Can You Have an Airbnb in Orange County?
Have you considered purchasing an investment property and becoming a host with Airbnb, why not? Central Florida is an ideal location for investment properties to be used as short-term rentals. Post Covid-19, local attractions are open and tourists are flocking the many attractions.
While this sounds like an amazing opportunity, before you go all in, make sure you do your research. It might come as a shock, but Orange County is not zoned for all types of rentals Airbnb offers, and cities within have their own restrictions. This does not mean that using your property as an Airbnb is out of the question, it's simply a good idea to double-check yours is a go. Before registering your home we suggest contacting the Florida Department of Business and Professional Regulation (DBPR), or consult with a local lawyer or tax professional.
What is Airbnb?
Airbnb comes from "air mattress B&B." It is an online platform that connects hosts (people who want to rent out their homes) with people who are looking for accommodations in specific cities. It is becoming quite popular due to people finding accommodations for a much cheeper rate than a traditional hotel. Not to mention you can rent an entire home giving you the use of a kitchen and living spaces as opposed to a hotel room that has much less space.
There are many different options for listing your home on Airbnb. Many people purchase an investment property and use it solely as an Airbnb for an additional stream of income. There is also the option to continue living in your home and rent out a room.
Experiences are another aspect of Airbnb and an interesting option. This is where you become like a tour guide. It takes guests beyond the typical class or tour as it's designed and led by locals. Create your own experience and share it on Airbnb.
Airbnb has recently added another option for being a host on the platform. They just introduced Online Experiences. This is a fantastic option with the uncertainty around Covid-19. Online Experiences are interactive classes hosted by creatives and professionals that are enjoyed in the comfort of your own home!
How Does Airbnb Work?
Airbnb has everything set up like an online marketplace. The hosts and the people staying in their homes are safe during the whole process. Airbnb verifies the individual profiles and listings. However, they do not own any of the real estate. Communication and payment are done through the platform as well to ensure both party's privacy and safety.
Is Airbnb in Orange County?
Orange County allows for short-term rentals, but certain cities have their own legislation. In the city of Orlando, owner-occupied short term rentals must apply and register with paid fees, and may rent no more than half their bedrooms for stays under 30 days. Winter Park does not allow short term rentals. This might seem a bit odd being that Airbnb among other accommodation sharing sites, is the trendy way to stay when traveling. Along with the fact many cities in Orange County are home to major destinations for work and play. The Florida Department of Business and Professional Regulation requires rentals of entire properties to be registered, whereas renters of individual rooms are exempt.
So why hasn't Orange County jumped on board with this new traveling trend? Like other cities throughout Florida, Orange County wavers on the idea because of its impact on residential areas. Rental properties tend to increase traffic, noise, littering, and other issues that so many neighborhoods work hard to keep under control.
Which Orange County Cities don't allow Airbnb?
While Orange County, Florida allows for short term rentals, cities are allowed to determine their own rental rules. The following locations currently prohibit short term rentals less than 30 days:
- Winter Park specifically prohibits rentals shorter than 30 Days.
- Most cities require hosts to register with the city, obtaining a business license, in addition to Florida's DBPR requirements.
Counties Near Orlando Florida That are Zoned for Airbnb
All hope is not lost if you would like to purchase a home to use as an Airbnb in Central Florida! Fortunately, there are other counties nearby that are zoned for Airbnb, they include Osceola and Polk county. So, if you have your heart set on staying at an Airbnb while visiting Central Florida, it's still a possibility. The same goes for if you'd like to have an investment property in the area.
Osceola County
Kissimmee, Florida is located within Osceola County. This makes for some prime property if you are interested in renting out a home through Airbnb. Kissimmee and other nearby cities that are within Oceola County are just as close to all the popular Central Florida attractions as Orlando is. Since homes in Orange County are not zoned for Airbnb, many visitors look for Airbnbs in neighboring Orlando cities.
Polk County
While Polk County is a little bit further from some of the Central Florida theme parks than Osceola county is, it's still just a short drive. Polk County is zoned for Airbnb making it another option for those who would like to purchase a home for use as an Airbnb. It's also a great option for those traveling to Central Florida to stay at an Airbnb rather than a hotel.
Orlando Does Allow Short-Term Rentals
Hope is not lost for setting up your home with Airbnb. As of July 1, 2018, residents of Orlando are able to register their home as a home-sharing residents. There is still a catch, you cannot rent out your entire home. However, homes are being approved for home sharing to advertise on Airbnb and similar sites. You must first fill out an application to be approved for a short-term rental permit from the city of Orlando. The application can be found here.
