Short-Term Rentals

Florida is one of the nation's largest short-term-rental markets. From beach condos and vacation homes to spare bedrooms listed on Airbnb or Vrbo, short-term rentals can produce substantially more income than conventional annual leases.

But they also carry more regulation, more operating costs and considerably more risk.

The most important rule for Florida owners is this:

There is no single Florida short-term-rental rule that makes a property legal everywhere.

An owner may need approval or registration from the State of Florida, the county, the municipality, the property owners' association—and sometimes all four. A state vacation-rental license does not override local zoning, and local approval does not override condominium or HOA restrictions.

What Is a Florida Vacation Rental?

Florida law classifies a vacation rental as an individually or collectively owned condominium, cooperative unit, or one-to-four-family dwelling that is operated as a transient public lodging establishment. It does not include hotels, motels or timeshare projects. See Florida Statute 509.242.

The terminology can be confusing because different governments use different thresholds:

• DBPR focuses on whether a property is being operated as transient public lodging.
• Florida taxes generally apply to accommodations rented for six months or less.
• Orlando defines its home-sharing program around stays of less than 30 days.
• Miami Beach treats rentals shorter than six months and one day as short-term rentals.
• Key West generally treats rentals of 28 days or less as transient.
• Some cities restrict the number of rentals shorter than 30 days during a 12-month period.

The applicable definition must therefore be checked for the property's exact jurisdiction.

Florida's Local-Regulation Divide

Florida Statute 509.032 generally prevents a local government from adopting a new ordinance that completely prohibits vacation rentals or regulates their rental duration or frequency.

There is an important exception: local restrictions adopted on or before June 1, 2011, may remain enforceable. This has produced a patchwork of "grandfathered" restrictions in cities such as Miami Beach and Key West.

Local governments can also continue regulating matters such as:

• Registration and licensing
• Building and fire safety
• Parking
• Trash
• Noise
• Occupancy
• Septic capacity
• Advertising disclosures
• Local contact persons
• Nuisance activity
• Compliance inspections

That is why two properties located only a few miles apart can be subject to dramatically different rules. One may be within a city, while the other is in unincorporated county territory.

State Requirements

1. DBPR vacation-rental license

Most owners renting an entire condominium or residential dwelling on a short-term basis must obtain a vacation-rental license from the Florida Department of Business and Professional Regulation's Division of Hotels and Restaurants.

DBPR issues several types of licenses, including:

• Single licenses
• Group licenses for units within the same building or complex
• Collective licenses covering qualifying units at different locations

The appropriate license depends on ownership, location and how the units are managed. Owners can begin with the state's Vacation Rentals and Timeshare Projects Guide.

A person who rents only a room in an owner-occupied residence may fall outside the state's vacation-rental license classification, but that does not necessarily exempt the person from city registration, zoning or tax requirements.

2. Safety and sanitation

A licensed vacation rental must comply with state sanitation and safety requirements. These can include:

• Smoke alarms
• Fire extinguishers
• Safe exits
• Properly maintained plumbing and electrical systems
• Clean linens and furnishings
• Vermin control
• Swimming-pool safety requirements
• Human-trafficking awareness requirements
• Required signs and postings

For buildings three stories or higher, certain exterior balconies, platforms and stairways must be inspected every three years unless they are condominium common elements for which the licensee can document an exemption.

3. Florida sales tax

Florida's repeal of sales tax on commercial-property rent did not eliminate taxes on transient accommodations.

Short-term lodging remains subject to Florida's 6% sales tax plus any applicable county discretionary sales surtax. Rentals for six months or less can also be subject to a county tourist development tax, convention development tax or other local-option lodging tax.

The Florida Department of Revenue explains the current framework on its Sales and Use Tax page.

Airbnb or another platform may collect some taxes for a host, but owners should never assume the platform collects every state, county and municipal tax. The owner remains responsible for confirming:

• Which taxes the platform collects
• Which government receives them
• Whether the owner must register separately
• Whether returns must still be filed
• Whether direct bookings must be reported separately

4. Tangible personal property

Furniture, appliances, electronics and other personal property used in a rental business may be subject to Florida's tangible personal property reporting rules.

The first $25,000 of qualifying tangible personal property may be exempt, but an initial return is generally needed to establish the exemption. Jacksonville's Property Appraiser, for example, expressly advises that owners of furnished rental homes and condos should file a tangible personal property return.

