Starting an Airbnb in Tampa Bay, FL? Here's What You Need to Know About Tampa Short-term Rental Laws
If you’re convinced of Tampa’s potential to bring you huge profits in real estate investing, then this post is for you. Short-term renting is big in the Bay area, and you’ll need to know about Tampa short-term rental laws before making your investment.
Is Airbnb legal in Tampa?
Short-term renting is largely legal in Tampa Bay, as it is in much of the State of Florida. In 2011, the State banned local governments from passing laws that prohibit or restrict the use, classification or occupancy of short-term rentals. (Though ordinances on the books before 2011 were grandfathered in.)
According to Florida law, vacation rentals are a “unit or group of units in a condominium or cooperative, or any individually or collectively owned single-family, two-family, three-family, or four-family house or dwelling unit that is also a transient public lodging establishment that isn’t a timeshare project”.
The State requires all vacation rentals to be licensed through the Department of Business and Professional Regulation (DBPR). It classifies them into 2 categories, a dwelling and a condo. For more details, check the DBPR website to determine exactly which category and licensing requirements apply to your type of property.
Note that hosted rentals, or STRs with hosts staying in the property, are not regulated by the DBPR. Renting a single room or rooms other than the whole unit isn’t classified as public lodging and doesn’t require a license from DBPR. They may be subject to other city or county requirements, though.
On another hand, if you own property in Florida and make it your permanent residence or that of your dependent, you might be eligible for a homestead exemption that would decrease your property’s taxable value by as much as $50,000. The State offers assessment limitations and other benefits to owners with disabilities, senior citizens, veterans, active duty military service members, disabled first responders, and properties with specialized uses. Visit the Florida Department of Revenue website to view other tax relief privileges you may be eligible for.
Tampa Short-term Rental Laws
The Tampa Bay metro area covers the cities of St. Petersburg, Clearwater and Tampa. These 3 cities are scattered across 2 distinct counties, Hillsborough and Pinellas.
As mentioned above, Floridian homeowners are required by the State to hold a license to rent their homes. If they’re using the rental arbitrage model, their license would fall under one of these 2 types:
- A Group License covers all units within a building or group of buildings in a single complex that are licensed to a licensed agent.
- A Collective License is issued to a group of houses or units found in separate locations that are represented by the same licensed agent. (A collective license may have a maximum of 75 houses or units per license and is restricted to counties within one district.)
These licenses must be renewed every year and posted on the property where they can be easily seen.
Rental operators are responsible for meeting all health and safety rules as well as all violations.
There are various county, city, and other local regulations that STR operators have to abide by, depending on their location.
In recent years, some cities tried passing local rules and zoning codes in an effort to govern STRs more stringently. They wanted to require hosts to register with local authorities, provide 24-hour emergency contact information, post noise and trash rules inside their properties, and even issue rental agreements with all occupants’ information.
To keep up with developments, visit the local office or official website of the town or city where you’re planning to establish your rental. That way, you’ll get only the latest and most accurate information. The same is true for updates on Tampa short-term rental laws.
As for taxes, hosts of non-owner occupied properties have to pay 3 kinds of taxes in Florida:
- The Florida Transient Rental Tax. It’s a state-wide 6% tax of the listing price including any cleaning fee for reservations of 182 nights or shorter.
- The Florida Discretionary Sales Surtax. It’s a .5%-1.5% of the listing price including any cleaning fee for reservations 182 nights and shorter. The rate varies by county.
- A County Tourist Development Tax. This is 2%-5% of the listing price including the cleaning fee. Rates vary by county.
Online booking platforms like Airbnb and Vrbo collect and remit the rental and sales taxes on behalf of hosts.
Again, visit the Florida Department of Revenue website for detailed information on tax obligations and payment.
Hillsborough County Short-term Rental Laws
Hillsborough, the county where the City of Tampa is located, doesn’t regulate short-term rentals directly.
Local laws define define “transient accommodations” as living accommodations that are rented for 6 months or less. There are also Hillsborough County short-term zoning laws, which state that if you rent your property for less than 7 days at a time, it must be properly zoned or you could face fines.
