In short
Act 48-1990 regulates student lodging businesses for higher, post-secondary or technological students, and gives the Department of Consumer Affairs the exclusive power to issue those licences. No person may operate a student lodging business without a licence issued by the Secretary, and a copy of the issued licence must be posted in a visible place at the business. Licences are issued for periods no longer than one (1) year and are renewable if the establishment keeps complying; each application for issuance or renewal must be accompanied by a check or money order payable to the Secretary of the Treasury for one hundred (100) dollars, and government agencies are exempt from that payment. The licence is granted only for the physical plant and the person who applies for it, and may not be transferred, assigned or conveyed. DACO’s regulations must specify requirements for physical facilities and sanitary conditions, fire safety measures and other protections such as public liability insurance or bonds, accessibility to educational institutions or to transportation, health requirements and service quality. In addition, every lease must contain a clause certifying that the lodging complies with this law and with DACO’s regulation. Granting rental contracts at a place operating as lodging without the required licences and permits is prohibited, and whoever violates any article may be sanctioned with a fine not exceeding ten thousand (10,000) dollars per infraction.
What is it?
It is the law subjecting student lodgings to licensing and regulation (10 L.P.R.A. §§ 2301-2315). Its definition is the first thing to read, because it decides whether your situation is covered: a "student lodging business" is any dwelling unit used to house one or more students for pay — whether rent or any of the basic services such as water, power or phone, with or without meals — and includes residential clubs, guest houses, furnished guest houses, rooms and boarding houses. But a property rented for the use of at least one post-secondary student shall not be considered student lodging unless its owner resides in it, or when, even if the owner does not reside there, the unit is rented for the use of fewer than three (3) post-secondary students. A "student" is anyone attending a higher, post-secondary or technological institution accredited by the Council on Education of Puerto Rico, public or private.
Who can do it?
Higher, post-secondary or technological students who lodge for pay in a dwelling unit falling within the law’s definition, and the people who operate that kind of business. If the lease is of an ordinary apartment for fewer than three students and the owner does not live there, the law expressly does not consider it student lodging: that case is governed by the general rules of lease.
Requirements
- That the unit falls within the definition: housing students for pay, and not excluded by the resident-owner or fewer-than-three-students rule.Verified against the official source
- A current licence issued by the DACO Secretary, posted in a visible place at the business.Verified against the official source
- A lease with the clause certifying compliance with Act 48-1990 and DACO’s regulation.Verified against the official source
Documents you need
Cost
One hundred (100) dollars for each licence issuance or renewal application, by check or postal or bank money order payable to the Secretary of the Treasury. Government agencies are exempt from paying these fees. (This is the cost for whoever operates the lodging, not for the student.)
Verified against the official source · August 24, 2026
Step by step
Step 1: First check whether the place is "lodging" under the law
The definition excludes more than people assume. A property rented for the use of at least one post-secondary student shall not be considered a student lodging business unless its owner resides in it; or when, even though the owner does not reside there, the dwelling unit is rented for the use of fewer than three (3) post-secondary students. If you rented an apartment with one roommate and the owner lives elsewhere, this law likely does not apply to you and your rights are those of a general lease.
Step 2: Look for the licence on the wall before signing
No person may operate a student lodging business without a licence issued by the DACO Secretary, and a copy of the issued licence must be posted in a visible place at the business. In addition, every lodging business must display in a conspicuous place at the premises a list of the requirements it must meet under the Department’s regulation. If you do not see either, ask before handing over money.
Step 3: Demand the compliance clause in your lease
Article 8(g) is the most useful practical hook for a student: every lease must contain a clause certifying that the lodging complies with Act 48-1990 and with DACO’s Regulation for Student Lodging Businesses. It must also certify that the tenant was informed of the availability of the Act and the Regulation and of the advisability of reviewing and discussing both documents when signing. A lease without that clause is a verifiable red flag.
Step 4: Know what the lodging must comply with
The regulations DACO adopts must specify, among others: adequate physical facilities, sanitary conditions of the premises and the neighborhood, space and ventilation consistent with the services offered and the number of students served; fire safety measures and other protections, such as public liability insurance or bonds needed for students’ health and welfare; accessibility to educational institutions or to the transportation students need to attend classes and other educational activities; health requirements for accepting students; and the quality and conditions of the services provided. The Department coordinates with the Department of Health and the Fire Service to enforce this article.
