Condo unit owners need biz permits to lease rooms

If done informally, it is not considered a business. ‘Inato lang’ is not allowed to operate under GCQ.

INES CAJEGAS

CONDOMINIUM unit owners can lease up their rooms as long as they secure the necessary permits and licenses.

Department of Trade and Industry (DTI) 7 Consumer Protection Division chief Ines Cajegas said unit owners should register their business first.

“If they wish to do leasing of their condo units above board, they should secure the necessary permits and licenses. Even condo developers and management would not allow the condo units to be under Airbnb without the necessary permits,” she said.

Based on the allowed businesses by the Cebu City Government under the general community quarantine status, leasing activities are permitted but are limited to office or store spaces for businesses.

“Office spaces, stores for businesses fall under leasing activities. But not residential for Airbnb,” Cajegas said.

Cajegas noted that businesses should be registered with the DTI or with the Securities and Exchange Commission with business and Mayor’s permit secured.

“If done informally, it is not considered a business. ‘Inato lang’ is not allowed to operate under GCQ,” she said.

Condominium unit owners who converted their properties to Airbnb units are waiting for the green light to operate from the concerned government agencies. They want to open up their Airbnb units so they could start accepting guests and earn money, which could help in the payment of their condo dues.

But the Department of Tourism (DOT) 7 said it can give accreditation only to accommodation tourism enterprises and not Airbnb rental units.

No Airbnb regulation yet

According to the DOT 7, it can accredit a whole building that falls under the apartment hotel and condo-hotel category but it doesn’t give licenses to single condominium units acting as accommodation properties.

“We don’t accredit Airbnb. But if they pass the minimum standards set by the DOT whether they will fall on the category as hotel, resort, apartments hotels, or mabuhay accommodation, we will accredit them,” said Berniedel John Papna, Tourism Operations Officer II of DOT 7’s Tourism Regulations Division.

In 2019, the DOT said it was looking to regulate Airbnb rentals. Tourism Secretary Bernadette Puyat also floated the idea that the regulation of Airbnb rentals can also be accomplished via local ordinance.

Airbnb currently logs 60,000 properties in the Philippines alone as of 2019.

Airbnb unit owners are given full control of availability, prices, house rules and how they interact with guests.

Accreditation

Meanwhile, in getting the DOT accommodation accreditation, the establishment that chooses to operate during the pandemic can open but should strictly comply with sanitation protocol.

As part of the accreditation process and to ensure that it complies with the minimum public health standards, the applicant shall allow the physical inspection of its premises. If physical inspection is impracticable, virtual inspection of premises shall be conducted, in which case, the accommodation establishment shall be issued a provisional accreditation.

The certificate of accreditation shall be valid for two years and shall be renewable thereafter unless sooner revoked for cause if the accommodation place is compliant to the strictest sanitation standards and had undergone a physical inspection of its premises.

The certificate of provisional accreditation shall be valid for one year and shall be renewable thereafter unless sooner revoked for cause if the place conformed to the standards and had only undergone a virtual inspection.

Condo unit owners can submit a letter and the requirements to the DOT’s accreditation team and wait for its reply.