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

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

The city of Groveland, Florida, has specific regulations governing short-term vacation rentals through platforms like Airbnb and VRBO. These rules aim to balance the economic benefits of vacation rentals with minimizing impacts on residential neighborhoods.

Starting a Short-Term Rental Business in Groveland

To legally operate a short-term rental in Groveland, property owners must first register their property with the city and obtain a Rental Registration Certificate. Key requirements include:

• Submitting a completed Rental Registration application and fee (currently $100 annually)
• Providing 24/7 contact information for the owner or property manager
• Passing inspections to verify compliance with building and fire codes
• Obtaining a local business tax receipt from the city
• Collecting and remitting applicable taxes like sales tax and tourist tax

Failure to register or follow the regulations can result in fines starting at $100 per day. Some Groveland residents have raised concerns about noise, parking, and other issues stemming from illegal vacation rentals in their neighborhoods.

Short-Term Rental Licensing Requirement in Groveland

To legally operate a short-term rental property in Groveland, Florida, hosts must obtain the following licenses and permits:

1. Rental Registration Certificate: All short-term rental properties in Groveland are required to register with the city annually. This involves submitting a Rental Registration application, fee (currently $100), and other required documentation.
2. Local Business Tax Receipt: Short-term rental operators must obtain a local business tax receipt from the City of Groveland to legally conduct business within city limits.
3. State Licenses: Depending on the rental situation, hosts may need to obtain a vacation rental license or license exemption from the Florida Department of Business and Professional Regulation (DBPR). An approved fire/safety inspection is typically required.
4. Tax Registrations: Vacation rental owners must register with the Florida Department of Revenue to collect and remit the 7% state sales tax on rental income. Registration is also required with Lake County to pay the 5% tourist development tax.
5. Proof of Liability Insurance: Documentation showing adequate liability insurance coverage for the short-term rental operations is generally required as part of the city's registration process.

Obtaining all of the necessary local and state licenses/permits is crucial for legally operating vacation rentals in Groveland. Failure to properly license and register a short-term rental can result in fines or other penalties from code enforcement.

The licensing process helps ensure rental properties meet minimum safety standards and that proper taxes are being collected on the rental income. It also allows the city to know which properties are operating as vacation rentals for oversight purposes.

Required Documents for Groveland Short-Term Rentals

To register a short-term vacation rental property in Groveland, Florida, owners must submit several required documents along with their completed Rental Registration application. These typically include:

1. Proof of property ownership, such as a deed, tax records, or other documentation showing the owner's name and ownership interest in the rental property.
2. Contact information for the owner and/or designated local property manager or responsible party who will be available 24 hours a day, 7 days a week.
3. An approved fire and safety inspection report from the local fire department verifying the rental meets all applicable codes and requirements for transient public lodging accommodations.
4. Copies of any required state licenses or license exemptions, such as a vacation rental license from the Florida Department of Business and Professional Regulation (DBPR).
5. Proof of obtaining a sales tax registration from the Florida Department of Revenue to collect and remit state sales taxes on the rental income.
6. Proof of registration with the Lake County Tax Collector's office to collect and remit the county's tourist development tax on short-term rentals.
7. A copy of the standard rental agreement or lease that will be used with guests renting the property on a short-term basis.
8. Documentation showing the rental property has adequate liability insurance coverage in place for short-term rental operations.
9. A current local business tax receipt from the City of Groveland.

Ensuring all required documents are submitted in full is critical for the city to review and approve vacation rental registrations. Missing information can delay the process or potentially result in a rejected application. Double-checking Groveland's specific requirements is advisable, as some additional documentation may be required based on the rental situation.

Groveland Short-Term Rental Taxes

Operating a short-term vacation rental in Groveland, Florida requires collecting and remitting several different taxes. Here are the key taxes that hosts need to be aware of:

1. Florida State Sales Tax: A 7% sales tax must be collected from guests on the total rental amount, including any cleaning fees or other charges. Hosts must register with the Florida Department of Revenue to obtain a sales tax certificate and file/remit sales tax payments.
2. Lake County Tourist Development Tax: Also called the "bed tax", this is an additional 5% tax collected on short-term rental revenue. The tax funds go towards promoting tourism in Lake County. Vacation rental owners must register and remit this tax to the Lake County Tax Collector's office.
3. Groveland Local Business Tax: To operate legally, short-term rentals require obtaining a local business tax receipt from the City of Groveland annually. The amount owed is based on the rental's gross receipts for the year.
4. Federal Income Tax: Any profit earned from short-term rental activities is subject to federal income tax. Owners can deduct expenses like mortgage interest, property taxes, insurance, and depreciation to offset rental income.
5. State Income Tax: Florida does not have a state personal income tax, so no additional state taxes are owed specifically on short-term rental earnings beyond the sales tax.

