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

Starting a Short-Term Rental Business in Celebration

Celebration, Florida, the master-planned community developed by the Walt Disney Company, has specific regulations regarding short-term rentals like Airbnb and VRBO. While the community was designed with a focus on "New Urbanism" principles, the rules surrounding STRs are similar to many other residential areas in Florida.

According to discussions on platforms like Reddit and Bigger Pockets, short-term rentals are generally allowed in Celebration, but they may be subject to certain restrictions and regulations imposed by the community's homeowners' association (HOA) or individual condo associations.

One Reddit user mentioned that while Celebration has a "nicer downtown" compared to other planned communities, it still has a "thin veneer of fakeness" and can feel "oddly empty or quiet at times." Another user noted that the HOA fees in Celebration can be expensive, which is a common concern for potential investors considering purchasing a property for short-term rental purposes.

On the Bigger Pockets forum, a user inquired about the feasibility of buying a property in Celebration specifically for use as a short-term rental. While the area commands good rental rates, even for smaller units, the high HOA fees and potential restrictions were cited as potential drawbacks.

It's important to note that the regulations surrounding short-term rentals in Celebration may vary depending on the specific condo complex or neighborhood within the community. Some associations may have stricter rules or outright bans on short-term rentals, while others may allow them with certain conditions or limitations.

Before investing in a property for short-term rental purposes in Celebration, it's crucial to thoroughly research the specific rules and regulations of the HOA or condo association governing the property. Consulting with local real estate professionals, property managers or attorneys familiar with the area's regulations can also provide valuable insights and guidance.

Additionally, short-term rental operators in Celebration must comply with any applicable state and local laws, such as obtaining the necessary licenses, permits, and paying required taxes. Failure to do so can result in fines or legal consequences.

Short-Term Rental Licensing Requirement in Celebration

In Celebration, Florida, the regulations surrounding short-term rental licensing are similar to many other residential communities in the state. While short-term rentals are not explicitly prohibited, they are subject to various licensing requirements and restrictions imposed by the community's homeowners' association (HOA) or individual condo associations.

According to Florida state law, short-term rentals are classified as transient public lodging establishments if they host guests for stays of less than 30 days or if the property is advertised as a place regularly rented to guests. As such, short-term rental operators in Celebration must obtain a license from the Florida Department of Business and Professional Regulation (DBPR).

The DBPR licensing process involves submitting an application, providing property details, and paying associated fees. The initial license fee is typically around $275, with an annual renewal fee of $100. Additionally, a code enforcement officer will conduct an interior inspection of the property before issuing the license.

It's important to note that the DBPR license is a statewide requirement, and short-term rental operators must also comply with any additional local regulations and ordinances set forth by the Celebration community or the specific condo association governing the property.

Some condo associations within Celebration may have stricter rules or outright bans on short-term rentals, while others may allow them with certain conditions or limitations. For example, some associations may restrict the number of short-term rental units within a building or impose minimum stay requirements.

Before investing in a property for short-term rental purposes in Celebration, it's crucial to thoroughly research the specific rules and regulations of the HOA or condo association governing the property. Consulting with local real estate professionals, property managers, or attorneys familiar with the area's regulations can also provide valuable insights and guidance.

Failure to obtain the necessary licenses and comply with local regulations can result in fines, penalties, or legal consequences for short-term rental operators in Celebration.

Required Documents for Celebration Short-Term Rentals

Operating a short-term rental in Celebration, Florida, requires obtaining several documents and licenses to ensure compliance with local regulations. Here are some of the key documents and requirements:

• Conditional Use Permit: Many short-term rental operators in Celebration are required to apply for and obtain a conditional use permit from the city. This permit is necessary to ensure that the short-term rental complies with zoning requirements and other regulations.
• Short-Term Rental Business Tax Receipt: Hosts must apply for and obtain a business tax receipt specific to short-term rentals from the City of Celebration. This receipt serves as a license to operate a short-term rental business within the city limits.
• State of Florida Public Lodging Establishment License: Short-term rentals in Celebration must be licensed by the State of Florida as a public lodging establishment. This license is issued by the Florida Department of Business and Professional Regulation (DBPR) and requires submitting an application, providing property details, and paying associated fees.
• Tourist Development Tax Account: Osceola County requires short-term rental operators to register for a Tourist Development Tax Account to collect and remit monthly tourist development taxes on guest stays.
• Florida Sales Tax Registration: In addition to the tourist development tax, short-term rental operators must also collect and remit Florida's sales tax on guest stays of less than six months. This requires registering with the Florida Department of Revenue.
• Homeowners' Association (HOA) or Condo Association Approval: Depending on the specific property, short-term rental operators may need to obtain approval from the governing HOA or condo association. Some associations may have additional rules or restrictions regarding short-term rentals.
• Building and Housing Standards Compliance: Short-term rental properties must comply with Celebration's building and housing standards, including regulations on habitability, health, and safety. Operators may need to provide documentation or undergo inspections to demonstrate compliance. It's also recommended to obtain short-term rental insurance to help protect yourself and your potential guests.

