The Requirements for Vacation Rentals in Florida are Changing
Florida State Senate Bill (SB 1128) seeks to disallow local municipalities from issuing regulations concerning vacation rentals and instead allow the state to enact most regulations. In essence, local laws would be rendered moot. As Floridapolitics.com states “The … bill protects from local regulation rentals offered via an advertising platform [such as Airbnb, VBRO, etc.] which offers software and online access to listings for transient public lodging establishments in the state.”
The logic is simple: Just as hotels and motels are state regulated, so too would online platforms which offer lodging. Supporters of the legislation argue that short-term rentals are vital to the state’s tourism industry. Thus, confusing and overlapping laws can only invite confusion and perhaps corruption.
Additionally, the new law that proposes to bring short-term rentals under state control would ensure that these online rentals are licensed and properly collect and remit taxes. The law would also require landlords to provide certain information to the state about the property.
But not all effected parties are on board with the proposed new law. Some homeowners complain that certain issues such as loud parties by short-term renters are best left to local municipalities to deal with. These opponents point out that short-term renters contribute $1.2 billion in revenue last year which included rentals to 6.6 million guests. These opposing forces believe that local efforts to regulate have been sufficient, and that onerous state regulations could negatively impact business.
Proponents respond to the criticisms by claiming that localities will still be responsible for a host of issues concerning short-term online renters, such as dealing with noise, parking, and trash ordinances etc. In short, good neighbor policies would still be left up to local governments. The idea is to strive toward uniformity throughout the state. The proponents also argue that a renter would find this uniformity easier to navigate and understand, and therefore make less mistakes when choosing a rental.
A few of the provisions of the law which seeks uniformity and tries to upend unscrupulous property owners include a requirement to display the license, and sales tax and tourist development tax information. Also, quarterly verification is stipulated that noncompliant properties are removed from platforms within 15 days. This aspect of the law aims to ensure property owners adhere to the rules – which in turn adds a level of protection for renters.
Although the bill adds a few easy to follow requirements, the legislation aims to defang onerous ordinances that some localities have placed on short-term online rentals at the behest of some property owners who are opposed to these rentals.
The Duncan Group’s property management division is prepared to answer any questions a property owner may have, as we handle both seasonal and annual rentals. As part of our property management services we also collect and remit taxes on behalf of the homeowner. If you would like more information on this concierge service please don't hesitate to reach out.
Please be aware that the chances that the legislation will become law is very high.