Overview

Florida is undoubtedly one of the most popular tourist destinations in the United States. According to statistics provided by the Florida state government, there were approximately 140.6 million visitors in 2023, a 2.2 percent increase from 2022. The increase in tourism indicates the state’s growing demand for tourism services, including short term rental properties for vacationers to stay in. As such property owners in Florida, as a part of the short term rental market, can be a part of the tourism business, which contributed $121.5 billion to the state’s economy in 2022.

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Since short term rental business can be a lucrative opportunity, it’s important to be aware of the regulations that are in place. This blog aims to educate property owners who are interested in hosting short term vacation rentals while spotlighting the most recent updates revolving around the subject such as the veto of SB 280.

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A Brief Overview of Short term Rentals in Florida

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What is a short term Rental?

Before anything else, it’s important to understand what Florida defines as a short term rental. Officially defined as “transient public lodging establishments,” a short term rental includes any unit rented out more than three times per calendar year for periods shorter than 30 days. 

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To legally operate in Florida, the property owner must register for and obtain a license from the Department of Business and Professional Regulation (DBPR). Before applying for a license, it’s important to know and collect the information one must submit to the DBPR. First, identify the category of the license for the property. The DBPR files the vacation rentals into two categories:

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• Condominium: For units inside a condominium or cooperative.
• Dwelling: For townhouses, single-family houses, or units in multi-family dwellings up to four units.

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After identifying the category, the next step is identifying the primary license types that apply to the property owner:

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• Single License: For individual properties managed by the owner.
• Group License: For all units within a complex managed by a licensed agent.
• Collective License: For multiple properties across different locations managed by one agent with a maximum limit of 75 units. 

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Application Process

After collecting the preliminary information, the property owner can apply online. Here are the application requirements for both of the applications for the condominium application and the dwelling application. If the property is being rented out on Airbnb, a different application needs to be filled out.

Condominium and Dwelling Application Requirements

• Main Address: The primary address of the property owner used for administrative purposes.
• Rental Location Address: Provide the physical addresses of all rental units. Make sure to include a valid Florida county.
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  • Collective: Up to 75 units per district.
  • Group: Multiple units within the same complex or building.
  • Single: 1-4 units within the same complex or building.
• Fee: Pay the application fee by using a credit card.
• Disabled Veteran Exemption: Submit your DD214 form and proof of disability if applicable.
• Certificate of Balcony Inspection: Complete and submit this form if the public lodging establishment is three or more stories in height. The inspector must have the education and experience to be competent to perform the inspection. The property owner is responsible for verifying the competency of the inspector. 
• Human trafficking: Provide training for employees in housekeeping and front desk roles.

Airbnb Application Requirements

• Fill out the DBPR Vacation Rental License.
• Name of Rental Company: The name of the legal business that the rental property is under.
• Incorporation Documents: Articles of Incorporation or Organization for LLCS or Corporations. 
• Fees: Refer to the Florida Division of Corporations fee chart. 
• Rental Rules and Agreements: Prepare the short term rental rules and agreements.

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Vacation Rental Regulations

Here is a list of regulations that must be kept throughout the operation of short term rentals in Florida: 

Occupancy Regulations

Many Florida cities require the short term rental property to be owned by the host. If the host wishes to rent out their space when it is overseen by a Homeowners Association (HOA), they must first get written approval from the HOA. In this case, the owner must make sure that the HOA holds its business tax receipt number.

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Some cities further restrict short term rentals by:

• Zoning Location: Many cities in Florida, especially large cities such as Miami Beach or Fort Lauderdale, have zones where a short term rental can be operated.
• Maximum Overnight Occupancy: Some cities, such as Destin, also limit the maximum occupancy of a room to two adults in the dwelling unit. 

Fire regulations

Property owners must uphold safety measures such as regular balcony inspections and county fire safety standards. This may include installing automatic fire sprinklers for buildings three stories or higher.

Safety regulations

Information that can help visitors in an emergency should be readily available to them throughout the property. This can include having signs to locate fire extinguishers or emergency exits. For foreign visitors who may be unfamiliar with U.S. emergency procedures, posting emergency contact numbers such as 911 is recommended.

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It’s also helpful to have a designated emergency contact person to help the guests with their needs. Some cities, such as Naples, require an emergency contact person to be available at all times in case the real estate owner is not available to assist the visitors on-site.

