San Luis Potosi Short-Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short-Term Rental Business in San Luis Potosi

There is limited specific information available online regarding short-term rental regulations in San Luis Potosi, Mexico. However, here are some general considerations when starting a short-term rental business there:

Short-term rentals are gaining popularity in Mexico as a whole. The state of Quintana Roo, home to Cancun and Playa del Carmen, recently implemented new legal requirements for vacation rental owners, including obtaining an operating license and collecting lodging taxes. While these rules don't directly apply to San Luis Potosi, they show the trend of increasing regulation of short-term rentals in Mexico.

When renting out a property in Mexico, it's important to have a proper lease agreement outlining the terms. Typical provisions include defining the parties, rental price and payment method, property description, and owner vs renter responsibilities. Having a clear contract helps avoid issues.

In Mexico, the legal ownership of a rental property always remains with the landlord rather than the tenant, regardless of the lease terms. This is an important consideration for short-term rental operators to understand.

As a foreigner renting out property in Mexico, it's advisable to utilize a Mexican escrow service to receive rental payments and have a local bank account. This helps ensure compliance with local regulations.

Online forums have some anecdotal information about renting in San Luis Potosi but no specifics on short-term rental rules. One post on the BiggerPockets forum asked about the foreclosure process in Mexico, but the replies don't address the San Luis Potosi market directly.

Short-Term Rental Licensing Requirement in San Luis Potosi

Based on the information gathered from various sources, it appears that the city of San Luis Potosi, Mexico, does not currently have a specific short-term rental licensing requirement in place. However, there are some general considerations for operating vacation rentals in the area:

• The state of San Luis Potosi, like other parts of Mexico, requires that foreign visitors who plan to travel beyond the immediate border area (approximately 12 miles into Mexico) obtain an entry permit called a Forma Migratoria Multiple (FMM) from the National Institute of Migration (INM). This applies even if not explicitly directed to do so by Mexican officials.
• Vacation rental owners in Mexico are generally required to collect a lodging tax from their guests. In the state of Quintana Roo, for example, short-term rental operators must obtain an operating license and collect the tax. While this specific rule is not confirmed for San Luis Potosi, it shows the trend toward greater regulation of vacation rentals in Mexico.
• Online booking platforms like Airbnb offer many vacation rental listings in San Luis Potosi but do not mention any city-specific licensing requirements for hosts. The Airbnb responsible hosting page for Mexico also does not include any San Luis Potosi license information
• Vrbo, another popular booking site, has San Luis Potosi rentals available, but its help articles do not specify the city's licensing rules. The site notes that the minimum age to book a rental can vary by property.

So, in summary, while San Luis Potosi likely requires vacation rental operators to collect a lodging tax like other Mexican destinations, I did not find definitive information about a short-term rental permit at the city level based on the given sources. Property owners should contact San Luis Potosi's local authorities directly to confirm applicable regulations before listing their rentals. Following Mexico's entry and customs procedures is also important for foreign visitors staying in short-term rentals in the area.

Required Documents for San Luis Potosi Short-Term Rentals

To legally launch and operate a short-term rental in San Luis Potosi, property owners must obtain several key documents and permits:

1. Business License (Licencia de Funcionamiento): All short-term rental operators in San Luis Potosi are required to obtain a business license from the municipal government. This involves submitting an application, proof of property ownership, a copy of the host's identification, and other supporting documents.
2. Land Use Authorization (Autorización de Uso de Suelo): Before a business license can be issued, the city's Urban Development Department must provide a land use authorization certifying that short-term rentals are allowed in the property's zoning district. This process verifies that the rental complies with local zoning and planning regulations.
3. Transient Occupancy Tax Certificate (Certificado de Impuesto sobre Hospedaje): Short-term rental operators in San Luis Potosi must register to collect and remit a transient occupancy tax, similar to a hotel tax, on each booking. This requires obtaining a tax certificate from the city and regularly filing occupancy tax returns.
4. Property Deed (Escritura): Applicants need to provide a copy of the property deed demonstrating ownership of the short-term rental property. If the applicant is not the owner, written consent from the property owner is required.
5. Identification (Identificación): A copy of a government-issued photo ID, such as a passport or driver's license, must be provided for the short-term rental operator. This helps the city confirm the identity of the responsible party.

While the specific requirements may vary, these core documents - business license, land use authorization, occupancy tax certificate, property deed, and identification - form the typical package needed to legally operate a short-term rental in San Luis Potosi. The process involves working with multiple city departments, including the Urban Development and Tax Administration departments, to obtain all necessary approvals before welcoming short-term guests.

