Here is an article I put together that may be helpful if you are considering Airbnb. I will be on the beach looking at properties today and would love to spend a few moments with you by phone to catch up on what the local market is doing and talk about how I can do more to help find you that perfect home.
Founded in August 2008 and based in San Francisco, California, Airbnb is a trusted community marketplace for people to list, discover, and book unique spaces around the world. Whether an apartment for a night, a castle for a week, or a villa for month, Airbnb connects people to unique travel experiences, at any price point, in more than 26,000 cities and 192 countries. Airbnb is known for its excellent customer service and a growing community of users. It is one of the top platforms out there helping people to monetize their extra space and showcase it to an audience of millions.
What is the Florida vacation rental license requirement? Florida law defines many types of lodging establishments, including vacation rentals. Airbnb and VRBO listings for example, will be categorized as vacation rentals under Florida law, but that categorization may not apply to all listings.
Section 242(1)(c), Fla. Stat. 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, three-family or four-family house or dwelling unit that is also a transient public lodging establishment, but that is not a timeshare project.” Transient public lodging establishments are defined under §509.013, Fla. Stat. as “any unit, group of units, dwelling, building, or group of buildings within a single complex of buildings which is rented to guests more than three times in a calendar year for periods of less than 30 days or 1 calendar month, whichever is less, or which is advertised or held out to the public as a place regularly rented to guests.”
If you are renting your entire unit, a license from the Florida Department of Business & Professional Regulation (“DBPR”) is required if your property meets the definition of a “vacation rental” and “transient public lodging establishment.” However, if you are renting out only a single room or rooms, other than the whole unit, while you remain in the home, a vacation rental license is not required for these so called “Hosted Rentals.” Here is a link to the Florida Department of Business and Regulation Hotel and Restaurant page Hotels and Restaurants – Guide to Vacation Rentals and Timeshare Projects – MyFloridaLicense.com.
Tax Consequences? Much like a hotel or motel, vacation rentals in Florida are subject to sales tax. Vacation rental hosts must register with the Florida DOR and are then expected to collect, file and remit sales tax to the DOR. Before collecting any sales tax from your guests, it is important to find out whether state or local sales tax has already been collected on your behalf, as some vacation rental platforms collect Florida sales tax for owners.
Airbnb for example, collects and remits sales tax across the State of Florida on behalf of hosts. Airbnb also collects and remits Tourism Development Taxes on behalf of hosts in the following counties: Brevard, Broward, Charlotte, Hernando, Hillsborough, Indian River, Lee, Leon, Miami-Dade, Orange, Pinellas, Polk, Putnam, Santa Rosa, Sarasota, Seminole, and Taylor.
Owners in the counties not listed must collect and remit county taxes in accordance with county law. If you are an owner on a different vacation rental platform, be sure to identify which sales tax (state, local, or both) is being collected for you, or if you are required to collect sales tax on your own. Hosts are also required to file an annual tax return with the DOR and any local tax jurisdiction with which you have registered.
Municipalities, Condo and HOA rules and regulations. Local governments may have laws in place for short term rentals. There are several cities along the beaches of Pinellas County each one could have varying regulations on how you can operate an Airbnb. For example, Indian Rocks Beach approved new rules in 2018 stating that anyone who posts on Airbnb sites must now register with the state and are required to file a business tax receipt with the city. It is important to know what other contracts or rules that bind you, such as leases, condo/HOA rules, or rules established by tenant organizations. If you have questions regarding these laws, you can consult the city or ask me, and I can do the legwork for you.
Rental Income Analysis. Why would a seller be selling a property that is cash flowing? How has the unit performed in the last 2-3 years? What can you realistically expect as a return in this current market? To obtain a detailed report text or email the address and I will put together an independent analysis for you right away.
Take a tour of the property. In this market listings can go under contract in hours or days. There could be multiple offers with many of them coming from buyers who have not yet seen the property in person. Before considering putting in an offer I highly recommend doing a virtual walkthrough. If you would like me to do a walk-through of the property while you are on a live feed just text or email me the address and I will get back to you with available times.
Thank you for keeping in touch through our website. I look forward to reconnecting with you soon. See you on the beach!
Kristin Vincelli, Real Estate Advisor
Certified Luxury Specialist and Real Estate Negotiation Expert
Direct: 727-686-1596
Kristin@TomSmithTeam.com
Top 1% of Realtors in Pinellas County
Over $175 Million Sold by the Tom Smith Team!
Coastal Properties Group International
The Exclusive Affiliate of Christie’s International for the Tampa Bay Area
