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

Starting a Short-Term Rental Business in Montverde

Montverde, a small town in Lake County, Florida, attracts some tourists and short-term renters due to its proximity to Orlando. Before starting a vacation rental business in Montverde, it's important to understand the local regulations.

The Town of Montverde has a Planning and Zoning Board that reviews site plans and can recommend changes to the town's Land Development Code. Contacting them would be a good first step before purchasing an investment property to use as a short-term rental.

Montverde's Code of Ordinances contains rules that likely apply to short-term rentals, such as:

• Accessory buildings must be kept in good repair at all times
• Canopies must be kept in good repair
• Specific setback requirements for accessory buildings based on their size

The town also has architectural review standards to ensure buildings are compatible with the surrounding area. Short-term rental properties would need to go through this review process.

At the county level, Lake County, where Montverde is located, levies a 4% Tourist Development Tax on short-term rental income, in addition to the 6% Florida sales tax and 1% county surtax. So in total, Montverde Airbnb hosts must collect 11% in taxes from guests.

While there aren't many discussions specifically about Montverde's short-term rental scene, some real estate investors on Bigger Pockets have noted that Lake County in general has "upside potential" for investing due to spillover growth from neighboring Orange County. However, the county does require multiple licenses and permits for vacation rentals.

Overall, while Montverde may present some opportunities, the regulatory environment for short-term rentals appears to be fairly strict. Hosts need to closely research zoning rules, building codes, permitting requirements and tax obligations before starting an Airbnb business in this small Florida town. Consulting with the local Planning and Zoning Board and tax professionals is highly advised.

Short-Term Rental Licensing Requirement in Monteverde

As of the moment, there does not appear to be specific short-term rental licensing requirements for the town of Montverde, Florida. The search results do not include any official Montverde town websites or ordinances detailing STR licensing rules.

However, short-term rentals in Montverde would still need to comply with state-level requirements in Florida, which include:

1. Obtaining a Vacation Rental License from the Florida Department of Business and Professional Regulation (DBPR) for any property rented more than 3 times per year for periods of less than 30 days. This involves submitting an online application, paying fees ranging from $150-$250, and providing details like the rental address and proof of property ownership. Not obtaining the required state license can result in fines.
2. Registering with the Florida Department of Revenue and collecting/remitting sales tax (6%) and any applicable county tourist development taxes on short-term rental income. Lake County, where Montverde is located, levies a 4% tourist development tax.
3. Adhering to any relevant county zoning restrictions on short-term rentals. While the search results do not specify STR zoning rules for Lake County, contacting the county zoning department would be advised to ensure compliance.

So, in summary, while Montverde itself does not seem to require a special city-level license for short-term rentals, property owners still need to obtain a state vacation rental license from the DBPR and register with the Florida Department of Revenue. Failure to do so can result in fines and penalties.

The licensing process through the DBPR typically takes 2-3 weeks and can be completed online. Any Lake County zoning rules would also need to be followed. Consulting with local officials is the best way for Montverde short-term rental operators to ensure they are meeting all requirements at the state, county, and city level.

Required Documents for Montverde Short-Term Rentals

Based on the information provided in the search results, there does not appear to be specific documentation requirements for short-term rentals in the town of Montverde, Florida. The search results do not include any official Montverde town websites, ordinances, or laws detailing required documents for vacation rentals.

However, at the state level, Florida does have documentation requirements for vacation rental properties. According to the Florida Department of Business and Professional Regulation (DBPR), the following items are needed to apply for a Vacation Rental License:

1. A DBPR online services account
   - Purpose: Needed to submit the online application
   - Obtained from: Set up an account at https://www.myfloridalicense.com/
2. Florida Sales Tax Number or proof of sales tax exemption
   - Purpose: Required as vacation rental income is subject to sales tax
   - Obtained from: Florida Department of Revenue, Sales Tax Division
3. Federal Employer Identification Number (FEIN)
   - Purpose: Identifies your business to the federal government
   - Obtained from: Apply online via IRS Form SS-4 or call 1-800-829-4933
4. Social Security Number or Individual Taxpayer Identification Number (ITIN)
   - Purpose: Identifies individual vacation rental operators to the government
   - Obtained from: Provide your SSN or apply to the IRS for an ITIN if not eligible for an SSN
5. Addresses of all vacation rental units being registered
   - Purpose: Informs DBPR of the locations of your rental properties
   - Obtained from: Compile a list of property addresses to submit with application
6. Completed DBPR HR-7020 Application for Vacation Rental License
   - Purpose: Gathers required applicant information for DBPR to issue a license
   - Obtained from: Access and fill out online via the DBPR website

