Vacation condos and dwellings can be a huge asset for investors looking to make it big in Florida, but what happens when the perfect property doesn’t qualify for short-term rentals? Many investors, both locally and overseas, tend to overlook this factor. They find a dream Miami Beach condo or the perfect location for Airbnb listings, only to get a notice some time after the purchase is well underway. It’s enough to derail months of planning, all because of some misconceptions about Florida short-term rental laws.
Luckily, there’s a simple way to avoid unpleasant surprises and it’s all about the importance of title searches in any real estate transaction.
Short-term rentals are properties that can be rented to guests for a short period, and Florida rentals in particular follow a standard of less than 30 days at a time. Florida Statutes section 509.013 also states that these properties must host guests more than three times in a calendar year.
Condos, single family homes, single units, or duplexes can work as short-term rentals at the owner’s discretion.
With a tradition of attracting travelers in and out of the U.S., Florida short-term rentals represent a surefire way to secure a steady income and quick financial growth, particularly around its coastal market (Miami-Dade, Broward, Orlando, etc.).
This popularity, however, has resulted in problems over the years, as local authorities started looking for ways to regulate the operation of rentals across different counties. Because of this, Florida enacted its first prevention law in 2011. SB 280 originally kept local governments from prohibiting vacation rentals or regulating them in ways that differed from state law. The law was partially rolled back in 2014, and ultimately in 2023, when municipalities were granted more power to regulate short-term rentals.
Under Florida HB 1537 (effective July 1, 2023), prohibited new short-rental bans while allowing local governments to regulate the operation of short-term rentals. Among other things, these local authorities can enforce occupancy limits, inspection programs, and minimum stay requirements.
Of course, this means different regulations across different cities and counties, which leads to the root of the problem when it comes to understanding Florida STR laws.
While the current framework of Florida’s preemption law offers more leeway for local authorities and landlords, it makes things significantly more confusing for those looking to list properties on Airbnb and other short-term rentals.
Basically, each city has its own set of rules, so you can’t make a decision based on State laws alone. Tampa, for instance, has few restrictions beyond the requirement of state registration, while Miami Beach enforces strict STR and zoning regulations, along with heavy fines in case of violation.
What’s legal in one zip code may be illegal three blocks away. Moreover, you could find multiple sets of rules across different buildings, as Homeowners Associations (HOAs), have the power to restrict or prohibit short-term rentals.
To put things into perspective, you can check the status of STR regulations and how it varies from state law to two of the most popular rental destinations:
Location-Jurisdiction | STR Regulation |
Florida State Law | Permitted in designated zoning districts. |
Miami Beach | Highly restricted by zoning. |
Orlando | Permitted in most areas, but only for owner-occupied rentals. |
Once you choose a property, you can’t stop at checking the local laws. The city might allow short-term rentals, but the HOA can always enforce restrictions, often banning rentals of less than 30 or 90 days.
That‘s why it‘s important to review the HOA‘s governing documents and funds (an underfunded HOA can restrict rentals), along with other important documents and deeds.
If you’re the owner of a short-term rental, you must comply with state and local licensing. As explained in an article by Lulich & Attorneys, hosts must submit an application, pay the required fees, and comply with basic health and safety standards. They must renew their licenses annually with the Florida Department of Business and Professional Regulation (DBPR) to remain in good standing.
Beyond the general distinction between rental condos and rental dwellings, licensing involves additional classifications and several requirements, which might vary from one county to the next. Local licensing often requires special use permits, zoning verification, and a business tax receipt (BTR).
Title searches are a valuable part of the closing process since they can protect the buyer’s investment from liens, fraud, and ownership disputes. The advantages of title searches, however, are often viewed through the lens of residential properties, without elaborating on how the process looks like when it comes to Florida short-term rentals.
In these cases, you can’t stop at checking for liens and ownership history. You need to look beyond the property’s public records and check all the areas where restrictions can be enforced. This is where a reliable title company can be your most valuable ally.
Beyond evaluating the property title, the company can also look into things many investors tend to overlook, including:
Even if any of these documents allow short-term occupancy, some of the restrictions can hinder your investment plans. You’d have to navigate occupancy caps, rental duration thresholds, and other licensing requirements, which is why a thorough evaluation is needed.
A professional company reviews these documents along with the property title, providing the best guidance about STR law and licensing. If you’re looking for an investment opportunity in South Florida, Key Title & Escrow can help you fulfill all the requirements so you don’t have to change plans right before renting your property.
Planning To Open a Rental Location in Florida? Trust Key Title & Escrow We specialize in closing investment properties across Miami-Dade and Broward, as shown by countless successful closings over the years. Property Title Searches are a crucial part of this process, so our staff knows what needs to be done to prevent issues later on in the process.
As such, we don’t stop at checking that you have a clear title, free of liens, hidden heirs, or other encumbrances. Our specialists also evaluate all related documents and records, including HOA documents, covenant and deed restrictions, and zoning flags relevant to short-term rental use. Likewise, we help you define your tax obligations and insurance requirements since standard homeowners insurance doesn’t cover business activities like STR.
This is the perfect opportunity for you if you’re looking to invest in Florida short-term rentals. You can save yourself a lot of stress and guarantee maximum efficiency during your purchase just by trusting our Condo Closing Services. We’ll conduct a thorough evaluation to ensure that the property is free of rental restrictions, so you can go into the transfer without any anxiety over STR laws.
If any of this piques your interest, contact us today and our staff will be happy to assist you. Key Title & Escrow ensures that you start your investment on a high note! Florida’s coastal market has so much to offer, and we’re ready to help you make the best of it!
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