Is Your Investment Property Compliant With Local Ordinances Regarding Short Term Rentals?

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Are you thinking about buying a short term rental property? Do you currently own an investment property and want to make it a short term rental? As many landlords and property investors know, short term rentals can be a lucrative source of income. Many times, short term rentals can generate two or three times what a traditional annual lease would return on the same property.

With the advent of online home-sharing websites such as Airbnb, Vacation Rental By Owner (“VRBO”) and HomeAway, many property owners are just clicks away from generating a steady source of income. And what better place to do it than in Central Florida, the theme park capital of the world. However, before taking the plunge into the short term rental market property owners need to educate themselves on their local governmental regulations, as well as homeowner and condominium association restrictions, to make sure their property is compliant. Failure to do so could subject you to multiple code violations and legal fees. At times, these fines and penalties can be greater than the income generated by the short term rental.

In 2018, the City of Orlando passed a local ordinance regulating short term rentals. While the City’s ordinance is complex and must be reviewed in its totality to determine compliance, the City of Orlando is permitting short term rentals so long as the rental is less than 30 days, the rented portion of the home is 50 percent or less of the total number of bedrooms, and the owner is living at the property at the time of the rental.

Therefore, before taking the plunge into the short term rental market, property owners should consult with an attorney to discuss the specific use of their property, the online set-up and marketing of the property, and the potential exposure they face. As any property owner knows, a fine of $250 per day and legal fees can quickly erase any gains they made. To discuss your short term rental please contact the attorneys at Barry Miller Law at 407-423-1700.

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