So, while Montverde itself does not seem to require any specific documents for short-term rentals, property owners still need to submit the items above to the state of Florida to obtain their required Vacation Rental License before legally operating. Gathering these documents is an essential first step for Montverde hosts.

Montverde Short-Term Rental Taxes

Short-term rental operators in Montverde are required to collect and remit several types of taxes on their rental income:

1. Florida Sales Tax (6%): The statewide sales tax rate in Florida is 6% and applies to all short-term rental income. This tax is administered by the Florida Department of Revenue.
2. Lake County Discretionary Sales Surtax (1%): Lake County, where Montverde is located, imposes an additional 1% discretionary sales surtax on top of the state sales tax. This means the total sales tax rate in Montverde is 7%.
3. Lake County Tourist Development Tax (4%): Lake County also levies a 4% Tourist Development Tax, sometimes called a resort tax or bed tax, on short-term rental income. This tax is collected by the Lake County Tax Collector in addition to the state and county sales taxes.

So, in total, short-term rental operators in Montverde must add 11% in taxes to their rental rates - 6% for state sales tax, 1% for county surtax, and 4% for county tourist tax. For example, on a $1,000 weekly rental, the taxes would be:

1. Florida Sales Tax (6%): $60
2. Lake County Surtax (1%): $10
3. Lake County Tourist Tax (4%): $40
4. Total Taxes (11%): $110

These taxes must be collected from the renter and then remitted to the proper state and local agencies, usually on a monthly basis. Failing to collect and remit the required taxes can result in penalties and interest.

Fortunately, short-term rental operators can deduct many of their business expenses to reduce their taxable income. Some common deductible expenses include:

1. Mortgage interest
2. Property taxes
3. Rental unit utilities
4. Cleaning and maintenance costs
5. Supplies for guests
6. Advertising and platform fees
7. Property management fees
8. Depreciation on the rental property

Careful record-keeping is essential to claim these deductions. Short-term rental hosts should maintain detailed records of their rental income and expenses and consult with a qualified tax professional to ensure they are in full compliance with all applicable tax laws. By understanding the tax obligations and strategically utilizing deductions, short-term rental operators can optimize their profits while staying on the right side of state and local tax regulations.

Florida Wide Short-Term Rental Rules

In addition to local regulations in Montverde, short-term rental hosts must also comply with state-level laws and requirements. Here are some of the key Florida statutes and rules that apply to vacation rentals across the state:

Vacation Rental License

The Florida Department of Business and Professional Regulation (DBPR) requires all vacation rental owners to obtain a license for any property rented more than three times a year, for periods of less than 30 days. The initial license application fee is $150, with a $150 renewal fee required annually.

Sales and Tourist Taxes

Short-term rental operators must collect and remit the 6% state sales tax, plus any applicable local option taxes, which vary by county. Lake County, where Montverde is located, levies an additional 5% in local taxes (1% discretionary sales surtax and 4% tourist development tax). These taxes must be registered for and paid to the Florida Department of Revenue.

Property Taxes

If a property is rented for more than six months (180 days) per year, it is subject to property taxes at a higher rate of 10% of assessed value, versus the 4-6% rate for homesteaded properties. Rental activity can impact eligibility for the Homestead Exemption, which provides property tax relief for primary residences.

Homeowners Association Rules

If the rental property is located within a homeowners association (HOA) or condominium association, additional rules and restrictions may apply. Florida law allows associations to amend their governing documents to restrict short-term rentals, so it's important to review the specific HOA rules.

Sanitation and Safety

The Florida Department of Health requires vacation rentals to meet certain safety and sanitation standards, such as providing soap, clean linens, and functioning smoke detectors. Rentals must also comply with the Florida Building Code and Fire Prevention Code.

