Coconut Creek Short-Term Rental Regulation: A Guide For Airbnb Hosts

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

Short-term rentals through platforms like Airbnb and VRBO have become increasingly popular in Coconut Creek and the greater Fort Lauderdale area. However, the City of Coconut Creek has specific regulations around operating short-term vacation rentals that hosts need to be aware of. This article summarizes the key short-term rental rules in Coconut Creek's city ordinances and shares some examples from real estate investing forums.

Starting a Short-Term Rental Business in Coconut Creek

The City of Coconut Creek defines a vacation rental as the rental of any single-family home, condo, townhouse, or multi-family unit for periods between 7 days and 6 months. Stays shorter than 7 days are not permitted.

To legally operate a short-term rental, hosts must:

• Register the property with the city and obtain a Vacation Rental Certificate prior to listing it. The initial application costs $136.17, and the certificate must be renewed annually for $36.70.
• Provide proof of ownership and written notification to the HOA or condo association that the property will be used as a short-term rental.
• Ensure the property meets all safety requirements, including fire extinguishers, smoke detectors, and emergency exit routes.
• Obtain a Business Tax Receipt (BTR) from the city and a Resort Tax Certificate from the county.

Failure to comply with these regulations can result in fines starting at $500 for the first violation up to $7500 for repeat offenses within a 12 month period. The city also conducts safety inspections prior to issuing the Vacation Rental Certificate, and violations must be corrected before the certificate is granted.

Some Coconut Creek real estate investors on the Bigger Pockets forums have discussed the strict short-term rental regulations in the city. One poster noted, "As long as there is no HOA, you should be fine. You need to register with the State of Florida as well as the County of Palm Beach to insure all is legal." However, even without an HOA, hosts still need to follow the city's registration and safety requirements.

Short-Term Rental Licensing Requirements in Coconut Creek

To obtain a Vacation Rental Certificate, property owners must submit an application to the city along with several required documents:

1. Proof of ownership, such as a deed or property tax bill
2. A copy of the property owner's government-issued ID
3. Written notification to the HOA/condo association about the rental use
4. A floor plan showing locations of fire safety equipment and exits
5. Proof of registration for state and county taxes

The city conducts a safety inspection after receiving the complete application packet. If violations are found, they must be corrected and re-inspected before the certificate is issued. Inspections are done by appointment only and cost $40 if the unit fails the first inspection and needs to be re-inspected.

Vacation Rental Certificates must be renewed annually by September 30th. The renewal fee is $36.70. Failure to renew can result in fines and revocation of the certificate.

On Reddit, some Coconut Creek residents have complained about the proliferation of Airbnbs in the city and the nuisance issues they can cause. One commenter wrote, "There's an apartment complex in Coconut Creek for a studio starting at $2000. It's not even near the water or anything." Strict enforcement of the registration and licensing rules aims to mitigate some of these issues.

Required Documents for Coconut Creek Short-Term Rentals

In addition to the Vacation Rental Certificate application, short-term rental hosts in Coconut Creek must also submit:

1. Proof of Ownership: A copy of the deed, property tax bill, or utility bill in the owner's name. If the property is owned by an LLC, additional documentation may be required.
2. Government-issued ID: A copy of the property owner's driver's license, passport, or other photo ID.
3. HOA/Condo Notification: A letter or email to the association stating the unit will be used as a short-term rental.
4. Floor Plan: A diagram showing the locations of bedrooms, bathrooms, exits, and fire safety equipment.
5. Tax Certificates: Proof of registration with the Florida Department of Revenue for sales and tourist development taxes and the Broward County Tax Collector for the Tourist Development Tax.
6. Affidavit of Compliance: A signed statement from the owner certifying the property is in compliance with all applicable city ordinances and regulations.

The city may request additional documentation during the review process. Not providing all required information can delay the approval of the Vacation Rental Certificate.

Coconut Creek Short-Term Rental Taxes

Short-term rental hosts in Coconut Creek are required to collect and remit several taxes on their rental income. This includes state, county, and local taxes.

At the state level, Florida charges a 6% sales tax on the total rental amount for all transient rentals (stays of 6 months or less). Coconut Creek falls under Broward County, which levies three additional taxes on short-term rentals:

1. 5% Tourist Development Tax
2. 3% Convention Development Tax
3. 1% Homeless and Domestic Violence Tax

In total, these county taxes add up to 9% on top of the 6% state sales tax, for a combined tax rate of 15% on short-term rental income in Coconut Creek.

Airbnb and some other booking platforms collect and remit the state sales tax and county tourist taxes on behalf of their hosts in Florida. However, it's ultimately the responsibility of the host to ensure these taxes are being properly collected and paid.

In addition to the state and county taxes, short-term rental operators in Coconut Creek must also obtain a city Business Tax Receipt (BTR) and pay the associated business tax, which varies based on rental revenue. For example, a rental generating $10,000-$20,000 in annual revenue would owe a business tax of $27.50 plus a 10% surcharge.

