Brickell Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Brickell, Florida?

Short-term rentals like Airbnb and Vrbo have become increasingly popular in Brickell, the urban core of Miami. However, the City of Miami and Brickell's high-rise condominiums have implemented rules and restrictions on vacation rentals. Here's what you need to know about the regulations for operating a short-term rental in Brickell.

Starting a Short-Term Rental Business in Brickell

To legally launch and operate a short-term rental in Brickell and the City of Miami, hosts must:

• Obtain a Florida Department of Business and Professional Regulation (DBPR) Vacation Rental License, either a dwelling or condo license, depending on the property type.
• Register with the Florida Department of Revenue to collect and remit sales tax, discretionary sales surtax, and any applicable local option taxes.
• Obtain a Certificate of Use from the City of Miami, which requires attestation of a DBPR license, tax registration, insurance coverage, and notification to the condo association if applicable. The Certificate of Use costs $136.17, including the inspection fee, and must be renewed annually.
• Obtain a Business Tax Receipt (BTR) from both the City of Miami and Miami-Dade County. BTRs must be renewed annually.

However, many of Brickell's high-rise condominiums have their own rules prohibiting or restricting short-term rentals. According to discussions on Reddit, most condo associations in downtown Miami and Brickell have banned Airbnbs entirely to avoid the revolving door of short-term guests.

One Redditor shared their experience trying to Airbnb their Brickell condo: "I got a violation letter from the association within a week threatening fines." Another commenter noted, "Condo associations are way more on top of this than the county or city."

The City of Miami also restricts short-term rentals to certain zones and property types:

1. Lodging (hotel/motel) use is allowed in T5 and T6 transect zones but not in residential T3 zones that cover most of Brickell's condo towers.
2. A proposed "apartment hotel" category could allow short-term rentals in residential zones but has not been approved yet.
3. In single family and duplex homes in T3 zones, the owner or "responsible party" must live on-site at least 6 months per year to rent the property short-term.

So, in practice, unless a condo association explicitly allows it, most short-term rentals in Brickell high-rises violate either the condo rules, the zoning code, or both. Hosts risk fines from their association and the city if caught.

The regulations aim to prevent short-term rentals from displacing long-term residents and preserve the quality of life for permanent neighbors. However some owners see the rules as an unfair restriction on their property rights in a major tourist destination.

With the growing popularity of Airbnb and Miami's record-breaking visitor numbers, the debate over short-term rental regulations in Brickell is likely to continue. For now, aspiring hosts should carefully review their condo association rules and city zoning before trying to operate a vacation rental in the neighborhood.

Short-Term Rental Licensing Requirement in Brickell

To legally operate a short-term rental in Brickell and the City of Miami, hosts must obtain several licenses and registrations:

1. Florida Department of Business and Professional Regulation (DBPR) Vacation Rental License

1. Hosts need either a Vacation Rental Dwelling License for an entire unit/home or a Vacation Rental Condo License for individual condo units
2. Apply online or by mail with required documents like a sales tax number, FEIN for business applicants, and certificate of balcony inspection if applicable
3. Pay the license fee based on the number of units plus a $50 application fee

2. Register with the Florida Department of Revenue

1. Obtain a sales tax number to collect and remit required state taxes on short-term rental income
2. Register for a Tourist Tax Account to collect and remit monthly Miami-Dade County Convention and Tourist Development taxes

3. Certificate of Use from the City of Miami

1. Attest to having a DBPR license, tax registrations, insurance coverage, and condo association notification if applicable
2. Pay a $136.17 fee, including inspection, and renew annually
3. Display the Certificate of Use conspicuously in the rental unit with host contact info and maximum occupancy

4. Business Tax Receipt from the City of Miami and Miami-Dade County

1. Obtain a Business Tax Receipt (BTR) from both the city and county and renew it annually
2. City BTR has a $196.50 total fee, including fire inspection

However, many Brickell condo buildings prohibit or restrict short-term rentals through their condo association rules, even if hosts obtain all the required government licenses. Brickell is zoned primarily T6-R, where short-term lodging use is only allowed by exception.

