Short Term Rental Regulations

Florida's short-term rental market has long been a magnet for real estate investors—offering lucrative income potential in tourist-heavy destinations like Orlando, Miami Beach, and the Florida Keys. But as cities and counties across the state push back with tighter regulations, staying ahead of changing laws is now essential for anyone in the game.

Statewide Overview: The Legal Landscape

While Florida does not have a single statewide law banning short-term rentals, it does allow local governments to regulate how they're operated. The Florida Statutes Section 509.032(7) prohibits municipalities from outright banning vacation rentals altogether but does permit local regulation through zoning, licensing, and safety requirements—especially for noise, occupancy, and parking.

"The biggest mistake I see new investors make is assuming what works in Miami will automatically apply in Clearwater or Naples," says John Smith, a property attorney based in Tampa. "Each city plays by its own rules."

Key Cities with Strict Rules

Miami Beach

Miami Beach enforces some of the strictest short-term rental ordinances in the state. Rentals of less than six months are banned in many residential zones unless a property is in a specifically approved area. Fines can exceed $20,000 per violation.

Orlando

Orlando allows short-term rentals only in owner-occupied homes, and only part of the house (not the entire property) can be rented out. Additionally, hosts must obtain a Home Sharing Registration with the city.

Palm Beach County

This county requires registration, payment of a tourist development tax, and adherence to noise and safety ordinances. Some cities within the county, like Delray Beach, have their own layered restrictions.

Common Compliance Pitfalls

Investors who fail to research local laws may find themselves hit with unexpected enforcement actions. Here are some common regulatory pitfalls:

• Ignoring zoning rules: Many Florida cities differentiate between residential, commercial, and mixed-use zones. A rental-friendly building in Miami's Brickell may not be allowed in Coral Gables.
• Failure to register or obtain a license: Local governments often require a business tax receipt, short-term rental license, or both.
• Overlooking HOA or condo board rules: Even if city laws allow it, private communities can ban or limit short-term rentals.
• Not collecting taxes: Florida requires collection of state sales tax (6%) and local tourist development taxes, which vary by county.

Best Practices for Florida Investors

Successful investors treat regulation compliance as part of their business model. Here are a few smart strategies:

1. Consult local zoning maps and speak with municipal offices before closing on a property.
2. Use property managers who specialize in short-term rental compliance in your target city.
3. Set aside a legal reserve to cover potential fines or legal consultations.
4. Stay current on new ordinances—some cities update rental rules quarterly.
5. Document all guest communications and bookings to demonstrate compliance if challenged.

"We advise our clients to run a regulatory audit every six months," says Jane Doe, a Miami-based real estate analyst. "Laws evolve fast—what was legal in January might be restricted by July."

Looking Ahead: What Might Change

There have been repeated attempts in the Florida legislature to standardize short-term rental regulations statewide, but these have faced opposition from local governments. As of 2025, any statewide preemption has stalled, leaving power in the hands of cities and counties.

However, several proposed bills suggest a trend toward more uniform registration requirements, minimum safety standards, and clearer tax remittance processes. Investors should track these proposals to prepare for statewide shifts.

Bottom Line

Short-term rental investing in Florida is still viable—but it's no longer a passive play. To stay profitable and compliant, investors must adapt to a patchwork of evolving local laws and operate with transparency and due diligence.