In April 2023, a significant legislative development unfolded in Florida's real estate landscape, particularly impacting the short-term and vacation rental market. The Florida legislature passed new laws that came into effect on July 1, 2023, introducing fundamental changes to how short-term rentals are regulated. These changes mark a crucial step in balancing homeowners' rights to rent out their properties and the tranquility of residential neighborhoods.
Overview of the New Legislation
After nearly a decade of deliberation and failed attempts, Florida lawmakers passed legislation to provide more regulatory tools at the local level. This was a response to the burgeoning short-term rental market and the accompanying challenges neighborhoods faced, including noise, parking, and trash management.
Critical Components of the New Short-Term Rentals Law
1. Local Government Powers Enhanced:
Local governments can now suspend vacation rental registrations for up to 30 days following three or more violations of local ordinances concerning noise, parking, or trash within a 90-day period.
A subsequent violation within six months could lead to a suspension of up to six months.
These measures aim to hold property owners accountable and mitigate the adverse impacts of short-term rentals on communities.
2. Occupancy Limits Standardized:
The law allows local governments to impose occupancy limits on short-term rentals but with a caveat: these limits must be consistent across all residential properties.
This provision has sparked debate, as it could pose challenges in diverse housing areas with varying occupancy needs.
3. Registration Process and Fees:
The law caps registration fees at $150 for individual applications and $200 for collective registrations (up to 25 rentals).
Local governments have a 15-day window to review registration applications, with a requirement to provide reasons for any denials.
4. Platform Regulations:
Platforms like Airbnb face fines of up to $1,000 for violating the bill's provisions or division rules.
Additionally, these platforms must adopt anti-discrimination policies and inform users about the state’s public lodging discrimination prohibition.
Reactions and Responses
The law has received mixed reactions. Some local officials and community associations express concerns that the new regulations may not sufficiently address the problems posed by short-term rentals. The challenge lies in protecting neighborhood interests and respecting property owners' rights.
Implications for Property Owners and Managers
Property owners and managers in Florida must be aware of these changes, especially those in the vacation rental business. Compliance with local ordinances and understanding the new state regulations are crucial to avoid potential penalties and ensure smooth operation. This law also underscores the importance of good property management practices, particularly in maintaining community standards and adhering to local regulations.
Looking Ahead: The Future of Short-Term Rentals in Florida
As the short-term rental market continues to evolve, so will the regulatory landscape. Florida's new law is a testament to the dynamic nature of this sector and the need for ongoing adjustments to meet the changing demands of communities, property owners, and renters.
The 2023 updates to Florida's short-term rental laws represent a significant shift in the state's approach to managing this growing sector. While the law aims to address critical concerns and provide local governments with more regulatory tools, it also brings new challenges and responsibilities for property owners and platforms. As the vacation rental market in Florida continues to thrive, staying informed and compliant with these new regulations will be crucial for all stakeholders involved.
Definition and Licensing of Short-Term Rentals in Florida
Florida law defines short-term rentals as any unit or group of units in a condominium, cooperative, or individually or collectively owned single-family, two-family, or four-family house or dwelling unit that is also a transient public lodging establishment but not a timeshare project. Short-term rentals are typically rented to guests more than three times in a calendar year for periods of less than 30 days or 1 calendar month, whichever is less, or advertised as such.
Property owners must obtain a license from the Florida Department of Business & Professional Regulation (DBPR) if renting out an entire unit more than three times a year for stays of less than 30 days or if marketed to the public as frequently rented to visitors.
Operational Requirements and Restrictions
Property owners can combine multiple vacation rental properties into one application, but condos and dwellings cannot be operated under the same Florida short-term rental license. Different classifications require different applications under Florida’s new short-term rental laws.
There are specific tax obligations for operators of short-term rentals in Florida, including income tax, state sales tax, and county-imposed sales surtax. Each county may have different local options for transient rental taxes.
City-Specific Regulations
Clearwater Beach: Short-term rentals are strictly prohibited in areas zoned for residential use. Owners are not permitted to lease or rent out their properties for periods shorter than 31 days or one calendar month.
Destin/Fort Walton: Rentals must register with the local government for less than one year and have a short-term rental permit. The registration must be renewed yearly.
Jacksonville: Short-term rentals are only allowed in general commercial and historic core zones. Other residential areas prohibit short-term rentals.
Miami: Restrictions include a requirement for the Responsible Party (typically the owner) to live on the property for more than six months in a calendar year for specific properties. Rental activities can only occur when the Responsible Party resides on the property.
