Palmetto Bay Short-Term Rental Regulation: A Guide For Airbnb Hosts

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

Short-term rentals through platforms like Airbnb and Vrbo have become increasingly popular in Palmetto Bay in recent years. However, the village has enacted several ordinances to regulate vacation rentals and address issues like noise, parking, and safety that have frustrated some residents.

Starting a Short-Term Rental Business in Palmetto Bay

To legally operate a short-term rental in Palmetto Bay, property owners must obtain a Certificate of Use from the village. The application process involves:

• Completing the Certificate of Use application and paying the $167 non-refundable processing fee
• Passing a village inspection to confirm compliance with building, fire, and accessibility codes
• Providing required documents like proof of principal residence, parking plan, floor plans, and insurance
• Paying the annual Certificate of Use fee once approved

Vacation rentals are restricted to certain residential zoning districts and must meet specific standards outlined in Ordinance 2020-12. Key requirements include:

1. The property must be the host's primary residence where they live for more than 6 months per year
2. Rentals are limited to a maximum of 5 unrelated people
3. At least 1 off-street parking space must be provided per bedroom rented
4. Rentals cannot exceed 2 guests per bedroom plus 2 additional guests, up to a maximum of 12 people
5. The Certificate of Use and maximum occupancy must be posted inside the unit

Failure to comply with the village's short-term rental regulations can result in fines starting at $250 for the first offense, $500 for the second offense, and suspension of the Certificate of Use for a third violation.

In addition to Palmetto Bay's rules, short-term rental hosts must also register with the Florida Department of Revenue to collect and remit sales and tourist development taxes. Properties rented for less than 6 months must also obtain a license from the Florida Department of Business and Professional Regulation (DBPR) and comply with state lodging standards.

While Palmetto Bay has taken steps to crack down on problematic "party houses," village officials acknowledge that a full ban on short-term rentals is unlikely due to state laws limiting local government restrictions. However, increased regulation and enforcement aim to strike a balance between allowing responsible home-sharing and protecting quality of life for residents.

Prospective short-term rental operators should carefully review Palmetto Bay's ordinances and consult with village staff to ensure they can meet all requirements before investing in a vacation rental property. Staying compliant and being a good neighbor will be key to running a successful short-term rental business in this family-oriented Miami suburb.

Short-Term Rental Licensing Requirement in Palmetto Bay

The Village of Palmetto Bay requires all short-term rental operators to obtain a Certificate of Use (CU) from the Planning & Zoning Division. Here are the key requirements based on information from the official village website:

1. Short-term rentals are defined as any dwelling unit rented in whole or part to a transient occupant for less than 30 days.
2. The property must be the host's primary residence, where they live for more than 6 months per year.
3. Rentals are limited to a maximum occupancy of 2 guests per bedroom plus 2 additional guests, up to 12 people total, excluding children under 3.
4. At least 1 off-street parking space must be provided per bedroom rented.

To apply for a short-term rental Certificate of Use, hosts must submit the following to the Planning & Zoning Division:

1. Completed Certificate of Use Application form
2. Proof of primary residence (government ID and utility bill/property tax bill)
3. Parking plan sketch showing required off-street parking
4. Floor plans showing room dimensions and occupancy
5. Proof of general liability insurance coverage for rental use
6. State vacation rental license from the Florida DBPR
7. If a tenant, a notarized letter from the property owner consenting to rental use
8. $167 non-refundable application processing fee payable by check or money order

Applications can be submitted in person at Village Hall (9705 E Hibiscus St) or emailed to jvillegas@palmettobay-fl.gov.

Once an application is submitted, the Planning & Zoning Division will assign it a process number and schedule an inspection of the property to confirm compliance with building, fire, and accessibility codes. Inspections are conducted on Mondays, Tuesdays, and Fridays only. The property must pass inspection before a Certificate of Use can be issued.

The total Certificate of Use fee is $136.17, consisting of a $89.97 inspection fee plus a $9.50 surcharge and the $36.70 CU fee itself. Payment is due once the application is approved. The Certificate of Use is valid for one year and must be renewed annually for the same fee.