Step 5: If it operates without a licence, DACO can inspect and shut it down
When the Department believes on information or belief that a place is operating as lodging without a current licence — because it was denied, suspended, canceled, or because it was neither renewed nor applied for — it is authorized to conduct the necessary inspection, including compelling the appearance of witnesses and the production of documents, without having to request a search warrant. If a legal occupant refuses permission, any magistrate may issue an order upon receiving a sworn statement showing probable cause. And if the business operates without the corresponding licence, the Department may seek an injunction before the Superior Court to stop it from continuing to operate.
Step 6: Complain to DACO: it is the only authorized agency
The Department of Consumer Affairs is the only agency authorized to issue licences to student lodging businesses regulated by this law, and also the one that may cancel, suspend or deny a licence if the holder, after being notified of the deficiencies found, does not correct them within the reasonable period set by regulation. Any person who violates any article of this law may be sanctioned with the administrative penalties provided, including a fine not exceeding ten thousand (10,000) dollars per infraction, under Article 18 of Act 5-1973. If a decision of the Secretary affects you, the review procedure is that of the Uniform Administrative Procedure Act.
Where to do it
The Department of Consumer Affairs issues, renews, suspends and cancels the licences, prepares the application form and keeps a Registry of all licensed lodgings. That Registry does not stay at the agency: the law orders it sent, along with the adopted regulations, to universities’ Dean of Students Offices, to be circulated and publicized among students who request it and posted on public expression boards. DACO may also seek advice from student aid offices and student organizations.
How long it takes
Licences are issued for periods no longer than one (1) year, renewable if the establishment keeps meeting the requirements. The provisional licence, for businesses already operating when the law took effect, authorized continued operation for a period not exceeding six (6) months from issuance.
Verified against the official source · August 24, 2026
What to do if something goes wrong
The definition’s exclusion causes the most confusion, so it bears repeating: an apartment rented to fewer than three post-secondary students, with the owner living elsewhere, is not a "student lodging business" under this law. That does not leave you without rights — it leaves you under the general lease rules, covered in their own guide. A nuance in the other direction: the Article 8 requirements do apply to any apartment identified by the Department as a single unit that is subleased as individual student lodging. What we did not read for this guide: DACO’s Regulation for Student Lodging Businesses, so we publish no specific requirements for square footage, beds, extinguishers, or the exact period to correct deficiencies — the law says they are set by regulation. We also did not read Act 5-1973’s fine schedule beyond the $10,000 cap this law cites, nor did we verify whether the Council on Education of Puerto Rico, which the law names as accreditor, still carries that name today.
Common mistakes
- Assuming any room rented to a student is "lodging" under this law: the definition excludes the non-resident owner with fewer than three students.
- Signing without seeing the DACO licence, which the law requires to be posted in a visible place at the business.
- Accepting a lease without the clause certifying compliance with Act 48-1990 and DACO’s regulation.
- Not asking for the list of requirements the business must display in a conspicuous place.
- Believing the previous owner’s licence works: it is granted only for that physical plant and that person, and may not be transferred or assigned.
- Thinking a licence lasts forever: it is issued for periods no longer than a year and must be renewed.
- Taking the complaint to the university as the only remedy: DACO is the only agency authorized to license and oversee.
- Not knowing the Registry exists: DACO must send it to deans of students so it is publicized.
Frequently asked questions
Does every room rented to a student need a licence?
No. The law excludes a property rented for the use of at least one post-secondary student unless its owner resides in it; and also when, even though the owner does not reside there, the unit is rented for the use of fewer than three (3) post-secondary students. Outside those exclusions, a DACO licence is required.
How much does the licence cost?
One hundred (100) dollars for each issuance or renewal application, by check or postal or bank money order payable to the Secretary of the Treasury. Government agencies are exempt. That cost is paid by whoever operates the lodging, not by the student.
What must my lease say?
Every lease must contain a clause certifying that the lodging complies with Act 48-1990 and with DACO’s Regulation for Student Lodging Businesses, and must certify that the tenant was informed of the availability of the Act and the Regulation and of the advisability of reviewing and discussing both documents when signing.
What happens if it operates without a licence?
Granting rental contracts at a place operating as lodging without the required licences and permits is prohibited. DACO may inspect, seek an injunction before the Superior Court to stop it from continuing to operate, and sanction with a fine not exceeding ten thousand (10,000) dollars per infraction.
Where can I see which lodgings are licensed?
DACO prepares a Registry of all student lodgings to which it has issued a licence, and the law orders it sent — along with the adopted regulations — to universities’ Dean of Students Offices, to be circulated and publicized among students who request it and posted on public expression boards.
Official sources
These are the government pages this guide is based on.
- Departamento de Asuntos del Consumidor (DACO)
DACO
bvirtualogp.pr.gov
- DACO services
DACO
www.daco.pr.gov
Last verified
August 24, 2026
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