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

Starting a Short-Term Rental Business in Homestead

If you're considering starting a short-term rental business in Homestead, Florida, it's important to understand the local regulations. While Florida state law prohibits cities from banning short-term rentals altogether, Homestead has some specific rules in place.

In Homestead, short-term vacation rentals are allowed in certain zoning districts, including agricultural, commercial, and mixed-use zones. However, they are prohibited in most residential districts, with a few exceptions for owner-occupied properties.

To operate legally, short-term rental owners in Homestead must:

• Obtain a City of Homestead Business Tax Receipt
• Register with the Florida Department of Revenue and collect/remit sales and tourist development taxes
• Obtain a Florida Department of Business and Professional Regulation (DBPR) Vacation Rental License if renting for periods of less than 30 days
• Comply with Homestead's vacation rental standards, including occupancy limits, parking requirements, noise restrictions, and safety regulations

Failure to comply with Homestead's short-term rental ordinance can result in fines of $250-$500 per day. The city has a dedicated code compliance division that investigates complaints and conducts proactive inspections.

Short-Term Rental Licensing Requirement in Homestead

To legally operate a short-term rental in Homestead, Florida, property owners must obtain a Vacation Rental License from the Florida Department of Business and Professional Regulation (DBPR). This statewide requirement applies to any rental property that is:

1. Rented for periods of less than 30 days or 1 calendar month (whichever is less), and
2. Rented more than 3 times in a calendar year

To apply for a Vacation Rental License, owners need to submit a DBPR application along with required documentation, which may include:

1. Proof of property ownership
2. Certificate of registration with the Florida Department of Revenue for sales tax collection
3. Proof of liability insurance coverage
4. Inspection certificates for fire safety and balcony integrity (if applicable)
5. Copies of any existing rental contracts

The DBPR offers online and mail-in application options. License fees range from $150-$300 depending on the property's occupancy. Licenses must be renewed annually.

In addition to the state license, Homestead short-term rental operators may need to obtain a local Business Tax Receipt (BTR) from the city. The BTR application typically requires:

1. A completed application form
2. Proof of the state Vacation Rental License
3. A fire safety inspection report
4. Payment of the BTR fee (varies based on rental type)

It's important to note that Homestead has zoning restrictions on where short-term vacation rentals are allowed to operate. Rentals are prohibited in most residential districts, with some exceptions for owner-occupied properties. Hosts should verify their property is zoned appropriately before applying for licenses.

Failure to obtain required licenses can result in fines and other penalties from both state and local authorities. The DBPR conducts random audits and also investigates complaints to ensure compliance. Homestead code enforcement may issue "cease and desist" orders for unlicensed rentals.

While the licensing process may seem daunting, it's a critical step for running a legal and successful short-term rental business in Homestead. By staying up-to-date on requirements and maintaining valid licenses, hosts can avoid costly enforcement actions and provide a safe experience for their guests.

Required Documents for Homestead Short-Term Rentals

To operate a short-term rental in Homestead, Florida, hosts need to provide several documents to state and local authorities. The specific requirements may vary depending on the rental property type and characteristics, but generally include:

1. Proof of Property Ownership or Permission to Rent
   - Copy of the property deed or tax bill in the owner's name
   - If the rental operator is not the owner, a signed agreement from the property owner granting permission to rent the unit short-term
2. DBPR Vacation Rental License Application
   - Completed DBPR Form DBPR HR-7020 (for condominiums) or DBPR HR-7025 (for dwellings)
   - Payment of the $150-$300 license fee
3. City of Homestead Business Tax Receipt (BTR) Application
   - Completed BTR application form
   - Copy of the issued DBPR Vacation Rental License
   - Proof of passing a fire safety inspection within the past year
   - Payment of the BTR fee (varies based on rental type and occupancy)
4. Florida Department of Revenue Certificate of Registration for Sales Tax Collection
   - Completed Form DR-1 (Florida Business Tax Application)
   - Federal Employer Identification Number (EIN) or Social Security Number (SSN)
5. Proof of Insurance Coverage
   - Certificate of general liability insurance with a minimum of $250,000-$1,000,000 coverage (depending on occupancy)
   - Hazard and casualty insurance may also be required
6. Fire Safety Inspection Report
   - Inspection completed by the Homestead Fire Department or a certified private inspector
   - Report verifying working smoke alarms, fire extinguishers, and emergency lighting
   - Maximum occupancy determination
7. Balcony Inspection Certificate (if applicable)
   - Required for multifamily rentals with balconies more than 6 feet above ground
   - Inspection report from a licensed Florida engineer or architect certifying balcony integrity
8. Copies of Existing Rental Contracts (if applicable)
   - Any current rental agreements with guests booking stays of less than 30 days

In addition to these documents required for licensing, Homestead short-term rental operators should also maintain detailed records of rental income and expenses for tax purposes. This includes:

1. Gross rental receipts (including cleaning fees and other charges)
2. Guest contact information and dates of stay
3. Records of sales tax and tourist tax collection and payment
4. Expense receipts and statements (mortgage interest, insurance, utilities, repairs, supplies, etc.)

