Florida Airbnb Laws & Taxes | Guide to Vacation Rental Rules

Welcome to the sunny state of Florida, where the allure of sandy beaches and vibrant cities makes it a top destination for vacationers—and a prime spot for vacation rentals. If you're an Airbnb host or property manager, understanding Florida's vacation rental regulations and tax laws is beneficial and necessary for steering your Airbnb business toward success. 

For those navigating the legality and operational standards of vacation rentals, today's blog guide illuminates the complex landscape of Florida's Airbnb laws and taxes. You'll find essential information here to operate your rental legally and effectively, ensuring that you and your guests have an enjoyable experience regardless of whether you're just starting or looking to refine your hosting practices.

Key Regulations for Vacation Rentals in Florida

Under Florida law, public lodging establishments are either transient or non-transient. For Airbnb hosts, the critical category is transient public lodging establishments, including any unit rented out more than three times per year for periods shorter than 30 days. If they are not part of a timeshare project, these establishments are classified as vacation rentals.

Definitions and Licensing Categories 

To operate a vacation rental legally obtaining a license from the Division of Hotels and Restaurants is necessary. Licenses are issued based on the type and location of the property. 

Vacation Rental – Condominium

For units within a condominium or cooperative.

Vacation Rental – Dwelling

For single-family houses, townhouses, or units in multi-family dwellings up to four units.

The primary license types

• Single License: For individual properties managed by the owner.

• Group License: For all units within a complex managed by a licensed agent.

• Collective License: For multiple properties across different locations managed by one agent with a cap of 75 units.

Application Process

The fastest way to obtain a license is online where applications are usually processed within one to two business days. Each rental unit's address must be included in the application and changes to the rental units are managed through the licensee’s online DBPR account.

Condo Application Requirements

1. Main Address: This is the primary address of the owner/operator used for administrative purposes.

2. Rental Location Address: Provide the physical addresses of all rental units. Ensure you include a valid Florida county.

3. Resort Classifications:

   • Collective: Up to 75 units in one district.

   • Group: Multiple units within the same building/complex.

   • Single: 1-4 units within the same building.

4. Fees: Pay the application fee online using a credit card.

5. Disabled Veteran Exemption: Submit your DD214 form and proof of disability.

6. Certificate of Balcony Inspection: Required for buildings 3+ stories or with balconies over 17 feet. Include the inspection certificate.

7. Human Trafficking: Provide training for employees in housekeeping and front desk roles.

8. Apply Here

Dwelling Application Requirements

1. Main Address: The primary address of the owner/operator for administrative purposes.

2. Rental Location Address: Provide addresses for all rental units. Ensure you include a valid Florida county.

3. Resort Classifications:

   • Collective: Up to 75 units in one district.

   • Group: Multiple units within the same building/complex.

   • Single: 1-4 units within the same building.

4. Fees: Pay the application fee online using a credit card.

5. Disabled Veteran Exemption: Submit your DD214 form and proof of disability.

6. Certificate of Balcony Inspection: Same requirements as condos.

7. Human Trafficking: Provide training for employees in housekeeping and front desk roles.

8. Apply Here

Exemptions and specific situations

Renting single rooms within a unit does not classify as public lodging and does not require a state license, although local regulations may still apply. Full units rented more than three times a year for less than 30 days require a license.

What Type of License Do You Need for Your Airbnb?

If you’re renting out your property on Airbnb in Florida, you need a license from the DBPR. Here’s a concise guide on what you need:

1. DBPR Vacation Rental License: This is mandatory for all holiday rentals, including Airbnb properties.

2. How to Apply:

   • Online: Fastest method recommended by the DBPR.

   • In Person: Submit a printed application if preferred.

3. Required Documents:

   • Name of Rental Company: This can be a temporary name (DBA) or your legal business name.

   • Incorporation Documents: Articles of Incorporation or Organization for LLCs or Corporations.

   • Fees: Dependent on your business structure. Refer to the Florida Division of Corporations fee chart.

   • Rental Rules and Agreements: Prepare your short-term rental rules and agreements.

Compliance with Safety, Sanitation and Operational Standards

Safety and fire regulations

Safety measures include regular balcony inspections and compliance with local fire safety standards. For buildings three stories or higher or those with specific structural features additional regulations such as automatic fire sprinklers may apply.

Sanitation requirements

Properties must maintain high cleanliness standards including sanitation of dishes and glassware between guests. Special notices must be posted if the property does not meet public food service sanitation standards.

Managing changes and licensing information

Licensees can update the number of units or changes to their properties through the DBPR online services account. The Vacation Rental Database provides a searchable listing of all licensed properties which is updated daily.

