Keeping up with Florida short-term rentals regulations is one of the most common problems property owners face on the regular. They can get overwhelming and downright confusing. Yet, awareness remains an essential part of renting out your property short-term in Florida.
Be Aware of Florida Short-Term Rentals Regulations
Florida has continuous appeal to individuals worldwide due to its fantastic weather, beautiful beaches, sensational gastronomy, and unique local culture. The Sunshine State continues to attract more residents and short-term renters than many other states within the United States.
As a result of the demand in Florida, there has been a great deal of appeal for short-term rentals where individuals who want an alternative to traditional hotels can find properties with unique local experiences at prices they can afford. This new demand has caused great waves in the local real estate market.
Traditional year-long leases have struggled to compete with the new short-term rental market. Because of this, there have been efforts to regulate the short-term rental market in Florida.
These regulations help maintain safety and fair competition. Whether you are a property owner wanting to rent out your property on a short-term basis or a property management company looking to represent short-term rentals, Florida short-term rentals regulations will affect you.
Airbnb
Airbnb has been regulated in many cities across the United States. This is mainly due to the sheer disruption it has caused in real estate pricing and consumer safety.
Airbnb has an undeniably sensational concept that revolutionizes short-term rentals in Florida and for travelers worldwide. However, it does have certain stipulations that property owners need to follow within Florida.
In certain areas, AirBnB properties require the owner to have a license to lease to short-term tenants. Make sure to verify local regulations in your location. This way, you can ensure you are in compliance with its regulations.
Building Rules
Many luxury buildings simply do not want short-term tenants in their buildings who may disrupt their paying clients. Since Florida has such great weather, it does inspire visitors to have louder parties or engage in other activities that may be disruptive to neighbors.
Make sure that you verify the building that you are considering for your short-term rental first. See to it that they permit short-term rentals. If they do not, it is likely that you will pay a fine if you have constant short-term rentals staying in the building.
That said, some buildings may not allow Airbnb, but they may allow you to rent your unit out for six-month leases to more serious clients. By having a clear understanding of your building’s rules, you will be able to make the best strategy for your short-term property rental.
Long-Term Vacation Rentals
Across the board, local and state governments are more favorable toward long-term vacation rentals where tenants are required to pay higher deposits. These are closer to traditional year-long leases.
In Florida, there are many companies that offer Florida property owners the potential to find long-term vacation tenants. Of course, there is a commission fee for the company that handles finding and screening tenants for the property owner. In Florida, long-term vacation rentals may still require a license depending on the particular local county regulations.
Additionally, the property owner will need to verify whether the building or community where the property is permits additional tenants to reside in the property in a non-traditional year-long lease. Depending on the community, this may be an issue in Florida that can lead to high fines and complicated disputes with community associations.
Taxation Implications
Florida is a very attractive state for taxation. This is why Florida has many investors from New York looking to lower their taxation who end up investing in Florida real estate.
If a property owner in Florida attempts to rent out their homestead residence for short-term vacation rentals, they have the potential to lose their homestead tax exemption. However, it is possible to be in danger of losing the homestead tax exemption. This happens if the property is on lease for more than 30 days per calendar year.
Additional taxation issues that could arise are related to the requirement for short-term rentals to charge sales tax and distribute those earnings to the Florida Department of Revenue or Tourism Development Taxes to the county where the property is located.
Property owners should calculate these additional costs to ensure that it is fiscally worthwhile to rent out their property as a short-term rental in Florida.
Property Management Commissions
Florida has protections against property management companies that are not conducting their business ethically. Property owners should shop carefully for the property management company they ask to represent their property to short-term tenants. There have been many scams related to property management commissions or deposits that end up unpaid.
When deciding which companies or services to utilize for short-term vacation rentals in Florida, consider the following:
The important thing to remember is that there are several excellent companies in the Florida area. These companies can help their clients to make a great profit by renting their property. The key is to locate the best one for the needs of your property to have the best possible results.
Stay Informed of the Latest Short-Term Rental Rules in Florida
As with all states, Florida short-term rentals laws are never set in stone. Laws change regularly, and most of these changes are significant ones. Whether you are a property manager or owner, it is important to remain vigilant of any new rental regulations in Florida.
For instance, earlier this year, the senate proposed a bill regulating Florida short-term rental zoning. The bill was eventually postponed, though, and withdrawn from consideration.
Regardless, if you want to steer clear from breaking the law, educate yourself on the rules and regulations. But, it is simply not enough to know about the rules — you must follow them, too. Make sure to comply with Florida short-term rentals regulations, both new and old. This way, you can avoid paying a hefty fine or getting a license suspension.
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