Neighborhood Regulations

Local governments often enforce laws on a local level to ensure that short term rentals do not hinder the well-being of the neighborhood. Not obeying these short term rental ordinances may result in the rental license being revoked. These local ordinances can involve:

• Noise: Reasonable noise levels are expected especially in residential areas.
• Parking: Some neighborhoods forbid unauthorized parking, especially in popular beach areas such as Miami Beach or Indian Rocks Beach or areas already suffering from parking congestion.

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As vacation rental hosts, add reminders of these local laws in the vacation rental rules and constantly update the new rules in accordance with Florida law.

Sanitation regulations

Property managers are responsible for meeting and maintaining public food service sanitation standards. This includes cleaning dirty dishes, glassware, and linen in between guest visits and following local regulations for garbage disposal. 

Reporting Management Changes and Licensing

Using the DBPR services account, the property owner can update the number of units or changes in the property online. The property owner can also check all licensed properties through the Vacation Rental Database.

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Relevant Tax Laws for short term Rentals

Here is a list of taxes that may apply to short term rentals. Make sure to consult with a tax professional to verify the amount of taxes that must be paid for the business.

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• Income Tax: This must be paid annually to the state and the federal government, calculated on your taxable income after deductions.
• State Sales Tax: Florida’s sales tax is 6 percent, which is sent to the Florida Department of Revenue. 
• County Sale Surtax: Each county may have different rates. Check the DR-15DSS form for additional information.
• Local Option Transient Rental Taxes: Refer to the DR-15TDT form to check if the county charges additional taxes. 

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Relevant Tax Laws for Airbnb Hosts in Florida 

Guests who are booking for Airbnb in Florida must pay several taxes, which are collected and remitted by Airbnb. Understanding what the taxes are for helps establish a level of transparency between the host and the guests. Here is the list of tax requirements by the state and county that the visitors should know about. 

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• Florida Transient Rental Tax: According to Florida State 212.03, all rental properties are subject to a 6 percent of the listing price. This tax may be waived for three different reasons. For the last two reasons, documentation to prove their status is necessary for the waiver.some text
  • The renting party is renting the property for longer than six months. 
  • The renting party is a military veteran or an active-duty service member. 
  • The renting party is a full-time student registered for coursework. 
• Florida Discretionary Sales Surtax: The rate varies between 0.5 percent to 1.5 percent of the listing price depending on the county. This fee is an addition to the Transient Rental Tax and may include the nightly fee but also any additional cleaning or reservation processing fees.
• County Tourist Development Taxes: Certain counties in the state collect taxes ranging from two to five percent of the listing price. This tax applies to counties such as Miami-Dade County (except Surfiside, Bal Harbour, and Miami Beach), Pinellas County (Indian Rocks Beach), and Hillsborough County.

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Current Events Around short term Rentals in Florida

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Controversy Revolving around SB 280

The short term rental industry in Florida has been focusing on the legislation SB 280 for the past few months after the Florida Senate approved the bill in February. The bill sought to outline new regulations regarding occupancy limits, property owners’ responsibilities, a standardized registration system, and entrusting tax collection duties for vacation rental properties over to the platforms on which they are advertised. These would have overruled local level regulations that conflicted with the new rules while addressing increasingly rising complaints from the locals who were constantly disturbed by vacationers in their neighborhood.

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Despite its popularity, the bill was vetoed by Governor De Santis. Of the many reasons that he put out, the most notable one suggests that the legislature is trying to make a uniform regulation even though the vacation rental markets are far from uniform across various regions of the state. Despite overwhelming approval from even Sen. Jason Pizzo and Sen. Nick Diceglie, the governor remains skeptical about creating a statewide enforcement of a quickly growing industry maybe out of fear that the new regulations will stump its exponential growth. Sen. Nick Diceglie is especially invested in pushing new regulations onto the Senate floor as can be seen from his lobbying for SB 754.

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As such, the vetoing of SB 280 is far from the end of legislation’s attempts at creating new short term rental regulations in Florida and more will be introduced to the Senate floor. As property owners, it is imperative to be on top of the current events and make sure that the properties are following the short term rentals law enforced in the county.

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Conclusion

The short-term rental market in Florida presents lucrative opportunities for property owners, but it's crucial to stay informed about current regulations and legislative changes. This blog provides an overview of key requirements and recent updates, ensuring property owners can navigate this evolving landscape effectively.