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

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

Short-term rentals like Airbnb and Vrbo have become increasingly popular in Sanford, a city north of Orlando known for its historic downtown and natural attractions. However, the City of Sanford has implemented rules to regulate vacation rentals. Here's what you need to know about operating a short-term rental in Sanford.

Starting a Short-Term Rental Business in Sanford

To legally launch and operate a short-term rental in Sanford, property owners must:

• Obtain a Florida Department of Business and Professional Regulation (DBPR) Vacation Rental License, either a Vacation Rental Dwelling License for an entire property or a Vacation Rental Condo License for individual condo units.
• Register with the Florida Department of Revenue for a sales tax number to collect and remit the required state and county taxes on rental income.
• Obtain a Business Tax Receipt from Seminole County. The county does not currently require a separate short-term rental permit or registration beyond the state DBPR license.
• Comply with the City of Sanford's short-term rental ordinance, which was approved in June 2023. Key requirements include:
  - The rental must be the owner's primary residence in certain residential zones
  - Multi-unit properties are limited to one short-term rental unit
  - Single-family homes can have one short-term rental unit or up to two rented rooms
  - Occupancy is capped at two adults per bedroom, with on-site parking required

The new city ordinance aims to preserve neighborhood character and housing stock while allowing some vacation rentals. Existing rentals that don't meet the standards can continue operating through 2023.

Sanford short-term rental operators must also follow Seminole County's rules, including registering and paying the 5% tourist development tax on rentals of six months or less. This is in addition to state sales taxes.

Discussions on real estate investing forums suggest many Sanford short-term rentals have historically operated without full licensing and in violation of city zoning. However, with the new ordinance taking effect, the city plans to step up enforcement.

Aspiring Sanford Airbnb hosts should carefully review all state, county, and city requirements to avoid potential fines and penalties. Consulting with an attorney well-versed in local short-term rental law is recommended.

Short-Term Rental Licensing Requirement in Sanford

To legally operate a short-term rental in Sanford, property owners must obtain several licenses and registrations:

1. Florida Department of Business and Professional Regulation (DBPR) Vacation Rental License

1. Owners need either a Vacation Rental Dwelling License for an entire property or a Vacation Rental Condo License for individual condo units.
2. Apply online or by mail with required documents like a sales tax number, FEIN for business applicants, and certificate of balcony inspection if applicable.
3. Pay the license fee based on the number of units plus a $50 application fee.

2. Register with the Florida Department of Revenue

Obtain a sales tax number to collect and remit the required 6% state sales tax and any applicable county taxes on rental income.

3. Business Tax Receipt from Seminole County

The county requires a Business Tax Receipt for vacation rentals, defined as any unit rented more than three times per year for less than 30 days.

4. Comply with the City of Sanford's new short-term rental ordinance, approved in June 2023. Key provisions include:

1. The rental must be the owner's primary residence in certain residential zones
2. Multi-unit properties are limited to one short-term rental unit
3. Single-family homes can have one rental unit or up to two rented rooms
4. Occupancy capped at two adults per bedroom, with on-site parking required
5. Existing rentals that don't meet standards can continue operating only through 2023

Sanford's ordinance aims to preserve neighborhood character while allowing some vacation rentals. Hosts must also follow Seminole County rules like registering and paying the 5% tourist tax.

Failure to obtain required licenses and comply with regulations can result in fines and penalties. With Sanford stepping up enforcement under the new law, hosts should carefully review all state, county, and city requirements to avoid issues. Consulting with a local attorney well-versed in short-term rental law is recommended.

Required Documents for Sanford Short-Term Rentals

When applying for a short-term rental license in Sanford and Seminole County, hosts must submit several required documents to demonstrate eligibility and compliance with regulations. These include:

1. Completed Application Forms

1. Florida DBPR Vacation Rental License Application (online or by mail)
2. Seminole County Business Tax Receipt Application
3. City of Sanford Business Tax Receipt Application (if applicable)

2. Proof of Ownership or Lease Agreement

1. Deed, property tax bill, or other documentation showing ownership of the rental property
2. If a renter, a copy of the lease agreement and written permission from the property owner

3. Proof of Primary Residence (for rentals in certain Sanford residential zones)

Driver's license, voter registration card, or utility bill showing the owner's name and rental property address

4. Floor Plan or Site Plan

1. Diagram showing the layout of the rental unit, including bedrooms, bathrooms, and common areas
2. Indicate the location and number of on-site parking spaces for guests

