Interested in The Florida Real Estate Market?

What You Need to Know About Taxes and Regulations Before Investing in a Florida Vacation Rental Property

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Hi, I’m Bill Williams, Broker and Owner of Florida Dreamin’ Realty Group Inc., located in beautiful Southwest Florida. We specialize in vacation rentals across Sarasota and Charlotte counties—including Sarasota, Lakewood Ranch, Nokomis, Osprey, Venice Beach, Wellen Park, North Port, Englewood, Placida, and Boca Grande.

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With over 10 years of real estate and property management experience and a Florida Real Estate Broker's License, I’ve built a business that helps clients turn dream homes into smart investments.

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Why My Clients Choose Vacation Rentals

Many of my best clients started as homeowners looking for a sunny getaway. They invested in vacation homes not just for family enjoyment or retirement planning, but also to help offset costs like the mortgage, property taxes, and insurance—thanks to rental income generated while they’re away.

But here’s the catch: most real estate agents don’t specialize in the legal or tax side of short-term rentals (STRs). That’s why I created this guide—to help you make a smarter, more profitable investment from day one.

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Before You Rent: Understanding Florida’s Legal Framework for STRs

Florida welcomes tourism, but vacation rentals are tightly regulated at multiple levels. Missing a single step—like failing to register or file taxes—can lead to costly fines or even legal trouble.

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1. State-Level Regulations

Florida Department of Business & Professional Regulation (DBPR)

If you rent your property more than 3 times a year for less than 30 days each time, your home is treated like a hotel:

• Sales Tax Registration (with Florida Dept. of Revenue)
• DBPR Vacation Rental License (~$391)
• Monthly State Sales Tax Filings (due by the 20th)

Keep in mind that even if no guests stayed during the month, you still must file.

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2. Local City & County Regulations: Check Before You Buy

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Sarasota County

• Unincorporated areas: Rentals under 30 days are generally prohibited unless zoned properly.

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City of Sarasota / Barrier Islands (e.g., Siesta Key, Lido Key, Bird Key)

• Minimum stay: 7 days
• Requirements:
  • Registration of property and owner/responsible party
  • Business tax receipt
  • DBPR license
  • Lease samples & floor plans
  • Inspection for safety
• Renewal: Every odd-numbered year
• In-unit postings required:
  • Emergency contacts
  • Trash schedule
  • Evacuation instructions
  • Occupancy/parking limits

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3. HOA and Condo Associations

Even if city/county laws permit STRs, your HOA or condo board may not.
They can enforce longer minimum stays (30+ days) or ban STRs entirely.

Always read the bylaws before you buy.

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4. Tourist Development Taxes

STRs are subject to Tourist Development Tax in addition to sales tax.

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Charlotte County

• Tourist Tax: 5%
• State Sales Tax: 6%
• Total: 11%

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Sarasota County

• Tourist Tax: 6%
• State Sales Tax: 6%
• Total: 12%
• Must register separately with each county.
• You are responsible for collecting and remitting—even if Airbnb/VRBO assists.

Monthly Filing (due by the 20th):

• Report rental income (even $0)
• Submit gross revenue breakdown
• Notify of any new properties or ownership changes

Late penalty: 10% per month (min. $50, up to 50% total)

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5. Florida is a Seasonal Market

Florida’s peak season is December–April, when rental rates often double compared to summer.
If you're looking to maximize returns, your property needs to be available during these months.

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In Summary

Vacation rentals can be a powerful wealth-building tool—but they require careful planning. From licensing to taxes, the STR market in Florida is complex and highly regulated.

Don’t rely solely on your Realtor unless they specialize in vacation rentals.

Work with a broker who understands both the investment and regulatory sides of the business.

At Florida Dreamin’ Realty Group Inc., we guide clients through every step—from buying the right property to managing guests and maximizing ROI.

Questions? Let's Talk.

Bill Williams
Broker/Owner
Florida Dreamin’ Realty Group Inc.
📍 866 Tamiami Trail – Suite 5, Port Charlotte, FL 33953
📞 (941) 303-0855
📧 bill@floridadreaminhomes.com
🌐 www.floridadreaminhomes.com

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