Having organized and complete documentation is key to passing inspections, obtaining licenses, and avoiding penalties. Many Homestead hosts use property management software or hire professional managers to help streamline the administrative side of short-term rentals.

"It's a lot of paperwork and recordkeeping, but it's just part of doing business legally," said one experienced Homestead Airbnb host on the BiggerPockets forums. "Once you have your system down, it becomes routine. And it's so much better than looking over your shoulder worrying about getting caught without a license."

By diligently gathering and maintaining the required documents, Homestead short-term rental operators can set themselves up for long-term success and compliance in this growing market.

Homestead Short-Term Rental Taxes

Short-term rental owners in Homestead, Florida, need to be aware of several tax obligations at the state and local levels. Failing to properly collect and remit these taxes can result in penalties and legal issues.

At the state level, short-term rentals are subject to Florida's 6% sales tax on transient rentals. This applies to any rental agreement lasting 6 months or less, regardless of the number of times the property is rented per year. Owners must register with the Florida Department of Revenue to collect and remit this tax monthly.

In addition to the state sales tax, short-term rentals in Homestead are subject to Miami-Dade County's 6% Tourist Development Tax and 3% Convention Development Tax. Together with the state tax, this adds up to a total of 15% in transient rental taxes that must be collected from guests and paid to the proper authorities.

It's important to note that while some short-term rental platforms like Airbnb collect and remit certain taxes on behalf of hosts, the ultimate responsibility for compliance lies with the property owner. Owners should keep detailed records of rental income and tax payments.

Another key tax consideration for Homestead short-term rental owners is the potential impact on their homestead exemption. In Florida, the homestead exemption provides a property tax discount for a primary residence. However, renting out a homestead property for more than 30 days per year for two consecutive years is considered "abandonment" and can lead to the loss of the exemption.

Some Homestead short-term rental owners have reported getting audited by the county property appraiser after their properties generated significant tourist tax revenue. To avoid losing the valuable homestead exemption, owners need to carefully track and limit their rental activity.

While the various tax obligations may seem complex, most experienced Homestead Airbnb hosts see it as a cost of doing business. "You've got to pay to play," said one host on the Airbnb subreddit. "Factor the taxes into your nightly rate and make sure you're putting aside money each month to pay the tax bill. Once you get a system down, it's really not that bad."

By understanding and complying with all applicable short-term rental taxes, Homestead owners can operate their rentals legally and profitably. Consulting with a tax professional is recommended to ensure nothing slips through the cracks.

Florida Wide Short-Term Rental Rules

In addition to local regulations in cities like Homestead, short-term rental owners in Florida must also comply with several state laws and requirements. These rules are designed to create a consistent framework for vacation rentals across the Sunshine State.

One of the most important statewide regulations is the requirement for a Vacation Rental License from the Florida Department of Business and Professional Regulation (DBPR). This license is mandatory for any property that is rented for periods of less than 30 days or 1 calendar month (whichever is less) more than 3 times per year. The DBPR license helps ensure that short-term rentals meet certain safety and operational standards.

To obtain a Vacation Rental License, owners must submit a DBPR application along with supporting documents like proof of ownership, a certificate of registration for sales tax collection, liability insurance coverage, and inspection reports for fire safety and balcony integrity (if applicable). License fees range from $150-$300 depending on the property's occupancy, and licenses must be renewed annually.

In addition to the DBPR license, Florida short-term rental owners must also register with the Department of Revenue to collect and remit the statewide 6% sales tax on transient rentals. Some counties, like Miami-Dade where Homestead is located, have additional tourist development taxes that must be collected and paid locally.

Florida law also imposes some operational requirements on vacation rentals. For example, owners must provide guests with a copy of the Vacation Rental License and a link to the DBPR's vacation rental safety information page. Rentals must have working smoke alarms, fire extinguishers, and emergency lighting. Occupancy limits, as determined by the local fire marshal, must be posted and adhered to.

