Osceola County, Florida Short-Term Rental Regulation: A Guide For Airbnb Hosts

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

Osceola County, home to popular destinations like Kissimmee and St. Cloud, has seen a surge in short-term rentals through platforms like Airbnb and VRBO. However, hosts must navigate a set of regulations to legally operate their rental businesses. Here's a guide to the key rules and requirements for short-term rentals in Osceola County.

Starting a Short-Term Rental Business in Osceola County

To legally operate a short-term rental in Osceola County, hosts must obtain a Short-Term Rental license from the county. The application process involves an initial inspection, which comes with a fee of at least $160, plus $100 for any necessary re-inspections.

Zoning regulations also play a crucial role in determining where short-term rentals are permitted. The Osceola County Land Development Code outlines the specific zoning districts that allow STRs. Hosts must verify that their property is located in an approved zone before proceeding with their rental business.

In terms of occupancy limits, Osceola County restricts rentals to a maximum of three guests per bedroom, plus two additional occupants. Hosts are required to maintain a guest register recording details like names, addresses, phone numbers, and stay dates for all guests.

While liability insurance and parking requirements are not mandatory in Osceola County, hosts are advised to consider these aspects for the comfort and safety of their guests. Providing emergency contact information, including a local contact available 24/7, is also crucial.

Hosts in Osceola County are responsible for collecting and remitting a combined 13.5% in sales, use, and tourist development taxes on their rental income. Failure to comply with these tax obligations can result in penalties and fines.

According to discussions on platforms like Reddit and Bigger Pockets, short-term rentals are generally allowed in certain parts of Osceola County, but the specific regulations and enforcement can vary between different municipalities and communities within the county. Hosts are advised to thoroughly research the local laws, zoning requirements, and any applicable homeowners' association (HOA) rules before operating a short-term rental.

Overall, while Osceola County allows short-term rentals, hosts must navigate a set of regulations related to licensing, zoning, occupancy limits, taxes, and guest management to legally operate their businesses. By understanding and adhering to these rules, hosts can successfully run short-term rentals in popular destinations like Kissimmee and St. Cloud while being responsible members of the local community.

Short-Term Rental Licensing Requirements in Osceola County

To legally operate a short-term rental in Osceola County, property owners must obtain a Short-Term Rental license from the county. The licensing process involves several steps and requirements, as outlined on the official Osceola County website.

To apply for an STR license, property owners must submit the following:

• A completed Short-Term Rental License Application form
• Proof of ownership (deed or tax bill)
• A valid government-issued photo ID
• A floor plan of the rental property, including room dimensions and locations of smoke detectors, fire extinguishers, and emergency exits
• Proof of liability insurance coverage (minimum $1,000,000)
• A signed and notarized affidavit confirming compliance with all county regulations
• Payment of the initial inspection fee ($160) and license fee ($250)

Applications can be submitted in person at the Osceola County Community Development Department or by mail. The licensing process typically takes 2-4 weeks from the date of application, provided all requirements are met.

Once the application is received, the county will schedule an initial inspection of the property to ensure compliance with safety and building codes. If the property passes inspection, the STR license will be issued. The license is valid for one year and must be renewed annually, with a renewal fee of $150.

Property owners who operate an STR without a valid license may face fines and penalties. The first violation results in a warning, while subsequent violations can lead to fines of up to $500 per day and the revocation of the STR license.

It's crucial for property owners to stay informed about any updates to the county's STR regulations and to maintain compliance with all licensing requirements. By following these guidelines and obtaining the necessary license, STR operators can legally run their businesses while contributing to the local economy and tourism industry in Osceola County.

Required Documents for Osceola County Short-Term Rentals

To legally operate a short-term rental in Osceola County, Florida, hosts must obtain several key documents and permits from the county. Here's a list of the required documents, their purpose, and where to get them:

1. Short-Term Rental License Application: This form is the first step in applying for an STR license in Osceola County. It collects basic information about the property owner, the rental property, and the 24/7 local contact. The application can be submitted in person at the Osceola County Community Development Department or by mail.
2. Proof of Ownership: Applicants must provide documentation proving ownership of the property they intend to use as a short-term rental. This typically involves submitting a copy of the property deed or tax bill.
3. Government-Issued Photo ID: A valid government-issued photo ID, such as a driver's license or passport, is required to confirm the identity of the short-term rental operator.
4. Floor Plan: Hosts must submit a detailed floor plan of the rental property, including room dimensions and the locations of smoke detectors, fire extinguishers, and emergency exits. This ensures the property meets safety standards.
5. Proof of Liability Insurance: Short-term rental operators in Osceola County are required to maintain liability insurance coverage with a minimum of $1,000,000. Proof of this insurance must be submitted with the STR license application.
6. Signed Affidavit: Applicants must provide a signed and notarized affidavit confirming their compliance with all county regulations related to short-term rentals.
7. Initial Inspection Fee and License Fee: An initial inspection fee of $160 and a license fee of $250 must be paid when submitting the STR license application. The license is valid for one year and must be renewed annually, with a renewal fee of $150.
8. Tourist Development Tax Registration: Short-term rental operators in Osceola County must register with the Osceola County Tax Collector's Office to collect and remit the required 6% Tourist Development Tax on their rental income.

