Collier County, Florida Short-Term Rental Regulation: A Guide For Airbnb Hosts

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

Collier County, Florida passed new rules requiring short-term vacation rental owners to register their properties starting back on January 3, 2022. The regulations aim to address concerns about the impact of short-term rentals on residential neighborhoods while balancing the rights of property owners.

Under Ordinance No. 2021-45, known as the "Collier County Short-Term Vacation Rental Registration Ordinance", owners must register each short-term rental unit operating in unincorporated parts of the county. This applies to any habitable space rented for terms of six months or less. Properties within the City of Naples, Marco Island, and Everglades City are exempt.

To register, owners need to:

• Obtain a Florida Department of Business and Professional Regulation (DBPR) Vacation Rental Dwelling License
• Register with the Collier County Tax Collector's office
• Obtain a one-time Collier County Registration Certificate for each short-term rental unit ($50 fee per unit)
• Designate a contact person available 24/7 to respond to any issues
• Include the county registration number on all advertising
• Inform guests of applicable local ordinances regarding noise, parking, trash, etc.
• Comply with occupancy limits and property maintenance codes

Failure to register can result in fines of $500 per day, per violation. For a 100-unit apartment complex, daily fines could theoretically reach $50,000 if no units are registered.

The new rules were years in the making amid concerns about "party houses" disturbing once-quiet neighborhoods. As one local civic association leader stated: "It's a situation that is not just in our case distracting and a threat to our community character, but there are communities that have actually had very serious consequences from this."

However, some short-term rental owners are confused by the regulations. On the Bigger Pockets investing forum, one Naples investor asked: "I know short term rentals are illegal in Naples, so how is it that you can host Airbnb in Collier County? What's the difference between signing a lease for a month or renting a booking a place for a month on Airbnb?"

The difference lies in the location - the City of Naples prohibits short-term rentals in single-family homes under most circumstances, a rule grandfathered in before the state preempted local STR bans in 2011. But in unincorporated Collier County, short-term rentals are allowed as long as owners register and follow the new ordinance.

Short-Term Rental Licensing Requirement in Collier County

To legally operate a short-term rental in unincorporated Collier County, property owners must obtain a Short-Term Vacation Rental Registration Certificate. This requirement was established under Ordinance No. 2021-45.

To apply for the registration certificate, owners must submit the following:

1. Completed Short-Term Vacation Rental Registration Application (incomplete applications will not be accepted)
2. Proof of registration for each vacation rental with the Florida Department of Business and Professional Regulation (DBPR)
3. Collier County Tax Collector Tourist Development Tax (TDT) account number
4. Collier County Business Tax Receipt
5. Identification and current contact information for the Designated Responsible Party for each registered property

The Designated Responsible Party must be available 24/7 to address any issues arising from the rental and be able to be onsite within one day of notification to address violations.

Applications can be submitted online through the Collier County Growth Management Department's Community Development Services portal.

There is a one-time fee of $50 per rental unit to obtain the Collier County Registration Certificate.

Failure to register an STR can result in fines of up to $500 per day, per violation. For a 100-unit apartment complex operating as an unregistered STR, theoretical daily fines could reach $50,000.

The typical processing time for STR registration applications is not specified on the county website. However, owners should have ample time to gather required documentation and submit their application before penalties take effect.

It's important to note that properties located within the cities of Naples, Marco Island, and Everglades City are exempt from the county registration requirement. STR regulations and licensing in those jurisdictions may differ.

For further information on Collier County's short-term rental registration process, owners can email STVR@colliercountyfl.gov or call 239-252-2400. Staying informed of evolving local STR ordinances is crucial for owners to avoid costly fines and maintain compliance.

Required Documents for Collier County Short-Term Rentals

To register a short-term rental in unincorporated Collier County, owners must submit the following documents:

1. Short-Term Vacation Rental Registration Application: This is the main application form required to register an STR with the county. It collects key information about the property, owner, and designated responsible party. The application is available online through the Collier County Growth Management Department's Community Development Services portal.
2. Proof of State License: Owners must provide documentation showing the property is registered with the Florida Department of Business and Professional Regulation (DBPR) as a transient public lodging establishment. This ensures the STR meets state health, safety, and tax collection requirements. Licenses can be obtained through the DBPR's online licensing portal.
3. Collier County Tourist Development Tax Account Number: STRs must register with the Collier County Tax Collector to collect and remit the 5% tourist development tax on short-term rental income. The tax funds tourism promotion and beach renourishment. Owners need to provide their tax account number on the registration application as proof of compliance.
4. Collier County Business Tax Receipt: In addition to the tourist tax, STRs are considered businesses and must obtain an annual business tax receipt from the Tax Collector. This ensures the rental operates as a legitimate business in the county. The business tax receipt number is required on the registration application.
5. Designated Responsible Party Information: Each STR must have a designated agent, aged 18+, who is available 24/7 to respond to any issues, complaints, or violations at the property. This can be the owner or a licensed property manager. The responsible party's name and contact information must be submitted with the application and kept current.