5. Insurance

A conventional homeowners or landlord policy may exclude losses resulting from hotel-like or transient activity. Before accepting reservations, an owner should obtain written confirmation that the policy covers:

• Short-term rental use
• Guest injuries
• Swimming pools and spas
• Dog-related claims
• Theft or vandalism by guests
• Loss of rental income
• Commercial liability
• Hurricane and flood losses

Coverage offered by a booking platform should be treated as supplemental protection—not as a replacement for a proper insurance policy.

Major Florida Markets

Miami Beach: Prohibited in Many Locations

Miami Beach has some of Florida's toughest vacation-rental rules.

Rentals for less than six months and one day are prohibited in all single-family homes and in many multifamily buildings and zoning districts. A unit cannot be made legal simply by obtaining a DBPR license or listing it on Airbnb.

Where short-term rentals are permitted, an owner generally needs:

• Confirmation that zoning permits transient use
• A Florida DBPR license
• A Miami Beach Business Tax Receipt
• A resort-tax account
• Applicable certificate-of-use approval
• Condominium or association authorization
• Compliance with inspection and operational requirements

The city-issued Business Tax Receipt number and Resort Tax Certificate number must be displayed in advertisements and online listings.

Miami Beach warns that guests occupying an illegal unit may be removed and the owner fined. Owners should check the city's Vacation and Short-Term Rental page before purchasing or advertising a property.

Practical warning: Never buy a Miami Beach condo based solely on an agent's statement that "the building allows Airbnb." Verify the unit, building, zoning district, city licensing and association rules independently.

Orlando: Primarily Owner-Occupied Home Sharing

The City of Orlando's home-sharing program is considerably narrower than many investors expect.

For residential home sharing involving stays of less than 30 days:

• The host must reside at the property.
• The host must be present while guests are staying.
• No more than one booking is allowed at a time.
• No more than half of the dwelling may be devoted to home sharing.
• Occupancy is limited to no more than four unrelated guests or two persons per rented bedroom, whichever is less.
• The registration must be connected to online advertising.
• The applicant must document that the property is the applicant's primary residence.

This program is designed principally for hosted stays—not the unrestricted operation of an entire non-owner-occupied house as a vacation rental.

See Orlando's Home Sharing Registration requirements.

Do not confuse the City of Orlando with tourist areas that use an Orlando mailing address. Many vacation homes near Disney are actually in Osceola County, Polk County, Kissimmee or another jurisdiction.

Kissimmee and Unincorporated Osceola County: Zoning Is Critical

Osceola County contains many of Florida's purpose-built vacation-rental communities, but short-term rentals are not automatically allowed throughout the county.

For property in unincorporated Osceola County, the typical process is:

1. Verify that the parcel is within an approved short-term-rental zoning district or overlay.
2. Obtain the appropriate DBPR vacation-rental license.
3. Obtain an Osceola County Local Business Tax Receipt.
4. Register for applicable state and county taxes.
5. Comply with building, fire, parking, occupancy and association requirements.

Osceola County provides a short-term-rental overlay map and a county licensing checklist.

Property inside the City of Kissimmee is subject to city jurisdiction. The owner should confirm zoning with the City of Kissimmee and obtain any required city license, inspection or business approval.

Practical warning: "Kissimmee" in the postal address does not prove that the property is inside Kissimmee's city limits.

Fort Lauderdale: Registration and Inspection Required

Fort Lauderdale operates a formal Vacation Rental Program. Both non-owner-occupied and owner-occupied vacation rentals generally require city registration.

Requirements can include:

• DBPR licensing or proof of an applicable exemption
• Florida and Broward County tax registrations
• City vacation-rental registration
• Local business tax compliance
• Property and responsible-party information
• Safety equipment
• Required postings
• Inspection
• Annual renewal
• Compliance with parking, solid-waste, occupancy and noise standards

As of the city's published renewal information, renewal fees are listed as $650 for a non-owner-occupied property and $200 for an owner-occupied, homestead-exempt property. Fees should be rechecked before applying.

The city maintains a 24-hour vacation-rental complaint system and can require an illegally operating property to discontinue its advertising. See the Fort Lauderdale Vacation Rental Registration page.

Key West: Transient Licenses Are Scarce and Location-Specific

Key West distinguishes between:

• Transient rentals: generally 28 days or less
• Non-transient rentals: generally 29 days or longer

All residential rentals require a City of Key West Business Tax Receipt. A property may be rented transiently only when the zoning, property rights and licensing allow it.

The city identifies limited zoning districts in which transient use may be permissible, including HRCC-1, HRCC-3, HCT, HNC-1 and HNC-3, subject to additional conditions. The city also maintains a cap on new transient licenses, making conversion of ordinary residential property extremely difficult.