Insurance Requirements

While not legally mandated, short-term rental insurance is highly recommended to protect against property damage and liability claims from guests. Homeowners insurance typically does not cover commercial rental activity. Platforms like Airbnb provide some host protection, but comprehensive short-term rental insurance offers more robust coverage.

By understanding and adhering to these statewide short-term rental regulations, in addition to any local rules in Montverde, hosts can ensure they are operating their rental business legally and responsibly. The Florida Vacation Rental Management Association (FVRMA) is a helpful resource for staying up-to-date on regulatory changes impacting the industry across the state.

Does Montverde Strictly Enforce STR Rules?

There is limited specific information available online about how strictly Montverde itself enforces short-term rental regulations compared to other cities. The town is very small and there do not appear to be many discussions about Montverde's STR scene on forums like Bigger Pockets or Reddit.

However, some Bigger Pockets and Reddit users have commented on short-term rental enforcement in Lake County, Florida overall, where Montverde is located. The general consensus seems to be that Lake County is fairly strict about requiring permits and licenses for vacation rentals and will issue fines for non-compliance.

As one Bigger Pockets user noted about STRs in Lake County: "You better make sure you abide by occupancy rules, noise regs, etc. The county requires a rental contract, drivers license on the guest that books, and they have the right to inspect your house at any time. If any neighbor complains to the STR hotline (which Lake County has specifically for complaints), you are fined after 2 complaints. Believe me, neighbors hate STRs so you better believe they will turn you in or inquire if you have the proper permitting."

This suggests that Lake County, and likely by extension Montverde, is not particularly Airbnb-friendly compared to some other parts of Florida with looser regulations. The county seems to keep a close eye on STRs and will penalize those operating without the proper registrations.

So, in summary, while there is not a lot of Montverde-specific information available, the town's location within Lake County means that hosts likely cannot get away with operating under the radar without the required permits. Attempting to skirt the rules is risky. Montverde is probably a more challenging environment for STRs compared to other areas of Florida with less stringent enforcement. Hosts need to do their due diligence and comply with all county and state requirements to avoid issues.

How to Start a Short-Term Rental Business in Montverde

If you've decided to start a short-term rental business in Montverde, here are the key steps to follow:

1. Research zoning and regulations: Carefully review any relevant zoning codes or ordinances in Montverde and Lake County to ensure your property is eligible to operate as a STR. Contact the local planning and zoning department with any questions.
2. Obtain necessary licenses and permits: Apply for a Vacation Rental License from the Florida DBPR, which must be renewed annually. There does not appear to be any additional local licenses required specifically by Montverde, but check with town officials to confirm.
3. Register with tax agencies: Register with the Florida Department of Revenue to collect and remit the required 6% state sales tax, 1% Lake County discretionary sales surtax, and 4% Lake County tourist development tax on your rental income. Consult a tax professional for guidance.
4. Prepare the property: Ensure the rental unit is clean, safe, and well-maintained. Provide all required amenities like linens, soap, and kitchen essentials. Consider hiring a professional cleaning service between guests. Comply with any applicable safety and sanitation standards.
5. Create a detailed listing: Take high-quality photos and write an accurate, compelling description of your rental property. Highlight unique selling points and amenities. Be transparent about any quirks or limitations.
6. Set competitive rates: Research similar listings in Montverde and nearby areas to determine a competitive nightly rate for your property. Factor in your operating costs, desired profit margin, and occupancy rate goals. Consider using dynamic pricing tools to automatically adjust rates based on demand.
7. Implement a screening process: Protect your investment by thoroughly screening potential guests. Require verified IDs, positive reviews from previous hosts, and a rental agreement outlining house rules and expectations.
8. Automate your systems: Use vacation rental software like Guesty, Hostfully, or Lodgify to streamline booking, communication, cleaning, and other operational tasks. These tools can save significant time and effort.
9. Provide excellent customer service: Respond promptly and professionally to all guest inquiries, both pre-booking and during their stay. Go above and beyond to create a memorable experience that will generate 5-star reviews and repeat bookings.
10. Continuously optimize and improve: Regularly assess your listing's performance and guest feedback. Make necessary improvements to your property, pricing, and processes. Stay up-to-date on industry trends and regulatory changes in Montverde, Lake County, and Florida.