It's important to note that these requirements may change over time, and short-term rental operators should consult with the relevant authorities or seek legal advice to ensure they have the most up-to-date information and are fully compliant with all applicable regulations.

Celebration Short-Term Rental Taxes

Operating a short-term rental in Celebration, Florida, requires paying various taxes to local and state authorities. Here are the key taxes that apply:

1. Florida State Sales Tax: The State of Florida levies a sales tax of 6% on short-term rental transactions. This tax is applied to the total rental amount, including any additional fees like cleaning fees.
2. Osceola County Tourist Development Tax: Celebration is located in Osceola County, which imposes a tourist development tax of 6% on short-term rental stays of less than 180 days. This tax is applied to the total rental amount, including any additional fees.
3. Total Tax Rate: When combined, the total tax rate for short-term rentals in Celebration is approximately 12%. This includes the 6% Florida State Sales Tax and the 6% Osceola County Tourist Development Tax.

It's important to note that these tax rates are subject to change, and property owners should consult with the relevant authorities or seek professional advice to ensure they are complying with the most up-to-date tax regulations.

Many short-term rental platforms, such as Airbnb and VRBO, automatically calculate and collect the Florida State Sales Tax from guests during the booking process. However, these platforms do not collect the Osceola County Tourist Development Tax for Celebration. As a result, short-term rental operators in Celebration are responsible for collecting and remitting the tourist development tax directly to Osceola County.

Failure to properly collect and remit these taxes can result in penalties and fines from the relevant authorities. Short-term rental operators in Celebration must register for a Tourist Development Tax Account with Osceola County and file monthly or quarterly tax returns, even if no income was collected during that period.

Florida Wide Short-Term Rental Rules

Florida has established statewide rules and regulations governing short-term rentals that apply across all counties and municipalities. Here are some of the key statewide requirements:

1. Licensing Requirement: Short-term rentals in Florida are classified as transient public lodging establishments if they host guests for stays of less than 30 days or if the property is advertised as a place regularly rented to guests. As such, short-term rental operators must obtain a license from the Florida Department of Business and Professional Regulation (DBPR).
2. Definition of Short-Term Rental: According to Florida statutes, a short-term rental is defined as a housing accommodation rented for stays of 30 days or less, more than three times per year. This definition includes properties advertised or presented as regularly rented to guests.
3. Tax Obligations: Short-term rental operators in Florida are required to collect and remit state sales tax (6%) and any applicable county tourist development taxes or local taxes on the rental income. Failure to comply can result in penalties and fines.
4. Occupancy Limits: A recent bill (SB280) passed in 2024 sets statewide occupancy limits for short-term rentals. The maximum overnight occupancy cannot exceed two persons per bedroom, plus an additional two persons in one common area, or more than two persons per bedroom if at least 50 square feet per person, plus an additional two persons in one common area, whichever is greater.
5. Responsible Party: The new legislation also requires a responsible party, such as a co-host or property manager, capable of responding to complaints or emergencies related to a vacation rental, to be available by telephone 24 hours a day, seven days a week.
6. Local Regulations: While Florida state law prohibits local governments from banning short-term rentals altogether or limiting the length or frequency of stays, counties and municipalities can impose additional regulations. These may include zoning restrictions, registration requirements, fees, and rules related to noise, parking, and trash.

It's important to note that while these statewide rules provide a framework, short-term rental operators must also comply with any additional local regulations and ordinances set forth by the specific county or city where their property is located.

Does Celebration Strictly Enforce STR Rules?

Based on discussions on platforms like Reddit and Bigger Pockets, it appears that Celebration strictly enforces its rules prohibiting short-term rentals (STRs) in residential areas, making it a challenging environment for Airbnb hosts.

While some hosts may attempt to operate illegally in Celebration, the community's homeowners' association (HOA) and local authorities take an active stance against such violations. Reddit users have shared experiences of being offered sublets or rentals in Celebration that explicitly prohibited short-term stays, highlighting the prevalence of enforcement efforts.

Compared to other cities, Celebration seems to be less Airbnb-friendly due to its strict regulations and active enforcement measures. Many hosts are aware of the community's stance and choose to avoid operating in Celebration altogether, opting for more permissive areas or cities with clearer regulations for short-term rentals.

Discussions on platforms like Bigger Pockets suggest that the risks of substantial fines and legal consequences for operating illegal short-term rentals in Celebration are significant, prompting many potential investors to explore alternative investment strategies or locations.

In summary, based on the available information and discussions, Celebration strictly enforces its rules prohibiting short-term rentals in residential areas, making it an unfavorable environment for Airbnb hosts looking to operate legally and without the risk of significant penalties. While some hosts may attempt to operate illegally, the community's active enforcement efforts and potential consequences make it a challenging and risky proposition.