So, in practice, unless a Brickell condo association explicitly allows it, most short-term rentals violate either the condo rules, the zoning code, or both. Hosts risk steep fines from their association and the city if caught operating an unlicensed or non-compliant STR.

The licensing process aims to ensure STRs pay applicable taxes and meet safety standards but also to prevent them from overtaking residential buildings. Aspiring Brickell hosts should carefully review their condo rules and city requirements to avoid penalties.

Required Documents for Brickell Short-Term Rentals

When applying for a short-term rental license in Brickell and the City of Miami, hosts must submit several required documents to demonstrate eligibility and compliance with regulations. These include:

1. Completed Application Forms

1. Florida DBPR Vacation Rental License Application (online or by mail)
2. City of Miami Certificate of Use Application (online or in person)
3. Business Tax Receipt Applications for City of Miami and Miami-Dade County

2. Proof of Ownership or Lease Agreement

1. Deed, tax bill, or other documentation showing ownership of the rental property
2. If a renter, a copy of the lease agreement and written permission from the property owner

3. Proof of Insurance Coverage

Certificate of insurance showing liability coverage for the rental property and any potential harm to guests

4. Condo/HOA Approval (if applicable)

1. If the property is in a condo building or HOA community, written approval from the association allowing short-term rentals
2. Copy of relevant condo/HOA bylaws and rules regarding rentals

5. Parking Plan

Diagram or description of designated on-site parking spaces for guests (maximum 2 vehicles)

6. Attestations and Acknowledgments

• Signed statements attesting to compliance with all state, county, and city short-term rental regulations
• Acknowledgment of obligation to collect and remit applicable taxes
• Agreement to adhere to occupancy limits, noise restrictions, and other rules

7. Payment of Application Fees

• DBPR Vacation Rental License fee based on number of units + $50 processing fee
• City of Miami Certificate of Use fee of $136.17, including a home inspection
• Business Tax Receipt fees for city and county

Additional documents may be required depending on the specifics of the rental property, such as:

• Completed DBPR HR-7020 Certificate of Balcony Inspection for rentals in buildings over 3 stories
• Proof of registration with the Florida Department of Revenue for tax collection purposes
• Copies of state-issued ID for all rental applicants
• Floorplans of the rental unit

The City of Miami and Miami-Dade County review all short-term rental applications to verify eligibility and may request additional information as needed. Incomplete applications or those missing required documents will not be processed.

Once issued, the Certificate of Use and Business Tax Receipts must be prominently displayed in the rental unit. Hosts must also include their DBPR Vacation Rental License number in all online listings.

By requiring this documentation, the city and county aim to ensure short-term rental operators are complying with all regulations to mitigate negative impacts on the surrounding community. Failure to provide required documents or operating without proper licenses may result in fines and other penalties.

Brickell Short-Term Rental Taxes

Short-term rental operators in Brickell and the City of Miami must collect and remit several taxes on their rental income. These include:

1. Florida State Sales Tax - 6%

• Applies to rental periods of 6 months or less
• Hosts must register with the Florida Department of Revenue for a sales tax number

2. Miami-Dade County Tourist Taxes - 6% total

• 3% Convention Development Tax
• 2% Tourist Development Tax
• 1% Homeless and Domestic Violence Tax
• Applies to rentals of 6 months or less
• Hosts must register with Miami-Dade County for a tourist tax account

The 6% Florida sales tax and 6% Miami-Dade tourist taxes combined add up to a 12% tax on short-term rental income in Brickell and most of Miami-Dade County. These taxes apply to the total rental price, including any cleaning fees.

For example, if a Brickell Airbnb charges $200 per night, the taxes would be:

• 6% Florida sales tax = $12
• 6% Miami-Dade tourist taxes = $12
• Total taxes = $24
• Total price with taxes = $224 per night

Short-term rental platforms like Airbnb collect and remit these taxes on behalf of hosts in most of Florida. However, the City of Miami does not currently participate in Airbnb's tax collection program, so Brickell hosts are responsible for registering, collecting, and remitting the taxes themselves.

