Is Airbnb legal in Panama City Beach?

Overview of Airbnb Regulations in Panama City Beach

As of February 1, 2024, Panama City Beach has implemented strict regulations on short-term rentals (STRs), including those offered through platforms like Airbnb. These regulations were enacted through City Ordinance 1632, which aims to ensure safety, accountability, and compliance among vacation rental operators within city limits.

Definition of Short-Term Rentals (STRs) Short-term rentals are defined as properties rented to guests for durations of less than six months, typically accommodating families and averaging two to five guests. The ordinance applies specifically to properties rented three or more times a year.

Licensing Requirements To legally operate an STR in Panama City Beach, hosts must obtain a vacation rental license, which includes: - A Change of Occupancy License (if applicable) - Short-Term Rental License from the city, inclusive of a Business Tax Receipt (BTR) - Registration with the Tourist Development Council (TDC) - Compliance with Florida Department of Business and Professional Regulation requirements - Safety measures, such as having an automatic sprinkler system and smoke detectors in guest rooms - Submission of property plans for review and compliance with building codes

Zoning Restrictions Zoning regulations dictate that STRs can only occur in designated districts, including various commercial and multi-family districts. It is essential for hosts to verify whether their properties fall within these approved zones by consulting the Panama City Beach zoning map.

Occupancy Limits and Inspections The ordinance enforces an occupancy cap of one person for every 150 square feet of habitable space, with stricter requirements for larger groups necessitating life safety inspections. Inspections by the city ensure that all properties meet safety and structural requirements.

Penalties for Non-compliance Non-compliance with these regulations can lead to significant penalties: - First offense: $500 - Second offense: $1,000 - Third and subsequent offenses within a year: $1,000 and possible revocation of the rental certificate for a year.

Additional Considerations - Hosts must designate a local responsible agent residing in the community to manage the property and assist guests. - Securing insurance is highly recommended to protect against potential liabilities, although it is not a mandatory requirement by the city. - The initial vacation rental license is valid for one year, requiring annual renewal, with delinquency penalties for late renewals.

With these regulations in place, Panama City Beach seeks to balance the interests of local communities, property owners, and tourists, ensuring safe and responsible rental practices for the growing short-term rental market.