MORTGAGES for properties used for short-term rentals such as Airbnb are causing “increasing concern” for the Bank of Jamaica (BOJ) as they show heightened levels of delinquency when compared to the rest of the mortgage market. Still the central bank indicated that the overall mortgage market remains robust, with increasing property prices “underscored by economic fundamentals, therefore, confirming the absence of a bubble”. The information is contained in the 2022 ‘Financial Stability Report’ which the central bank published at the end of March.

“There were indications of increased delinquencies among tenanted properties, primarily for mortgages issued during 2021,” the BOJ wrote in the 2022 ‘Financial Stability Report’, though it did not quantify the value of the delinquent mortgages. “Non-performance and past due states of rented properties were the highest across the identified occupancy statuses, consistent with the higher credit risk posed by properties with low owner concern,” it continued.

https://www.jamaicaobserver.com/business/short-term-rental-worry/