By following these steps and prioritizing compliance with all applicable short-term rental regulations, you can build a successful and sustainable vacation rental business in Montverde. While the regulatory environment may be stricter than in some other Florida communities, diligent operators can still thrive by providing an exceptional guest experience and carefully adhering to all rules. Thorough research and preparation is key.

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

If you have questions about short-term rental regulations and zoning in Montverde, here are the key contacts:

Montverde Town Hall

Address: 17404 Sixth Street, Montverde, FL 34756
Phone: (407) 469-2681
Hours: Monday to Thursday, 7:00 am to 6:00 pm, Closed Friday, Saturday & Sunday

Contact Town Hall for general questions about short-term rental rules and processes in Montverde.

Montverde Planning and Zoning Board

The Planning and Zoning Board reviews site plans and acts in an advisory role to the Town Council on zoning issues. They also serve on the Architectural Review Board.

Contact Town Hall at (407) 469-2681 for information on meeting dates and how to get in touch with board members.

While there do not appear to be any Montverde-specific online communities for short-term rental hosts, there are some general resources and groups that may be helpful:

Florida Vacation Rental Management Association (FVRMA)
Website: https://fvrma.org/

FVRMA is a trade association for vacation rental professionals in Florida. They provide educational resources, industry updates, and networking opportunities.

/r/airbnb_hosts subreddit
Link: https://www.reddit.com/r/airbnb_hosts/

This active subreddit is a place for Airbnb hosts worldwide to ask questions, share experiences, and discuss various aspects of short-term rental hosting.

Bigger Pockets Forums
Short-Term and Vacation Rental Discussions: https://www.biggerpockets.com/forums/530-short-term-and-vacation-rental-discussions

Bigger Pockets has forums dedicated to short-term and vacation rentals where investors and hosts can connect and learn from one another. The focus is often on the financial side of STRs.

Airbnb Community Center
Link: https://community.withairbnb.com/t5/Hosting/ct-p/hosting

Airbnb's official community forums have a dedicated hosting section where hosts can ask questions, search for topics, and engage in discussions with other hosts and Airbnb employees.

By reaching out to these key Montverde contacts and participating in online vacation rental communities, hosts can get answers to their questions and stay informed about the evolving short-term rental landscape. Building relationships with local officials and fellow hosts is invaluable.

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

On the Bigger Pockets forums, one member shared their experience with STR regulations in Lake County:

"Lake County has some upside potential considering the huge amount of growth in neighboring Orange County. However, the county requires 3 different licenses/permits, and you need to get a tax certificate. You also better make sure you abide by occupancy rules, noise regs, etc. The county requires a rental contract, drivers license on the guest that books, and they have the right to inspect your house at any time. If any neighbor complains to the STR hotline (which Lake County has specifically for complaints), you are fined after 2 complaints. Believe me, neighbors hate STRs so you better believe they will turn you in or inquire if you have the proper permitting."

This suggests that Lake County, and by extension Montverde, has fairly strict STR regulations and enforcement that hosts need to be very aware of.

In the /r/AirBnB subreddit, a user asked if it's legal to Airbnb without the proper permits in Florida. One reply said:

"It depends on the specific rules of the county/city you are in. In most of Florida it is not legal to do STRs without registering and getting licenses. Some counties like Miami-Dade are very strict and will fine you if caught. Others are more lax. But in general, I would not recommend trying to fly under the radar in Florida. The state has been cracking down more on STRs in recent years."

Again, this points to the importance of carefully researching and complying with all STR regulations in your specific Florida location, as there can be consequences for operating illegally.

So, while there are no Montverde-specific posts, the general consensus from STR hosts in the broader Lake County and Florida area seems to be that it's crucial to dot all your i's and cross all your t's when it comes to licensing, taxes, and other regulations. Attempting to skirt the rules is risky and ill-advised. Hosts in Montverde would be wise to heed this advice and make sure they are fully compliant with all state and local requirements.

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.