October 9, 2024
In Panama City Beach, FL a short-term rental (STR) is typically a dwelling designed for single families, accommodating an average of two to five people.
Any public lodging establishment, whether a building or unit, rented to guests for three or more times a year, and for durations of less than six months (181 days), falls under the classification of an STR.
On September 28, 2023, Panama City Beach City Council enacted Ordinance 1632, addressing registration, reporting, and inspection requirements for vacation rentals within city limits. Effective from February 1, 2024, the ordinance primarily reinforces existing rules for short-term rentals.
**This only applies to properties within the City limits of Panama City Beach. Bay County passed a similar ordinance in August 2023. For information on the County's ordinance, click here. To see if your property is located within the City limits, click here.**
Yes, investors are permitted to own more than one vacation rental property in Panama City Beach, Florida, without any restrictions on the number of STRs they can own.
Zoning Restrictions for Vacation Rental in Panama City Beach, FL
Panama City Beach, FL has zoning restrictions for short-term rentals. The High, Medium, and Low-Intensity Commercial districts, Limited and Unlimited Multi-family districts, and Townhouse districts allow for short-term (Airbnb) rentals of less than 181 consecutive nights.
It is crucial to verify whether the property you are considering for rental falls within a short-term rental-approved zone. Check out the Panama City Beach zoning map for guidance.
Beach Safety Flag Warning system and Leave No Trace ordinances, must be posted. A customizable one-page document is available here. A comprehensive checklist for interior and exterior signage, fire safety equipment, and general fire prevention is provided for easy reference which you can access here.
The ordinance establishes an occupancy limit of one person per 150 sq. ft. of habitable space, excluding certain areas. This calculation applies universally, irrespective of the number of bedrooms. The higher occupancy rate (one person per 200 sq. ft.) is contingent on passing a life safety inspection without fire code violations.
Penalties for violations are outlined as follows:
Yes, investors can operate their Airbnb property as a business, corporation, or individual in Panama City Beach. Registration with the State of Florida and the Florida Department of Revenue is required.
Yes, any property meeting the City of Panama City Beach's short-term rental criteria can be legally registered as a vacation rental. This includes accessory dwelling units (ADUs), duplexes, and multi-family homes where occupants do not own the property for periods less than six months.
Panama City Beach, Florida, imposes vacation rental occupancy limits, with a maximum of four people allowed per full bathroom containing a sink, toilet, bath, or shower.
Investors seeking to obtain a Short-Term Rental (STR) license in Panama City Beach are required to undergo inspections by the City. This is particularly relevant for properties operating as public lodging establishments, as they are subject to additional physical and structural requirements.
The specific standards vary based on the legal occupancy capacity of the vacation home. Properties accommodating fewer than ten people must adhere to the single-family residence requirements, while those hosting more than ten occupants must comply with the Residential Group R-1 code.
For more information, please see the 2014 Florida Building Code, which outlines physical and structural requirements for STRs in Panama City Beach.
Panama City Beach mandates the designation of a responsible agent for each vacation rental unit. This individual must be a neutral party residing in the community, responsible for maintaining the unit's condition, and assisting rental guests with any issues that may arise.
While Panama City Beach Airbnb rental laws do not explicitly outline insurance requirements, it is advisable for property owners to secure business insurance after obtaining a Business Tax Receipt.
This insurance can provide coverage for the property, the owner, and any guests, offering a safeguard against unforeseen incidents.
The Airbnb rental license is initially valid for one year and requires annual renewal. The license expires on September 30th each year, and renewal notices are sent out by the Panama City Beach tax office on August 1st to all active Short-Term Rental (STR) license holders.
Renewals must be completed by October 1st to avoid a delinquency penalty of 10% per month in October, with an additional 5% for each subsequent month.
