Is Airbnb legal in Orlando?

In Orlando, Florida, the regulatory landscape for short-term rentals, including platforms like Airbnb and VRBO, is stringent and complex. As of July 1, 2021, a series of ordinances necessitate that all short-term rental hosts register with the city, pay an annual registration fee, and adhere to specific occupancy and operational rules.

Key Regulations: 1. Registration and Fees: The initial registration fee is $275 for the first year, decreasing to $125 for subsequent years. Notably, hosts are limited to one booking at a time and cannot accommodate more than four guests total, regardless of the number of bedrooms.

2. Licensing Requirements: To legally operate, hosts must apply for a Short-Term Rental Permit from the city council. This involves submitting a range of documents, including proof of a Florida Department of Business and Professional Regulation (DBPR) Vacation Rental License, and passing a code enforcement inspection.

3. Taxes: Hosts are required to collect and remit multiple taxes on their rentals, including Florida Sales Tax (6%), an Orange County surtax (0.5%), and an Orange County Tourist Development Tax (6%), totaling 12.5% of the booking amount. Compliance with these tax requirements is essential to avoid potential fines.

4. Zoning and Occupancy Limits: Only properties that meet specific zoning requirements may be used for short-term rentals. Additionally, the rental space must not exceed 50% of the total livable area, and the property must be occupied by the owner or a long-term tenant for at least 51% of the year.

5. Enforcement and Compliance: The city has ramped up its enforcement efforts, responding to complaints and issuing fines for non-compliance, which can reach $250 per day for unpermitted rentals. There is concern that many hosts are operating illegally, as an estimated 8,000 short-term rental listings exist in Orlando, while only 116 properties were compliant as of March 2023.

Conclusion: Despite Orlando’s appeal as a tourist destination, prospective Airbnb hosts must navigate a landscape of strict regulations, fees, and operational limits. For those considering entering this market, thorough understanding and adherence to local laws, zoning requirements, and tax obligations are crucial to a successful and compliant short-term rental operation. Legal counsel and regular monitoring of regulatory changes are advisable as the city continues to refine its approach to short-term rentals.