The licensing process typically takes 2-3 weeks from receipt of a complete application, assuming no issues arise during the inspection.

Operating a short-term rental without a valid Certificate of Use is a code violation subject to the following fines:

1. $250 for the first offense
2. $500 for the second offense
3. Suspension of the Certificate of Use for the third offense

With both village and state authorities stepping up enforcement, unlicensed short-term rental operators could face additional penalties beyond these fines.

It's crucial for short-term rental hosts in Palmetto Bay to carefully review the licensing requirements and ensure they obtain a valid Certificate of Use before listing their property. Consulting with the Planning & Zoning Division for any questions about the process can help prevent costly violations. Staying compliant will be essential to running a successful rental business in this family-oriented Miami suburb.

Required Documents for Palmetto Bay Short-Term Rentals

When applying for a short-term rental Certificate of Use in Palmetto Bay, hosts must submit the following documents along with their completed application form:

1. Proof of Primary Residence: Two documents proving the short-term rental property is the host's primary residence where they live for more than 6 months per year. One must be a government-issued photo ID (driver's license, passport, etc.). The second can be a recent utility bill, property tax assessment, or other official mail showing the host's name and address. This confirms compliance with the village's primary residence requirement for short-term rentals.
2. Parking Plan: A sketch or site plan showing the location and dimensions of the required off-street parking spaces (1 space per bedroom rented). This demonstrates adherence to the village's parking provisions for short-term rentals to minimize street congestion.
3. Floor Plans: Scaled floor plans of the short-term rental unit clearly showing the dimensions and layout of all bedrooms, bathrooms, kitchen, living spaces and exits. The plans should label the rental areas, indicate the maximum occupancy per bedroom and for the total unit, and confirm compliance with village occupancy limits.
4. Proof of Insurance: Documentation from the host's homeowners or landlord insurance provider confirming the policy covers short-term rental use and provides adequate liability coverage. Some insurers may require purchasing an additional endorsement or rider specifically for home-sharing.
5. State Vacation Rental License: A copy of the host's vacation rental license from the Florida Department of Business and Professional Regulation (DBPR). This state-level license is required for any property rented for periods of less than 30 days more than three times per year. It ensures the rental meets state lodging standards for safety, sanitation, and amenities. Hosts can apply for the license online through the DBPR website.
6. Property Owner Consent (if applicable): If the short-term rental host is a tenant rather than the property owner, they must provide a notarized letter from the owner expressly consenting to the short-term rental use. This confirms the host has the legal right to rent out the property.

Incomplete applications missing any of these required documents will not be processed. The Planning & Zoning Division can assist with any questions about the documentation requirements to ensure hosts have a complete application package before submitting.

It's important for short-term rental operators in Palmetto Bay to carefully review both the village's Certificate of Use requirements and the state-level vacation rental regulations to ensure they have all the necessary paperwork in order. Staying organized and keeping detailed records will help hosts navigate the regulatory landscape and run successful, compliant short-term rentals in this tranquil Miami suburb.

Palmetto Bay Short-Term Rental Taxes

Short-term rental hosts in Palmetto Bay are required to collect and remit several types of taxes on their rental income, including state sales tax, county tourist taxes, and potentially federal income tax. Understanding and complying with these tax obligations is essential for running a legal and profitable short-term rental business.

Florida Sales Tax

The state of Florida imposes a 6% sales tax on the total rental amount, including any cleaning fees or other non-refundable charges, for stays of six months or less. Hosts must register with the Florida Department of Revenue to collect and remit this tax monthly.

Miami-Dade County Tourist Taxes

In addition to the state sales tax, short-term rentals in Palmetto Bay are subject to two county-level tourist taxes totaling 6%:

1. A 3% Convention Development Tax on rentals of six months or less
2. A 3% Tourist Development Tax on rentals of six months or less

Hosts must register with the Miami-Dade Tax Collector's Office to collect and remit these taxes monthly. The taxes are calculated on the total rental amount, excluding any tax-exempt charges like refundable security deposits.