5. Proof of Insurance Coverage

Certificate of insurance showing liability coverage for the rental property and any potential guest injuries

6. Completed DBPR HR-7020 Certificate of Balcony Inspection (for rentals in multi-story buildings)

7. Signed Acknowledgments and Affidavits

1. Acknowledgment of compliance with Sanford's short-term rental ordinance requirements
2. Affidavit attesting to the veracity of all information provided in the application

8. Payment of Application Fees

1. DBPR Vacation Rental License fee based on number of units + $50 processing fee
2. Seminole County Business Tax Receipt fee
3. City of Sanford Business Tax Receipt fee (if applicable)

Additional documents may be required depending on the specific circumstances of the rental property. For example, if the property is governed by a homeowners' association or condominium board, the host may need to provide written approval from the HOA or condo association allowing short-term rentals.

The City of Sanford, Seminole County, and Florida DBPR will review all short-term rental applications to verify eligibility and may request additional information as needed. Incomplete applications or those missing required documents will not be processed.

Once issued, the Vacation Rental License and any local business tax receipts must be prominently displayed in the rental unit. Hosts must also include their DBPR license number in all online listings and advertisements.

By requiring this documentation, Sanford and Seminole County aim to ensure short-term rental operators are complying with all regulations to protect the quality of life for residents and the safety of guests. Failure to provide required documents or operating without proper licenses may result in fines and other penalties under the city and county ordinances.

Sanford Short-Term Rental Taxes

Short-term rental operators in Sanford and Seminole County must collect and remit several taxes on their rental income. These include:

1. Florida State Sales Tax - 6%

1. Applies to rental periods of 6 months or less
2. Hosts must register with the Florida Department of Revenue for a sales tax number

2. Seminole County Tourist Development Tax - 5%

• Applies to rentals of 6 months or less
• Hosts must register with Seminole County and file monthly tax returns
• This tax is in addition to the state sales tax

The 6% Florida sales tax and 5% Seminole County tourist development tax combined add up to an 11% tax on short-term rental income in Sanford. These taxes apply to the total rental price, including any cleaning fees.

For example, if a Sanford Airbnb charges $100 per night, the taxes would be:

• 6% Florida sales tax = $6
• 5% Seminole County tourist tax = $5
• Total taxes = $11
• Total price with taxes = $111 per night

Short-term rental platforms like Airbnb and Vrbo collect and remit the Florida state sales tax on behalf of hosts. However, hosts are still responsible for registering with the Florida Department of Revenue and filing regular tax returns.

Hosts must register separately with Seminole County to collect and remit the 5% tourist development tax. This tax is not collected by the rental platforms and is the responsibility of the host to pay monthly.

In addition to sales and tourist taxes, short-term rental income is subject to federal and state income taxes. Hosts must report their rental profits and losses on their annual tax returns. Many STR expenses like mortgage interest, insurance, utilities, and cleaning can be deducted to reduce taxable income.

Failing to comply with tax requirements can result in penalties and legal issues for short-term rental operators. Consulting with a tax professional is recommended to ensure full compliance with all applicable tax laws. Proper record-keeping is also essential for filing accurate returns.

While the tax obligations add complexity and costs for Sanford short-term rental hosts, they are a necessary part of operating a legal and profitable STR business. With Orlando's strong tourism market, many hosts find that the income potential outweighs the added tax responsibilities. However, it's important to factor in these costs when evaluating the financial viability of a short-term rental investment in Sanford.

Florida Wide Short-Term Rental Rules

The state of Florida has several laws and regulations that apply to short-term rentals across the state:

1. Vacation Rental License Requirement

• Properties rented for periods of less than 30 days or 1 calendar month (whichever is less) or advertised as such must obtain a Vacation Rental License from the Florida Department of Business and Professional Regulation (DBPR).
• Hosts can apply for a Vacation Rental Dwelling License for an entire property or a Vacation Rental Condo License for individual condo units.
• License fees are based on the number of units. A $50 application fee also applies.

2. Tax Registration and Collection

• Short-term rental hosts must register with the Florida Department of Revenue to collect and remit the following taxes:
  - 6% Florida Transient Rental Tax (sales tax)
  - County discretionary sales surtax (varies by county)
• Hosts must also collect and remit any applicable local tourist development taxes, which range from 2-6% depending on the county.
• Some counties require additional registration for a Tourist Tax Account.

3. Maximum Occupancy Limits

State law caps occupancy at 2 persons per bedroom plus 2 additional persons per property, up to a maximum of 10 people (excluding children under 6).

