Chat with us, powered by LiveChat
Which is Best: Looking for Houses for Rent or Houses to Buy in Puerto Rico?

Which is Best: Looking for Houses for Rent or Houses to Buy in Puerto Rico?

Embarking on a move to Puerto Rico offers an exciting opportunity to experience its tropical allure, vibrant culture, and affordability. If you're deciding whether to rent or buy property there, it's a choice that will influence your lifestyle and financial future. Many newcomers from the mainland U.S. or from a foreign country initially opt for renting, which provides the chance to get acquainted with the island and its diverse areas affordably. On the other hand, purchasing property can be a wise long-term investment, given the island's growing real estate market and generally lower property prices compared to the U.S. 

In this blog, we at Christie’s International Real Estate will help you dive into the intricate details of moving to Puerto Rico, focusing on the critical decision of whether to rent or buy property. This choice is not just about picking a place to live; it's about understanding and adapting to the Puerto Rican lifestyle and its rich history, managing your finances effectively, and planning for the future.

Understanding the Puerto Rican Property Market

The current housing market in Puerto Rico is experiencing a unique phase due to the recent rise in interest rates. The Federal Reserve's decision to increase the mortgage interest rate from 7.75% to 8.5% has impacted the real estate cycle, currently in a contraction stage with limited property inventory and new construction. 

This scenario has led to properties being sold above market value. However, there's optimism for recovery, supported by economic variables like reconstruction funds and buyer assistance programs, which may counteract the negative effects of higher mortgage interest rates and stimulate economic activity in 2023.

Pros and Cons of Renting and Buying

When considering whether to rent or buy in the current housing market, weighing various factors that can impact your decision is important. Here's a breakdown of the pros and cons of each option:

Buying a Property



Equity Growth: Buying a home allows you to build equity, especially if the market value of your home increases due to appreciation or improvements you make​.

Higher Upfront Costs: Purchasing a home involves significant upfront expenses such as down payments, closing costs, and potential repair and maintenance expenses​​​.

Stability and Security: Owning a home offers a sense of stability and permanence. It also allows for personalization and modification of your living space​.

Market Volatility: The real estate market can fluctuate, affecting the value of your property. There's also the risk of economic downturns impacting your home's value​.

Community Involvement: Homeowners often have stronger ties to their communities, which can lead to a greater sense of belonging and civic participation​.

Lack of Flexibility: Selling a home can be time-consuming, making it difficult to move quickly for job opportunities or personal reasons​.

Renting a Property



Flexibility: Renting provides the flexibility to relocate easily without the hassle of selling a property​.

No Equity Building: Renting doesn’t allow you to build equity in a property, as you are not investing in homeownership​.

Lower Upfront Costs: Renting typically involves lower initial costs, like security deposits, compared to the down payment and closing costs of buying a home​.

Potential for Rent Increases: Renters may face rent increases at the end of their lease terms and have limited control over these changes​.

No Maintenance Responsibilities: As a renter, you are not responsible for maintenance and repairs, which are typically the landlord’s responsibility​.

Less Stability: Renting can sometimes feel less stable, especially if your landlord decides to sell the property or change the terms of your lease​.

Buying Property in Puerto Rico

Buying property in Puerto Rico involves several steps, each crucial to ensuring a smooth and successful purchase. Christie’s Real Estate agents can guide you along this process. But for an overview, here's a simplified guide to help you understand the process:

Choosing the Right Location

Puerto Rico offers a variety of locations, from beachside resorts to mountain retreats. Popular areas for foreign homebuyers include San Juan, the capital city, Palmas del Mar, Dorado Beach, and Bahia Beach. When selecting a location, consider factors like safety, amenities, and lifestyle preferences.

Securing Funding

Most buyers require a mortgage. In Puerto Rico, you typically need a good credit score and a 20% down payment. FHA loans are an option, allowing a 3.5% down payment but with a maximum loan limit. Be prepared for substantial paperwork and potentially higher rates than in the US​​​.

Engaging a Real Estate Agent

It's beneficial to work with a knowledgeable local agent who can speak Spanish and English. They can guide you through the local market, property options, and the intricacies of property acquisition​.

Property Search and Negotiation

Use your agent’s expertise to find properties that suit your preferences and budget. Your agent will also assist in negotiating the purchase terms​​​.