How to Start a Short-Term Rental Business in Celebration

Starting a short-term rental business in Celebration, Florida, requires careful consideration of the community's regulations and compliance with various licensing and permitting requirements. Here are the steps to get started:

1. Review the Celebration Community Rules: Consult the rules and regulations set forth by the Celebration Community Association or the specific condo association governing the property you intend to use for short-term rentals. Understand any restrictions or limitations on short-term rentals.
2. Obtain a Conditional Use Permit: Many short-term rental operators in Celebration are required to apply for and obtain a conditional use permit from the city to ensure compliance with zoning requirements and other regulations.
3. Secure a Short-Term Rental Business Tax Receipt: Apply for and obtain a business tax receipt specific to short-term rentals from the City of Celebration. This serves as a license to operate a short-term rental business within the city limits.
4. Obtain a State of Florida Public Lodging Establishment License: Short-term rentals in Celebration must be licensed by the Florida Department of Business and Professional Regulation (DBPR) as a public lodging establishment. Submit an application, provide property details, and pay the associated fees.
5. Register for Tourist Development Tax Account: Register for a Tourist Development Tax Account with Osceola County to collect and remit monthly tourist development taxes on guest stays.
6. Register for Florida Sales Tax: Register with the Florida Department of Revenue to collect and remit Florida's sales tax on guest stays of less than six months.
7. Comply with Building and Housing Standards: Ensure that your short-term rental property meets Celebration's building and housing standards, including regulations on habitability, health, and safety. Be prepared for inspections or to provide documentation of compliance.
8. Obtain Homeowners' Association (HOA) or Condo Association Approval: Depending on the specific property, you may need to obtain approval from the governing HOA or condo association to operate a short-term rental. Some associations may have additional rules or restrictions.
9. Understand Tax Obligations: Be prepared to collect and remit various taxes, including the Florida State Sales Tax (6%) and the Osceola County Tourist Development Tax (6%).
10. Market and List Your Property: Once you have obtained all necessary licenses, permits, and approvals, you can list your property on short-term rental platforms like Airbnb or VRBO and begin accepting bookings.

It's important to note that the regulations and requirements for short-term rentals in Celebration are subject to change, and it's advisable to consult with local authorities or seek legal advice to ensure compliance with the most up-to-date laws and ordinances.

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

If you have questions or need assistance regarding short-term rental regulations, zoning, and permitting in Celebration, Florida, you can contact the following departments and individuals:

Celebration Community Association

1. Lauren Gunnyon, Executive Director
   Phone: 407-566-1200
   Email: townhall@ciramail.com
2. Jeffrey Webb, Community Manager
   Phone: 407-566-1200
   Email: townhall@ciramail.com
3. Natalie Delatorre, Community Standards Manager
   Phone: 407-566-1200
   Email: townhall@ciramail.com

Osceola County Zoning Administration Office

Zoning Administration Office
Address: 1 Courthouse Square, Suite 1400, Kissimmee, FL 34741
Phone: 407-742-0200
Email: Zoning@osceola.org (for general zoning questions and applications)
Email: SpecialPermits@osceola.org (for home occupation, temporary signs, special events, and other permit-related inquiries)

It's recommended to contact the Celebration Community Association for inquiries about the community's specific rules and regulations regarding short-term rentals, as well as any necessary approvals or permits required by the association.

For zoning-related questions, applications, or permits at the county level, you can reach out to the Osceola County Zoning Administration Office.

When contacting these departments, be prepared to provide details about your property, the intended use, and any specific questions or concerns you may have. It's also advisable to consult with a local attorney or professional familiar with Celebration and Osceola County regulations to ensure full compliance with all applicable laws and ordinances.

What Do Airbnb Hosts in Celebration on Reddit and Bigger Pockets Think about Local Regulations?

Many Reddit users confirm that short-term rentals are heavily regulated in Celebration, with strict rules enforced by the community's homeowners' association (HOA) and local authorities.

Some users have shared experiences of being offered sublets or rentals in Celebration that explicitly prohibited short-term stays, highlighting the prevalence of enforcement efforts.

Overall, the sentiment on Reddit suggests that Celebration is a challenging environment for Airbnb hosts due to the strict regulations and potential consequences for violations.

Discussions on Bigger Pockets indicate that while some areas of Florida have clear regulations for short-term rentals, the rules and enforcement can vary significantly between municipalities and communities.

Users advise thoroughly researching local laws, HOA rules, and regulations before operating a short-term rental business, as violations can result in substantial fines and legal consequences.

Some users suggest exploring alternative investment strategies or locations with more permissive short-term rental regulations to avoid potential issues in communities like Celebration.

There are mixed opinions on whether the potential rental income justifies the risks and challenges of operating in strictly regulated areas like Celebration.

In summary, based on the discussions on Reddit and Bigger Pockets, Airbnb hosts generally perceive Celebration as a challenging environment for short-term rentals due to the strict regulations imposed by the community's HOA and local authorities. While some hosts may attempt to operate illegally, the risks of substantial fines and legal consequences make it a less favorable option for many investors and hosts seeking a more permissive regulatory environment.

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.