Three layers of rules
Local zoning decides where short-term rentals are allowed. The state requires licensing and registration for vacation rentals. The condominium or HOA documents can prohibit or limit rentals regardless of the city.
The strictest rule applies, so a property can be legal under zoning but barred by the building.
City and county zoning
Cities such as Miami Beach and others set specific zones where short rentals are allowed, often with minimum stay rules, caps and fines. Rules change, so confirm the current ordinance for the exact address.
Do not rely on a listing that says 'Airbnb friendly' without checking the rules.
State and local licenses
Operators typically need a state license for vacation rentals and local business tax receipts, plus registration with tax authorities. Platforms may require license numbers in the listing.
Ask your attorney or the relevant agency which licenses apply to your property.
Sales and tourist taxes
Short-term rentals are subject to state sales tax and county tourist development taxes, which must be registered, collected and remitted. Platforms sometimes collect them, but you remain responsible for compliance.
Include these taxes in your income projections.
Building rules
Many condos set minimum lease periods, ban nightly rentals or limit the number of rentals per year. Some buildings allow short stays through an on-site program with fees.
Request the documents and confirm in writing before you offer.
Income and costs
Model occupancy, nightly rate, cleaning, management, utilities, insurance, platform fees and taxes. Seasonality matters, and income can differ greatly from marketing numbers.
Do not rely on projected income to qualify for the purchase.
Common mistakes
Buying before checking rules, assuming rules will not change, ignoring tourist taxes and insurance requirements, and underestimating management costs.
Another mistake is not planning for periods of low occupancy.
Checklist
Check zoning for the address. Read the condo or HOA rules. Confirm required licenses and taxes. Request insurance for rental use. Build a conservative income model.
Alternatives to nightly rentals
If nightly rentals are not allowed, consider monthly or seasonal rentals, which many buildings and cities permit with minimum stays. Their income is steadier and compliance simpler, though the rate per night is lower.
Practical tip
Ask the city or county in writing, or check its official website, and keep a dated copy of the rule you relied on when you bought.
Next step
We will help you screen properties by rental rules before you view them. Legal questions should go to your attorney. Lidiya Tretyak is a licensed Florida real estate agent with Douglas Elliman and speaks English, Russian and Ukrainian; the first consultation is free.
This guide is general information, not legal or tax advice. Laws and programs change — confirm details with a Florida attorney and a US tax professional.