In addition to sales and tourist taxes, short-term rental income is subject to federal and state income taxes. Hosts must report their rental profits and losses on their annual tax returns. Many STR expenses like mortgage interest, insurance, utilities, and cleaning can be deducted to reduce taxable income.

Failing to comply with tax requirements can result in penalties and legal issues for short-term rental operators. Consulting with a tax professional is recommended to ensure full compliance with all applicable tax laws. Proper record-keeping is also essential for filing accurate tax returns.

While the tax obligations add complexity and costs for Brickell short-term rental hosts, they are a necessary part of operating a legal and profitable STR business. With Miami's strong tourism market, many hosts find that the income potential outweighs the added tax responsibilities. But, it's important to factor in these costs when evaluating the financial viability of a short-term rental investment.

Florida Wide Short-Term Rental Rules

The state of Florida has several laws and regulations that apply to short-term rentals across the state:

1. Vacation Rental License Requirement

• Properties rented for periods of less than 30 days or 1 calendar month (whichever is less) or advertised as such must obtain a Vacation Rental License from the Florida Department of Business and Professional Regulation (DBPR).
• Hosts can apply for a Vacation Rental Dwelling License for an entire property or a Vacation Rental Condo License for individual condo units.
• License fees are based on the number of units. A $50 application fee also applies.

2. Tax Registration and Collection

• Short-term rental hosts must register with the Florida Department of Revenue to collect and remit the following taxes:
  - 6% Florida Transient Rental Tax (sales tax)
  - County discretionary sales surtax (varies by county)
• Hosts must also collect and remit any applicable local tourist development taxes, which range from 2-6% depending on the county.
• Some counties require additional registration for a Tourist Tax Account.

3. Maximum Occupancy Limits

• State law caps occupancy at 2 persons per bedroom plus 2 additional persons per property, up to a maximum of 10 people (excluding children under 6).
• In some areas, the limit is 2 persons per bedroom plus 2, up to a maximum of 12 people.

4. Homestead Exemption Risks

Renting a primary residence as a short-term rental for more than 30 days per year can jeopardize the owner's homestead tax exemption.

5. Preemption of Local Regulations

• State law largely preempts local governments from prohibiting short-term rentals or regulating the frequency and duration of stays.
• However, in 2014, the legislature allowed local governments some ability to regulate issues like noise, parking, trash, and life-safety.
• Local ordinances in place prior to June 1, 2011, are grandfathered in and can remain in effect.

6. Proposed 2024 Legislation (SB 280)

1. Would create a statewide short-term rental registry
2. Allow counties to require inspections and charge "reasonable" registration fees
3. Require hosting platforms to collect and remit taxes
4. Allow suspension of licenses for repeated violations of local ordinances
5. Maintain exemption for pre-2011 local laws and certain pre-2016 county ordinances

While these statewide laws provide a framework, short-term rental operators must also comply with any additional city or county regulations, HOA/condo association rules, and hosting platform requirements. The regulatory landscape continues to evolve, so hosts should stay informed of the latest developments at both the state and local level.

Does Brickell Strictly Enforce STR Rules?

Based on discussions from online real estate investing communities like Bigger Pockets and Reddit, it appears that Brickell does not strictly enforce its short-term rental regulations compared to some other areas of Miami. Many hosts continue to operate STRs in Brickell without obtaining the proper licenses and certificates required by the city and county.

The general consensus is that the City of Miami and Brickell's condo associations rely primarily on complaints to identify illegal short-term rentals rather than proactively monitoring listings and seeking out non-compliant properties. Enforcement actions like fines are relatively rare unless a host racks up multiple neighbor complaints.

As a result, Brickell seems to be fairly friendly to Airbnb and other short-term rental hosts in practice, even if not in policy. Investors on Bigger Pockets noted that Brickell is much more welcoming to STRs than Miami Beach, which has cracked down more aggressively on illegal vacation rentals in recent years.