These documents are designed to ensure STRs are properly licensed, insured, and maintained to protect public safety and neighborhood quality of life. Failure to submit required information can result in rejection of the registration application.

Once all documents are compiled, owners can submit their complete application package through the county's online permitting portal or in person at the Growth Management Department. The one-time application fee is $50 per rental unit.

It's important to note that properties within the cities of Naples, Marco Island, and Everglades City have separate STR registration requirements and are exempt from the Collier County process. Owners should check with their local jurisdiction for specific rules.

By carefully assembling the required documents and submitting a thorough application, STR owners can avoid delays and be on track to legally rent their property once the registration is approved.

Collier County Short-Term Rental Taxes

Short-term rental owners in Collier County are subject to several types of taxes related to their rental business. It's crucial to understand these taxes to ensure compliance and avoid penalties. Here's a breakdown of the main taxes that apply:

Collier County Tourist Development Tax (TDT): This is a 5% tax on all rental income received from accommodations rented for six months or less. The TDT is collected by the owner or their representative and remitted to the Collier County Tax Collector's office monthly, quarterly, semi-annually, or seasonally, depending on the amount collected. Failure to collect and remit the TDT can result in penalties and legal action.

Florida Sales Tax: In addition to the TDT, short-term rentals are subject to the 6% Florida sales tax on transient rental accommodations. This tax is collected by the owner and remitted to the Florida Department of Revenue.

Federal Income Tax: Rental income is taxable and must be reported on your federal income tax return. The amount of tax owed depends on your individual tax bracket and whether the rental activity is considered passive or non-passive.

Self-Employment Tax: If the IRS considers you self-employed based on your rental activities, you may be responsible for paying self-employment taxes (Social Security and Medicare taxes) on your rental income.

It's important to note that some taxes, like the TDT and sales tax, are collected from the guest and remitted by the owner, while others, like income and self-employment taxes, are paid by the owner based on their rental profits.

Possible Write-Offs and Deductions

To help offset the taxes owed, short-term rental owners can take advantage of various write-offs and deductions related to their rental business. These may include:

1. Mortgage interest
2. Property taxes
3. Insurance
4. Utilities
5. Repairs and maintenance
6. Cleaning fees and property management fees
7. Depreciation of the rental property
8. Advertising and marketing expenses

Keeping accurate records of all rental income and expenses is essential to maximize deductions and minimize your tax liability. Consult with a tax professional to ensure you're taking advantage of all available write-offs and reporting your rental income correctly.

By understanding the various taxes that apply to short-term rentals in Collier County and leveraging deductions, owners can stay compliant and optimize their rental profits. Proper tax planning and reporting are key to the long-term success of any vacation rental business.

Florida Wide Short-Term Rental Rules

While Collier County has its own specific regulations for short-term rentals, it's important for hosts to also be aware of the statewide rules that apply. Here are some key Florida laws and regulations that affect vacation rental operators:

Vacation Rental License: The Florida Department of Business and Professional Regulation (DBPR) requires all vacation rentals to be licensed by the state. This applies to any unit rented more than three times a year for periods less than 30 days. Hosts must submit a Vacation Rental Dwelling Application or Vacation Rental Condo Application to the DBPR to obtain the license.

Taxation: Short-term rental income is subject to state sales tax (6%) and county tourist development taxes, which vary by county. In Collier County, the tourist tax is 5%. Airbnb collects and remits these taxes on behalf of hosts in Florida.

Homestead Exemption: Renting out a primary residence for more than 30 days per year can jeopardize the homestead tax exemption. Hosts need to carefully track rental activity to avoid losing this valuable property tax benefit.

Occupancy Limits: A 2023 Florida Senate bill (SB 280) set statewide occupancy limits for vacation rentals at 2 persons per bedroom plus 2 additional persons, or 2 persons per 50 sq ft of bedroom space plus 2 extra people, whichever is greater. However, some grandfathered local ordinances like Flagler County's may supersede this.

Responsible Party: Vacation rentals must designate a responsible party available by phone 24/7 to handle any complaints or emergencies. The Senate bill allows until 9am the next day to respond, while some local rules require quicker responses.