Federal Income Tax

Rental income earned from short-term rentals is generally taxable and must be reported on the host's federal income tax return. The amount of tax owed depends on the host's total taxable income and filing status.

However, there is a special rule that allows hosts to avoid paying income tax on their rental income if both of the following conditions are met:

1. The property is rented for 14 days or less during the year, AND
2. The host uses the property for personal purposes for more than the greater of 14 days or 10% of the total days it is rented to others

If these "14-day rule" conditions are not met, hosts must report their rental income and can deduct eligible expenses to offset their taxable income.

Possible Tax Deductions

While short-term rentals generate taxable income, hosts can claim many deductions to reduce their tax liability. Some common deductible expenses include:

1. Mortgage interest
2. Property taxes
3. Insurance
4. Utilities
5. Cleaning and maintenance costs
6. Repairs and supplies
7. Advertising and platform service fees
8. Depreciation on the rental property and furnishings

Hosts who use a portion of their primary residence for short-term rentals may also be able to claim a percentage of their home expenses like mortgage interest, property taxes, insurance, utilities and maintenance.

It's important to keep detailed records and receipts for all rental income and expenses to support tax deductions. Consulting with a tax professional is recommended to ensure compliance and maximize write-offs.

By understanding and staying on top of their tax obligations, short-term rental hosts in Palmetto Bay can avoid penalties and keep more of their rental profits. With proper planning and professional guidance, taxes can be managed effectively in this desirable Miami suburb.

Florida Wide Short-Term Rental Rules

In addition to local regulations set by the Village of Palmetto Bay, short-term rental hosts must also comply with state-level rules governing vacation rentals across Florida. These state laws work in tandem with municipal ordinances to create a comprehensive regulatory framework for the short-term rental industry.

The primary state-level requirements impacting Palmetto Bay hosts include:

• Vacation Rental License: Properties rented for periods of less than 30 days more than three times per year must obtain a Vacation Rental License from the Florida Department of Business and Professional Regulation (DBPR). This license ensures the property meets state safety, sanitation, and operational standards. Hosts can apply for the license online through the DBPR website.
• Sales and Tourist Development Taxes: Short-term rental hosts are required to collect and remit the 6% Florida Transient Rental Tax on all rental income. Palmetto Bay is located in Miami-Dade County, which also levies a 6% Tourist Development Tax on short-term rentals. Hosts must register with the Florida Department of Revenue and the Miami-Dade Tax Collector to collect and pay these taxes monthly.
• Property Safety and Cleanliness Standards: The DBPR has established minimum safety and sanitation requirements for vacation rentals, including fire safety equipment, proper ventilation, clean and safe pools, and adequate waste collection. Properties are subject to inspection by the DBPR to ensure ongoing compliance.
• Occupancy Limits: While the state does not impose a universal occupancy limit, it does require vacation rental listings to clearly state the maximum occupancy allowed. Occupancy limits are typically determined by local zoning and building codes, like Palmetto Bay's restriction of two guests per bedroom plus two additional guests per property.
• Advertising and Booking Platform Requirements: Online short-term rental platforms like Airbnb and Vrbo are required to collect and remit state and local taxes on behalf of their hosts. Platforms must also remove listings that fail to display a valid DBPR Vacation Rental License number or local registration number, if required by the municipality.

In 2024, the Florida Legislature passed Senate Bill 280, which aimed to standardize vacation rental regulations across the state and give local governments more control over short-term rentals in their communities. Key provisions included requiring a statewide host registry, allowing local governments to mandate inspections and charge additional fees, and authorizing the state to suspend or revoke vacation rental licenses for repeated violations.

However, the bill faced significant pushback from vacation rental advocates and some local officials who felt it infringed on property rights and created excessive red tape. As of June 2024, the bill is still awaiting Governor DeSantis' signature to become law. If enacted, it would introduce additional requirements for Palmetto Bay hosts to navigate.