Failing to comply with the tax requirements can result in significant penalties and legal issues. The Florida Department of Revenue and Broward County Tax Collector's Office has the authority to audit short-term rental hosts to verify proper tax collection and remittance.

Some Coconut Creek hosts on real estate investing forums have complained about the added expense and administrative burden of the local tax requirements. One Bigger Pockets user lamented, "By the time you factor in the 15% sales and tourist tax plus the business tax and fees, it really eats into your margins."

However, not collecting the required taxes is not a viable option, as the city and county actively monitor short-term rental listings for unregistered properties. The steep fines for tax evasion can quickly exceed any amount saved by not remitting the taxes.

To avoid issues, Coconut Creek short-term rental operators must factor the 15% state and county taxes into their pricing, obtain a city BTR, and stay on top of their tax filings. Working with a local accountant or property manager who specializes in short-term rentals can help you navigate the tax complexities.

Florida Wide Short-Term Rental Rules

In addition to city and county-specific regulations, there are several statewide rules that apply to all short-term rentals in Florida. These include:

Licensing: If you rent out a property for stays of less than 30 days more than three times per year, you must obtain a license from the Florida Department of Business and Professional Regulation (DBPR). This applies whether you are renting out an entire home or just a room. The only exception is for owner-occupied properties renting out rooms while the owner is present.

Taxes: Short-term rental hosts must collect and remit several state taxes:

1. 6% Florida Transient Rental Tax
2. Local option tourist development taxes, which vary by county (can add 1-5%)
3. Discretionary sales surtax in some counties

Hosts are responsible for registering with the Department of Revenue and filing regular tax returns. Some platforms like Airbnb collect and remit these taxes on behalf of hosts.

Maximum Occupancy: While specific limits vary by city, a common rule is a maximum of 2 people per bedroom plus 2 additional occupants. For example, a 2-bedroom rental could sleep 6 people total. Children under a certain age are often excluded from the count.

Safety Requirements: All rentals must meet state building, fire, and safety codes. This includes having working smoke detectors, fire extinguishers, and carbon monoxide detectors if gas appliances are present. Pool safety features like alarms and fences are also required where applicable.

Responsible Party: A local contact person capable of responding to complaints or emergencies must be available by phone 24/7. However, issues reported overnight don't require a response until 9am the next morning.

In 2024, the Florida legislature passed a bill (SB 280) to establish more consistent statewide vacation rental standards. Key provisions include:

1. Allowing local governments to charge reasonable registration fees
2. Capping occupancy at 2 people per bedroom plus 2, or 2 per 50 sq ft of bedroom space plus 2
3. Enabling registration suspensions for repeated violations
4. Prohibiting local bans on rentals unless grandfathered in

The bill faced opposition from local officials who felt it took away too much of their regulatory power. It passed narrowly and still needs to be signed by the governor to take effect. If enacted, it would supersede some local ordinances as of July 1, 2024.

It's important to note that Florida vacation rental regulations are constantly evolving. Hosts should stay up to date on the latest developments at both the state and local levels to ensure compliance. Consulting with a local attorney specializing in short-term rentals is advisable.

Does Coconut Creek Strictly Enforce STR Rules?

Based on discussions in real estate investing forums, Coconut Creek has a reputation for actively enforcing its short-term rental regulations compared to other South Florida cities. The general consensus is that Coconut Creek is not very "Airbnb friendly."

Code compliance officers regularly monitor short-term rental listings and investigate properties suspected of operating without being properly registered. Fines for non-compliance are steep, ranging from $500-$7500.

On the Bigger Pockets forums, one investor commented, "I wouldn't chance it in Coconut Creek. They're really strict and it's not worth losing your investment over." While this sentiment seems common, some hosts still attempt to fly under the radar and list their properties on Airbnb.

However, most Coconut Creek real estate investors on these forums readily admit that operating a short-term rental illegally is very risky. With the city's proactive enforcement, the odds of getting caught and fined are high.

As one Bigger Pockets member put it, "The city is quick to crack down on unregistered rentals, and the fines can quickly eat up any profits. It's just not worth it."

Instead, the prevailing advice is that long-term rentals are a much safer bet in Coconut Creek. Savvy investors either follow the short-term rental rules to the letter or avoid them altogether in favor of 12-month leases.

So, in summary, Coconut Creek is hands-down one of the least Airbnb-friendly cities in South Florida. The strict regulations and aggressive enforcement make it extremely difficult to operate a short-term rental business legally. While a few hosts may still attempt it, most experienced investors steer clear. The city has made its stance crystal clear - preserving the residential character of neighborhoods is the top priority.