Anyone who would like to use a portion of their home for a short-term rental must have a short-term rental property permit. In order to be eligible to rent out a portion of your home as a short-term rental, you must meet these requirements.
- Your property must be zoned as residential.
- You can only rent out less than half of your home.
- The house must continue to be your primary residence.
- During the host's visit, you must be present.
- Only one booking at a time is allowed.
Along with having a short-term rental property permit, you must also collect sales tax. You will need to register with Florida's Department of Revenue. Because short-term rentals are considered transient rental accommodations.
Orlando is Now Approving Apart-Hotels
Apart-hotels are becoming popular among many apartment complexes and are slowly being approved in Orange County. It is a consistent stream of income and quite enticing. Property management companies are renting out multiple apartments from a complex. Then offering them on short-term rental platforms such as Airbnb. The Orlando area has currently approved only a few multi-family properties for master leases or corporate leases, including some near Orlando International Airport, one near downtown, and a couple over by Mall at Millenia.
Orlando, Florida Zoning Laws
Airbnb has some extremely useful information on its site regarding the local laws for individual cities. The following information came directly from Airbnb. This information is extremely helpful for determining if your home meets the requirements and laws to be on Airbnb. We also suggest meeting with a local lawyer or tax professional before moving forward with Airbnb.
The Land Development Code
You can find information requiring the Land Development Code in chapters 58 to 68 of the Orlando City Code. This is what governs most land use in Orlando. Here you'll be able to see if your listing is consistent with any zoning requirements. Use these important terms when searching, “apartment,” “accessory apartment,” “dwelling,” “bed and breakfast facility,” “commercial dwelling unit,” “commercial use,” “dwelling,” “dwelling unit,” “group housing,” “hotel,” “motel,” “residential use,” and “owner-occupied home sharing.”
Building and Housing Standards
You will want to take a look at the rules and regulations regarding minimum construction, design, and maintenance standards for buildings. This should also include looking at regulations on habitability, health, and safety. Some regulations may be applicable to your listing. This is because here you'll find the Building Code (Chapter 13 of the Orlando City Code) and the Minimum Standards Code (Chapter 30A). Take a deeper look at the Orlando City Code here.
Business Registration
All businesses in Orlando must obtain a business tax receipt from the City. Chapter 36 of the Orlando City Code will help you to determine if these rules apply to your listing. For even more registration process information you can look here.
Owner-Occupied Home Sharing
Registration for owner-occupied home-sharing is required for Orlando. You can find additional details about fees, registration requirements, and the registration application at the Home Sharing Registration page.
This is necessary because of the zoning laws in Orlando. They state that you must be present when you're renting out a portion of your home.
Orange County Taxes
Orange County assesses tourist development taxes within the City of Orlando. These taxes are taken on hotels, inns, tourist homes or houses, and other home-sharing properties. You can head here for more information regarding tax collection and remittance by Airbnb for listings that are located in Orange County.
In the city of Orlando, you must collect sales tax for transient rental accommodations. Being that you can only offer short-term rental options because of zoning laws, you will need to collect this from each renter.
Other Rules
There are other rules that need to be looked into and understood. These include other contracts or rules that bind you. They might be leases, condo board or co-op rules, HOA rules, or rules established by tenant organizations. The best way to find and understand these is to check with your landlord. You may also be able to find them in your lease agreement.
Orange County, Vacation Rentals & Covid-19
Gov. Ron DeSantis has given an executive order which allows vacation rentals (including short-term rentals) to operate. There are specific rules and regulations that must be followed by hosts. Information about the new operating guidelines can be found on Airbnb or as well as the Orange County website.[/vc_column_text][/vc_column][/vc_row][vc_row css=".vc_custom_1548812235519{margin-top: 30px !important;}"][vc_column width="1/3"][vc_single_image image="37" img_size="full" style="vc_box_border_circle"][/vc_column][vc_column width="2/3"][vc_column_text]
The Erica Diaz Team - Can You Have an Airbnb in Orange County?
Airbnb among other accommodation websites is becoming extremely popular. They are becoming very popular for people traveling to destinations for work and play. This is due to the lower cost compared to hotels. You also get home amenities that you typically don't have with a hotel room.
Purchasing investment property to be used as an Airbnb may seem like a great idea, but make sure to review your county's laws and regulations first. You might be surprised to find your county isn't zoned for you to be a host.
The Erica Diaz Team is a team of local real estate agents that know Orange County. If you have questions about purchasing an investment property they have the answers!