Buying or selling a home involves a lot of things, it also raises questions. In this column ‘Ask Bob’, real estate expert/broker Bob Bartikoski of RE/MAX Paradise Homes Bonaire answers a real estate question from a reader. This time:
Question: As a homeowner and resident of Bonaire, what are the potential consequences for me of enforcing the zoning ordinance (ROB) in residential areas where vacation rentals are not allowed?
For decades, the island government has turned a blind eye to short-term vacation rentals in areas not zoned for such purposes. This tacit approval has been the status quo for as long as most can remember, going back well over a decade. Indeed, many second-home buyers factored in the freedom to use their homes as income-generating investments when buying property on Bonaire.
The government’s arbitrary decision to suddenly and immediately enforce these longdormant zoning regulations caught many off guard. An agenda pushed by a few paid consultants with a known hotel-centric bias appears to be behind this push for immediate enforcement.
The OLB’s rationale is based on several inaccurate statements of “fact.”
• Hotel and resort guests spend more on the island than renters of private villas.
Untrue. Hotels keep most, if not all, of their accommodation support services (cleaning, laundry, catering, maintenance, car rentals, etc.) in-house, and the profits derived from overnight stays flow off the island to foreign investors in most instances. Contrast this with private home rentals where all these services are hired from local, independent suppliers. The money paid for these services stays on Bonaire and directly supports our economy.
• If private homes are no longer available, short-term visitors will book a hotel or resort next time.
Untrue. While some private apartment renters may move to hotels for a similar experience, the higher-spend private home renters will not. There is a reason these affluent travelers choose a private home rental – they want privacy. If there is no inventory of private homes, these travelers will simply trade Bonaire for a different Caribbean island where their demands will be met.
• This enforcement action will impact fewer than 100 private home rentals.
Untrue. A 2022 online inventory of private home rentals conducted by local realtors revealed at least 300 short-term vacation homes in Residential Areas I, II, and III. This number is likely higher, as some private landlords don’t have a website or property manager. The OLB’s decision is based on inaccurate data. The OLB also makes inaccurate assumptions to justify enforcement.
• Banning short-term vacation rentals will improve social cohesion in the impacted neighborhoods.
Untrue. From what I understand about OLB’s plan, only rentals shorter than three months will be prohibited. It is difficult to believe that a three- or six-month rental to a group of interns will boost the social cohesion in any neighborhood, especially the upscale neighborhoods directly impacted by this ban. The same is likely true for the Mariadal specialists who come to the island for a few months and intend to depart after their contract is complete.
• Affordable housing will be the result of this enforcement.
Untrue. Homes in the highest price range, $750,000+, will likely decline in value if this ban is enforced. This is because many homeowners there rely on vacation rentals to offset the high ownership costs. When a large volume of homes floods the market, prices go down – as does the associated VGB the government relies on. However, the real pain point for affordable housing in Bonaire lies in the $200,000 or less properties. These modest homes will not see any price drop benefit from any change in pricing in the high-end housing market. Even if a Sabadeco villa drops in price by 25% (which is a very likely scenario across the board for all properties in the impacted areas), that will absolutely not equate to an identical percentage drop for properties in the price range where a reduction is most needed. This is basic economics.
Enforcement isn’t going to help the affordable rental market, either. If villas in areas like Sabadeco, Belnem, or Punt Vierkant are even put into the long-term rental market, no private home in those areas will have a market rental rate of less than $2,000 per month (on the very low end). This ban will not help the affordable rental issue at all.
Homeowners, short-term renters and vacationers will not be the only ones affected. Active enforcement will have a serious negative impact on the island's economy, but more on that in the next Ask Bob.