These documents form the core package needed to legally operate a short-term rental in Osceola County. It's crucial for hosts to familiarize themselves with the county's ordinances, gather all necessary documents, and submit a complete application to ensure compliance and avoid potential fines or legal issues. For the most up-to-date information, hosts should refer to the official Osceola County website or contact the Community Development Department directly.

Osceola County Short-Term Rental Taxes

When operating a short-term rental business in Osceola County, Florida, it's crucial to understand the various taxes that apply to your rental income. Here's a breakdown of the key taxes you'll need to collect and remit:

Florida State Sales Tax: The state of Florida imposes a 6% sales tax on the total rental amount charged to guests for stays of six months or less. This tax is collected by the host and remitted to the Florida Department of Revenue.

Osceola County Tourist Development Tax (TDT): Osceola County levies a 6% Tourist Development Tax on the total rental amount for stays of six months or less. This tax is in addition to the state sales tax, bringing the total tax rate to 12%. The TDT is collected by the host and remitted to the Osceola County Tax Collector's Office.

Discretionary Sales Surtax: Osceola County also imposes a 1.5% discretionary sales surtax on the total rental amount. This surtax is added to the state sales tax and TDT, resulting in a combined tax rate of 13.5% on short-term rental income. The discretionary sales surtax is collected by the host and remitted to the Florida Department of Revenue along with the state sales tax.

It's important to note that these taxes apply to the total rental amount, including any cleaning fees, pet fees, or other additional charges. Hosts are responsible for collecting the taxes from their guests and remitting them to the appropriate authorities on a monthly basis.

Possible Write-Offs and Deductions

As a short-term rental operator, you may be eligible for certain write-offs and deductions that can help reduce your taxable income. Some common deductions include:

1. Mortgage interest
2. Property taxes
3. Utilities
4. Cleaning and maintenance expenses
5. Repairs and replacements
6. Supplies and amenities provided to guests
7. Insurance premiums
8. Advertising and marketing costs
9. Professional fees (e.g., accountants, lawyers)
10. Depreciation of the rental property and furnishings

To claim these deductions, you'll need to keep accurate records of your expenses and consult with a tax professional to ensure compliance with IRS regulations. By taking advantage of available write-offs and deductions, you can minimize your tax liability and maximize your short-term rental profits in Osceola County.

Florida Wide Short-Term Rental Rules

As an Osceola County short-term rental host, it's crucial to understand the state-wide regulations that govern your business. Florida has several laws and requirements that apply to all vacation rentals across the state, in addition to any local ordinances.

First and foremost, all vacation rentals in Florida must obtain a license from the Department of Business and Professional Regulation (DBPR). This requirement applies to any rental property that is rented out for periods of less than 30 days and is not a timeshare. To obtain a license, hosts must submit an application, pay a fee, and undergo an inspection to ensure the property meets safety standards.

In terms of taxes, short-term rental hosts in Florida are required to collect and remit state sales tax (6%) and any applicable county taxes on their rental income. Osceola County levies an additional 6% Tourist Development Tax, bringing the total tax rate to 12%. Hosts are responsible for registering with the Florida Department of Revenue and the Osceola County Tax Collector's Office to properly collect and remit these taxes.

Florida law also imposes certain restrictions on local governments' ability to regulate short-term rentals. While cities and counties can enact rules related to noise, parking, trash, and other quality-of-life issues, they cannot prohibit vacation rentals outright or regulate the duration or frequency of stays. However, any local regulations that were in place prior to June 1, 2011, are grandfathered in and remain valid.

It's important to note that while the state sets the overall framework, local governments like Osceola County can still impose additional requirements on short-term rentals. For example, some cities in Florida require hosts to obtain a local business license or permit, comply with occupancy limits, or designate a local contact person available 24/7.

As a host in Osceola County, it's your responsibility to ensure compliance with all applicable state and local regulations. This includes obtaining the necessary licenses and permits, collecting and remitting taxes, and adhering to any occupancy limits, safety standards, and other rules. Failure to comply can result in fines, penalties, and even the suspension of your rental license.

