Navigating Investment Rental Regulations by Valentina Knight, Local Clearwater Beach Realtor

Hi, it's Valentina Knight! Here’s a brief overview of the regulations on rentals in Florida. 🌴

Florida State Rules for Vacation Rentals

Licensing Requirements 📝

To operate a vacation rental in Florida, you must obtain a license from the Department of Business and Professional Regulation (DBPR). There are two main types: a Group License and a Collective License. These licenses require annual renewal.

Exemptions for Hosted Stays 🚪

Renting out part of your home while you remain there, such as a single room? No DBPR license needed!

Registration and Compliance ✅

Once registered, your vacation rental must follow all state health and safety regulations. As the owner, it’s your job to ensure compliance and handle any violations.

Tax Responsibilities 💵

Owners must submit the Florida Transient Rental Tax and the Florida Discretionary Sales Surtax on time to the relevant authorities.

Hillsborough County Specifics 🏙️

Zoning and Duration Limits 📏

Rentals shorter than seven days require proper zoning. Non-compliance can lead to fines.

Local Taxes 💰

In addition to state taxes, property owners must pay Hillsborough County Sales Tax and the Tourist Development Tax.

Pinellas County Specifics 🏝️

Zoning and Duration Limits 📏

• Short-term rentals must comply with local zoning laws. Certain residential areas may restrict rentals of less than 30 days.
• Check the specific zoning district to see if short-term rentals are allowed.

Local Taxes 💰

• Property owners in Pinellas County must pay the Pinellas County Tourist Development Tax in addition to state taxes.
• Submit all local taxes on time to avoid penalties.

My Experience 🌟

From my journey, I’ve learned that staying informed and compliant is key to successfully managing short-term rentals in the Tampa area. Whether you're an investor or a homeowner looking to earn extra income, understanding these rules can save you from unexpected fines and legal hassles. My mission in real estate goes far beyond the sale; my passion is to empower clients with knowledge, ensuring their real estate ventures in Tampa, St. Pete, and Clearwater are both profitable and compliant.

Remember, the world of vacation rentals is ever-evolving, and staying ahead of the regulations is crucial for your success. 🏡✨

Takeaway

In recent years, Florida has proven its place as one of the top markets for Airbnb investments in the US. The fact that it has adopted relatively conducive legislation on vacation rentals is definitely one of the leading factors for this. Investors need to study not only the state-level Florida short-term rental laws but also the county- and city-level regulations before deciding where to buy a property in the Sunshine State.

Understanding Vacation Rentals in Florida  presented by Valentina Knight

Florida has a clear definition of vacation rentals. According to the Florida Department of Business & Professional Regulation (DBPR), these are defined as 

Any unit or group of units in a condominium or cooperative or any individually or collectively owned single-family, two-family, or four-family house or dwelling unit that is also a transient public lodging establishment but that is not a timeshare project.

Based on this definition, there are two main types of vacation rentals as per Florida’s short-term rental regulations:

• Vacation rental condo: A unit or a group of units location in a building where the units are individually owned that are rented out transiently.
• Vacation rental dwelling: A single-family home, townhouse, duplex, triplex, or quadruplex that is rented out transiently.

If you are renting out an entire unit over three times in a calendar year for periods of less than 30 days or you advertise the unit to the public as a place regularly rented out to guests, you must obtain a license from the DBPR.

An important exception is renting out a single room or rooms which do not qualify as public lodging and a DBPR license is thus not required.

The Florida definition of vacation rentals is similar to how these properties are defined in other major markets, like California. An important difference, though, is that the State of California limits transient occupancy to a maximum of 180 days per calendar year if the property is non-owner occupied. Meanwhile, Florida does not apply such a limit at the state level.

Required Documents for Florida Short-Term Rentals

To apply for a lodging certificate for a Florida vacation rental, you need:

• Account: A DBPR online services account for both online and printed applications.
• Florida Sales Tax Number of proof of exemption: This can be obtained at the Department of Revenue, Sales Tax Division.
• Federal Employer Identification Number (FEIN): You can submit a FEIN application SS-4 at the U. S. Internal Revenue Service at 1-800-829-4933.
• Social Security Number or Individual Taxpayer Identification Number (ITIN): The ITIN is available from the IRS to individuals who are not eligible for a SSN because of their status as an alien. It is available to alien operators on their form W-7. To obtain the form, you can call 1-800-829-4933.
• Addresses of all vacation rental units for which you are applying: Each rental unit or house address needs to be submitted online to the DBPR.
• Completed DBPR HR-70 form, Certificate of Balcony Inspection, if applicable: The certificate is valid for three years from the date of inspection.
• Application and license fees: There is a one-time application processing fee of $50 in addition to a licensing fee based on the type of license and number of rental units. You can access an automated fee calculator. For questions, you can call 850-487-1395. 
• Mailing address, optional, if applicable.