4. Homestead Exemption Risks

Renting a primary residence as a short-term rental for more than 30 days per year can jeopardize the owner's homestead tax exemption.

5. Preemption of Local Regulations

• State law largely preempts local governments from prohibiting short-term rentals or regulating the frequency and duration of stays.
• However, in 2014, the legislature allowed local governments some ability to regulate issues like noise, parking, trash, and life-safety.
• Local ordinances in place prior to June 1, 2011, are grandfathered in and can remain in effect.

6. Proposed 2024 Legislation (SB 280)

• Would create a statewide short-term rental registry
• Allow counties to require inspections and charge "reasonable" registration fees
• Require hosting platforms to collect and remit taxes
• Allow suspension of licenses for repeated violations of local ordinances
• Maintain exemption for pre-2011 local laws and certain pre-2016 county ordinances

While these statewide laws provide a framework, short-term rental operators must also comply with any additional city or county regulations, HOA/condo association rules, and hosting platform requirements. The regulatory landscape continues to evolve, so hosts should stay informed of the latest developments at both the state and local level.

Does Sanford Strictly Enforce STR Rules?

Based on discussions from online real estate investing communities like Bigger Pockets and local news reports, it appears that Sanford has historically not strictly enforced its short-term rental regulations. Many hosts have operated STRs without obtaining proper licensing and in violation of zoning rules.

A Bigger Pockets forum thread from 2021 asked if investing in short-term rentals in Sanford was a good idea. Several commenters mentioned that while Sanford technically requires a license and restricts STRs to certain zones, enforcement has been very lax. One host shared that they have operated an unlicensed Airbnb in a prohibited zone for over a year without any issues from the city.

Another commenter noted that "Sanford is pretty friendly to STRs compared to a lot of other cities in the Orlando area." They estimated that less than a quarter of active listings were properly licensed and suggested that the city relies primarily on complaints to identify illegal rentals rather than proactively monitoring.

However, with Sanford's new short-term rental ordinance taking effect in 2023, the enforcement landscape may start to change. The updated rules restrict STRs to an owner's primary residence in most residential areas. Existing rentals that don't meet the new standards can only continue operating through the end of 2023.

The city has indicated plans to take a stricter approach to enforcement under the new ordinance. Fines for violations will be up to $500 per day. With these changes, Sanford appears to be shifting away from its previously permissive attitude towards STRs.

So, while Sanford has been quite Airbnb-friendly in practice up until now, allowing many hosts to skirt the rules, that leniency may be coming to an end. Investors should carefully consider the compliance costs and risks of the new regulations before starting a short-term rental in Sanford going forward. Operating an unlicensed STR will likely become much riskier as the city cracks down.

In summary, although Sanford has gained a reputation as an under-the-radar Airbnb haven, the era of loose enforcement seems to be over. Hosts who want to continue operating STRs in the city will need to play by the new rules or face potentially steep penalties. Sanford's days as a regulatory "wild west" for short-term rentals are numbered.

How to Start a Short-Term Rental Business in Sanford

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

• Research and confirm that your property is eligible for short-term rentals under Sanford's new ordinance. As of 2023, STRs are restricted to an owner's primary residence in most residential zones. Multi-unit properties can have one STR unit, while single-family homes can have one STR unit or up to two rented rooms.
• Obtain a Florida Department of Business and Professional Regulation (DBPR) Vacation Rental License. Apply for either a Vacation Rental Dwelling License for an entire property or a Vacation Rental Condo License for an individual condo unit. Pay the required license fees based on the number of units.
• Register with the Florida Department of Revenue for a sales tax number to collect and remit the 6% Florida Transient Rental Tax on your rental income.
• Obtain a Business Tax Receipt from Seminole County. The county requires this for all vacation rentals, defined as any unit rented more than three times per year for less than 30 days.
• Comply with Sanford's short-term rental ordinance requirements, including occupancy limits of two adults per bedroom, on-site parking for guests, and safety standards. Existing rentals that don't meet the new rules can only operate through 2023.
• Prepare your property for short-term rental use. Ensure it is fully furnished, stocked with essential amenities, and meets all required safety codes. Consider hiring a professional cleaning service between guest stays.
• Create a detailed listing for your rental on popular platforms like Airbnb and Vrbo. Take high-quality photos, write an accurate description, and set competitive rates. Be sure to include your DBPR Vacation Rental License number in the listing.
• Implement a system for managing bookings, communicating with guests, and coordinating turnovers. You can use the tools provided by the rental platforms or invest in separate property management software.
• Establish clear house rules and rental agreements outlining expectations for guests. Include provisions for noise levels, parking, maximum occupancy, pet policies, and other important considerations.
• Arrange for regular cleaning and maintenance of the rental property. Hire reliable service providers or handle these tasks yourself to ensure a high-quality experience for guests.
• Register with Seminole County to collect and remit the 5% Tourist Development Tax on your short-term rental income. This is in addition to the state sales tax and must be paid monthly by the host.
• Maintain accurate records of all rental income and expenses for tax purposes. Keep copies of required licenses and registrations on file. Stay up to date on any changes to state, county, or city short-term rental regulations.
• Promote your listing through targeted marketing efforts. Encourage satisfied guests to leave positive reviews. Consider offering special deals or discounts to attract bookings during slower periods.