While Florida law does allow local governments to regulate vacation rentals to a certain extent, it prohibits them from banning short-term rentals outright. Cities and counties can establish registration programs, require inspections, and impose certain restrictions, but they cannot set minimum lengths of stay or limit the frequency or duration of rentals.

This statewide preemption has been a point of contention in some communities that want more control over short-term rentals. However, proponents argue that it protects property rights and promotes consistency for owners and guests.

Overall, Florida's statewide vacation rental regulations provide a baseline of requirements that all short-term rental owners must follow. However, it's crucial for owners to also research and comply with any additional rules in their specific city or county. By staying on top of both state and local regulations, short-term rental operators can run successful and compliant businesses in Florida's booming vacation market.

Does Homestead Strictly Enforce STR Rules?

Based on discussions among Airbnb hosts on Reddit, Bigger Pockets, and other online forums, it appears that Homestead does actively enforce its short-term rental regulations, but primarily in response to complaints rather than through proactive investigations. The city seems to prioritize cracking down on unlicensed rentals and those generating significant disturbances.

Several hosts have reported that Homestead code enforcement officers shut down illegal short-term rentals in their neighborhoods after residents filed complaints. One host shared on the Airbnb subreddit, "My neighbor was operating an unlicensed Airbnb and throwing loud parties. I reported it to the city, and they fined the owner and made them stop renting."

However, compared to some other major Florida cities like Miami Beach that have dedicated short-term rental enforcement teams, Homestead is seen as less aggressive in proactively identifying non-compliant listings. Some hosts claim to have operated without a license for extended periods without facing any consequences as long as they avoided generating complaints.

That said, Homestead city officials have made it clear they intend to uphold the short-term rental ordinance. In a statement to a local news outlet, a spokesperson said, "While our code enforcement is largely complaint-based, we absolutely investigate any suspected violations that are reported or come to our attention. Operating without the proper licensing and approvals will not be tolerated."

So, while Homestead may not be the strictest in terms of proactive enforcement compared to some cities, it does take action against problem properties when issues are reported. The risk of fines and shutdown orders is real for hosts who try to skirt the rules.

As one experienced host put it on the Bigger Pockets forums, "I wouldn't say Homestead is the most Airbnb-friendly, but I also wouldn't call it a war zone for hosts like some cities. If you dot your i's, cross your t's, and be a good neighbor, you can definitely operate a successful short-term rental business here. But you've got to play by the rules - it's just not worth the gamble of operating illegally and always looking over your shoulder for code enforcement to come knocking."

The bottom line is that many hosts do continue to operate short-term rentals in Homestead, but the smart and sustainable approach is to fully comply with the city's licensing and operational requirements. With the explosive growth of vacation rentals in the area, enforcement is only likely to get stricter over time. Hosts who make the effort to operate above-board can enjoy the incredible opportunity in this market with peace of mind.

How to Start a Short-Term Rental Business in Homestead

If you're looking to start a short-term rental business in Homestead, Florida, here are the key steps to follow:

1. Research local zoning laws and regulations for short-term rentals in Homestead. Ensure your property is zoned for short-term rental use and understand any restrictions on rental types, lengths, or guest numbers. Consult with the city's planning department if needed.
2. Obtain necessary licenses and permits, including a Vacation Rental License from the Florida Department of Business and Professional Regulation (DBPR) if renting for periods of less than 30 days. Submit required documentation, such as proof of ownership, a floor plan, liability insurance, and an affidavit of compliance with short-term rental standards.
3. Register with the Florida Department of Revenue and Miami-Dade County to collect and remit the required state sales tax (6%), county tourist development tax (6%), and county convention development tax (3%) on your short-term rental income.
4. Develop a detailed business plan that outlines your target market, pricing strategy, financial projections, marketing approach, and operational processes. Treat your short-term rental as a serious business venture.
5. Consider forming a business entity, such as an LLC or corporation, to protect your personal assets and gain tax benefits. Consult with an attorney and insurance broker to determine the best legal and insurance structure for your rental business.
6. Prepare your property for rental by ensuring it meets all safety, cleanliness, and amenity standards. Invest in quality furnishings, linens, kitchenware, and entertainment options that cater to your target guest demographics and preferences.
7. List your property on popular vacation rental platforms like Airbnb and Vrbo, as well as your own direct booking website. Create compelling listings with professional photos, detailed descriptions, and competitive rates. Implement a dynamic pricing strategy to maximize occupancy and revenue.
8. Automate and streamline your rental operations with vacation rental software for managing inquiries, reservations, guest communication, and reviews. Establish reliable cleaning, maintenance, and supply restocking processes, either in-house or through vetted service providers.
9. Launch targeted marketing campaigns to drive bookings and build brand awareness for your Homestead vacation rental. Optimize your listings for search, run paid ads, leverage social media, and encourage guest reviews and referrals.
10. Monitor your business performance and guest satisfaction levels regularly. Track key metrics like occupancy rate, average daily rate, and net operating income. Continuously gather guest feedback and make improvements to your property and services to stay competitive in the market.

