Florida is one of the most popular states for short-term rentals on Airbnb, VRBO and other short-term rental platforms. This may be because Florida has some of the most vacation rental friendly rules and regulations for homeowners.
Nevertheless, Florida has specific rules and regulations for short-term rentals, which they call vacation rentals, for homeowners.
Florida Department of Business &Professional Regulation (DBPR) defines vacation rentals 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.”
Licensing
Homeowners who rent out rooms while they live on-site do not need a vacation rental license.
For other situations, you will need a vacation rental license.
Florida has two types of vacation rentals:
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.
Florida’s 3/30 rule
If you rent out your entire home more than 3 times in a calendar year, each time 30 days or less, then Florida requires that you obtain a vacation rental license from the DBPR.
Restrictions on rental nights per year
Florida does not have any restrictions on how many days a year you can rent out your unit.
How long do Florida short-term rental licenses last?
Florida vacation rental licenses are good for one year. After that, they require a renewal.
What are Florida’s short-term rental taxes?
The following is not tax advice. You must consult with a licensed tax professional regarding Florida’s vacation rental taxes.
Florida short-term rental operators pay various taxes. They include:
Income tax: This is paid to the federal and state government. You will pay on “taxable” income, which is income after allowed expense deductions.
State sales tax: Florida has a 6% sales tax. This is paid to the Florida Department of Revenue. See Florida’s Department of Revenue for more info.
Discretionary Sales Surtax: This varies for each county. Each county rate can be found on the Discretionary Sales Surtax Information (Form DR-15DSS)
Transient Rental Taxes: Again, Florida allows each county to impose their own transient rental taxes on rentals. Visit Florida Department’s Local Option Taxes webpage for more information. In many counties, these transient rental taxes are paid directly to the local county. Sales taxes and discretionary sales surtaxes are always paid to Florida’s Department of Revenue.
You’ll need to consider these taxes in calculating your investment returns and average daily rents for your short-term rental properties.