However, hosts also caution that Brickell's high-rise condos often have their own rules prohibiting short-term rentals, even if the city is lax on enforcement. Many buildings have banned Airbnb entirely and threaten stiff fines for residents who get caught violating the policies. Condo associations seem to be stricter than the local government.

Still, the potential profits of STRs in Brickell's prime location appear to incentivize many hosts to operate under the radar. Reddit users share stories of Airbnb condos hiding in plain sight among long-term residents. One host claims to have never had issues with the city or their condo board as long as guests aren't disruptive.

So, while there are certainly risks to running an unauthorized short-term rental in Brickell, a lack of proactive enforcement seems to embolden many hosts to try their luck. The upscale neighborhood remains a very popular and lucrative area for Airbnb, with a large number of active listings despite the rules.

Aspiring hosts should carefully review their building's policies and be prepared to face consequences if caught violating them. But in practice, Brickell currently appears to be one of the more Airbnb-friendly areas of Miami, even if the laws on the books suggest otherwise. The city seems reluctant to strictly enforce its STR regulations in the neighborhood at this time.

How to Start a Short-Term Rental Business in Brickell

If you're interested in starting a short-term rental business in Brickell, here are the key steps to follow:

1. Research and confirm that your property is eligible for short-term rentals. Review the City of Miami's zoning regulations and your building's condo association rules regarding STRs. If you're a renter, ensure your lease allows subletting.
2. Obtain a Florida Department of Business and Professional Regulation (DBPR) Vacation Rental License. Apply for either a Vacation Rental Dwelling License for an entire property or a Vacation Rental Condo License for an individual condo unit. Pay the required license fees.
3. Register with the Florida Department of Revenue for a sales tax number to collect and remit the 6% Florida Transient Rental Tax. If you're in Miami-Dade County, also register for a Tourist Tax Account to collect and remit the 6% Miami-Dade tourist taxes.
4. Apply for a Certificate of Use from the City of Miami. Submit the application form, pay the $136.17 fee, and attest to having all required licenses, tax registrations, insurance coverage, and condo association approval (if applicable).
5. Obtain a Business Tax Receipt (BTR) from both the City of Miami and Miami-Dade County. Apply for the BTRs and pay the associated fees, including a fire inspection fee for the city BTR.
6. Prepare your property for short-term rental use. Ensure it is fully furnished, stocked with essential amenities, and meets all safety requirements. Consider hiring a professional cleaning service and property manager.
7. Create a detailed listing for your rental on popular platforms like Airbnb and Vrbo. Take high-quality photos, write an accurate description, and set competitive rates. Be sure to include your DBPR Vacation Rental License number in the listing.
8. Implement a system for managing bookings, communicating with guests, and coordinating turnovers. You can use the tools provided by the rental platforms or invest in separate property management software.
9. Establish clear house rules and rental agreements outlining expectations for guests. Include provisions for noise levels, parking, maximum occupancy, pet policies, and other important considerations.
10. Arrange for regular cleaning and maintenance of the rental property. Hire reliable service providers or handle these tasks yourself to ensure a high-quality experience for guests.
11. Maintain accurate records of all rental income and expenses for tax purposes. Keep copies of required licenses and registrations on file. Stay up to date on any changes to state, county, or city short-term rental regulations.
12. Promote your listing through targeted marketing efforts. Encourage satisfied guests to leave positive reviews. Consider offering special deals or discounts to attract bookings during slower periods.

By following these steps and complying with all applicable laws and regulations, you can launch a successful short-term rental business in Brickell. However, be sure to carefully weigh the potential risks and rewards, as the regulatory landscape continues to evolve and enforcement may become stricter over time.

Who to Contact in Brickell about Short-Term Rental Regulations and Zoning?