The complex interplay between state and local vacation rental rules underscores the importance for Palmetto Bay hosts to thoroughly research and stay current on both sets of regulations. Consulting with the Village of Palmetto Bay, the DBPR, and tax professionals can help hosts ensure they are in full compliance and avoid costly penalties. As the regulatory landscape continues to evolve, adaptability and proactive compliance will be key to running successful and sustainable short-term rentals in this desirable Miami suburb.

Does Palmetto Bay Strictly Enforce STR Rules?

Based on discussions in online forums like Reddit and Bigger Pockets, Palmetto Bay appears to be taking a stricter approach to enforcing short-term rental regulations compared to some other South Florida cities. The village has enacted several ordinances in recent years to crack down on problematic "party houses" and ensure vacation rentals don't disrupt the quiet residential character of local neighborhoods.

Palmetto Bay's short-term rental rules, including the primary residence requirement, occupancy limits, and parking provisions, are more restrictive than state standards. The village also requires all vacation rental operators to obtain a Certificate of Use and pass a safety inspection, going beyond the state-mandated licensing process.

While some hosts report getting away with occasional short-term rentals under the radar, the general consensus is that Palmetto Bay is not particularly Airbnb-friendly. The village has a dedicated code compliance department that proactively monitors short-term rental listings and investigates complaints from residents. Violators can face fines of $250 to $500 per day, with repeated offenses leading to suspension of their rental license.

This strict enforcement stance contrasts with the more hands-off approach taken by some larger cities like Miami Beach, which has thousands of vacation rentals operating in a legal gray area. While Miami Beach technically bans short-term rentals in most residential areas, enforcement has been inconsistent and sporadic, allowing many non-compliant listings to proliferate.

Palmetto Bay's crackdown on unauthorized short-term rentals mirrors efforts by other small South Florida communities like Bal Harbour and Surfside to preserve their residential character. These villages have adopted similar ordinances restricting vacation rentals to primary residences and stepping up enforcement against violators.

However, Palmetto Bay officials acknowledge that completely eliminating short-term rentals is unlikely, given the high demand for home-sharing in the Miami area. The village's goal is not to ban vacation rentals outright but rather to ensure they are operated responsibly and don't become a nuisance for permanent residents.

The bottom line is that while Palmetto Bay may not be the most Airbnb-friendly destination, the village is not an outright hostile environment for short-term rentals. Hosts who carefully follow the rules, obtain proper licensing, and are respectful of their neighbors can still operate successful vacation rentals in this tranquil suburb.

However, those looking to skirt the regulations or run party houses will face an uphill battle against Palmetto Bay's strict enforcement regime. The village has made it clear that protecting the quality of life for residents is a top priority, and it will not hesitate to drop the hammer on bad actors in the short-term rental space.

So, while it may be possible to fly under the radar in the short term, hosts looking for long-term success in Palmetto Bay's vacation rental market will need to play by the rules. The era of unregulated Airbnbs disrupting residential neighborhoods appears to be coming to an end as more small cities like Palmetto Bay take a firm stand.

How to Start a Short-Term Rental Business in Palmetto Bay

Starting a successful and compliant short-term rental business in Palmetto Bay requires careful planning and attention to detail. Here are the key steps to follow:

