If you own a rental property in Puerto Rico priced between $3,000 and $15,000 a month and you’re not actively marketing to Act 60 decree holders, you’re missing the strongest tenant segment in the market.<\/p>\n
Act 60 relocators (mainland US individuals and families using Puerto Rico’s tax incentive program) have become the dominant demand for premium PR rentals over the past five years. They pay top of market rents. They sign long leases. They have verified income. They take care of properties because they’re often considering buying afterward.<\/p>\n
Most PR landlords I talk to either don’t know this segment exists or don’t know how to reach it. This article fixes both. I’ll cover who Act 60 tenants actually are, why they’re better than typical local tenants for premium properties, what they look for, and how to get your unit in front of them.<\/p>\n
Act 60 (formerly Acts 20 and 22) is Puerto Rico’s tax incentive program for individuals and businesses relocating to the island. The decree provides 0 percent tax on Puerto Rico-sourced capital gains and dividends for individual decree holders, plus a reduced 4 percent corporate tax rate for qualified export services businesses.<\/p>\n
To qualify, a decree holder must establish bona fide residency in Puerto Rico (which means physical presence on the island for at least 183 days per year), donate $10,000 annually to PR-registered nonprofits, and meet other ongoing requirements. The decree carries through Dec 31, 2026 in current form, with new applicants accepted through that date.<\/p>\n
The result: thousands of mainland US professionals have moved to Puerto Rico since 2018. Most are:<\/p>\n
This is the tenant pool I represent. I’ve placed Act 60 decree holders into rentals across Condado, Ocean Park, Punta Las Mar\u00edas, Santurce, Miramar, Old San Juan, Dorado, Palmas del Mar, and Bahia Beach.<\/p>\n
Six structural advantages compared to typical local tenants in the same price range.<\/p>\n
Act 60 decree holders have to demonstrate income to qualify for the program. They have CPAs, attorneys, and financial advisors who can vouch for their income. Most have US credit scores in the 750 plus range and clean financial histories.<\/p>\n
Compare that to the typical local applicant for a $5,000 to $10,000 a month unit, who is more likely to be a high-earning professional whose income is real but harder to document, or a small business owner whose income statement requires more interpretation.<\/p>\n
The screening on Act 60 tenants comes back clean almost universally. The riskiest part of accepting a tenant (will they actually pay) is functionally solved.<\/p>\n
Act 60 relocators are not transient. They’ve moved to Puerto Rico to establish residency and stay through the decree period (typically 15 to 20 years). They’re not going to break a lease and leave the island.<\/p>\n
Typical Act 60 lease length: 12 to 24 months on the initial lease, with high renewal rates if they like the property. Many extend year over year while they search for property to buy.<\/p>\n
Compare that to local tenant turnover patterns where 12 months is standard but 6 to 9 months is common in the higher-end market as people move for work or family reasons.<\/p>\n
Act 60 relocators came from cities where their current rent is normal: New York, San Francisco, Miami, Austin. A $5,000 a month two-bedroom in Condado feels reasonable to someone who paid $5,500 for a one-bedroom in Manhattan.<\/p>\n
This means they don’t negotiate as hard on rent as local applicants do. If your unit is well-marketed, well-photographed, and priced at market, Act 60 applicants will pay your asking number. Local applicants in the same tier will often try to negotiate 10 to 15 percent off.<\/p>\n
Most Act 60 tenants are buying later. Many are using the rental period to test neighborhoods and figure out where they want to purchase. They have every incentive to be good tenants because:<\/p>\n
Damage and complaints from Act 60 tenants are rare. The economics of being a good tenant are aligned with their longer-term goals.<\/p>\n
Late payment rates among Act 60 decree holders are negligible. They have automated bill pay, financial advisors managing their cash flow, and the income to cover unexpected expenses. The chase-the-rent dynamic that consumes so much of typical landlord time disappears with this segment.<\/p>\n
