Short-term rentals are excellent investment opportunities in Florida. This is the Sunshine State, after all, where an estimated 142.9 million visitors came to stay in 2024 alone.
Thinking about getting involved in this lucrative market?
Real estate investors should get to know the local hotspots well. They should partner with local property managers, and they should spend some time learning about the short-term rental regulations in the state. Things are not as strict here as they are in other states, but there are still requirements that you need to know about in order to avoid any expensive and embarrassing mistakes.
The general rule is simple: If you rent out a property in Florida more than three times a year for less than 30 days, or if you advertise it for rent publicly, you need to obtain a short-term rental license from the state.
This license is issued by the Division of Hotels and Restaurants. Additionally, you need to register with the Florida Department of Revenue for sales tax purposes.
We’re your best resource for navigating these requirements and remaining compliant with all local and state regulations.
Licensing for Short-Term Rental Properties in Florida
To lawfully rent out a vacation home or a short-term rental in Florida, you need to get a license from the Florida Department of Business and Professional Regulation (DBPR). Your specific license will come from the Division of Hotels and Restaurants since the state sees you as essentially providing the same service to guests that a hotel would.
You’ll also need to register with the Florida Department of Revenue and potentially obtain local licenses or permits from your city or county. The specific requirements and application process may vary depending on your property type and location.
Here’s a more detailed breakdown of the licensure process:
- Contact the DBPR. Their website has a user-friendly online portal where property owners can create an account and apply for their rental license.
- Fill out the application online for a Transient Public Lodging Establishment license. This will include providing information about the property you want to rent out. You’ll also be prompted to pay a fee and potentially agree to inspections of your property.
- Educate yourself on the different classifications the DBPR has for short-term rentals, and make sure you know what you’re renting out. There’s a “single” property, which is up to 4 units within one building, a “group” property type, which defines a building with more than 4 units, and then a “collective” property license type, which is up to 75 units in different buildings.
Will you need a balcony inspection? Possibly. If your property is 3 or more stories high, or has a vertical distance of 17 feet or more to a balcony, you’ll need a Certificate of Balcony Inspection.
As with everything, there’s a bit of nuance here. For example, if you’re not renting out a property that’s separate from your own home, you may not have to file for licensure. DBPR does not regulate hosted rentals, where the property owner remains on-site during guests’ stays, so owners who rent out rooms rather than a whole unit do not need to be licensed by the state.
Registering with the Florida Department of Revenue
Next, you’ll register your property with the Florida Department of Revenue. This is how you’ll pay the taxes that you need to collect on the rental income you earn from your short-term property. There’s an online portal for this agency, too, and the instructions are detailed and easy to follow. You can expect to receive a sales tax certificate as well as instructions on how to pay your taxes for this property or your portfolio of properties.
In some Florida counties, short-term rentals may also be subject to local option transient rental taxes. In some counties, these taxes are collected by state tax authorities. But there are also some areas where the local agencies collect their own taxes. Depending on where your property is located, you might have to register and then file returns with the tax authorities in that county. Miami-Dade, for example, requires this local filing.
Are you using a hosted site, such as Airbnb to rent out your short-term property? You should know that in Florida, Airbnb and Vrbo automatically collect and remit Florida state-administered lodging taxes when they receive guest payments through their own platforms. However, short-term rental marketplaces may not collect local and county taxes on your behalf. This means that if you are not independently collecting those taxes, you will be responsible for collecting and remitting them to state tax authorities.
Penalties for Non-Compliance in Florida
Maybe you’ve been renting out that studio apartment to short-term guests for years without bothering to get a license or you’re wondering if following every letter of the law is really necessary.
We don’t recommend that you try any fancy footwork to get around the legal requirements. Especially since they aren’t that prohibitive compared to other states and regions.
In Florida, operating a short-term vacation rental without the required license can result in penalties including:
- Fines
- Suspension of the right to operate
- Liens on the property
Specifically, a first violation could result in a $500 fine, and the fine can increase for subsequent offenses within a certain timeframe. Additionally, some local jurisdictions may impose stricter fines or suspend registrations for violations.
Let’s not take this chance.
Professional Property Management and Short-Term Rentals
We’ve talked about the penalties for non-compliance, and they’re unpleasant.
We’ve also shown you that taking care of licensure and registration is as easy as visiting a couple of websites and maybe submitting to an inspection, especially if you’re renting out a property with a balcony.
It’s easy enough, but if you’re feeling overwhelmed by it, or if you’re worried about missing an essential detail, we recommend professional support. Working with professional property managers can ensure compliance, reduce legal risk, and protect your long-term investment.
- Navigating Complex and Changing Regulations
We have been working with short-term rental properties for many years, and so we know our way around the registration process through the Florida Department of Business and Professional Regulation. We understand the nuanced and specific requirements that can be found in specific locations, from Miami Beach to Naples to Sarasota and Fort Myers and Tampa. We spend a lot of time staying up to date on ordinances that can limit how often and where you can rent, require inspections, or mandate specific licenses. Not only do we stay on top of these changes, we also ensure that your property complies with zoning and occupancy rules. Some areas restrict the neighborhoods in which short-term rentals are allowed. We know where those neighborhoods are. We know how many people the local government will allow in a short-term rental at once. We can also handle all of your tax filings, accurately and on time. Without this oversight, it’s easy for owners to fall out of compliance and face steep fines or shutdowns. You don’t have to worry about that when you’re working with a property manager.
- Handling Taxes
In Florida, short-term rental income is subject to sales tax, county tourist development tax, and possibly local lodging taxes, depending on your location. It can be a lot to track, especially if you’re renting out properties in multiple Florida cities. Your property manager can be counted on to collect and remit applicable taxes on your behalf. We can generate reports for transparency and record-keeping and ensure your compliance with state and county tax authorities. This saves you the hassle of navigating multiple tax entities and ensures that no detail is overlooked.
- Implementing Safety and Code Requirements
Your property manager can also be helpful in ensuring you’re compliant with the safety standards that are required in short-term rentals. These can include the need for:
- Smoke and carbon monoxide detectors
- Fire extinguishers
- Clearly posted evacuation routes
- Adequate parking or signage
Professional managers routinely inspect properties to ensure compliance with these codes and handle any needed upgrades or fixes before they become violations—or worse, liability issues.
Protecting Your Short-Term Investment Property in Florida
Beyond legal compliance, professional management safeguards your property through regular maintenance and inspections, prompt repair of damage, and secure, well-documented financial and booking records. These services keep your property in top condition and ensure you’re generating consistent income with minimal risk.
We are here to manage your peace of mind and your long-term success. Owning a short-term rental in Florida can be incredibly rewarding and very profitable, but staying compliant with all the state and local regulations demands a lot of attention.
A professional property manager does more than just clean and book guests; we are your compliance partner, your risk manager, and your investment protector.
We would love to talk about the specifics that reflect your unique properties. Please contact us at Realty Group of Southwest Florida. We’re managing vacation homes and long-term leases in cities like Naples, Fort Myers, Bonita Springs, Estero, and Cape Coral.
