Miami Beach short term rental law includes a series of requirements for any property in Miami Beach to be considered eligible for legal short term renting. It is estimated that 95% of buildings in Miami Beach do not allow for rentals for periods shorter than 6 months.
Miami Beach Short Term Rental Law:
miami beach short term rental zoning map
Zoning –
Short term rentals are only allowed in certain areas in Miami Beach. Many of the areas that are authorized to conduct short term rentals are commercial areas, with only a few residential area exceptions. This map shows the Miami Beach short term rental zoning requirements.
Building requirements –
Miami Beach short term rental laws require properties to meet certain building requirements. This means that properties must abide by all building, fire, and accessibility codes. Wheelchair ramps, sprinkler systems, and impact windows are just a few of the hurdles to making a property a legal short term rental. Inspections are routinely conducted by the State of Florida, Dade County, and by City of Miami Beach. After getting hit with the $20,000 fine for illegal short term rentals three consecutive times at his property on Meridian Avenue, Daniel Sehres has decided to make the necessary upgrades to turn his property into a bed and breakfast. He estimates that this venture will cost him $200,000.
Licenses and taxes –
Miami Beach short term rental law requires properties to acquire the appropriate licenses and pay the associated taxes. The property will need a transient apartment license from both the State of Florida and the City of Miami Beach. If the property is a part of a condo association, the condo doc will also need to be referenced to see if short term rentals are allowed. In addition, the owner of the short term rental will need to pay sales and resort taxes in the amount of 13% of the rental property income. A business tax receipt is also required. Go here to obtain your business tax receipt. Or take a look at the list of businesses that already have their business tax receipts.
Affidavit –
As of December, regulations on short term rentals got even tighter. Commissioners voted to require short term rental property owners to submit an affidavit to the city. This affidavit affirms that the property is in a short term rental zone, that they have obtained a business tax receipt and resort tax account, and that their condo association allows short term rentals. This process currently requires a physical notary and an in-person visit to the city hall. Commissioner Joy Malakoff, a sponsor of the ordinance defends the increased regulation saying “South Florida is the fraud capital of the country, and we just felt it was putting too much trust in every condo owner, saying, ‘Yes they are going to tell the truth. If you get an affidavit and a letter from a condo association, we as the governing body of the city feel much more comfortable that they really are allowed to do short term rentals.”
Downfalls of Miami Beach Short Term Rentals:
Miami Beach started really cracking down on short term rental violations nearly a year ago by increasing the fine to $20,000 per violations. These fines are the highest of their kind in the country, and they make illegal short term renting in Miami Beach an even bigger concern. With the rise in popularity of using short term rental properties in place of hotels for vacation accommodations, short term rentals have been put in the hot seat. This is because, in large volume, short term rental of residential properties can cause problems for many different parties.
Hotels –
The hotel industry is one of the biggest opponents of short term renting in Miami Beach. They see it as unfair competition because the hosts aren’t having to pay the local resort taxes that hotels have to pay. The increase in the popularity of sites like Airbnb has magnified this issue greatly. Airbnb, after getting fined particularly hard, has attempted to compromise with Miami officials on increased regulations for short term rentals. After the ordinance requiring the notarized affidavit was passed, Airbnb spokesman Benjamin Breit wrote in an email “It is disappointing that an opportunity to collaborate with the private sector on protecting quality of life and economically empowering the middle class is instead being used to over-regulate and punish the constituents of Miami Beach. As the commission freely admitted from the dais, the desired intent was ‘punitive’ rather than constructive and that, in our opinion, is not good policy. Unfortunately, the real losers of this measure are visitors and the constituents in Miami Beach.”
Neighbors/Community –
When properties are used as short term rentals, the neighbors and the community can suffer. People who rent out a house for a vacation are not concerned with being good neighbors, and they are not in the midst of their ordinary lives. These individuals are in vacation mode which means they are often rowdy and inconsiderate, throwing noisy parties leading to neighbors calling local police to complain. As Mayor Philip Levine says, “Our community is not in favor of short term rentals.”
Tenants –
Illegal short term rentals can also cause uncomfortable situations for the tenants. No one wants to feel unwelcome on vacation, but communities that are overwhelmed with and sick of the endless parade of vacationers invading their residential districts are not prone to be very welcoming to all short term tenants. Besides some possible tension with the neighbors, tenants risk being evicted during their vacation if the property is found to be in violation of illegally conducting short term rentals.
Property Owner –
The property owner takes on the largest risk in the case of both legal and illegal short term rentals. Even if the property meets the Miami Beach short term rental law requirements, this is not always in the best interest of the property as guests using it as a vacation party home may treat it poorly leading to quicker depreciation and more frequent repairs. If a property in Miami Beach is being used for short term renting without all of the requirements listed above, then the owner is responsible for the standard fine of $20,000 per occurrence. If an unsuspecting property owner is renting to someone who in turn rents the property out on a short term basis, the owner is still ultimately responsible for the fine, as are the legal fees associated with the eviction of their tenant. One of the reasons to hire a property manager is to have insurance against this short term rental trap. Property managers can catch tenants violating Miami Beach short term rental law and immediately evict them before they have the opportunity to cost owners tens of thousands of dollars.