• Confirm your property is eligible: Review Palmetto Bay's short-term rental ordinance and zoning code to verify your property qualifies. Vacation rentals are only allowed in certain residential districts and must be the host's primary residence. Rentals are limited to a maximum of 5 unrelated people and must provide 1 off-street parking space per bedroom.
• Obtain required licenses and permits: Apply for a Certificate of Use (CU) from the Palmetto Bay Planning & Zoning Division. You will need to submit proof of primary residence, a parking plan, floor plans, proof of insurance, and a state vacation rental license and pay the $167 application fee plus the $136.17 CU fee. If you are a tenant, you will also need written consent from the property owner.
• Prepare your space for guests: Ensure your short-term rental is safe, comfortable, and well-equipped for guests. Make any necessary repairs or upgrades to meet village safety standards. Consider hiring a professional photographer to showcase your space in its best light for online listings.
• Create an enticing listing: Sign up for popular short-term rental platforms like Airbnb and Vrbo and craft a compelling listing that highlights your rental's unique features and amenities. Use an eye-catching title, write a detailed description, and include high-quality photos. Be upfront about any quirks or limitations to manage guest expectations. Prominently display your Palmetto Bay CU number and state vacation rental license number on your listing to comply with regulations.
• Set competitive rates: Research similar short-term rentals in Palmetto Bay and nearby areas to determine a competitive nightly rate. Consider using dynamic pricing tools that automatically adjust rates based on demand and seasonality. Factor in additional costs like cleaning fees, taxes, and platform service fees when setting prices to ensure profitability.
• Establish clear house rules and policies: Create a comprehensive set of house rules and rental policies covering important topics like check-in/out times, maximum occupancy, parking instructions, noise restrictions, pet policies, and cancellation terms. Communicate these rules clearly in your listing and consider having guests sign a rental agreement.
• Develop a robust cleaning and maintenance plan: Create a detailed cleaning checklist and hire a reliable cleaning service to thoroughly turn over your rental between guests. Schedule regular deep cleans and preventative maintenance to keep your space in top condition. Consider using a property management platform to automate cleaning and maintenance scheduling.
• Deliver exceptional hospitality: Respond promptly and professionally to all guest inquiries and messages. Provide clear check-in instructions and consider creating a digital guidebook with local recommendations. Go above and beyond with small touches like a welcome basket or handwritten note to make guests feel at home.
• Stay compliant and keep accurate records: Regularly review local and state short-term rental regulations to ensure ongoing compliance. Keep meticulous records of all rental income and expenses to facilitate proper tax reporting and license renewals. Consider working with a specialized accountant or bookkeeper to ensure you are following all tax laws and maximizing deductions.

By following these steps and prioritizing regulatory compliance and guest satisfaction, Palmetto Bay hosts can build a thriving and sustainable short-term rental business. While the village's rules are stricter than some other cities, there are still opportunities for responsible hosts who are willing to play by the book.

The key is to do your due diligence, obtain all necessary licenses and permits, and be a good neighbor. By showcasing the best of Palmetto Bay's small-town charm and tranquil atmosphere, you can attract guests seeking a peaceful and authentic South Florida experience away from the hustle and bustle of Miami.

With careful planning, attention to detail, and a commitment to excellence, short-term rental operators can find success in Palmetto Bay's growing home-sharing economy. As the regulatory landscape continues to evolve, staying informed and adaptable will be crucial to navigating the challenges and opportunities ahead.

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

If you have questions or need assistance with short-term rental regulations and zoning in Palmetto Bay, there are several key contacts and resources available:

Village of Palmetto Bay Planning & Zoning Division: The Planning & Zoning Division is responsible for administering the village's short-term rental ordinance, issuing Certificates of Use (CUs), and conducting inspections to ensure compliance with building and fire codes. They can provide information on the CU application process, zoning requirements, and allowed uses.

Village of Palmetto Bay Planning & Zoning Division
9705 E. Hibiscus Street
Palmetto Bay, FL 33157
Phone: (305) 259-1234
Email: planning@palmettobay-fl.gov

Village of Palmetto Bay Code Compliance Department: The Code Compliance Department investigates complaints and enforces the village's short-term rental regulations, noise ordinance, and parking rules. You can contact them to report a suspected illegal vacation rental or ask questions about enforcement.

Village of Palmetto Bay Code Compliance Department
9705 E. Hibiscus Street
Palmetto Bay, FL 33157
Phone: (305) 259-1234
Email: codecompliance@palmettobay-fl.gov

Florida Department of Business and Professional Regulation (DBPR): The DBPR regulates vacation rentals across the state of Florida. They issue state vacation rental licenses, conduct inspections, and enforce compliance with state lodging standards. Hosts can contact the DBPR with questions about state licensing requirements and regulations.

