The short-term rental market in Rio de Janeiro is expanding, driven by platforms like Airbnb, creating new business opportunities for entrepreneurs. However, this has sparked tensions with the hotel sector, which calls for stricter regulations. A bill in the Municipal Chamber is debating rules for the activity.
Entrepreneurs like Omar Farhat began short-term rental operations in Rio in 2013, capitalizing on major events to generate income. Farhat, who started with an improvised mattress to help his mother pay off a R$20,000 debt, now leads Omar do Rio, a company with 150 employees managing about 380 properties, mainly in the capital, projecting 400 by year-end.
The firm handles full property preparation, including pricing, listings on platforms like Airbnb and Booking, guest support, cleaning, and maintenance, including its own laundry. 'We represent the owner. Problems can happen. A fridge might burn out, there could be an air conditioner issue. We exist to provide support during the rental,' Farhat explains.
The sector grows about 20% annually, per Leonardo Schneider, vice-president of Secovi Rio. In March 2025, there were 25,000 properties available for short-term rentals, up 18.1% from 21,200 in April 2024. Peaks like New Year's and Carnival draw extra demand.
Marcio Milech of the Brazilian Short-Term Rental Association (ABLT) likens the model to disruptive economies like iFood, stating that 'short-term rentals are here to stay.' Firms like Rio Host provide similar services, from preparation to financial management.
Despite the boom, controversies persist. Alfredo Lopes, president of HotéisRIO, advocates regulation to address 'unequal taxation' and prevent condo conflicts, noting pressure on traditional rents in areas like Copacabana. The Residential Rental Variation Index (Ivar) showed 8.45% inflation over the 12 months to October 2025 in Rio, exceeding the national average of 5.58%.
A bill in the Municipal Chamber, discussed in a September 2025 public hearing, seeks to regulate the activity, still awaiting resolution. Airbnb argues the practice is already governed by the Tenancy Law and that bans violate property rights. FGV data show operations generated R$2.9 billion in local income in Rio, with every R$10 spent on accommodations boosting R$52 in other sectors like restaurants and transport.