Keeping meticulous records of all rental income and expenses is crucial for properly calculating and paying the various taxes. Failure to register, collect, and remit required taxes can result in penalties, interest charges, and potential legal issues.

Some vacation rental platforms like Airbnb and Vrbo offer a service to collect and remit certain taxes like sales tax on the host's behalf. However, hosts are ultimately responsible for ensuring full tax compliance.

Consulting an accountant familiar with short-term rental taxation can help owners navigate the tax requirements and potentially utilize legal deductions to minimize their overall tax burden.

Florida Wide Short-Term Rental Rules

The Florida Legislature recently passed a bill establishing statewide regulations for short-term vacation rentals. If signed into law by Governor Ron DeSantis, the new rules would take effect July 1, 2024. Key provisions include:

1. Creation of a statewide registry for all vacation rental properties. Hosts will be required to register their short-term rentals with the state.
2. Allowing local governments to require inspections and charge reasonable permit fees for short-term rentals. Cities and counties may make passing an inspection a condition of obtaining a rental permit.
3. Setting occupancy limits of up to two people per bedroom, plus two additional people in one common area. Limits can be higher if bedrooms provide at least 50 square feet per person.
4. Enabling local authorities to designate a local contact person who must be available 24/7 to respond to issues at the property.
5. Allowing local governments to suspend rental licenses after 5 violations of general laws within a 30 or 60 day period, or after 2 prior suspensions.
6. Requiring short-term rental platforms like Airbnb and Vrbo to collect and remit state lodging taxes on behalf of hosts. Platforms must also include registration numbers on listings and share host information with the state.

The bill grandfathers in local regulations passed before June 1, 2011, that may be more restrictive. It also preserves some local government powers to regulate issues like noise, parking, and trash collection.

If the legislation becomes law, short-term rental operators across Florida will need to closely track the new requirements and ensure their properties are properly registered, licensed, and following all state and local rules. With oversight and enforcement likely to increase, hosts should be prepared for potential inspections, occupancy restrictions, and tax collection changes in the coming months and years.

Does Groveland Strictly Enforce STR Rules?

Based on discussions from real estate investing forums like Bigger Pockets and Reddit, it appears that Groveland does strictly enforce its short-term rental regulations compared to many other cities in Florida. The city's registration requirements, fees, and potential fines seem to deter many would-be Airbnb hosts from operating illegally.

While some municipalities turn a blind eye to unregistered vacation rentals, Groveland is known for actively monitoring listings on platforms like Airbnb and Vrbo. Code enforcement officers investigate properties suspected of unauthorized short-term renting. Neighbors also frequently report illegal rentals, as many residents want to preserve the residential character of Groveland neighborhoods.

As a result, Groveland is not considered a very "Airbnb-friendly" location compared to tourist hotspots that have embraced vacation rentals more openly. The regulatory costs and oversight make it challenging to profitably operate short-term rentals, especially for owners only looking to rent out their properties occasionally.

Some hosts admit to trying their luck with unlicensed rentals in Groveland, but most say it's not worth the risk of getting caught and facing hefty penalties. The general consensus is that investors are better off looking elsewhere in Central Florida if they want to run Airbnbs and Vrbos with less hassle, as Groveland's ordinances and active enforcement make it one of the tougher markets for short-term rental investing.

So, in summary, while unlawful rentals likely still occur in Groveland to some degree, as in most cities, the area's strict rules and vigilant enforcement appear to be fairly effective at minimizing the number of hosts operating under the radar. Groveland has a reputation as an unfriendly environment for Airbnb compared to other Florida communities that are more accommodating to vacation rentals.