Check the county’s map viewer so you’ll get important information on current zoning, land use plans, and even flood zone data.
As in many other counties, anyone choosing to engage in or manage any business in Hillsborough must pay a business tax (formerly known as Occupational License). Those who rent accommodations – except apartment houses – are required to pay $1.50 for each room in every place of business, not including the rooms occupied by the owner.
Rental owners can use the County’s BTExpress link to apply for a business tax account and obtain their tax receipt. The receipts expire every September 30th and can be renewed on or after July 1st.
They also have to pay a 6% Tourist Development Tax, which is an add-on tax like the state sales tax. It’s collected from the tenant at the time rent or accommodation charges are collected.
A County Sales Surtax of 1.5% is levied on non-owner-occupied properties.
Pinellas County Short-term Rental Laws
STRs in Pinella County, where Clearwater and St. Petersburg are located, are supported by both the state and county governments. In fact, it was the first in the Bay Area allowed by Gov. Ron DeSantis to resume short-term rental operations during the Covid-19 pandemic.
In May 2020, the County Administration released guidelines for property cleanliness, guest safety and health, physical distancing, employee hygiene, and other health concerns to help rental owners and property managers quickly reopen to guests and bring back employment.
View this zoning map to find areas where short-term rentals are allowed in Pinellas.
Note that the local government has set forth standards for operating short-term rentals within the County. First of all, STRs are defined as individual dwelling units that are rented to guests at a lease term of less than one month at 4 or more times per year.
Occupants should be limited to 2 persons per bedroom plus two persons in a common area, not exceeding 10 people per unit – whichever is less.
Quiet hours are to be observed between 10:00 p.m. and 9:00 a.m. daily, and an information sheet should be posted on the property about the owner’s contact information, the schedule of trash pickup and recycling, and the location of the nearest hospital.
Property owners should monitor their units to ensure compliance with the above rules and should make themselves available for inspections, complaints, or other problems that may arise regarding their listing. Failure to comply may be punishable by a fine of up to $300 per violation, per day.
Here’s an online form that you can download, sign and submit when applying for a short-term rental permit in Pinellas County.
As for taxes, the County collects a Tourist Development Tax (also known as the bed tax), which is a 6% tax on accommodations such as hotels and private homes rented for six months or less. Major online booking platforms like Airbnb, Vrbo, and TripAdvisor will collect it for you.
Visit Pinellas’s official website for more information on county zoning, land use plans, property values, and other pertinent info.
Local Rules within Pinellas County
There are 37 different cities, towns, and census-designated areas within Pinellas County, and each may have its own way of overseeing STR activities within its jurisdiction. As recommended above, check with the local office or website of the specific area of interest.
Clearwater, for example, has districts zoned “Residential” that allow homeowners to rent their properties for one month or longer. But they have to have a City Business Tax Receipt. Those in the Tourist District are also allowed to rent, but only if they meet State permitting requirements, aside from a City Business Tax Receipt.
Clearwater authorities are quite strict when it comes to enforcement of code rules, imposing violators with stiff liens and penalties.
In 2019, Indian Rocks passed an ordinance requiring STR owners to get a Florida Department of Revenue certificate for collecting tourism development taxes, sales surtaxes, and transient rental taxes; a State Business and Professional Regulation transient license as a public lodging establishment; and a town business tax receipt document. Click here for a complete list of Indian Rock’s STR requirements.
To see the rules for the following localities, just click on each:
You’ll also find helpful information on the websites of the Pinellas Realtors Organization and the Tampa Bay Beaches Chamber of Commerce.
Conclusion
Tampa offers great opportunities for short-term renting. But since the Bay area consists of numerous beach towns and communities, you can expect a strong hotel lobby against STRs. Still, there are plenty of neighborhoods outside the beach areas that allow guests to enjoy the best of both worlds – coastal surroundings along with modern, suburban civilization. The prices inland will be lower, too.
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