Is Rental Arbitrage Legal in Florida?
State license plus state sales tax. Florida requires a vacation rental license from the Department of Business and Professional Regulation (DBPR) for a unit rented more than three times a year for periods of less than 30 consecutive days. Florida also charges 6% state sales tax, plus any county surtax and local tourist taxes, on rentals of six months or less. Cities and counties add their own rules.
Requirements
- DBPR vacation rental license (dwelling) for each rented unit, applied for online
- A main address of record for the owner or operator, and the full address of each rental unit
- Choose a classification: single (1 to 4 units in the same building), group (several units in one building or complex), or collective (up to 75 units at different addresses in one district)
- A balcony inspection certificate if the building is three or more stories or balconies are 17 feet or more above the ground
- Register with the Department of Revenue to collect, report and remit sales tax
- Check the city or county rules for the property
Restrictions
- A licence expires and renews on a fixed date for your area of the state, and the date does not change with when you apply
Taxes and Fees
- State sales tax: 6% on rentals of six months or less, including single-family homes and condos
- Counties can add a discretionary sales surtax and local taxes such as the tourist development tax
- Everyone who rents out transient accommodations must register with the Department of Revenue to collect, report and remit the tax
- Rentals longer than six months under a written lease, and stays by full-time students and active-duty military with documents, are exempt
Official permit or registration page
Cities in Florida
Next Step
Legal is one half of the decision. The other half is whether the deal earns enough to be worth the risk.
Sources
Frequently Asked Questions
- Do Florida Short-Term Rentals Need a State License?
- Yes, for whole-unit rentals: a vacation rental license from the Department of Business and Professional Regulation (DBPR).
- Do Florida Cities Add Their Own Rules?
- Yes. Orlando limits most of the city to hosted home-sharing, and Miami allows short-term rentals only where zoning permits lodging. See each city page.