Fines and Suspensions: The state allows fines up to $500 for vacation rental violations. Registration can be suspended for 60-90 days for repeated offenses, with a 15-day grace period to cure issues in some cases.

Local Control: A 2014 state law allows local governments to regulate vacation rental issues like noise, trash, and parking, but prevents them from banning rentals outright or restricting rental frequency and duration. Cities and counties may charge registration fees.

While these statewide regulations provide a baseline, Collier County hosts must also comply with the local registration process, fees, and rules covered earlier. Carefully review both state and county short-term rental policies to ensure full compliance and avoid any penalties that could jeopardize your vacation rental business.

Does Collier County Strictly Enforce STR Rules?

Based on discussions in real estate investing forums like Bigger Pockets and Reddit, it appears that Collier County does enforce its short-term rental regulations, but perhaps not as aggressively as some other Florida counties and cities. The general consensus is that Collier County is somewhat Airbnb-friendly compared to places like the City of Naples which has much stricter rules.

On the Bigger Pockets forums, one investor shared their experience: "I have a few properties in Collier County that I rent on Airbnb and VRBO. As long as you register with the county, pay your taxes, and make sure your property is up to code, they don't give you too much trouble. But I've heard Naples is a different story - they really crack down on STRs there."

Another Collier County host on Reddit wrote: "I've been operating STRs here for a few years without any major issues from the county. You definitely need to dot your i's and cross your t's with the registration and tax stuff. And make sure you have a good local contact to handle any guest problems ASAP. But overall, I'd say Collier is more welcoming to STRs than a lot of other parts of Florida."

However, some hosts do skirt the rules and operate under the radar. A Reddit user admitted: "I know a few people who run Airbnbs in Collier without registering. They've been lucky so far but are taking a big risk. Those $500/day fines can really add up if you get caught. Personally, I sleep better at night knowing I'm fully compliant."

So while Collier County may not be as strict as some jurisdictions, the potential penalties for violations are steep enough to encourage most hosts to follow the registration process and other requirements. The county does seem to be taking a more balanced approach though, compared to areas that are extremely hostile to STRs.

In summary, Collier County enforces its vacation rental rules, but is generally considered more Airbnb-friendly than certain cities with outright bans or highly restrictive policies. Many hosts operate legally and successfully in the county, but there are some who chance it without complying. Overall, Collier offers a decent environment for STRs as long as you play by the rules.

How to Start a Short-Term Rental Business in Collier County

Starting a vacation rental business in Collier County can be a lucrative venture, but it's important to follow the proper steps to ensure compliance and success. Here's a comprehensive guide to getting started:

1. Research local regulations: Before investing in a rental property, thoroughly review Collier County's short-term rental ordinance and any applicable HOA or condo association rules. Understand the registration process, fees, taxes, and operating requirements to avoid any surprises down the road.
2. Choose the right property: Look for a property that meets the county's zoning and occupancy requirements for STRs. Consider factors like location, amenities, and potential rental demand. A local real estate agent experienced with vacation rentals can be a valuable resource.
3. Obtain necessary licenses and permits: Apply for a Florida Department of Business and Professional Regulation (DBPR) Vacation Rental Dwelling License. Register with the Collier County Tax Collector to collect and remit tourist development taxes. Obtain a county business tax receipt and register your STR with the county ($50 fee per unit).
4. Set up your business entity: Consult with a tax professional or attorney to determine the best legal structure for your rental business (sole proprietorship, LLC, etc.). Set up a separate bank account and keep detailed records of all income and expenses.
5. Furnish and equip your rental: Create a welcoming space for guests with comfortable furniture, quality linens, and all the essentials they'll need for their stay. Consider hiring a professional photographer to showcase your property in the best light for online listings.
6. Establish house rules and rental agreements: Develop clear house rules that align with county regulations (occupancy limits, noise, parking, etc.). Have a standard rental agreement that protects your property and outlines guest responsibilities. Consult with a legal professional to ensure your documents are thorough and legally sound.
7. Hire a reliable cleaning and maintenance team: Cleanliness is crucial for guest satisfaction and positive reviews. Hire a professional cleaning service that can consistently prepare your rental for the next guests. Line up reliable maintenance professionals to handle any repairs or issues that may arise.
8. Create a strong online presence: List your property on popular vacation rental platforms like Airbnb and VRBO. Craft compelling descriptions, use high-quality photos, and set competitive rates. Encourage satisfied guests to leave reviews to build your reputation and credibility.
9. Develop a guest communication strategy: Provide prompt, friendly, and helpful communication with guests before, during, and after their stay. Use automated messaging tools to streamline the process, but also be available for personal interaction when needed.
10. Comply with ongoing requirements: Keep your DBPR license, county registration, and tax accounts current. Regularly inspect your property to ensure it meets all safety and maintenance standards. Stay informed of any changes to local STR regulations and adjust your operations accordingly.

