Florida

Guide to Florida’s Short-Term Rental Regulations

Known for its beautiful beaches and theme parks, Florida is one of the most popular destinations in the United States. Tourism is already one of the state’s biggest industries, and it’s still growing — a record-breaking 140 million people visited in 2023. The demand for accommodation has skyrocketed, posing issues for local communities across the state. That’s why the government has begun to tighten Florida’s vacation rental laws. Florida is still a great investment, provided you navigate the state and city regulations effectively. Our guide aims to provide an overview of the state legislature and some of the laws in major destinations. Disclaimer: Our guide is intended for informational purposes only and doesn’t constitute legal advice. For guidance on specific cases, please consult a property lawyer. 

The state of Florida short-term rental laws

Florida takes a moderate approach to regulating short-term rentals. Lawmakers recognize that these businesses are an essential part of the economy but require close monitoring and controls. But while Florida statutes aren’t overly strict, they’re more complex than in many other places. There are detailed requirements at both the state and local levels. What’s more, this power balance has been a contentious issue for over a decade with no resolution in sight. The state and local governments often vy for more authority over short-term rental legislation. Most recently, Florida tried to pass Senate Bill 280 and Governor Ron DeSantis rejected it. The ongoing situation in Florida means are laws are likely to change. It’s essential to monitor the local news and keep yourself updated. Another concern is that state laws might not reflect the nearby community’s attitude toward short-term rentals. However, it’s easy to make this work in your favor. Learning about the community’s mentality can help you tell whether somewhere is a good environment for your business. If you then settle on a location, you then know how to keep your neighbors happy.

Florida State short-term rental regulations

Florida State defines a vacation rental as any ‘transient public lodging establishment’ that falls into one of the following categories:

• A unit or group of units in a condo
• An individually or collectively owned family house
• A dwelling unit used for accommodation (excluding timeshare projects)

Your property counts as a vacation rental business if you regularly rent it out or make it available for short periods. Single rooms are an exemption. The official limit is three stays within the same calendar year lasting under 30 days or one calendar month (whichever is less). That means homeowners can accept a few one-off visitors while they’re on vacation. However, you may still be subject to requirements when you don’t have a steady flow of guests. Florida requires you to follow regulations even if you merely advertise your property as a business. The aim is to prevent operators from evading their tax responsibilities and circumventing health and safety laws. As a result, Florida state officials may check how you promote your property and whether you list it on sites like Airbnb and VRBO. Florida State then requires all the local governments within its jurisdiction to use the same criteria. It also prevents cities and counties from restricting the use of any properties classed as short-term rentals.

Florida State short-term rental licensing

All short-term rental properties in the state must have a license from the Florida Department of Business and Professional Regulation (DBPR). There are two types of classification:

• A condominium license for rental units in an apartment building
• A dwelling license for single-family homes, townhouses, and duplexes

You can apply for different types of rental permits based on how many properties you manage. The options are:

• Single license: A permit for dwellings, units, or collections of units within the same building. Only the property owner is eligible to apply for the last one, not a property management company acting on their behalf.
• Group license: A permit for all the units within a building or a group of buildings in the same complex. Licensed agents such as property managers can apply for this.
• Collective license: A permit for a collection of dwellings and units spread over multiple locations. There’s a limit of 75 units and you’re restricted to one county.

The vacation rental registration process is straightforward. Visit the DBPR portal to create an account and fill in the online form. You should receive your digital license within two business days. Once you have an account, you can log into to add and remove properties and apply for renewals. Single and group license fees depend on the number of vacation rental properties you operate and the duration of the license. The costs range from $90 to $350. Whereas collective licenses have a fixed fee of $150 for the year plus an extra $10 per property. Everyone must also pay the $50 registration fee and $10 Hospitality Education Program charge. These are included in the total. Florida sets specific dates for registration and renewals. If you apply a few months late, you must still pay for the entire year. You can pay for the half-year license if there are less than six months left. The dates are set by cities and counties so check your local government website for more details.

