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

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

Short-term rentals through platforms like Airbnb and VRBO have become increasingly popular in Davenport and the greater Orlando area. However, the City of Davenport 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 Davenport's city ordinances and shares some examples from real estate investing forums.

Starting a Short-Term Rental Business in Davenport

The City of Davenport defines a short-term or 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 having 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 Davenport 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 ensure all is legal." However, even without an HOA, hosts still need to follow the city's registration and safety requirements.

The general consensus among experienced investors is that while Davenport can be a lucrative market for vacation rentals due to its proximity to Disney, it's critical to fully understand and comply with all the local regulations to avoid costly fines. Working with a property management company that specializes in short-term rentals can help navigate the process.

Short-Term Rental Licensing Requirement in Davenport

To legally operate a short-term rental in Davenport, property owners must register their property with the city and obtain a Vacation Rental Certificate. This involves submitting an application along with several required documents:

1. Proof of ownership of the property, such as a deed or property tax bill
2. A copy of the property owner's driver's license or government-issued ID
3. Written notification to the HOA or condo association that the unit will be used as a short-term rental
4. A diagram of the property showing the location of fire extinguishers, smoke detectors, and emergency exit routes
5. Proof of registration for state and county taxes

The initial application fee for the Vacation Rental Certificate is $136.17. Once approved, the certificate must be renewed annually for a fee of $36.70.

In addition to the city's Vacation Rental Certificate, short-term rental operators in Davenport must also obtain a Business Tax Receipt (BTR) from the city and a Resort Tax Certificate from Polk County. The BTR has an annual fee based on the rental's revenue.

Failure to obtain or renew the required licenses and certificates can result in significant fines. For the first violation, the city can impose a fine of $500. Fines increase for subsequent violations within a 12-month period. Continued non-compliance can lead to the revocation of rental licenses.

It's important to note that obtaining the necessary licenses and certificates does not exempt short-term rental hosts from following all other applicable city ordinances and regulations. This includes rules around parking, noise levels, trash collection, and occupancy limits.

Some Davenport hosts have complained on real estate forums that the licensing requirements are overly burdensome and time-consuming. However, city officials maintain that the regulations are necessary to ensure the safety of guests and to preserve the residential character of neighborhoods.

Before applying for any short-term rental licenses, hosts should carefully review all the requirements and make sure their property is in full compliance. Working with a local property management company experienced with vacation rentals in Davenport can help navigate the licensing process.

Required Documents for Davenport Short-Term Rentals

When applying for a Vacation Rental Certificate to operate a short-term rental in Davenport, property owners must submit several documents along with their application. These include:

1. Proof of Ownership: Applicants must provide evidence that they are the legal owner of the property, such as a copy of the deed or property tax bill. If the property is owned by an LLC or other business entity, additional documentation may be required.
2. Government-Issued ID: A copy of the property owner's driver's license, passport, or other government-issued photo ID must be submitted. This helps the city verify the identity of the applicant.
3. HOA/Condo Association Notification: If the property is part of a homeowners association (HOA) or condominium association, the owner must provide written notification to the association that the unit will be used as a short-term rental. This can be a letter or email from the owner to the association board or management company.
4. Floor Plan: Applicants must submit a diagram or floor plan of the property showing the location of all bedrooms, bathrooms, exits, fire extinguishers, and smoke detectors. This helps the city ensure that the property meets all safety requirements.
5. State Vacation Rental License: In Florida, all vacation rentals must be licensed through the Department of Business and Professional Regulation (DBPR). Proof of this state license is required before the city will issue a Vacation Rental Certificate. The specific application form depends on the property type:
   -Vacation Rental - Dwelling Application for single-family homes, townhouses, and units in 2-4 unit buildings
   -Vacation Rental - Condo Application for condominium units
6. Business Tax Receipt: Short-term rental operators must obtain a Business Tax Receipt (BTR) from the City of Davenport. The annual fee for the BTR varies based on the rental's revenue.
7. Resort Tax Certificate: Polk County, where Davenport is located, requires all short-term rentals to have a Resort Tax Certificate in order to collect and remit the county's tourist development taxes. Proof of this certificate is needed for the city application.

Failure to provide any of these required documents can result in delays or denial of the Vacation Rental Certificate application. The city may request additional information or clarification during the review process.

Some Davenport short-term rental owners have expressed frustration with the extensive documentation requirements. However, city officials argue that the regulations are necessary to ensure the safety and well-being of both guests and residents.

Before submitting an application, property owners should double-check that they have all the required documents in order. Working with a short-term rental management company or a local attorney who specializes in vacation rentals can help ensure a smooth application process.

Davenport Short-Term Rental Taxes

Short-term rental hosts in Davenport 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). Polk County, where Davenport is located, 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 Davenport.

Airbnb and some other booking platforms collect 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 Davenport must also obtain a Business Tax Receipt (BTR) from the city 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 Polk County Tax Collector's Office has the authority to audit short-term rental hosts to verify proper tax collection and remittance.

Some Davenport 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, Davenport 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 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:

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: Under the recently passed Senate Bill 280, the maximum overnight occupancy of a vacation rental cannot exceed two persons per bedroom, plus an additional two persons in one common area, or more than two persons per bedroom if there is at least 50 square feet per person, plus an additional two persons in one common area, whichever is greater.