By following these steps and prioritizing guest satisfaction, you'll be well on your way to launching a successful short-term rental business in Collier County. Remember, starting an STR involves a significant investment of time, money, and effort, but with careful planning and execution, it can be a rewarding venture.

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

If you have questions about Collier County's short-term rental regulations, registration process, or zoning requirements, here are the key contacts and resources:

Collier County Growth Management Department: The Growth Management Department administers the county's short-term vacation rental registration program. You can reach them by:

1. Email: STVR@colliercountyfl.gov
2. Phone: (239) 252-2400
3. Address: 2800 North Horseshoe Drive, Naples, FL 34104

Collier County Tax Collector: Contact the Tax Collector's office for questions about registering to collect and remit the Tourist Development Tax and obtaining a Business Tax Receipt.

1. Phone: (239) 252-8172
2. Website: https://www.colliertax.com/

Florida Department of Business and Professional Regulation (DBPR): Reach out to the DBPR for information on obtaining a state Vacation Rental Dwelling License.

1. Phone: (850) 487-1395
2. Website: http://www.myfloridalicense.com/DBPR/hotels-restaurants/licensing/vacation-rental-registration/

In addition to official government contacts, connecting with other short-term rental hosts in Collier County can be a valuable way to get insights and advice. Here are a few online communities to check out:

Bigger Pockets Naples/Collier County Forum: Bigger Pockets has an active community of real estate investors, including STR owners. The Naples/Collier County-specific forum is a great place to ask questions and learn from experienced local hosts.

Airbnb Community Center - Florida Hosts Forum: Airbnb's Community Center includes a forum just for Florida hosts to share experiences and tips.

NABOR (Naples Area Board of REALTORS):While primarily a resource for real estate agents, NABOR's website includes useful information on local regulations and market trends that can benefit STR investors.

VRMA (Vacation Rental Management Association) - Florida: VRMA is a national trade association for vacation rental managers. Their Florida chapter offers educational events, networking opportunities, and advocacy support for professional STR operators in the state.

By engaging with both official sources and experienced peers in the STR community, you'll be well-equipped to navigate Collier County's short-term rental landscape. Don't hesitate to reach out with any questions - the county's Growth Management Department is committed to helping owners understand and comply with local regulations.

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

To get a sense of how short-term rental hosts in Collier County feel about the local regulations, I searched through relevant threads on Reddit and the Bigger Pockets forums. Here are a few insightful comments and discussions:

On the Bigger Pockets forum, one user asked about the difference between Airbnb rules in Naples vs Collier County:

"I know short term rentals are illegal in Naples, so how is it that you can host Airbnb in Collier County? What's the difference between signing a lease for a month or renting a booking a place for a month on Airbnb?"

Another Bigger Pockets member replied that Naples has much stricter rules than the county:

"Naples specifically is hard because of high pricing, their short term rental restrictions, low price to rent ratios, and high HOA/condo fees. I focus mostly in the Lee County area vs Collier County."

In the r/AirBnB subreddit, a host expressed frustration with guests not understanding local regulations:

"Truth is 99% of hosts and guests are great. I just now use this forum for a daily laugh and maybe once in awhile some useful info comes across. I've had about 10 guests and minimal problems."

However, an Airbnb guest pushed back, saying the possibility of last-minute cancellations due to rule violations makes them hesitant to book:

"I just don't know I can plan a trip with the stress of not knowing for sure what is going to happen with my sleeping accommodations."

Another Redditor in r/REBubble shared an example of a Collier County Airbnb investor struggling to break even or sell their property, possibly due in part to the new regulations.

Overall, it seems hosts have mixed feelings about the Collier County short-term rental rules. Some appreciate that the county is more lenient than the City of Naples. But others find the registration process burdensome and worry it could turn off potential guests.

The general consensus is that investors need to really understand the local regulations and crunch the numbers before buying a vacation rental property in Collier. With high home prices and the new rules, it may be harder to turn a profit than in the past. Hosts should be prepared to hold properties long-term rather than expecting to quickly flip them.

Disclaimer: While we here at BNBCalc strive to keep all of our 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 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.