State House Addresses Florida Vacation Rentals
March 29, 2024
The Florida House of Representatives has approved a bill that will impact the Florida vacation rental industry by handing more regulatory power over to the Florida Department of Business and Professional Regulation. Critics say the bill preempts local regulatory capabilities and infringes property owners’ rights.
Key West Vacation Rentals
The Monroe County Special Vacation Rental Program defines a vacation or short-term rental as “a dwelling unit that is rented, leased, or assigned for tenancies of less than 28 days duration”. A number of regulations apply to the operation of vacation rentals, including zoning restrictions, licensing and tax rules, rules pertaining to advertising such properties, and a permitting and inspection program. In addition to county regulations, Florida cities or municipalities may impose their own specific regulatory frameworks on vacation rentals.
Key West has its own city-specific vacation rental regulatory program that adds some additional restrictions to the county regulations. For example, a city business tax license is needed in addition to any required state or county licenses. There are also rules regarding the transfer of vacation rental properties to new owners, the licensing of vacation rental managers, and other aspects of the business. In addition, various areas and developments on the island are subject to particular rules; in some cases, these are grandfathered in from times before more recent vacation rental regulations were enacted.
Florida: Vacation Rental Central?
In other words, vacation rentals in Key West are tightly regulated and have been for some time. This is not necessarily the case in other Florida cities popular with tourists (and partying young people), and there is a range of issues around short-term rentals.
Most infamous is the so-called party house problem, where short-term rentals become sources of noise, illegal parking, reckless driving, illegal activities, and other phenomena that are not generally welcomed in the type of upscale settings where many short-term rentals are found. These are in addition to the deeper problem of constant disruption of what were once relatively stable, quiet, and decorous neighborhoods, with property values that reflect these amenities.
As most people now know, the convenience of an Airbnb, Vrbo, or the completely unregulated sort of property advertised via Craigslist and/or social media sites is attractive to folks who want to host a large gathering while keeping potentially destructive forces away from their own home or neighborhood.
Or they might just be on vacation and looking for a good time. In Miami for instance, where short-term listings for Miami-Dade reached 22,000 in December 2023. Some experts call Southeast Florida a hub of the short-term rental industry, with vacation rentals visible in nearly every neighborhood.
Since the inception of Airbnb, there has also been a real estate investing movement toward buying properties simply for use as Internet short-term rentals. The trend is well-established in Miami, where there are entire buildings purpose-built for short-term rental. According to a Miami NBC news report, there are plans for around 15 such buildings to be operational in the city by 2027.
Florida Senate Bill CS/SB 280
Senate Bill 280 was introduced in the Florida Senate in January of this year as the culmination of nearly 10 years of failed efforts to address at State level some of the problems associated with the newer, Internet-powered short-term rental trends. With amendments, the Bill passed on March 6 2024 and now awaits the governor’s signature or, as many people hope, his veto.
The governor’s office has received thousands of emails demanding a veto of SB 280. Critics claim SB 280 preempts the ability of municipalities to handle problems specific to their own situation while imposing challenging or impossible reporting and enforcement requirements. Others view it as government interference with private property ownership rights.
Denis Hanks, Executive Director for The Florida Alliance for Vacation Rentals, sees it the latter way: “SB 280 infringes upon a homeowner’s private property rights, which define the theoretical and legal ownership of resources and how they can be used. Any legislation that takes away your private property rights and hands that final judgment of its use and marketing to a local government or a private entity is clearly bad public policy.”
Amendments to the Bill provided some relief to skeptics by grandfathering in any city ordinance frameworks that have been in place since at least 2016, and reducing some of the registration and reporting requirements. Supporters of the Bill point to the benefits of a more uniform and simple set of short-term rental rules, and the creation of central registries that will help communities identify, count, and control the rentals. The recent passage of short-term rental rules in New York City is often cited as an example of the usefulness of such programs.
SB 280 is something to be noted as an aspect of the general trend toward regulation of the Internet-based short-term rental industry; a trend that may be of interest to some real estate investors. However, the Key West vacation rental business is unlikely to be affected in any major way by this particular legislation. The island has a well-established vacation rental industry with a long history, and the regulatory framework here is strong and comprehensive.
It is also likely that the distractions of Duval Street act to defuse the worst of the party house threat. And we may have a bit more than standard levels of tolerance for partying here anyway.
Speaking of Regulatory Difficulties…
Many folks claim Key West is nearly perfect but far from normal. A good share of the off-beat sensibility found in this small outpost of island paradise arises from the fact that Key West is the only part of the modern US to secede from the Union and declare a rebellious independence as a Republic.
The story of the “people who seceded where others have failed” begins in March, 1982 when the Federal Government ordered a US Border Patrol roadblock to be erected at the Last Chance Saloon in Florida City. (Now known as Last Chance Bar and Package of Homestead, Florida if you would like to stop by.) As the first populated area encountered after crossing the causeway between Key Largo and mainland Florida, this was the effective gateway to the Keys,.
The blockade was ostensibly a preventative measure against the northward passage of what are now referred to as undocumented migrants and the smuggling of illegal drugs, or “unprescribed medications” if you will. The instant traffic jam of nearly 20 miles in length quickly threatened the nascent Keys tourism industry as a cascade of reservation cancelations ensued. Together with the sociopolitical face slap delivered by the not-so-velvety glove of tyranny, it created a situation that caused an immediate uprising among irate Key Westers.
The rest is history that has now become legend, a story that is well-worth the reading. Like so many other events in Key West, the final outcome—the birth of the Conch Republic on April 23, 1982—quickly evolved into an excellent week-long stretch of partying. As they say, when life gives you lemons, squeeze and add rum or/and vodka. If there is any must-attend Key West event beyond Fantasy Fest, the Conch Republic Independence Celebration has got to be it, so save the date at least for the opening solemnities and festivities on the evening of Friday April 19.
Make a Run for the Other Southern Border
The Conchs of Key West may or may not have established their own State, but they certainly have their own state of mind. Why not come on down and see what it’s like to live on island time? If you decide to carve out your own republic here in paradise, you will find yourself in good company and in line with established tradition.
At Bascom Grooms Real Estate, we know Florida Keys real estate. Drop by or get in touch with all your Key West and Lower Keys property questions and needs.
Bascom Grooms Real Estate—1110 Truman Avenue, Key West Florida—(305) 295-7511—info@bascomgrooms.com