By following these steps and complying with all applicable laws and regulations, you can launch a successful short-term rental business in Sanford. However, be sure to carefully review the city's new ordinance and weigh the potential compliance costs and risks before investing. With stricter enforcement on the horizon, operating a legally-compliant STR in Sanford may become more challenging.

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

If you have questions about short-term rental regulations or zoning in Sanford, there are several key contacts at the City of Sanford who can assist you:

1. Planning and Development Services Department

• For questions about zoning, land use, and the city's short-term rental ordinance
• Phone: 407-688-5140
• Eileen Hinson, Planning Director: 407-688-5142

2. Code Enforcement Division

• For questions about short-term rental licenses, inspections, and enforcement
• Phone: 407-688-5182

3. Building Division

• For questions about building permits, renovations, and safety requirements for short-term rentals
• Phone: 407-688-5150
• Email: building@sanfordfl.gov

For general inquiries related to short-term rentals, you can also contact the City of Sanford's main phone line at 407-688-5000 or visit the city's website at www.sanfordfl.gov.

In addition to city contacts, short-term rental hosts in Sanford may need to reach out to Seminole County offices for certain requirements:

4. Seminole County Planning and Development Division

1. For questions about the county's vacation rental regulations and business tax receipts
2. Phone: 407-665-7371
3. Email: plandesk@seminolecountyfl.gov
4. 5. Seminole County Tourist Development Office
5. For questions about registering and paying the county's 5% tourist development tax
6. Phone: 407-665-2900

By contacting these key departments and officials, you can get specific guidance on how Sanford's short-term rental rules and zoning regulations apply to your property. They can assist you in navigating the licensing process, understanding your obligations as a host, and ensuring compliance with all applicable city and county ordinances. Don't hesitate to reach out with any questions as you start or operate a vacation rental business in Sanford.

What Do Airbnb Hosts in Sanford Think about Local Regulations?

Based on discussions from online real estate investing communities like Bigger Pockets and Reddit, it appears that opinions are mixed among Airbnb hosts in Sanford regarding the local short-term rental regulations:

In a Bigger Pockets forum post from 2021, an investor asked about buying a property in Sanford to use as a short-term rental. While some commenters mentioned that Sanford requires a license and restricts STRs to certain zones, they noted that enforcement has been lax. One host shared that they operated an unlicensed Airbnb in a prohibited area for over a year without any issues from the city.

However, with Sanford enacting a new short-term rental ordinance in 2023, the regulatory landscape is changing. A Reddit thread about the updated rules generated concerns from some hosts who may no longer be able to operate due to the primary residence requirement and zoning restrictions.

Other Redditors expressed support for the new regulations, arguing that reining in STRs is necessary to preserve housing affordability and neighborhood character in Sanford. They pointed to the city's stated plans to increase enforcement and fines for non-compliant rentals.

In another Reddit discussion about rising rents across Florida, a commenter specifically called out the need to limit Airbnb in places like Sanford to improve access to long-term housing. This suggests some residents see STRs as contributing to the area's affordability challenges.

Still, the potential for profit in Sanford's STR market remains appealing to many investors. In a separate Bigger Pockets thread, a host solicited advice on hiring a property manager for their planned Sanford Airbnb, indicating confidence in the viability of short-term rentals there.

Overall, the online discussions paint a picture of Sanford as a city in transition when it comes to short-term rental regulations. While some hosts are pushing back against new restrictions, others acknowledge the need to balance the interests of STR operators with those of long-term residents. As enforcement ramps up under the 2023 ordinance, hosts will have to carefully weigh the compliance risks and costs against the potential rewards of Airbnb in Sanford.

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.