Key West publishes a map and address list of transiently licensed properties.

Practical warning: Advertising a Key West property for transient occupancy can create a violation even if no short-term booking is ultimately completed. Confirm that the property possesses valid transient rights before advertising it.

St. Petersburg: Frequency Limits in Residential Districts

In residential districts in St. Petersburg, the general minimum rental period is 30 days. Rentals shorter than 30 days are generally limited to three times during any consecutive 365-day period.

That restriction can make frequent Airbnb-style turnover unlawful even though an occasional short stay may be permitted. Different rules may apply in zoning districts that permit transient accommodations.

Owners should obtain a written zoning determination for the parcel instead of relying on a listing platform, previous owner or property manager.

Jacksonville and Duval County: State, Tax and Local-Code Compliance

Jacksonville's published short-term-rental guidance directs owners to:

• Register with DBPR
• Register with the Duval County Tax Collector
• Obtain any required fire inspection
• Post the required human-trafficking awareness sign
• Comply with zoning, parking and noise rules
• Address applicable tax and tangible personal property obligations

Jacksonville does not presently use the same elaborate city vacation-rental certificate system found in Fort Lauderdale, but that does not make every property or every rental operation automatically lawful.

The official starting point is Jacksonville's Short-Term Rental Requirements page.

Owners in Jacksonville Beach, Atlantic Beach or Neptune Beach must check the rules of the applicable beach municipality. They should not assume the consolidated City of Jacksonville requirements are the entire answer.

Tampa and Hillsborough County

The City of Tampa has not adopted a citywide vacation-rental registration program comparable to Fort Lauderdale's. Nevertheless, operators must still comply with:

• DBPR licensing
• Florida sales-tax registration
• Hillsborough County tourist-tax requirements
• City zoning
• Noise and nuisance laws
• Parking restrictions
• Building and fire codes
• HOA or condominium restrictions

Properties outside Tampa's municipal boundary fall under unincorporated Hillsborough County or another municipality. Owners should confirm the actual jurisdiction and permitted land use before accepting bookings.

Associations Can Still Say No

Government approval does not override private restrictions.

A condominium declaration, HOA declaration or other recorded covenant may:

• Prohibit rentals altogether
• Establish a minimum lease term
• Limit the number of rentals per year
• Require tenant screening or approval
• Require advance lease registration
• Charge lawful rental-related fees
• Prohibit advertising on short-term-rental platforms
• Restrict guest use of parking and amenities

Florida Statute 720.306 allows an HOA to amend its governing documents to regulate leases shorter than six months or limit rentals to no more than three times per year, with such restrictions potentially applying to all owners.

Condominium rental restrictions require a separate review under Chapter 718 and the condominium's declaration, articles, bylaws and properly adopted rules.

An investor should review the recorded documents and current association rules—not merely the seller's disclosure or an old online listing.

Before Buying a Florida Short-Term Rental

A serious due-diligence investigation should answer all of these questions:

• Is the property inside a city or in unincorporated county territory?
• What is its exact zoning designation?
• Is transient lodging a permitted use?
• Does the property possess any grandfathered or transferable rental right?
• Is a conditional-use approval required?
• Does the city require registration or inspection?
• Does the county require a business tax receipt?
• What DBPR license applies?
• What taxes must be collected?
• What taxes does the booking platform actually remit?
• Do the condominium or HOA documents permit the intended rental frequency?
• Is adequate parking available?
• What is the legal occupancy?
• Is a local responsible person required?
• Does the insurance policy expressly cover short-term guests?
• Are pools, balconies and stairs compliant?
• Will short-term use affect the homestead exemption?
• Must tangible personal property be reported?

Obtain important zoning and licensing answers in writing. A phone conversation with a government employee—or assurances from an agent, seller or property manager—may not protect the purchaser after closing.

Paul's Take

Short-term rentals can be profitable, but owners should stop thinking of them as ordinary residential rentals with shorter leases. In many respects, they are small lodging businesses.

The greatest danger is buying first and investigating later. A property's prior Airbnb history does not establish legality. The previous owner may have operated illegally, possessed a nontransferable approval, exceeded a frequency limit or ignored association restrictions.

Before calculating nightly rates, occupancy and cash flow, establish that the proposed operation is lawful at every level: state, county, city and association. If the numbers only work when the property is rented in a manner the law does not permit, the investment does not work.

This article provides general information and is not legal, tax, zoning or insurance advice. Regulations and fees change. Owners should verify current requirements for the exact property address before advertising or accepting reservations.