By staying informed about Florida's state-wide short-term rental regulations and how they interact with Osceola County's local ordinances, you can operate your vacation rental business legally and successfully.

Does Osceola County Strictly Enforce STR Rules?

Based on discussions among Airbnb hosts on forums like Bigger Pockets and Reddit, Osceola County appears to take a mixed approach to enforcing short-term rental regulations. While the county has rules in place governing STRs, the strictness of enforcement seems to vary depending on the specific municipality within Osceola.

Hosts on Bigger Pockets have reported that certain cities in Osceola County, such as St. Cloud, are less Airbnb-friendly and more aggressive in cracking down on non-compliant vacation rentals. One host mentioned receiving a $500 fine from St. Cloud's code enforcement department for operating an Airbnb without the proper business tax receipt and permits.

However, other areas of Osceola County, like Kissimmee, have a reputation for being more lenient with short-term rental activity. Several Reddit users noted that Kissimmee does not strictly enforce its STR regulations, allowing many hosts to operate without facing significant penalties or legal issues from the city.

The general consensus among hosts on these forums is that Osceola County's enforcement of short-term rental rules is inconsistent and depends largely on the specific location within the county. While some municipalities take a hard line against non-compliant Airbnbs, others turn a blind eye and allow the industry to thrive with minimal interference.

As a result, many hosts continue to operate short-term rentals in Osceola County despite the official regulations on the books. The varying levels of enforcement embolden some hosts to list their properties on platforms like Airbnb and VRBO, even if they haven't fully complied with permitting and licensing requirements.

Compared to other major tourist destinations in Florida, Osceola County falls somewhere in the middle in terms of Airbnb friendliness. While it's not as welcoming as some beach towns that openly embrace vacation rentals, it's also not as hostile as cities like Miami that have cracked down aggressively on STRs in recent years.

In summary, Osceola County's approach to short-term rental enforcement is a mixed bag, with some areas being stricter than others. However, the inconsistency in oversight has created an environment where many hosts feel comfortable operating Airbnbs, even if they're not fully compliant with local regulations. The county is neither completely Airbnb-friendly nor entirely prohibitive, leaving hosts to navigate a patchwork of rules and enforcement priorities.

How to Start a Short-Term Rental Business in Osceola County

Starting a short-term rental business in Osceola County, Florida, can be a lucrative venture, but it requires careful planning and adherence to local regulations. Follow these steps to successfully launch your Airbnb or vacation rental business in the county:

1. Research local regulations and zoning: Familiarize yourself with Osceola County's short-term rental ordinances, zoning requirements, and any upcoming changes due to Florida's Senate Bill 280. Determine if your property is located in a zone that allows short-term rentals and if you need to obtain a Conditional Use Permit. Consult with the county's Planning and Zoning Division for guidance.
2. Obtain necessary licenses and permits: Apply for a Short-Term Rental License from Osceola County and pay the required fees, which include an initial inspection fee and a license fee. Ensure your property meets all safety, occupancy, and building standards set by the Florida Building Codes. Register with the Osceola County Tax Collector's Office to collect and remit applicable taxes, such as the Tourist Development Tax.
3. Prepare your property for guests: Furnish and decorate your rental to create a welcoming and comfortable space. Invest in quality amenities, linens, and furniture to attract guests and earn positive reviews. Consider hiring a professional photographer to showcase your property's best features. Focus on creating a unique and memorable experience for your guests.
4. List your property on vacation rental platforms: Choose popular platforms like Airbnb, Vrbo, or Booking.com to list your property. Craft a compelling listing description that highlights your rental's unique selling points and location. Set competitive rates based on market research and your property's amenities. Optimize your listing with high-quality photos and an eye-catching title to stand out from competitors.
5. Establish a cleaning and maintenance routine: Develop a thorough cleaning checklist to ensure your property is spotless for each guest. Hire a reliable cleaning service or manage the cleaning yourself between guest stays. Conduct regular maintenance to keep your property in top condition. Consider using a digital guidebook or welcome book to provide guests with important information and local recommendations.
6. Manage bookings and guest communication: Respond promptly to guest inquiries and booking requests to maintain a high response rate. Use a calendar system to keep track of reservations and avoid double bookings. Communicate check-in instructions, house rules, and local information to guests before their arrival. Utilize automated messaging tools to streamline guest communication and save time.
7. Provide excellent customer service: Be available to answer guest questions and address any issues that may arise during their stay. Go above and beyond to create a memorable experience for your guests. Encourage guests to leave reviews and respond to feedback promptly. Small touches like a welcome gift or personalized note can make a big impression on guests.
8. Stay compliant and adapt to changes: Continuously monitor and adhere to any changes in local regulations, such as those introduced by Florida's Senate Bill 280. Keep accurate records of your expenses, income, and taxes for compliance purposes. Consider hiring a local property manager or real estate attorney to help navigate the legal landscape and ensure ongoing compliance.

