sandra Samuels say as the short-term rental space in Jamaica continues to grow, the Government of Jamaica will need to implement regulations to prevent continued disputes.

The declaration comes after the Supreme Court banned short-term rentals in a St Andrew gated community.

Speaking on Taking Stock with Kalilah Reynolds, Grant Gilpin-Hudson explained that the Supreme Court ruled based on the restrictive covenant of that particular gated community.

Restrictive covenants outline what property owners can and can not do.

The RAJ Vice-President explained that the Supreme Court ruled that the community’s guidelines specified that properties should only be used for residential purposes. Short-term rentals are businesses, meaning the property was being used for commercial purposes and, therefore, in breach of the community’s rules.

However, Grant Gilpin-Hudson noted that this ruling is just a temporary solution. The Ministry of Tourism announced earlier this year that Jamaica’s short-term rental industry brought in over $100 million last year. That figure is expected to increase by the end of 2023.

“If you’re renting out your property on a short-term basis will that take you outside the scope of residential purposes? Will it fly in the face of zoning laws?” she queried.

“So at the national level, we need minimum best practices or guidelines and I think that would be welcomed,” she said.

For her part, Samuels, who has been operating in the space for several years, said that while she does agree that the industry needs regulation, the rules must not stifle smaller property owners.

“What I don’t want is the small people, that are trying to make a life, trying to enrich themselves, trying to step up, I don’t want when it’s regularised only the big man or the big woman can afford to do short-term rentals,” she said.

Grant Gilpin-Hudson echoed similar sentiments. She added that her association is ready to have dialogue with the Government about best practices for the industry and urged them to start the process as soon as possible before more disputes arise.