It's estimated that seventy four million people visit Orlando each year. Orlando is a Florida city that relies heavily on vacation tourism, whether it's the Disney World jobs or short-term rentals.
If you own property or a dwelling in Orlando, you might be considering turning it into a vacation rental. This can be a lucrative opportunity, but you must know all the legal considerations for vacation rentals before proceeding.
Otherwise, you can be hit with expensive fees and tax audits. So what permits and licenses do you need for a vacation rental? And what about tax obligations?
In this rental agreement tips guide, we'll answer these questions so you have everything you need to get your rental started.
Permits and Licenses in Orlando, FL
When getting a permit the first thing you need to do is make sure your dwelling is within the city limits of Orlando. Next, check where it falls in the zoning. Some categories of vacation homes aren't allowed in certain zones.
Now you need to deal with the permits and licenses. Different types of vacation rental categories require different permits. For example, simple home shares only require a registration and annual fee.
However, it's important to note that in Orlando you can't rent an entire house. The homeowner must still live there where you can only rent half the property.
Other things like commercial dwellings and bed & breakfasts will need a Business Tax Receipt. You can apply for these under permits on the Orlando government's site.
Once you've applied your home will still need to be inspected to make sure it meets the legal requirements for rentals. Any violations of avoiding permits and licenses will result in steep fines.
Vacation Rental Tax Obligations
There are three main tax obligations you need to worry about as a vacation rental owner. These include the sales and use tax, the tourist development tax, and the federal & state income tax.
We recommend investing in property management software so you can keep track of all the necessary accounting documents. It will also benefit you to consult with a tax expert once tax season rolls around.
Property Managers Help With Legal Considerations for Vacation Rentals
A property management company helps ensure that any vacation rental you might have is perfectly legally compliant with vacation property laws. Not only that, but they can also help you manage the property.
That starts with innovative marketing ideas and extends to guest check-in/out, cleanings, repairs, maintenance, and more.
They take care of all the property management legalities and busy work so you can sit back and enjoy some passive income.
Need Help With Your Vacation Rental? Contact PMI Orlando Parks
We hope this guide helped you learn more about the legal considerations for vacation rentals. As you can see, it's a lot of work to get your vacation rental off the ground. And that's not even counting the marketing, maintenance, and cleaning that also goes into it.
Here at PMI Orlando Parks, we have decades of experience with vacation rental regulations in Orlando. Not only do we know how to make them legal, but we ensure they're profitable too. So get in touch with us today to make your life as a landlord easier.
