Quintana Roo Moves to Curb Vacation Rentals Amid Housing Crisis

Quintana Roo, Mexico — The rapid proliferation of digital vacation rental platforms in Quintana Roo has prompted urgent calls for comprehensive regulation, as industry leaders and local officials warn of escalating housing shortages, labor exploitation, and threats to the region’s tourism image.

David Ortiz Mena, president of the Mexican Caribbean Hotel Council and the Tulum Hotel Association, has been vocal about the disruptive impact of unregulated short-term rentals on communities like Tulum. He emphasizes that the issue extends beyond fiscal concerns, affecting the social and urban fabric of the region.

“Our state already faces housing shortages, making it difficult for workers to settle here,” Ortiz Mena stated. “For years, a significant portion of new housing and apartments built in the state have been designed for vacation rentals, worsening the problem. The speculation driven by this activity inflates land prices, not just in tourist zones.”

The disparity between traditional hotel development and digital rental platforms is stark. While Quintana Roo’s hotels have added approximately 130,000 rooms over nearly 50 years, platforms like Airbnb and similar services now list over 50,000 properties in just a decade. Ortiz Mena described this trend as “unsustainable” without proper regulation.

Tulum’s Overdevelopment Dilemma

Tulum, in particular, has been significantly affected by the unchecked growth of vacation rentals. Ortiz Mena notes that land speculation linked to these platforms has led to excessive construction of tourist housing, creating an oversupply that has stalled new investments and given the impression of stagnation despite strong tourist numbers.

He stressed that regulation should go beyond enforcing tax compliance and include measures to prevent housing hoarding and market concentration.

“In many other countries, these rentals are maintained as originally intended—a way for homeowners to earn extra income by renting out their property during certain times of the year,” he explained.

Labor and Safety Concerns

Ortiz Mena also raised concerns about labor conditions, noting that unlike hotels, which employ staff with legal benefits, vacation rentals often rely on workers without clear labor protections or social security.

“This directly impacts the quality of life for tourism workers and poses risks for visitors, as many of these rentals lack basic safety standards or are located in areas unsuitable for tourists,” he warned.

A Call for Comprehensive Regulation

In response to these challenges, Quintana Roo has already introduced regulations requiring all short-term rental operators to obtain a state operating license and register with the State Tourism Registry (RETUR-Q). These measures aim to ensure safety standards, tax compliance, and better oversight of the rapidly expanding vacation rental market. However, enforcement remains inconsistent, and many properties continue to operate outside the legal framework.

“Tourism is the state’s main economic activity and should promote collective well-being, not just individual profits at the expense of the community,” Ortiz Mena concluded.

What This Means for Property Owners and Investors

While local authorities and hotel leaders advocate for tighter control of the vacation rental market, increased regulation could pose challenges for private property owners and real estate investors who rely on platforms like Airbnb for rental income.

Mandatory operating licenses, tax compliance, and safety inspections may introduce new financial and logistical burdens, particularly for small-scale hosts. Owners may be required to make infrastructure upgrades, hire registered property managers, or pay higher taxes—all of which can impact profitability.

There’s also concern that limits on the number or frequency of rentals could reduce occupancy rates and returns on investment, especially in markets like Tulum and Playa del Carmen where short-term rentals have been central to real estate marketing strategies.

Some fear that unclear or inconsistent enforcement could discourage foreign investment or lead to legal uncertainty, especially for owners who purchased pre-construction units under the assumption that vacation rental income would offset costs.

As Quintana Roo navigates the complexities of regulating its booming tourism economy, finding a balance that supports community needs while protecting property rights and investor confidence remains a key challenge.