Naples: Recent legislation suggests a potential boom in the short-term rental market. Regulations require the registration of each vacation rental property, having a DBPR license, and paying the Collier County Tourist Development Tax.
Insurance and Liability
Short-term rental businesses must have insurance that covers guests in case of accidents. Liability insurance for a dwelling unit can range from $200 to $400 annually. Hosts could be held accountable for injuries due to negligence and are expected to maintain the property securely for all visitors.
Implications for Property Owners and Managers
Compliance with these regulations is crucial to avoid penalties and ensure the smooth operation of short-term rentals.
Property owners should calculate additional costs like taxes and insurance to assess the fiscal viability of renting out their property as a short-term rental in Florida.
Conclusion
Florida's new short-term rental laws represent a dynamic shift in the state's approach to managing this sector. These laws address critical concerns, provide local governments with more regulatory tools, and bring new responsibilities for property owners and platforms. As the vacation rental market in Florida continues to evolve, staying informed and compliant with these new regulations will be crucial for all stakeholders involved.
The content on the NaplesEd Real Estate Blog is provided for general informational purposes only and is not intended as legal advice. Laws and regulations vary by locality and change over time; therefore, we encourage you to consult a qualified legal professional for specific legal advice related to your situation. NaplesEd does not accept any liability for any loss or damage arising from reliance on the information contained in this blog.
For more in-depth analyses and the latest updates on real estate trends, property management tips, and legislative changes in the Florida market, visit our website at NaplesEd.com. At NaplesEd, we are committed to providing valuable insights and guidance for homeowners, investors, and property managers navigating the ever-evolving real estate landscape.
FAQs on Florida's New Short-Term Rental Laws
Here are the FAQs on Florida's New Short-Term Rental Laws, along with their answers:
What Is a Short-Term Rental in Florida?
In Florida, a short-term rental is defined as any unit rented more than three times a year for periods less than 30 days or advertised as frequently rented to visitors.
Do I Need a License for My Florida Short-Term Rental?
Yes, a license from the Florida Department of Business & Professional Regulation is required for short-term rentals.
How Do Short-Term Rental Laws Vary Across Florida Cities?
Laws vary significantly; some cities restrict short-term rentals, while others have more lenient policies.
What Taxes Apply to Short-Term Rentals in Florida?
Operators must pay income, state, and county-imposed sales surtax, with additional local transient rental taxes in some counties.
Are Occupancy Limits Imposed on Florida Short-Term Rentals?
Yes, occupancy limits vary by city. Some cities, like Orlando, only allow hosted rentals where the host resides on-site.
What Insurance Is Required for Short-Term Rentals in Florida?
Short-term rental properties must have insurance that covers guests in case of accidents.
Can Florida Short-Term Rentals Be Used for Events?
This depends on local ordinances and the specific rules of the rental property.
How Does Renting Short-Term Affect Homestead Tax Exemption in Florida?
Renting out your homestead for more than 30 days per year could result in losing the homestead tax exemption.
Are Airbnb Properties in Florida Subject to Specific Regulations?
Yes, Airbnb properties must follow local regulations, and owners may need a license to lease.
What are the steps to register a short-term rental property in Florida?
Property owners must apply for a license and ensure compliance with local regulations.
Can Multiple Florida Properties Be Combined in One Short-Term Rental Application?
Yes, but condos and dwellings must have separate licenses.
Penalties for Non-Compliance with Florida's Short-Term Rental Laws?
Penalties include fines and potential suspension of rental registrations.
Impact of Short-Term Rental Laws on Florida Real Estate Market?
The laws may impact property values and influence investment decisions in the real estate market.
Differences in Rules for Condos and Dwelling Units in Florida?
The law treats Condos and dwelling units differently and requires separate licenses.
Can Cleaning and Additional Fees Be Charged for Florida Short-Term Rentals?
Yes, owners can charge for cleaning and other services as part of the rental.
What are the consequences of short-term tenants violating local ordinances in Florida?
Property owners could face penalties, and repeated violations can lead to suspension of the rental registration.
How Often Must Short-Term Rental Properties Be Inspected in Florida?
Inspection requirements vary; however, Airbnb properties require a Certificate of Balcony Inspection every three years.
Are There Restrictions on Marketing Short-Term Rentals in Florida?
Marketing must comply with local regulations; false advertising can lead to penalties.
How Do Florida's Short-Term Rental Laws Affect Property Management Companies?
Management companies must ensure compliance with these laws and handle regulatory and tax obligations.
What are the legal considerations for international owners of Florida short-term rentals?
International owners must adhere to the same regulations and consider additional tax and legal implications of foreign ownership.