Investing in property for short-term rental income: profitability and risks

Short-term rental properties on the Paraíba coast can generate higher income than standard rentals, but the regulatory risk has increased.

Coastal neighborhoods of João Pessoa, such as Cabo Branco, Tambaú, Manaíra and Bessa, concentrate much of the supply of properties listed for short-term rental on platforms such as Airbnb. According to industry surveys, the nightly rate for these properties in high season can generate income several times higher than a traditional residential rental over the same period, which has made studio and one- to two-bedroom apartments near the seafront a frequent target for investors from other states.

The advantage, however, comes with variables the buyer must weigh before deciding. Short-term rental income is seasonal — concentrated around holidays, school breaks and the peak tourist season — and depends on active management (pricing, cleaning, check-in), which in practice means higher operating costs than a simple annual lease.

The main new risk, as of 2026, is regulatory: the Superior Court of Justice's ruling in REsp 2,121,055, from May of that year, now requires approval by two-thirds of the condominium to authorize this type of rental in residential buildings. This means buying a unit in a condominium without checking the bylaws — and without confirming the activity is actually authorized — can result in a court-imposed restriction on the intended use after the purchase.

Before investing, therefore, it is worth checking the condominium bylaws, the property's usage history, and any tourism-related or tax charges applicable to the activity in the municipality.