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

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

The city of Leesburg, Florida has specific rules and requirements for operating short-term vacation rentals through platforms like Airbnb and VRBO. These regulations aim to mitigate potential negative impacts on residential neighborhoods.

Starting a Short-Term Rental Business in Leesburg

To legally operate a short-term rental in Leesburg, property owners must first register their property with the city's Planning and Zoning Department and obtain a Certificate of Compliance. Key requirements include:

• Paying an $800 registration fee, plus renewal fees annually
• Passing inspections for compliance with building, fire, and other codes
• Providing 24/7 contact information for the owner/property manager
• Obtaining a state vacation rental license and other required licenses/permits
• Collecting and remitting taxes like sales tax, tourist tax, and business tax

Failing to register or follow the regulations can result in fines starting at $250 per day. The steep $800 fee has drawn criticism from some who argue it makes short-term renting cost-prohibitive for occasional rental situations.

Short-Term Rental Licensing Requirement in Leesburg

To legally operate a short-term rental property in Leesburg, Florida, hosts must obtain several licenses and permits:

1. State of Florida Vacation Rental License: All vacation rental properties in Florida are required to have a state-issued license or exemption. This involves submitting an application, passing inspections, and meeting certain safety requirements.
2. Local Business Tax Receipt: Short-term rental operators in Leesburg must obtain a local business tax receipt from the city. This acts as a license to conduct business within city limits.
3. Sales Tax Registration: Hosts must register with the Florida Department of Revenue to collect and remit the 6% state sales tax on rental income.
4. Tourist Development Tax Registration: Leesburg requires vacation rentals to register and pay a 6% tourist development tax, also known as the "bed tax," to Lake County.
5. Approved Fire Inspection: An inspection report from the local fire department verifying the rental property meets all applicable fire safety codes is typically required as part of the licensing process.
6. Proof of Liability Insurance: Documentation showing adequate liability insurance coverage for the short-term rental operations may need to be provided.

Obtaining all of the necessary state and local licenses is crucial for legally operating vacation rentals in Leesburg. 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. It also allows the city to know which properties are operating as vacation rentals for oversight purposes.

Required Documents for Leesburg Short-Term Rentals

To register a short-term vacation rental property in Leesburg, Florida, owners must submit several required documents along with their completed 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.
2. An approved fire inspection report from the local fire department verifying the rental meets all applicable fire safety codes and requirements for transient public lodging.
3. Proof of obtaining required state and local licenses/permits:
   1. State of Florida vacation rental license or exemption
   2. Leesburg local business tax receipt
   3. Sales tax registration for Florida Department of Revenue
   4. Tourist development tax registration for Lake County
4. Federal tax identification number (EIN or Social Security Number) for the property owner(s).
5. A copy of the standard rental agreement or lease that will be used with guests renting the property.
6. Documentation showing adequate liability insurance coverage for the short-term rental operations.
7. Any other documents specified by the Leesburg Planning and Zoning Department, such as a floor plan, site plan, parking details, etc.

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.

Property owners should carefully review Leesburg's short-term rental regulations to understand exactly what documentation needs to be provided based on their specific rental situation. Consulting the Planning and Zoning staff is also advisable if any questions arise about meeting the documentation requirements.

Leesburg Short-Term Rental Taxes

Operating a short-term vacation rental in Leesburg, 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 6% 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 6% 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. Leesburg Local Business Tax: To operate legally, short-term rentals require obtaining a local business tax receipt from the City of Leesburg. 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 Leesburg Strictly Enforce STR Rules?

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

While some cities turn a blind eye to unregistered vacation rentals, Leesburg 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 Leesburg neighborhoods.

As a result, Leesburg is not considered a very "Airbnb-friendly" location compared to major tourist destinations like Orlando, which have embraced vacation rentals. The high costs and regulatory oversight make it challenging to profitably operate short-term rentals, especially for owners only looking to rent occasionally.

Some hosts admit to trying their luck with illegal rentals in Leesburg, but most say it's not worth the risk of getting caught and facing hefty penalties. The consensus is that investors are better off looking elsewhere in Central Florida if they want to run Airbnbs and Vrbos, as Leesburg's ordinances and active enforcement efforts make it one of the tougher markets.

So, in summary, while unlawful short-term rentals likely still occur in Leesburg 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 flying under the radar. Leesburg has a reputation as an unfriendly environment for Airbnb compared to other communities in the region that are more accommodating to vacation rentals.

How to Start a Short-Term Rental Business in Leesburg

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

1. Research the local short-term rental regulations thoroughly. Leesburg 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 Leesburg. 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 a state of Florida vacation rental license, local Leesburg business license, sales tax registration, and any other specified permits.
5. Register your short-term rental with the City of Leesburg Planning and Zoning Department. Submit a completed 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 Leesburg's occupancy limits. Decide if you will manage the property yourself or hire a property manager. Create a system for cleaning and maintenance between 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 Leesburg'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 Leesburg about Short-Term Rental Regulations and Zoning?

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

Planning and Zoning Department
Phone: 352-728-9786

Specific contacts within the department include:

1. Dan Miller - Planning Director
   Extension: 1710
   Email: dan.miller@leesburgflorida.gov
2. Kandi Harper - Deputy Planning Director
   Extension: 1723
   Email: kandi.harper@leesburgflorida.gov
3. Christine Rock - Senior Planner
   Extension: 1727
   Email: christine.rock@leesburgflorida.gov

The Planning and Zoning Department 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 Leesburg's residential areas, you can also reach out to the Planning and Zoning 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 Department can assist with any other questions or issues related to operating a legal short-term rental in Leesburg.

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

What Do Airbnb Hosts in Leesburg 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 Leesburg's short-term rental regulations:

Reddit user on r/FloridaRentals: "Leesburg is not considered a very 'Airbnb friendly' area compared to places like Orlando that have embraced vacation rentals more. The high registration fees and regulatory oversight make it tough to profitably operate short-term rentals, especially for occasional rental situations."

Bigger Pockets post: "I'm looking at potentially investing in the Leesburg/Tavares area of Lake County. Does anyone have experience operating short-term rentals there? The city seems to have pretty strict rules with inspections and an $800 registration fee."

Reddit comment on r/LakeCo: "Leesburg's short-term rental laws are a total racket. Between the steep fees, having to register and get inspected annually, and the threat of heavy fines, it's just not worth the hassle for me as a small homeowner who'd only rent out a few weeks per year on Airbnb."

Another Redditor: "Good luck finding any legal short-term rentals in Leesburg. That city seems to be cracking down hard on unlicensed Airbnbs and Vrbos based on the number of violation notices I've seen posted around neighborhoods there."

In summary, many view Leesburg as having relatively strict and costly regulations around short-term rentals compared to other Florida areas. The high registration fees in particular are seen as a major barrier by some prospective Airbnb investors. However, a few note the rules could potentially loosen if denser development is approved near public transit over local opposition.

While some hosts still try operating illegally, the consensus is that Leesburg's enforcement efforts make it a challenging market for easy short-term rental profits currently. Long-term rentals tend to be viewed as an easier investment option 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.