Option Agreement

In Puerto Rico, an Option Agreement is commonly used instead of a traditional Purchase Agreement. This grants you the right to purchase the property within a specified period, typically 60 to 90 days, for an agreed-upon price. During this period, you'll pay an option fee to secure this right​.

Inspection and Due Diligence

Conduct a thorough property inspection, including title verification and ownership history, to ensure there are no legal issues​​​.

Legal Assistance

Engage a lawyer who is also a notary and knowledgeable in Puerto Rican real estate law. They will help in reviewing contracts, conducting title searches, and overseeing legal aspects of the transaction​​​.

Property Registration

After purchase, ensure the real estate titles are properly recorded at the Registry of Property. This is crucial to prevent objections from registry officials​.

Understanding Tax Incentives

Puerto Rico's tax benefits, such as a 100% exemption from property taxes for up to 10 years if the property is your primary residence. You may browse through our blogs that tackle Puerto Rico's tax incentives in great detail for a better understanding of tax advantages.

Cultural and Economic Considerations

Embrace the diverse culture and understand the economic factors, including the impact of past events like Hurricane Maria, on the real estate market. You may browse through our Neighborhood Guide series to learn specifically about these aspects.

Renting Property in Puerto Rico

Renting property in Puerto Rico can be an appealing option for those looking to experience the island before making a purchase decision. The rental market offers a range of accommodations, from urban apartments to homes in more secluded areas. We at Christie’s can give you sound advice for the best properties in Puerto Rico but here's a quick overview of what you need to know:

Understand the Rental Market

Research rental prices and trends in different areas of Puerto Rico. Be aware that rental costs can vary widely, from affordable to luxury pricing, depending on the location and type of property​.

Decide on a Preferred Location

Consider what type of environment suits your lifestyle: urban, beachfront, or more secluded mountain areas. Weigh the pros and cons of different regions, like San Juan for city life or quieter areas further from the beach for affordability​.

Find Rental Properties

Use online platforms to find available rentals. Feel free to browse our listings here at Christie’s International Real Estate Puerto Rico for a property that may fit your preferences. Verify the accuracy of listings with our expert realtors, and be prepared to visit properties in person before making a decision​.

Review Tenant Rights and Legal Aspects

Familiarize yourself with tenant rights in Puerto Rico, focusing on habitability standards and security deposit regulations. Understand that tenant rights are largely based on the lease agreement in Puerto Rico​​​​.

Inspect the Property Thoroughly

Before signing a lease, visit and inspect the property to ensure it meets your standards for habitability and amenities. Look for essential features like reliable electricity, functional plumbing, and safety measures​​​.

Negotiate and Sign the Lease Agreement

Engage in verbal negotiations on lease terms, but ensure all agreed terms are included in the written contract. Pay attention to provisions on deposits, fees, maintenance, and habitability in the lease agreement​​​.

Understand Eviction Procedures

Be aware of the legal eviction process in Puerto Rico, including notice requirements for different causes like nonpayment of rent or lease breaches. Know that landlords cannot use self-help eviction methods and must follow legal procedures​.

Prepare for Financial Obligations

Budget for your security deposit and first month's rent. Factor in additional costs like utilities and any other fees outlined in your lease agreement​.


Moving to Puerto Rico presents a significant decision: should you rent or buy a property? Ultimately, that decision depends on your personal circumstances, financial situation, and long-term goals. The answer depends on individual circumstances, preferences, and financial considerations. 

At Christie's International Real Estate Puerto Rico, we understand the complexities of relocating and the importance of making the right choice for your future home. Our expertise in the Puerto Rican property market allows us to provide tailored advice and support whether you're looking to buy or rent. We offer a wide range of services, from helping you navigate the market's current dynamics to finding the perfect property that fits your lifestyle and budget.

If you're ready to explore the vibrant, diverse island of Puerto Rico and need expert guidance in finding your dream home or the perfect rental property, we at Christie's International Real Estate Puerto Rico are here to assist you every step of the way. Contact us today to start your journey in this beautiful island paradise.

Join a select group

Exclusive off-market listings and news

Join a select group

With one of PR's largest teams, CIRE PR offers more transaction support, global reach, and on-the-ground experience than any other brokerage in San Juan.

Follow us on Instagram