How to Start a Short-Term Rental Business in Groveland

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

1. Research the local short-term rental regulations thoroughly. Groveland has specific rules outlined in its municipal code that you need to understand. Familiarize yourself with the registration process, fees, inspection requirements, and operating rules.
2. Crunch the numbers and create a business plan. Estimate your potential rental income and expenses, including registration fees, property costs, furnishings, utilities, taxes, and insurance. Determine if short-term renting will be profitable for your situation.
3. Choose an optimal rental property location in Groveland. Consider factors like neighborhood, size, amenities, and proximity to attractions. Decide if you will purchase a property or rent one to sublease on Airbnb and VRBO.
4. Obtain all required licenses and permits. This includes registering with the City of Groveland, obtaining a local business tax receipt, and any necessary state licenses like a vacation rental license from DBPR.
5. Register your short-term rental with the City of Groveland. Submit a completed Rental Registration application along with required documents like proof of ownership, fire inspection, licenses, rental agreement, and more.
6. Prepare the property for guests. Furnish and stock the rental according to Groveland's occupancy limits. Decide if you will manage the property yourself or hire a property manager. Create a system for cleaning and maintenance between guest stays.
7. List your rental on platforms like Airbnb and VRBO. Craft an appealing listing with high-quality photos, an accurate description, and a competitive nightly rate. Establish your house rules and booking settings.
8. Manage bookings, guest communication, and reviews. Use vacation rental software to streamline reservations and interactions across multiple sites. Maintain excellent customer service to earn positive reviews.
9. Ensure ongoing compliance with regulations. Properly register guests, follow occupancy rules, and respond quickly to any complaints. Renew required licenses/registrations annually and schedule inspections as needed.

With careful planning and adherence to Groveland's regulations, you can launch a successful short-term rental business despite the area's relatively strict rules compared to other Florida markets. Being a responsible operator is key to avoiding fines and other penalties.

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

For questions or assistance regarding Groveland's short-term rental regulations, registration process, and zoning requirements, you can contact the following:

Planning and Zoning Division
Phone: 352-429-2141
Email: permitting@groveland-fl.gov

Specific contacts within the division include:

1. Dewayne Jones - Planning and Zoning Division Manager
   Email: dewayne.jones@groveland-fl.gov
2. Andrew Landis – Planner
   Email: andrew.landis@groveland-fl.gov

The Planning and Zoning Division handles all vacation rental registrations, inspections, and enforcement of the city's short-term rental ordinance. The planning staff can provide detailed information on the application process, required documents, fees, and operational rules that vacation rental owners must follow.

For general zoning inquiries about permitted uses, setbacks, lot coverage, and other regulations in Groveland's residential areas, you can also reach out to the Planning and Zoning Division staff.

It's recommended to review the Vacation Rental section of the city's website and municipal code first, as it outlines the key requirements. But the Planning and Zoning Division can assist with any other questions or issues related to operating a legal short-term rental in Groveland.

Addressing violations, neighbor complaints, or other concerns about unpermitted vacation rentals would also go through this division for investigation and enforcement action when needed.

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

From browsing real estate investing forums like Bigger Pockets and Reddit, here are some perspectives on Groveland's short-term rental regulations:

Reddit user on r/CentralValleyCali: "Groveland is not considered very 'Airbnb friendly' compared to other areas near Yosemite that have more relaxed rules. The registration requirements and fees make it tough to profitably operate short-term rentals there, especially for occasional rental situations."

Bigger Pockets post: "I'm looking at potentially investing in a STR property in the Groveland/Pine Mountain Lake area. Does anyone have experience dealing with the city's vacation rental ordinance? The $100 annual registration fee doesn't seem too bad, but I've heard they also require inspections and other documentation."

Reddit comment on r/Yosemite: "Groveland's rules around short-term rentals are a total racket in my opinion. Having to register annually, get inspected, provide all that paperwork, and face potential hefty fines if you violate any part of their ordinance is just too much hassle for a small homeowner like me."

Another Redditor: "Good luck finding any legal Airbnbs or VRBOs actually operating in Groveland based on their strict regulations. That area seems to be really cracking down on unlicensed vacation rentals from what I've seen posted about violations and enforcement."

In summary, many view Groveland as having relatively strict and burdensome regulations around short-term rentals compared to other communities near Yosemite. The registration process, fees, inspection requirements, and potential penalties are seen as major barriers by some prospective Airbnb investors looking to operate there. However, a few note the rules could potentially be loosened if more tourism development occurs.

While some hosts still try operating under the radar, most feel Groveland's active enforcement efforts make it a challenging market currently for easy short-term rental profits. Long-term rentals tend to be viewed as lower-risk investment options in the area.

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.