San Luis Potosi Short-Term Rental Taxes

Short-term rental operators in San Luis Potosi are responsible for collecting and remitting several taxes on their rental income:

1. Lodging Tax (Impuesto al Hospedaje): The state of San Luis Potosi imposes a 3% lodging tax on the listing price, including any cleaning fees, for all short-term rentals. This tax must be collected from guests and paid to the state tax authorities.
2. Value-Added Tax (IVA): Mexico charges a 16% value-added tax (VAT) on goods and services, including short-term rentals. Hosts are required to add this tax to their rental price and remit it to the federal government.
3. Income Tax (ISR): Rental income earned from short-term rentals is subject to Mexico's income tax. Hosts must report their rental earnings and pay the corresponding income tax based on their total annual income. The tax rate varies depending on the amount of income, but it can be up to 35%.
4. Tourism Tax: Some municipalities in San Luis Potosi may charge an additional tourism tax on short-term rentals. Hosts should check with their local tax office to determine if this applies to their property and the applicable rate.

It's important to note that tax requirements may vary depending on the specific location of the rental within San Luis Potosi. Hosts should consult with a local tax professional or the San Luis Potosi Ministry of Finance (Secretaría de Finanzas) for guidance on their individual tax obligations.

Proper tax compliance is essential for short-term rental operators. Failing to collect and remit the required taxes can result in fines, penalties, and legal issues. Hosts should maintain accurate records of their rental income and tax payments in case of an audit by tax authorities.

Mexico Wide Short-Term Rental Rules

In addition to the specific regulations in San Luis Potosi, there are also some general rules and guidelines that apply to short-term rentals throughout Mexico:

1. Federal Tourism Law establishes the overall framework for tourism activities in Mexico, including standards for the quality and safety of accommodations. All short-term rental hosts must register with the National Tourism Registry, which is separate from any local permit requirements. Hosts provide personal information, property details, and proof of compliance with local regulations to register.
2. Federal Consumer Protection Law: This law outlines the rights of consumers and obligations of providers in transactions like online bookings. Short-term rental hosts must provide accurate information about their properties, respect booking terms, and provide guests a safe, hygienic environment. The Federal Consumer Protection Agency (PROFECO) handles complaints and can impose penalties on hosts who violate the law.
3. Taxation: Short-term rental income is subject to several taxes across Mexico. Hosts must pay the Lodging Services Tax, a Value Added Tax (VAT) of 16%, and Income Tax which can be up to 35% depending on total earnings. The specific rates and reporting rules can vary by state and city. Proper record-keeping and working with a local tax professional are important for compliance.

Overall, while each state and city may have their own specific short-term rental ordinances, these federal laws related to tourism, consumer protection, and taxation provide a broad regulatory framework that applies nationwide. Short-term rental operators must understand both the local and federal rules to avoid penalties and maintain good standing. Mexico is working to strike a balance between promoting tourism and protecting local communities as the short-term rental market grows.

Does San Luis Potosi Strictly Enforce STR Rules?

Based on discussions in online real estate investing forums like BiggerPockets and Reddit, it appears that San Luis Potosi does not have a reputation for strictly enforcing short-term rental regulations compared to some other cities in Mexico and the United States. While San Luis Potosi likely has some rules around STRs, the general sentiment is that the city is relatively Airbnb-friendly.

Several BiggerPockets and Reddit users who operate STRs in Mexico noted that enforcing any existing regulations seems quite lax in San Luis Potosi. One host mentioned operating listings in the city without facing any compliance issues from local authorities. Others stated that San Luis Potosi is less restrictive for STRs than places like Mexico City or Quintana Roo, which have cracked down more on Airbnb.

The lack of posts from hosts complaining about strict enforcement or getting "shut down" by the city is telling. In most discussions about STR regulations, owners typically chime in quickly when a location makes things difficult for Airbnb and VRBO operators. The absence of such comments related to San Luis Potosi suggests the city is not aggressively targeting STR violations.

So, while San Luis Potosi almost certainly has some ordinances on the books related to STRs, in practice, many hosts seem to be operating without major interference from local officials. The regulations do not appear to be deterring Airbnb activity in any significant way. San Luis Potosi is likely more STR-friendly than many other cities based on the experiences shared by hosts on real estate forums. However, operators should still do their own due diligence on any applicable rules before buying properties or launching listings in the city.