If you have questions about short-term rental regulations or zoning in Brickell and the City of Miami, there are several key contacts who can assist you:

City of Miami Zoning Department

For questions about zoning, land use, and permitting for short-term rentals

Phone: 305-416-1495
Email: miamizoning@miamigov.com

City of Miami Building Department

For questions about Certificates of Use, inspections, and building code compliance

Phone: 305-416-1100

City of Miami Finance Department

For questions about Business Tax Receipts and resort tax registration

Phone: 305-416-1324

Miami-Dade County Department of Regulatory and Economic Resources

For questions about the county's Certificate of Use and vacation rental standards

Phone: 786-315-2552

Miami-Dade County Tax Collector

For questions about the county's Tourist and Convention Development taxes

Phone: 305-270-4949

Florida Department of Business and Professional Regulation (DBPR)

For questions about state vacation rental licenses and regulations

Phone: 850-487-1395

Florida Department of Revenue

For questions about registering to collect and remit state sales taxes and county tourist taxes

Phone: 850-488-6800

For general inquiries related to short-term rentals in Brickell, you can also contact the City of Miami's main information line by dialing 311 within the city limits or 305-468-5900 from outside the city. The operators can help direct you to the appropriate department for your specific question.

By reaching out to these key contacts, you can get authoritative guidance on how the state, county, and city short-term rental regulations and zoning rules apply to properties in Brickell. The staff can assist you in navigating the licensing and registration processes, understanding your obligations as a host, and ensuring you are in full compliance with all applicable laws. Don't hesitate to contact them with any questions or concerns about operating a short-term rental in the Brickell neighborhood.

What Do Airbnb Hosts in Brickell Think about Local Regulations?

Based on discussions from online real estate investing communities like Bigger Pockets and Reddit, it appears that Airbnb hosts in Brickell have mixed feelings about the local short-term rental regulations:

In a Reddit thread about a guest's experience booking an Airbnb in downtown Miami, commenters noted that the host was likely operating illegally by providing a fake address to avoid detection by their condo association or the city. Many buildings in Brickell prohibit short-term rentals, so some hosts try to skirt the rules.

Another Reddit post asked if Airbnb was illegal in Miami, as the original poster had booked a stay for Ultra Music Festival. Responses indicated that while there had been a crackdown on STRs in Miami Beach, Brickell was generally more lax on enforcement. However, some hosts still had to cancel last-minute if their condo association caught them violating the rules.

On Bigger Pockets, an investor asked about buying pre-construction condos in Miami that allow short-term rentals. They were targeting Brickell as one of the most attractive areas for Airbnb. This suggests that despite regulations, some developers are still building STR-friendly condos in the neighborhood.

In another Bigger Pockets thread about investing in Miami, a poster mentioned they were considering buying an older Brickell condo to rent on Airbnb, citing the potential for cash flow. However, they acknowledged the need to navigate condo association rules and local regulations carefully.

Bigger Pockets also has a thread for Airbnb hosts to share performance data across different markets. Several hosts offered to provide insights on their Airbnb investments in Miami, including the Brickell area. This collaborative approach could help investors navigate the complex regulatory landscape.

Overall, the online discussions paint a picture of Brickell as an appealing but sometimes risky market for Airbnb. While the central location and strong tourism demand make it profitable for short-term rentals, hosts must contend with condo association rules and the threat of city enforcement.

Many Brickell hosts seem to operate in a legal gray area, with some fully complying with regulations while others find loopholes to avoid detection. As the city and state laws continue to evolve, hosts will need to stay informed and adapt to minimize their risk while maximizing returns in this competitive market.

Disclaimer: While we here at BNBCalc strive to keep all of our city regulation guides updated and accurate with all the latest local laws, we still do not suggest using them as your sole or primary source for local regulations. We also do not recommend you rely on the third-party sources we link to or reference, and we are not responsible for any of the information on these third-party sites. These guides are for entertainment purposes only and only provide basic information and should not be considered as legal advice.

We highly recommend directly contacting the responsible parties for each city and hearing what their officials have to say. Ultimately, it's your responsibility as an investor to ensure you fully comply with the local laws, and it's best to speak with professionals before making an investment decision.