Enhancing Management with Vacation Rental Software

Incorporating advanced vacation rental software like Hostaway can help hosts ensure compliance manage bookings and optimize operations. This tool is invaluable for keeping up with regulatory changes, managing guest communications and improving overall efficiency.

Operational Best Practices for Hosts in Florida

Continuous learning and adaptation

Staying updated with the latest regulatory changes is vital. Hosts should regularly consult official resources and engage with local host communities.

Professionalism and guest relations

Professionalism and excellent guest communication are crucial for successful vacation rental management. These practices not only improve guest experiences but also enhance the property’s reputation.

Effective marketing

Employing strategic marketing that highlights the safety and legality of your property can attract more guests. Utilizing SEO effectively with keywords such as "vacation rentals" can increase your property's online visibility.

Navigating Florida's Tax Laws for Your Airbnb

Taxes can be intimidating, but understanding them is essential for running your Airbnb smoothly. Here’s a quick guide:

1. Short-Term Rental Classification: If you rent out your home for at least 14 days a year and use it for personal purposes no more than 14 days a year (or 10% of the rental time), the US government considers it a short-term rental.

2. Taxes You Need to Know:

   • Income Tax: Payable annually to federal and state governments. It’s calculated on your taxable income after deductions.

   • State Sales Tax: Florida charges a 6% sales tax, which goes to the Florida Department of Revenue.

   • County Sales Surtax: This varies by county. Check the DR-15DSS form for specific rates.

   • Local Option Transient Rental Taxes: Some counties have additional taxes. These might be paid directly to the county or the state, as detailed in the DR-15TDT form.

Tax Considerations for Airbnb Hosts in Florida

Overview of occupancy taxes

Airbnb hosts in Florida must navigate a complex tax landscape to ensure compliance with state and local tax regulations. Guests booking Airbnb listings in Florida are subject to various taxes which are automatically collected and remitted by Airbnb. Understanding these taxes is vital for hosts to manage their properties effectively and ensure transparency with guests.

State and County Tax Requirements

State of Florida Taxes

Guests booking Airbnb listings in Florida encounter several state-level taxes included in their reservation costs. 

Florida Transient Rental Tax

Charged at 6% of the listing price, including any cleaning fee, for reservations of 182 nights or shorter.

Florida Discretionary Sales Surtax

Varies between 0.5% and 1.5% based on the county, applied to the listing price including any cleaning fees.

County Tourist Development Taxes

These are collected by the state for certain counties and range from 2% to 5% of the listing price, including cleaning fees. This tax applies to counties such as Bradford, Citrus and Hernando, among others.

Specific County Taxes

Different counties in Florida impose additional tourist development taxes, which Airbnb collects and remits. 

For example:

Brevard County: Imposes a 5% Tourist Development Tax.

Broward County: Charges a 6% Tourist Development Tax.

Miami-Dade County: Includes multiple taxes such as a 2% Tourist Development Room Tax, a 1% Professional Sports Franchise Facility Tax, and a 3% Convention Development Tax, with certain exemptions based on the reservation's location within the county.

Lee County: A 5% Tourist Development Tax.

Pinellas County: A 6% Tourist Development Tax.

Volusia County: Charges a 6% Tourist Development Tax.

Operational Implications for Hosts

Hosts need to be aware of the tax obligations and the process by which Airbnb collects and remits these taxes. It's imperative  for hosts to:

Inform Guests

Communicate to guests that these taxes are included in the reservation price.

Verify Tax Amounts

Regularly check the tax rates on the official websites of the Florida Dept. of Revenue and respective county tax collector’s websites to ensure the rates applied are current.

Understand Airbnb’s Role

Recognize that Airbnb handles the collection and remittance of these taxes, simplifying the process for hosts but also requiring them to stay informed about the platform’s policies.

Homestead tax exemption

In Florida, if your home is your primary residence as of January 1, you can get a $25,000 exemption on the first $50,000 of its assessed value. This means lower taxes, including school levies.

To qualify, you need to legally own and permanently live on the property. But be careful: if you rent out your primary residence as a short-term rental, you could lose this exemption. Renting for more than 30 days a year can put your exemption at risk. Keep this in mind to enjoy your tax benefits!

Securing Success in Florida’s Vacation Rental Scene

For Airbnb hosts and property managers in Florida, getting a grip on state vacation rental laws and tax details isn't just smart—it's essential for keeping your business sailing smoothly in the Sunshine State. By arming yourself with the right licenses, sticking to top-notch safety and sanitation standards, and leveraging clever tools like Hostaway. Plus, with Airbnb handling the tax collection, you can focus more on hospitality and less on paperwork. 

Consider this guide your trusty map through the regulatory waters of Florida’s vacation rental scene. Navigate wisely and communicate clearly with your guests and you’ll find your way to a thriving rental enterprise with fewer bumps and more rave reviews.