October 9, 2024
Short-term rentals or (STR), often synonymous with Airbnb properties, have become a popular investment avenue in Destin, Florida. Before delving into this lucrative market, it's essential to understand the regulatory landscape governing such endeavors.
An STR in Destin covers a wide array of residential properties, including single-family homes, duplexes, and condominiums. These properties are rented out for durations of less than six months, catering to visitors seeking temporary accommodation in the area.
Here’s a step by step guide for Short-Term Rentals Licensing in Destin, FL:
Adhere to general regulations/standards outlined in city ordinances, including parking, noise, signage, garbage disposal, trespassing, and recreational amenities usage.
You can look at THIS DOCUMENT for a more detailed guide.
Investors in Destin, FL face no constraints on the number of vacation rental properties they can own. However, it's super important for them to follow the rules about where they can have these properties.
Destin, Florida enforces occupancy regulations for vacation rentals, particularly between 10:00 p.m. and 7:00 a.m. During this period, the maximum occupancy for a short-term rental (STR) is two adults per bedroom plus an extra four individuals per property. For instance, a three-bedroom house can accommodate up to ten people overnight.
Regardless of the number of bedrooms, the overall maximum overnight occupancy for a house is restricted to 24 persons.
Investors can register accessory dwelling units (ADU), duplexes, and multi-family homes as vacation rentals in Destin, Florida, provided they adhere strictly to all zoning and safety regulations.
To operate legally, investors must obtain a vacation rental license. This entails submitting an application, paying requisite fees (starting at $500), and demonstrating compliance with safety and zoning regulations.
The expense associated with acquiring a Short-Term Rentals Licensing in Destin, FL fluctuates based on the type of property and the number of units. Effective February 2023, the initial application fee commences at $500.
Here's a breakdown of the fees based on total square footage:
Additionally, late application incurs extra charges: $100 after March 31st and $500 after May 31st.
Destin mandates inspections to ensure properties adhere to safety standards. This includes features like smoke detectors, fire extinguishers, and emergency exits. Compliance with building codes, including electrical and plumbing standards, is also mandatory.
Zoning regulations play a pivotal role in dictating where these properties can operate. Vacation rental properties must be situated within residential zones and adhere to all city and state regulations. Furthermore, short-term rentals are prohibited in commercial or industrial zones.
According to Article 7 of the City of Destin Land Development Code, short-term rentals are exclusively permitted in the following designated zones:
Each vacation rental property must have a designated responsible agent residing within a 30-mile radius. This individual serves as the local point of contact and must be reachable within an hour during emergencies.
Owners must procure liability insurance with coverage of at least $1,000,000 per occurrence. The policy should designate the City of Destin as an additional insured party.
Airbnb and VRBO platforms handle certain taxes on behalf of hosts, including a 4% Tourist Development Tax and a 0.5% County Local Option Tourist Tax. However, hosts are responsible for remitting the 6% State Sales Tax directly to the Florida Department of Revenue.
Vacation rental licenses in Destin are valid for one year and necessitate annual renewal. This involves a property inspection to verify ongoing compliance with regulations.