Florida licensing rules

You must abide by the Florida’s statewide rules to keep your short-term rental license:

• Meet the occupancy limits (no more than two people to a bedroom plus two extra in the common areas)
• Display a copy of the license on the premises
• Clean linen, kitchenware, and similar items between stays
• Provide soap in individually wrapped bars or dispensers
• Keep the premises clear of vermin like rats and cockroaches
• Install smoke detectors in every unit
• Install fire sprinklers in buildings over 75 feet
• Maintain a safe electrical system and avoid extension cords
• Arrange balcony inspections for units that are three stories or more high

These regulations apply everywhere in the State of Florida. City and county governments can add reasonable requirements to their local ordinances but they can’t overrule the ones stated here.

Florida short-term rental taxes

Short-term rental businesses are subject to federal, state, and local taxes. Here are the main ones to be aware of:

• Federal income tax: If your annual profit exceeds $1000, you must make estimated quarterly tax payments to the IRS. However, you can then claim vacation rental tax deductions.
• State sales tax: All guests must pay a 6% levy on any accommodation and cleaning fees. As the business owner, you’re responsible for remitting the money and sending it to the Florida Department of Revenue.
• Discretionary sales surtax: Some places have their own sales tax which is usually between 0.5% and 1.5% of the total booking fee.
• City and council business tax: Many municipalities impose a tax on any companies operating within their jurisdiction, including vacation rentals. Rates differ between locations.
• Tourism Development Taxes (TDT): Eligible counties can charge you between 1% to 2% of your booking fees to support local tourism.
• High Tourism Impact Taxes: Popular destinations may charge a further 1% tax to offset the costs associated with increased tourism, such as infrastructure maintenance and public service demands.

Airbnb, VRBO, and similar platforms often remit vacation rental taxes on your behalf. Check before you set prices to make sure you don’t overcharge guests. You can integrate the extra charges into your property management software (PMS) so you don’t have to calculate them for every booking.

Popular Florida destinations with short-term rental regulations

As the local laws can vary across cities and counties, let’s explore some of the regulations and guidelines in specific places.

Miami-Dade

The county of Miami-Dade has its own licensing system. If you lease your property for periods of six months or less, you must apply for a Tourist Tax Account and pay the fees you collect from guests. You must also obtain a Certificate of Use before you advertise or let the property. The annual fees are $136.17. If you don’t pass the yearly inspection, Miami-Dade County may revoke your certification. Some zones require someone to remain on site as the designated responsible party. They must reside on the property and not just make themselves available.

Miami Beach

As a very popular tourist destination, Miami has stringent short-term rental laws. The local government prohibits you from letting single-family homes and many types of apartment buildings. If you get zoning approval, you must then get a Resort Tax account and a Business Tax Receipt number.

Orlando

While Orlando is less strict than Miami, its short-term rental ordinances are more specific. Individual homeowners may not let their entire living space under the City of Orlando home-sharing law. That applies whether they’re on-site or off-site. Otherwise, you can register as:

• A home share: Guests can stay for up to 29 days and occupy half the bedrooms. You must remain on-site.
• Bed and breakfast: You can only take guests for a single night at a time and you need a business tax receipt number. However, you can rent out all the bedrooms except the one you use.
• Group housing: It’s the same arrangement as the Bed and Breakfast but guests can stay for seven days or more. Zoning permission is required.
• Motel or hotel: You can run the property as a business and let out the entire space. Guests generally stay up to seven days.
• Commercial dwelling units: Guests stay between seven and 29 days — any less and the business counts as a motel.

Every category but the home share must apply for a Business Tax Receipt number before they can advertise and accept guests.

Jacksonville

Short-term rentals are only permitted in two zones within the city, the General Commercial and Historic Core. As these areas don’t have many residential properties, investment opportunities are limited. Jacksonville also requires you to obtain a Land Use permit and then a business license from the city. You must include the license number in any listings.

Tampa

Tampa has the best vacation rental market in the US according to a recent study. The value of real estate has increased 71.6% in the past five years and the average Airbnb income is over $52,000 per year. The local regulations are also relatively lenient. Rental owners don’t need to get a permit from the city to operate their business. All you need to do is make sure your property is in the right zone and meets the state requirements.

Resources

• Florida Statutes: Lodging and Food Establishments
• The Florida Senate: Senate Bill 280
• Florida.Gov: Veto Letter
• Florida Department of Business and Professional Regulation
• My Florida License: Application portal
• Florida Department of Revenue: Local option taxes
• Miami Dade Government: Residential short term vacation rentals
• Orlando: Fact sheet on short term rentals
• Jacksonville Review: What you need to know about vacation rentals in the city