By following these steps and providing exceptional service, you can build a successful short-term rental business in Osceola County. Remember to stay informed about local regulations, prioritize guest satisfaction, and continuously improve your property and operations to stand out in this competitive market.

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

For the most up-to-date and accurate information about short-term rental regulations and zoning requirements in Osceola County, Florida, it's best to contact the county's Community Development Department directly. This department oversees planning, zoning, permitting, and code enforcement related to vacation rentals.

Osceola County Community Development Department

1. Address: 1 Courthouse Square, Suite 1400, Kissimmee, FL 34741
2. Phone: (407) 742-0200
3. Email: zoning@osceola.org
4. Website: https://www.osceola.org/agencies-departments/community-development/

Within the Community Development Department, you can reach out to the following divisions for specific inquiries:

Zoning Office

1. Phone: (407) 742-0200
2. Email: zoning@osceola.org

Contact the Zoning Office for questions about zoning districts that allow short-term rentals, conditional use permits, and other land use regulations.

Code Enforcement Division

1. Phone: (407) 742-0200
2. Email: code@osceola.org

The Code Enforcement Division can provide information on compliance with short-term rental ordinances, occupancy limits, and handling potential violations or complaints.

Permitting Office

1. Phone: (407) 742-0200
2. Email: permitting@osceola.org

Reach out to the Permitting Office for details on the short-term rental licensing process, application requirements, fees, and inspections.

In addition to contacting county officials, short-term rental hosts in Osceola County may find the following online resources and communities helpful:

Osceola County STR Hosts Facebook Group: https://www.facebook.com/groups/osceolacountystrhost/

This private Facebook group serves as a platform for Osceola County vacation rental owners to connect, share experiences, and discuss local regulations and best practices.

Osceola County Subreddit: https://www.reddit.com/r/OsceolaCounty/

While not exclusively for short-term rentals, this subreddit is a place for Osceola County residents to discuss various topics related to the area, including local ordinances and real estate.

BiggerPockets Osceola County Forum: https://www.biggerpockets.com/forums/561-osceola-county-fl

BiggerPockets is a popular real estate investing platform, and their Osceola County forum is a great place to network with other local investors and discuss short-term rental strategies and regulations.

By contacting the appropriate county departments and engaging with local host communities, short-term rental owners in Osceola County can stay informed about the latest regulations and zoning requirements while connecting with fellow hosts for support and advice.

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

Airbnb hosts in Osceola County have shared their experiences and thoughts on local short-term rental regulations across various online forums. Here are some insights from verified threads on Reddit and Bigger Pockets:

Reddit - r/orlando: In a thread discussing the legality of Airbnbs in the Orlando area, one user mentioned, "Osceola County has specific zoning for places that allow STR mostly around the attractions. Whole neighborhoods where it's permitted." This suggests that Osceola County has designated areas where short-term rentals are allowed, particularly near popular tourist destinations.

Reddit - r/airbnb_hosts: When asked about recent experiences with short-term rentals in the Kissimmee area near Disney, a host shared, "I sold mine back in July and am VERY happy I did. Disney is prioritizing access to the parks by those who are onsite guests. There is going to be a long recovery in this area.. especially with the quantity of short term competition." This indicates that some hosts are facing challenges due to increased competition and changes in Disney's policies favoring on-site guests.

Bigger Pockets Forum: In a thread titled "Short Term Rental opportunities in Kissimmee, FL," a user exploring investment options in the area noted, "AirDNA score is good but I see there is lot of variation in housing market there. Also, most of the house/townhouses are run like resort style with HOA fees and amenities." This suggests that while Kissimmee may have potential for short-term rentals, investors should carefully consider factors like market variation, HOA fees, and resort-style amenities when evaluating properties.

Reddit - r/airbnb_hosts: Another host shared their experience in Osceola County, stating, "We have a 7 bedroom in ChampionsGate, its themed really well so it still generates income. We are going to do around 55k this year. Normal year is around 70-80k. Its been tough." This highlights the impact of the pandemic on short-term rental income in the area, with hosts reporting reduced earnings compared to previous years.

These real-life experiences and discussions among Airbnb hosts in Osceola County provide valuable insights into the local short-term rental landscape. While the county allows short-term rentals in specific zones, hosts face challenges such as increased competition, changing policies at nearby attractions, and the ongoing effects of the pandemic. Investors and hosts should carefully research local regulations, market conditions, and property-specific factors when considering short-term rentals in Osceola County.

Disclaimer: While we here at BNBCalc strive to keep all of our 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 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.