By following these steps and staying compliant with all applicable laws and regulations, you can build a successful and sustainable short-term rental business in Homestead. While the process requires significant research, planning, and investment, the potential rewards of operating in this prime vacation destination make it a worthwhile venture for savvy entrepreneurs.

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

If you have questions about short-term rental regulations or zoning requirements in Homestead, there are several key contacts who can provide guidance.

For general inquiries related to short-term rental rules and business tax receipts, contact the City of Homestead's Business Services Division:

Phone: (305) 224-4504
Email: Cathy Milford at cmilford@cityofhomestead.com

The Business Services Division handles the application process for business tax receipts, which are required for all short-term rental operators in Homestead.

For more detailed questions about zoning and land use regulations that may impact short-term rentals, reach out to the City of Homestead's Planning & Zoning Division:

Phone: (305) 224-4529
Email: Jackie Maytan, Administrative Support, at jmaytan@cityofhomestead.com

The Planning & Zoning Division can help clarify which zones allow short-term rentals and any applicable restrictions or approval processes.

If you need to report a suspected unlicensed short-term rental or one that is causing disturbances, contact the City of Homestead's Code Compliance Division:

Phone: (305) 224-4570
Email: codecompliance@cityofhomestead.com

Code Compliance handles complaints related to noise, parking, and other potential short-term rental violations.

For broader questions about tourism and lodging in the Homestead area, you can also contact the Greater Homestead/Florida City Chamber of Commerce:

Phone: (305) 247-2332
Email: info@chamberinaction.com

While the Chamber may not have specific details on short-term rental regulations, they can provide helpful context on the local tourism market and business community.

By contacting these key departments and organizations in Homestead, short-term rental hosts can get the information and support they need to ensure they are operating in compliance with all applicable rules and regulations. City staff are generally helpful in guiding hosts through the licensing and zoning process.

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

Opinions on Homestead's short-term rental regulations are mixed among hosts on online forums like Reddit and Bigger Pockets. Some appreciate the city's efforts to prevent party houses and protect affordable housing. Others find the rules burdensome and overly restrictive. Here are a few examples of host perspectives:

On the Airbnb subreddit, one Homestead host shared their frustration with the city's strict occupancy limits and parking requirements. "I have a 5 bedroom house but I'm only allowed to host a maximum of 10 people and provide 1 off-street parking space per bedroom. It really limits my earning potential."

Another host in the same thread countered, saying "I actually appreciate the occupancy and parking rules. It helps prevent the mega party houses that were causing so many problems in residential neighborhoods. Yeah, it means a bit less profit but I'll take the stability and good neighbor relations."

On the Bigger Pockets forums, a Homestead host complained about the lengthy and complicated process of obtaining a short-term rental license in Miami-Dade County. "The amount of paperwork and inspections is ridiculous. It took me 4 months to get approved and cost over $1000 in fees. The city really makes you jump through hoops."

However, a different Bigger Pockets member argued that the licensing requirements are necessary to ensure safety and accountability. "Sure it's a pain, but it weeds out the bad actors. I'd rather have a level playing field where everyone is licensed and following the same rules. It protects the reputation of good hosts."

Some Homestead hosts on Reddit have expressed concerns that the city's regulations unfairly restrict property rights. In a thread on the Miami subreddit, one disgruntled host wrote "I should be able to rent my house how I want, to who I want, when I want. The government has no business telling me what I can do with my private property!"

Others pushed back on this view, arguing that short-term rentals are a commercial use that affects the surrounding community, not just the individual property owner. A commenter replied, "Your property rights don't trump my right to a peaceful residential neighborhood. STRs need reasonable regulation so a few greedy people don't ruin things for everyone."

Overall, the conversations among Homestead hosts online suggest that opinions are divided on the city's short-term rental regulations. While some find them overly burdensome, others see them as necessary to balance the interests of hosts, guests, and the wider community. As the market continues to evolve, the debate is likely to continue.

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.