Florida DBPR Division of Hotels and Restaurants
2601 Blair Stone Road
Tallahassee, FL 32399
Phone: (850) 487-1395
Email: dhr.info@myfloridalicense.com

Miami-Dade County Tax Collector: The Miami-Dade County Tax Collector is responsible for collecting and administering the county's Convention Development Tax and Tourist Development Tax on short-term rentals. Hosts can contact their office for information on registering to collect and remit these taxes.

Miami-Dade County Tax Collector
200 NW 2nd Avenue
Miami, FL 33128
Phone: (305) 270-4916
Email: tourist@miamidade.gov

In addition to these official contacts, there are several online resources and forums where short-term rental hosts can connect with each other and share information:

• Palmetto Bay Short-Term Rental Alliance: A local industry group for vacation rental owners and managers in Palmetto Bay. They provide education, advocacy, and networking opportunities for members.
• Miami-Dade Vacation Rental Managers Association: The countywide trade association for vacation rental managers and owners in Miami-Dade. They offer legal and regulatory guidance, educational resources, and lobbying support for the industry.
• Airbnb Community Center: Airbnb's official forum for hosts to connect with each other and get support from Airbnb staff.
• Vrbo Community Forum: Vrbo's official forum for vacation rental owners and managers to share tips, ask questions, and discuss industry trends.

By reaching out to these contacts and engaging with the short-term rental community, hosts in Palmetto Bay can stay informed about evolving regulations and access the resources they need to run successful and compliant vacation rentals. With the regulatory landscape becoming more complex, proactive communication and education will be essential for navigating the challenges and opportunities ahead.

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

Several threads on Reddit and Bigger Pockets offer insights into how residents and visitors perceive Palmetto Bay as a place to live and vacation. Here are a few notable examples:

"Hidden gems in South Florida?" (Reddit r/florida): Locals share their favorite lesser-known spots and activities in South Florida, including a few in Palmetto Bay. Recommendations include the Deering Estate, a historic property with nature trails and educational programs, and the Thalatta Estate Park, a scenic waterfront park with a pier and kayak launch. The Palmetto Bay Village Center, with its farmers market and free community events, is also mentioned as a local highlight.

"Investing in Miami-Dade vacation rentals" (Bigger Pockets Forums): An investor asks for advice on purchasing a vacation rental property in the Miami area. While Palmetto Bay is not specifically mentioned, several respondents caution against investing in short-term rentals in residential neighborhoods due to increasing regulations and pushback from homeowners. They suggest focusing on areas with more permissive zoning and a history of vacation rental activity, like Brickell, Coconut Grove, and Miami Beach.

Based on these discussions, Palmetto Bay appears to be a desirable place to live for families and those seeking a quieter, more suburban lifestyle within the Miami metro area. The village's safety, strong schools, and community amenities are consistently cited as major draws for residents.

However, the picture is more mixed for short-term rental operators. While Palmetto Bay's location near popular attractions like the Everglades and Florida Keys could make it an appealing home base for tourists, the village's restrictive vacation rental regulations and enforcement efforts may limit the potential for success.

Hosts who can navigate the regulatory hurdles and provide a compliant, family-friendly rental experience may find a niche catering to travelers seeking a peaceful retreat away from the hustle and bustle of Miami. The village's parks, trails, and waterfront access could be selling points for nature-loving visitors.

However, those looking to maximize rental income with a high-occupancy, party-oriented atmosphere are likely to face significant challenges in Palmetto Bay. The village has made it clear that protecting quality of life for residents is a top priority, and it will not hesitate to crack down on vacation rentals that generate noise, parking, or other nuisance complaints.

Ultimately, while Palmetto Bay may not be the easiest or most lucrative place to start a short-term rental business in the Miami area, it could still offer opportunities for hosts who are willing to play by the rules and cater to families and other low-key travelers. By highlighting the village's unique charms and amenities, operators can tap into a niche market of visitors seeking an authentic slice of suburban South Florida life.

As with any new venture, thoroughly researching the local regulations, market conditions, and community sentiment will be crucial to making an informed decision about whether Palmetto Bay is the right fit for your short-term rental business. With careful planning and a commitment to being a responsible host, it may be possible to find success in this quiet corner of the Miami metro.

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.