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:SB 280 requires that a responsible party capable of responding to complaints or emergencies related to a vacation rental must be available by telephone 24 hours a day, 7 days a week. However, critics argue this could end up being just an answering service number.

Registration and Fines: The new law allows local governments to charge a reasonable fee for vacation rental owners to register their property. Failure to properly register can result in fines of up to $500. Registrations can be suspended for 30-90 days for repeated violations of local ordinances.

It's important to note that Florida vacation rental regulations are constantly evolving, as evidenced by the recent passage of SB 280 in the Senate. The bill still needs to be signed by the governor to take full effect. 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.

How to Start a Short-Term Rental Business in Davenport

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

1. Research zoning laws: Before purchasing or listing a property, verify that short-term rentals are allowed in that specific zoning district. Davenport has different rules for residential and commercial zones.
2. Register your property: Apply for a Vacation Rental Certificate from the City of Davenport. This requires submitting proof of ownership, notifying your HOA, and paying the application fee. The certificate must be renewed annually.
3. Obtain necessary licenses: Register your short-term rental business with the Florida Department of Business and Professional Regulation (DBPR). You will need to apply for either a Vacation Rental - Dwelling license for single-family homes and small multi-family properties or a Vacation Rental - Condo license for condominiums.
4. Comply with safety regulations: Ensure your property meets all state and local safety requirements, including having working smoke detectors, fire extinguishers, and pool safety features if applicable. Schedule any required inspections.
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 turnover 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 Polk County Tax Collector to obtain tax account numbers. Collect the required 6% state sales tax and 9% county tourist development taxes 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 Davenport'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 Davenport about Short-Term Rental Regulations and Zoning?

If you have questions about Davenport's short-term rental regulations or zoning requirements, there are a few key city departments and contacts you can reach out to:

Community Development Department: This department handles zoning, permitting, and code enforcement for the city. They can help verify if a property is zoned for short-term rentals and answer questions about the licensing process.

Contact:

Davenport City Hall
1 South Allapaha Ave
Davenport, FL 33836
Phone: (863) 419-3300
Email: communitydevelopment@mydavenport.org

Business Tax Receipt Division: This division, part of the Community Development Department, is responsible for issuing Business Tax Receipts (BTRs) which are required for all short-term rental operators in Davenport.

Contact:

Phone: (863) 419-3300
Email: businesstax@mydavenport.org

Vacation Rental Licensing: For specific questions about the Vacation Rental Certificate application and requirements, you can contact the city's Vacation Rental Licensing staff.

Contact:

Phone: (863) 419-3300
Email: vacationrentals@mydavenport.org

Code Compliance Division: If you need to report a potential violation of the city's short-term rental ordinances or have questions about compliance, the Code Compliance Division is the appropriate contact.

Contact:

Phone: (863) 419-3300
Email: codecompliance@mydavenport.org

For general inquiries related to short-term rentals or zoning that don't fall under a specific division above, you can contact the City Clerk's office:

City Clerk's Office
Phone: (863) 419-3300
Email: cityclerk@mydavenport.org

The city also maintains a helpful website with information and resources for vacation rental operators at www.mydavenport.org/vacationrentals. Here you can find application forms, fee schedules, and answers to frequently asked questions.

Before contacting the city, it's a good idea to review the information available on their website to see if it addresses your question. If you still need additional guidance, don't hesitate to reach out to the appropriate department by phone or email. The city staff are generally very responsive and happy to assist short-term rental operators in understanding and complying with all the local regulations.

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

Discussions on real estate investing forums like Reddit and Bigger Pockets suggest that Airbnb hosts in Davenport generally find the local short-term rental regulations to be manageable compared to stricter rules in other Florida cities. Here are a few key takeaways:

1. In this thread, an investor is looking for advice on the best Florida cities for Airbnb investment, specifically in beach locations. While Davenport is not mentioned directly, commenters note that Florida regulations and home prices vary widely by market, so thorough research is important.
2. A prospective investor is looking into buying a short-term rental in the Orlando/Davenport area and wonders if the market is saturated or still growing. This suggests that Davenport is seen as an attractive location for vacation rentals, likely due to its proximity to theme parks.
3. In response to a question about the optimal place to start a short-term rental in Florida, one commenter mentions that while there are a lot of rules and regulations in some counties, the areas that do allow STRs tend to do very well. They specifically call out Tampa as another strong market in addition to beach destinations.

Overall, the sentiment among Airbnb hosts on these forums is that Davenport's short-term rental regulations are not overly burdensome compared to some other parts of Florida. The city's proximity to Orlando's theme parks makes it an appealing location for vacation rentals.

However, hosts still need to follow the proper licensing and registration process to operate legally. The Davenport market seems to have a positive outlook for short-term rentals, but as with any investment, doing thorough due diligence on the specific property and local rules is critical.

Compared to markets like Miami or Fort Lauderdale that have cracked down more aggressively on Airbnbs, Davenport is generally seen as a more favorable regulatory environment for hosts. But the permitting requirements and safety standards must still be met to avoid fines or restrictions.

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.