A popular strategy for real estate investors is to acquire a single family home or duplex and rent it out on a short-term basis creating a short term rental or STR. In addition to simply listing the property in the MLS as a rental property, which might be rented by the month or year, many investors register their property with AirBnb in an attempt to maximize their rental income via weekly or even nightly rentals.
Many communities have pushed back against AirBnb and other short-term rentals under 30 days because of upticks in traffic, disturbances, and other issues associated with STR and transient rentals. Think of AirBnb and short-term rentals more like hotels or motels, except these are more likely located in residential neighborhoods than on major thoroughfares and tourist destinations.
To curb or at least attempt to control their residential neighborhoods a bit more, many municipalities have either outlawed short-term rentals or now require a permit. Permits are an additional revenue source for the municipality, but also a way of keeping track of where they are and how many there are in a given community. As an example, Neptune Beach does not allow short-term rentals at all.
Keep in mind that short-term rentals in Florida are classified as leases that are 6 months or less. So, if you’re renting for six months and write your leases for at least 181 days, you are not subject to the short-term rental tax, which can be substantial (6% State of Florida Bed Tax + County Tax Rate + Any Additional Municipality Tax). The state of Florida requires that all Resort Rentals obtain a license with the DBPR.
Most AirBnB rentals are classifed as Vacation Rentals or Transient Rentals for zoning and licensing purposes. The State of Florida DBPR – Department of Business & Public Regulation requires that all vacation rentals be registered with the state. Most Counties and cities also require that the owner apply for a business license and may also require a use permit that must be renewed annually. Essentially, the municipalities are ensuring that applicable fees and taxes are paid.
Here are the two different State of Florida applications depending on property type. If it is not a condo, it is classified as a ‘dwelling’:
Individual municipalities may add additional tourist development taxes, permit fees, etc… on top of the typical short-term rental taxes that are payable on all leases of 6 months or less:
| County | Typical Short-Term Tax (Includes 6% State) |
| Clay County | 9% |
| Duval County | 12% |
| Flagler County | 10% |
| Nassau County | 10% |
| Putnam County | 10% |
| Saint Johns County | 10% |
| Volusia County | 12% |
Here are some Northeast Florida communities that have short-term rental ordinances:
| City | Ordinance | Website |
| Atlantic Beach | Minimum 90 Days. Short-term Varies by Zoning. (CBD with Exception, and Permitted if Zoned TM, CG, Mayport). Permit/Registration | https://library.municode.com/FL/Atlantic%20Beach/CODES/Code_of_Ordinances |
| Fernandina Beach | Permit/Registration | https://www.fbfl.us/792/Resort-Rentals |
| Jacksonville | Allowed where Zoned as General Commercial or Historic Core. Business license required. | https://jacksonvillereview.com/need-know-vacation-rentals-city-jacksonville/ |
| Jacksonville Beach | Permit/Registration | https://www.jacksonvillebeach.org/394/Short-Term-Vacation-Rentals |
| Neptune Beach | PROHIBITED. No rentals less than 29 days. | https://www.ci.neptune-beach.fl.us/planning-community-development/faq/can-i-have-short-term-rental |
| Nocatee | See St Johns County, but the town is currently very focused on rentals. | http://www.sjcfl.us/CodeEnforcement/shortrental.aspx |
| Ponte Vedra | See St Johns County and Nocatee. | http://www.sjcfl.us/CodeEnforcement/shortrental.aspx |
| Ponte Vedra Beach | See St Johns County | http://www.sjcfl.us/CodeEnforcement/shortrental.aspx |
| Saint Augustine | Varies by Zoning. Registration required. ($294-$663/yr) RS-1 & RS-2 – Weekly or Longer HP-1 – Monthly or Longer All Others Ok with Registration. $ | https://www.citystaug.com/830/Short-Term-Rentals |
| Saint Augustine Beach | Permit/Registration. Limited to Zoning of Commercial or Medium-Density Residential. Property becomes classified as a business/commercial with associated taxes and trash fees. | https://www.staugbch.com/citymanager/page/transient-rentals |
| St Johns County | Registration Required. | http://www.sjcfl.us/CodeEnforcement/shortrental.aspx |
Keep in mind that services like AirBnb often take care of short-term rental tax preparation, filing, and payment as part of their site services. AirBnB shows these tax charges in the app and also deducts them from the Landlord’s proceeds to ensure that these taxes are filed and paid to stay in compliance. Please keep in mind, however, that the ultimate responsibility for making sure that the taxes are paid lies with the property owner/landlord.
There are a number of strategies involved when building a portfolio of rental properties – both long-term rentals and short-term rentals – and making sure you have the proper structures in place can make all the difference. Likewise, having an Umbrella Liability Insurance Policy is essential to protect yourself from lawsuits resulting from slips, falls, or other injuries that might occur on your property. This is true of any property you own, but especially properties you rent or where the general public may be invited.
If you are interested in buying property to convert to a short-term rental or STR, please Contact Us or visit our Contact Page.