It seems like a good idea to rent out your condo or house to other people for their vacations. Be aware of all the compliance issues.

Many homeowners who own properties in desirable areas are looking to become amateur landlords by renting out short-term rentals to the general public because of the growing popularity of online vacation rental websites like HomeAway, Airbnb and VRBO. Because of Florida’s historical and continuing popularity as a vacation spot, short-term private rentals in our State are a hot topic.

There are many compliance issues that property owners must consider when renting short-term properties in Florida.

The following are short-term residential rental authorities:

• The City, County, or State where the property is located
• Mortgage Lender
• Property Insurance Company
• Homeowners Association or Condominium

State and County

A short-term rental is defined in Florida as any lease or housing occupancy agreement which extends for 6 consecutive months or more. Florida’s standard 6.6% State sales tax must be collected and sent back to the Department of Revenue for these temporary rental accommodations. Most local Counties also levy taxes on rentals in addition to the State tax. The additional County tax ranges between 2% in rural Counties such as Glades or Hardee to 6% for more populous, visitor-attractive Counties such as Orange (Orlando), Miami-Dade, Miami Beach (Miami Beach, Key Biscayne), Collier, Naples, Marco Island), Duval, Jacksonville, and others. These tax regulations are applicable to hotels, motels AND private homes, as well as condominium units that are offered to the public to short-term rental.

Some Cities, in addition to short-term State and County rental taxes, require separate registration and levy a tax on rental accommodation. In Miami Beach, for example, there is a resort tax of 4% on top of the 6% State and 6% County taxes. There is a total 16% rental tax in the City of Miami Beach. Private owners who offer their property for short-term rental must register with each jurisdiction and pay all taxes.

Many cities and counties in Florida have been strict about enforcing proper registration and tax payments by owners of properties that are being advertised for short-term rentals.

This post was written by Josh Dotoli! Josh is the owner of Josh Dotoli Group which is a laser-focused real estate team at Compass comprised of industry experts selling Fort Lauderdale’s best neighborhoods. This dynamic group is one of the top-selling real estate teams in South Florida with over $94 million in sales in the past 12 months alone. Looking for Las Olas Isles homes for sale, we are the real estate team for you!