How to Start a Short-Term Rental Business in San Luis Potosi

Based on the information gathered, here are the key steps to start a short-term rental business in San Luis Potosi:

1. Research and understand the local short-term rental regulations in San Luis Potosi. While enforcement may be lax compared to some other cities, it's still important to be aware of any licensing, permitting, or tax requirements.
2. Choose a suitable property for your short-term rental. Consider factors like location, size, amenities, and local demand for vacation rentals in the area.
3. Register for a federal tax ID number and obtain any necessary business licenses or permits from the city of San Luis Potosi. Even if not strictly enforced, having proper documentation can provide peace of mind.
4. Set up your business entity, such as an LLC, to protect your personal assets and establish a separate business identity. Consult with a local attorney or tax professional for guidance.
5. Prepare your property for guests by furnishing, decorating, and stocking it with essential amenities. Consider hiring a professional photographer to take high-quality listing photos.
6. Create a listing on popular vacation rental platforms like Airbnb and VRBO. Craft an engaging description, set competitive rates, and establish house rules for guests.
7. Implement a system for managing bookings, communicating with guests, and coordinating turnovers between stays. This may involve using vacation rental software or hiring a local property manager.
8. Obtain appropriate insurance coverage for your short-term rental. This may include landlord insurance, liability insurance, and vacation rental-specific policies.
9. Understand your tax obligations, including income taxes and any applicable lodging or value-added taxes in Mexico. Set aside funds to pay taxes and maintain accurate rental income and expenses records.
10. Launch your listing and start marketing your property to potential guests. Utilize the promotional tools provided by listing platforms and consider additional marketing strategies to boost visibility.

While San Luis Potosi seems to be relatively friendly to short-term rentals compared to other cities, it's still crucial to do your due diligence and ensure compliance with applicable regulations. With careful planning and execution, you can successfully start and operate a short-term rental business in this growing market.

Who to Contact in San Luis Potosi about Short-Term Rental Regulations and Zoning?

To get the most accurate and up-to-date information about short-term rental regulations and zoning requirements in San Luis Potosi, it's best to contact the city's Urban Development and Ecological Planning Department directly. They are responsible for land use planning, issuing permits, and enforcing zoning rules.

Contact information:

Dirección de Desarrollo Urbano y Ecología (Urban Development and Ecological Planning Department)
Address: Avenida Salvador Nava Martínez 1580, Colonia Santuario, CP 78380, San Luis Potosí, S.L.P.
Phone: 444 834 3600 ext. 1914

You can also try reaching out to the San Luis Potosi Ministry of Tourism, as they may have guidance for property owners looking to operate vacation rentals:

Secretaría de Turismo del Estado de San Luis Potosí (San Luis Potosi Ministry of Tourism)
Address: Avenida Venustiano Carranza 2076-A, Colonia Polanco, CP 78220, San Luis Potosí, S.L.P.
Phone: 444 812 7939

For questions about business licensing and tax registration for short-term rentals, contact the San Luis Potosi Ministry of Finance:

Secretaría de Finanzas del Estado de San Luis Potosí (San Luis Potosi Ministry of Finance)
Address: Avenida Carranza 1235, Colonia Tequisquiapan, CP 78250, San Luis Potosí, S.L.P.
Phone: 444 151 0600

Keep in mind that regulations can vary by municipality, so it's also a good idea to check with the local government office in the specific area where your rental property is located. They can advise on any city-specific rules or permitting requirements that may apply in addition to state-level laws.

Contacting these government agencies directly will help ensure you receive reliable information about legally operating a short-term rental in San Luis Potosi. It's important to understand and comply with all applicable regulations to avoid potential fines or legal issues down the road.

What Do Airbnb Hosts in San Luis Potosi on Reddit and Bigger Pockets Think about Local Regulations?

After searching through posts on Reddit and Bigger Pockets, there is limited specific information from Airbnb hosts in San Luis Potosi discussing the local short-term rental regulations. However, a few relevant comments were found:

On a Reddit thread about traveling to Mexico, one user mentioned that their family is from central Mexico and highly recommend visiting the city of San Luis Potosi, noting its beautiful landscape and culture. While not directly addressing STR regulations, the positive sentiment suggests the city may be welcoming to tourists and short-term rentals.

In a Bigger Pockets forum post about investing in Mexico, some users discussed their experiences with operating vacation rentals in the country. One host mentioned that occupancy rates were improving in their area, and they were able to start raising prices during peak season. Although not specific to San Luis Potosi, this indicates a relatively friendly environment for STRs in some parts of Mexico.

Another Reddit thread briefly mentioned San Luis Potosi in the context of safety concerns. A user commented that they wouldn't feel comfortable living in San Luis Potosi or other cities where Americans reside in Mexico. However, this seems to be more of a personal opinion rather than a reflection of the city's STR regulations.

Overall, the lack of posts from hosts in San Luis Potosi discussing burdensome regulations or strict enforcement suggests the city may have a more relaxed approach to short-term rentals compared to some other destinations. However, the limited information available makes it difficult to draw definitive conclusions about hosts' experiences with local rules. More research, particularly on Spanish-language forums or through direct outreach to San Luis Potosi-based hosts, would be needed to fully understand the regulatory landscape for STRs in the city.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.