The pattern I see repeatedly: Act 60 family rents your Condado condo for 18 months. They love the neighborhood. They want to buy in the same building or block. Sometimes they want to buy your unit specifically.<\/p>\n
If you’re considering selling in the next two to three years, an Act 60 tenant is your highest-probability future buyer. They’ve already vetted the property and the neighborhood by living there.<\/p>\n
If you want to attract this segment, your property needs to match what they expect.<\/p>\n
Act 60 tenants come from US markets with high property standards. Expectations include:<\/p>\n
If your unit lacks two or more of these, your Act 60 marketability drops significantly. Investing $5,000 to $20,000 in upgrades to hit these standards typically pays back in the first lease through higher rent and faster fill.<\/p>\n
Concentrated demand in specific PR neighborhoods:<\/p>\n
If your property is outside these neighborhoods, the Act 60 channel is harder to access but not impossible. Some Act 60 decree holders rent in Bayam\u00f3n, Carolina, or Toa Baja for budget reasons. The volume just runs lower.<\/p>\n
Act 60 tenants typically want:<\/p>\n
Landlords who can offer furnished units rent 30 to 50 percent faster to Act 60 segment than landlords who only offer unfurnished. The rental premium for furnished is typically 15 to 25 percent.<\/p>\n
This is where most local FRBO landlords lose. The Act 60 segment does not search Clasificados. They barely use Zillow for PR rentals. Their typical channels:<\/p>\n
The single highest-volume channel. Act 60 relocators almost universally work with a real estate agent who specializes in mainland US relocations to PR. That agent finds them rentals before they search for purchases.<\/p>\n
If you’re not in the agent network, you don’t see this demand. Period.<\/p>\n
Several PR-based concierge firms (mostly serving Act 60 clients) handle apartment search as part of relocation packages. These firms have direct relationships with property managers and agents.<\/p>\n
There are several private Facebook groups for Act 60 holders (decree applicants and current decree holders) where rental requests get posted. Listings from agents typically get posted directly to these groups.<\/p>\n
CPAs and attorneys who handle Act 60 decree applications often refer clients to specific agents for rental search. This is a network effect where the agent who places multiple Act 60 tenants becomes the go-to referral.<\/p>\n
A handful of PR rental aggregators specifically serve the Act 60 segment. These are paid platforms that curate premium properties with strong building amenities. Listings here cost more but reach a higher-quality pool.<\/p>\n
What’s missing from this list: Clasificados, generic Zillow search, Facebook Marketplace. Act 60 tenants do not find rentals through those channels in any meaningful volume.<\/p>\n
I represent both sides of this market. On the buyer side, I work with mainland US relocators evaluating PR property and helping them through their decree-aligned purchase decisions. On the landlord side, I place those same relocators into rentals during their pre-purchase period.<\/p>\n
When you list a rental property with Five Star, your unit gets visibility to:<\/p>\n
This is not visibility you can buy through any single platform. It’s a network that takes years to build and requires active participation in the Act 60 community to maintain.<\/p>\n
The combination of being both a licensed broker (License C-20992) and an accountant with Act 60 tax-strategy expertise gives me a unique position in this market. Most PR property managers don’t speak the Act 60 language. Most Act 60 tax advisors don’t touch real estate operations. I do both.<\/p>\n
Before you list a property targeting Act 60 demand, verify:<\/p>\n
Hitting 8 or more of these makes your unit highly competitive in the Act 60 segment. Hitting 5 or fewer makes it a hard sell to this audience.<\/p>\n
If your property fits the Act 60 profile and you want it listed through the right channels, call me. I’ll do a free assessment of how your property positions against current Act 60 demand and what specific channels make sense for your unit.<\/p>\n
Harry Carrasquillo Giraud License C-20992 Five Star Real Estate by Shift Realty PR (787) 692-5385 harry@shiftrealtypr.com<\/p>\n