How to Start a Short-Term Rental Business in Coconut Creek

Starting a short-term rental business in Coconut Creek requires careful planning and compliance with the city's strict regulations. Here are the key steps to get started:

1. Check zoning laws: Before purchasing or listing a property, verify that short-term rentals are allowed in that specific zoning district. Coconut Creek has different rules for residential and commercial zones.
2. Register your property: Apply for a Vacation Rental Certificate from the City of Coconut Creek. This requires submitting proof of ownership, notifying your HOA, and paying the $136.17 application fee. The certificate must be renewed annually for $36.70.
3. Obtain a business license: Register your short-term rental business with the Florida Department of Revenue and obtain a Business Tax Receipt (BTR) from the city. You'll need this to remit the required taxes.
4. Comply with safety regulations: Install the required number of fire extinguishers, smoke detectors, and emergency lighting. If your property has a pool, ensure it meets the required safety standards. Schedule an inspection with the city to verify compliance.
5. Set up your listing: Choose a platform like Airbnb or VRBO to list your property. Hire a professional photographer to take high-quality photos and write a compelling description. Be transparent about your property's amenities and any rules or restrictions.
6. Establish house rules:Create a set of clear house rules that cover parking, noise levels, occupancy limits, pet policies, etc. Communicate these to guests prior to booking and post them prominently on the property.
7. Implement a booking system: Use a reservation management system to handle booking inquiries, guest communication, and payment processing. Many platforms have this functionality built-in.
8. Arrange for cleaning and maintenance:Hire a reliable cleaning service to turn over the property between guests. Have a handyman on call to quickly address any maintenance issues that arise.
9. Collect and remit taxes: Register with the Florida Department of Revenue and Broward County Tax Collector to obtain a tax account number. Collect the required 6% state sales tax, 5% county tourist tax, and 4% county convention/homeless tax from guests. File regular tax returns and stay current on payments.
10. Obtain proper insurance: Purchase commercial liability insurance to protect yourself in case a guest is injured on your property. Check with your existing insurance provider about any additional coverage needed.

By following these steps and strictly adhering to Coconut Creek's short-term rental regulations, you can launch a successful and compliant vacation rental business. Stay up to date on any changes to the city's ordinances and maintain open communication with city officials and your neighbors. While it requires diligence, operating legally will help you avoid costly fines and establish a positive reputation in the community.

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

If you have questions about Coconut Creek's short-term rental regulations or zoning requirements, there are two key city departments you can contact:

Department of Sustainable Development - Economic Development Division: This department handles the registration and licensing of vacation rentals in the city. You can reach them at:

Phone: 954-973-6756
Email: BTR@coconutcreek.net

Mailing Address:

City of Coconut Creek - Attn: BTR
4800 West Copans Road
Coconut Creek, FL 33063

For general questions or to report a concern about a vacation rental property, you can also:

Call 954-973-6752
Report a concern online through the city's website
Contact the Police non-emergency line at 954-973-6700

Planning and Zoning Division: This division, also part of the Department of Sustainable Development, provides guidance and enforcement of the city's Land Development Code and zoning regulations. They can help verify if short-term rentals are allowed in a specific zoning district. Contact them at:

Phone: 954-973-6756
Email: PlanningandZoning@coconutcreek.net

For general planning and zoning questions or inquiries, you can email or call 954-973-6756.

Both divisions are located at:

Coconut Creek Government Center
4800 West Copans Road
Coconut Creek, FL 33063

The Government Center's hours of operation are Monday through Thursday from 7:00 AM to 6:00 PM.

Before contacting either division, it's a good idea to review the information and application materials available on the city's website regarding vacation rentals. If you still have specific questions after reviewing those resources, don't hesitate to reach out via phone or email. The staff in both the Economic Development and Planning and Zoning divisions can provide additional guidance on the city's short-term rental rules and procedures.

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

Discussions on real estate investing forums like Reddit and Bigger Pockets reveal that many Airbnb hosts in Coconut Creek and the greater Fort Lauderdale area find the local short-term rental regulations to be very strict and challenging to navigate. Here are a few key takeaways:

In this thread about skyrocketing rents in Miami, one commenter notes that even in Coconut Creek, studios are going for $2000/month despite not being near the water or having great amenities. They lament that "Broward and palm beach county are getting like this too now!"

An investor living in Coconut Creek wants to start a small property management company to handle their own rentals. They are trying to understand what licenses, insurance, and other requirements they need to operate legally. This highlights the complexity of rental regulations in the city.

A Coconut Creek landlord shares a situation where a potential tenant wanted to back out of a lease application due to delays with HOA approval. The landlord is trying to determine if they can legally reject the tenant's follow-up request to rescind their withdrawal and keep the deposit. Navigating tenant screening and fair housing laws adds another layer of difficulty.

While not specific to Coconut Creek, this post underscores how tough the rental market is in the broader area. Commenters share that even small 1-bedroom apartments are going for over $2000/month now in decent neighborhoods. Some suggest looking a bit further out in places like Davie or Tamarac for more reasonable prices.

Overall, the sentiment among Airbnb hosts and landlords on these forums is that renting in Coconut Creek is expensive and highly regulated. Many feel the rules around short-term rentals are particularly onerous. The city's strict enforcement and hefty fines for violations have made some investors think twice about operating Airbnbs there.

However, the lack of affordability has also made it a lucrative market for those who can successfully navigate the regulations. With rents for even modest apartments exceeding $2000/month, the potential profits of short-term renting are tempting for those willing to jump through the compliance hoops.

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.