A new Florida Bill is making waves in communities across the state. Currently, the State of Florida allows cities and communities to set their own short-term rental ordinances. But House Bill 1011 will give the authority to the state’s Department of Business & Professional Regulation (DBPR), preventing Florida cities from setting up their own legal framework. This could mean that newer bans on Airbnb Florida may be lifted and future bans on short-term rentals will be eliminated completely statewide.
Airbnb Florida Bill 2020
In recent years, the Florida real estate market has become a hotspot for short-term rental properties like those listed on Airbnb, VRBO, HomeAway and other vacation rental websites. With Florida welcoming millions of tourists every year, it’s natural that the vacation rental industry would be booming across the state. Airbnb reported that in 2019, Airbnb Florida hosts generated $1.2 billion in supplemental income, hosting 6.6 million guests. Mashvisor’s Airbnb data shows that, statewide, renting out on Airbnb is quite profitable. Hosts stand to earn a high Airbnb rental income as well as good cash on cash return thanks to the high Airbnb occupancy rate:
- Median Property Price: $443,483
- Airbnb Rental Income: $2,671
- Airbnb Cash on Cash Return: 2.3%
- Average Airbnb Occupancy Rate: 54%
Because of the widespread of Florida vacation rentals, cities across the state have been placing regulations and even bans on Airbnb Florida and other short-term rentals. While some policymakers and local residents welcome these types of ordinances, others have been actively fighting in Airbnb’s corner for a few years. Although other attempts have been made to keep cities from passing their own ordinances, House Bill 1011 is the first to inch towards the House Floor.
HB 1011, introduced by Republican Representatives Jason Fischer and Mike La Rosa, will effectively prohibit local bans, laws, ordinances, or regulations regarding home inspections, licensing requirements, and the like. The bill will also require that Airbnb Florida hosts and hosts using other short-term rental platforms obtain a Vacation Rental Dwelling License from the DBPR. Licenses will be verified by the state quarterly and any deemed invalid, the bill requires that vacation rental websites remove the listings. The license numbers must be displayed for every vacation rental property listed as well as other operating information like Florida sales tax registration number and tourist development tax account numbers. All enforcement of Airbnb Florida laws will fall into the hands of state officials as well.
As mentioned, the Florida housing market has a history of attempts at regulating Airbnb rental properties. In 2011, cities were banned from adopting new short-term rental regulations. Due to strong opposition, however, a revision passed in 2014 placing the power back in the hands of local lawmakers so long as there was no attempt to completely ban vacation rental properties or impose limits on how often they could be rented out to guests or for how long.
The new Florida vacation rental bill hopes to go back to the original short-term rental laws of 2011. This would mean that any Airbnb laws and regulations put into place before 2011 would be grandfathered in like those in the Airbnb Miami Beach real estate market. Still, enforcement of such laws would be in the hands of the state, accompanied by a change in regulations. Currently, Airbnb Miami Beach hosts are subject to regular inspections with any violations resulting in fines starting at $20,000. Under the new Florida short-term rental laws, the state will inspect Miami Beach vacation homes once or twice a year and fines would not be more than $1,000.
Representative Jason Fischer believes that the new bill is necessary as the current framework across the state is “unworkable” and “broken”. He believes that statewide regulation will also give Florida property owners back their rights and provide economic opportunities, empowering the average working-class and middle-class property owners across the state. His bill has found support from Airbnb and local property management companies.
Of course, there is continued opposition against Airbnb Florida rental properties and other short-term rentals. Local lawmakers worry about the long-lasting impact Airbnb rental properties can have on local housing and the quality of residential neighborhoods. Homeowners have also complained about neighbors running Airbnbs in their communities and have welcomed the imposed regulations or bans across various cities in the Florida real estate market.
However, the economic impact of Airbnb has been great across many cities in Florida and it seems that soon regulation will come under state control.
What This Means for Airbnb Real Estate Investors in Florida
Typically, when US cities put an Airbnb legal framework in place, the first types of rental properties to go are non-owner occupied rentals- those run by local and out-of-state real estate investors. We saw many major cities impose such Airbnb regulations in 2019, including the Airbnb Los Angeles market and the Airbnb Las Vegas market.
Learn about other cities where non-owner occupied rentals are banned from renting out on Airbnb: 10 Cities with Airbnb Legal Issues in 2020.
However, if the bill passes, the rights of real estate investors and those who own and rent out their second homes in the Florida housing market will be protected.
As the Florida real estate market is one of the best places for buying a vacation rental property, this could mean great Airbnb investment opportunities. With clear and concise regulations implemented statewide, the question of “Is Airbnb legal in this city or that?” will have an easy answer for those looking to buy a vacation home in Florida. Real estate investors will still have to do their market research to ensure they are investing in Airbnb in a city that did not place bans on non-owner occupied properties before 2011 like Miami Beach, however.
The Best Places to Buy a Vacation Home in Florida in 2020
While real estate investors should keep a close eye on the developing situation with HB 1011, taking advantage of the Airbnb friendly environment of the Florida real estate market can be a smart move in 2020. Although operating an Airbnb investment property may become legal in many cities across the state, that doesn’t mean every location is profitable for investing in a vacation rental for sale. To help you identify where the best places for buying a vacation home in Florida are in 2020, we have listed the top 10 most profitable Airbnb locations based on Mashvisor’s Airbnb data and analytics:
- Median Property Price: $414,712
- Price per Square Foot: $193
- Average Daily Rate: $124
- Average Airbnb Rental Income: $2,985
- Average Airbnb Cash on Cash Return: 4.7%
- Average Airbnb Occupancy Rate: 55%
- Median Property Price: $215,763
- Price per Square Foot: $152
- Average Daily Rate: $95
- Average Airbnb Rental Income: $2,135
- Average Airbnb Cash on Cash Return: 4.0%
- Average Airbnb Occupancy Rate: 60%
#3. Miami Gardens
- Median Property Price: $266,784
- Price per Square Foot: $184
- Average Daily Rate: $117
- Average Airbnb Rental Income: $2,524
- Average Airbnb Cash on Cash Return: 3.93%
- Average Airbnb Occupancy Rate: 56%
#4. Saint Petersburg
- Median Property Price: $341,783
- Price per Square Foot: $210
- Average Daily Rate: $99
- Average Airbnb Rental Income: $2,181
- Average Airbnb Cash on Cash Return: 3.93%
- Average Airbnb Occupancy Rate: 56%
- Median Property Price: $275,386
- Price per Square Foot: $143
- Average Daily Rate: $168
- Average Airbnb Rental Income: $1,979
- Average Airbnb Cash on Cash Return: 3.85%
- Average Airbnb Occupancy Rate: 48%
Be sure to check local zoning and short-term rental tax regulations in each city listed above before investing in Airbnb with a non-owner occupied rental.
Get Started Investing in Airbnb Florida Today
Even with a few cities like Miami Beach banning non-owner occupied rentals, there are plenty of other cities in the Florida real estate market that make for some of the best cities for Airbnb investment. And the laws may soon become very investor-friendly in many cities across the state. Just be sure to check out the Airbnb Florida data and regulations before you get started.