Starting a Short-Term Rental Business in Kissimmee

Kissimmee, Florida, located in the heart of Central Florida's tourist corridor, has become a hotspot for short-term rental properties, catering to the millions of visitors who flock to the area each year. However, aspiring Airbnb or VRBO hosts need to navigate a set of regulations to operate legally in the city.

According to Title 14 of the Kissimmee Code of Ordinances, short-term rentals, defined as residential dwellings rented for less than 30 days, are permitted in specific zoning districts, including RB-, RB-2, RC-1, and RC-2. The Kissimmee Zoning Map serves as a visual guide to identify these designated areas.

One of the key requirements for short-term rental operators in Kissimmee is obtaining a Conditional Use Permit. This process involves a review by the Development Review Committee and a subsequent public hearing by the Planning Advisory Board. Failure to secure this permit can result in the rejection of the application.

In addition to the Conditional Use Permit, hosts must apply for a Short-Term Rental Business Tax Receipt. The city evaluates the application against its regulations and zoning criteria, ensuring compliance before granting approval.

Kissimmee enforces specific building and housing standards based on the Florida Building Codes. These standards cover minimum construction, design, and maintenance requirements to ensure habitability, health, and safety for guests.

Short-term rental operators in Kissimmee are also subject to various taxes. Osceola County, where Kissimmee is located, imposes a Tourist Development Tax on guests who stay for less than six months. Additionally, the state of Florida levies a 6% sales tax on such stays.

While the regulations may seem stringent, they aim to strike a balance between promoting tourism and preserving the quality of life for local residents. Hosts must comply with these rules to avoid potential fines, penalties, or legal issues.

It's worth noting that some online forums, such as Reddit and Bigger Pockets, have limited discussions specifically about short-term rental regulations in Kissimmee. However, these platforms can provide valuable insights from experienced hosts navigating Florida's broader vacation rental landscape.

Short-Term Rental Licensing Requirement in Kissimmee

In Kissimmee, Florida, short-term rental operators are required to obtain specific licenses and permits to legally launch and operate their vacation rental business. Here are the key licensing requirements:

Conditional Use Permit: Many short-term rental hosts in Kissimmee must apply for and obtain a conditional use permit from the city. This permit is subject to review by the Development Review Committee and a public hearing by the Planning Advisory Board. Obtaining this permit is crucial, as failure to secure it can result in rejection of the short-term rental application.

Short-Term Rental Business Tax Receipt: In addition to the conditional use permit, hosts must apply for and obtain a business tax receipt specifically for short-term rentals. The city evaluates the application against its regulations and zoning criteria to ensure compliance before granting approval.

The process for obtaining the business tax receipt typically involves submitting an application, providing proof of property ownership or authorization, and potentially undergoing inspections to verify adherence to building and housing standards.

It's important to note that the specific zoning districts where short-term rentals are permitted in Kissimmee are limited. The city's Planning and Zoning Division can provide guidance on the allowable zoning areas for vacation rentals during the application process.

While the licensing requirements may seem stringent, they are in place to ensure short-term rentals operate safely and in accordance with local regulations. Failure to obtain the necessary permits and licenses can result in fines, penalties, or even legal action against the host.

Prospective short-term rental operators in Kissimmee are strongly advised to familiarize themselves with the city's ordinances and initiate the licensing process well in advance of listing their property. Consulting with local real estate professionals or legal counsel can also provide valuable guidance in navigating Kissimmee's specific requirements for short-term rental licensing.

Required Documents for Kissimmee Short-Term Rentals

To legally operate a short-term rental in Kissimmee, Florida, hosts must obtain several key documents and permits from the city:

Conditional Use Permit: Many short-term rental operators in Kissimmee are required to apply for and obtain a conditional use permit. This involves a review by the Development Review Committee and a public hearing before the Planning Advisory Board. Failure to secure this permit can result in rejection of the short-term rental application.

Short-Term Rental Business Tax Receipt: In addition to the conditional use permit, hosts must apply for and obtain a business tax receipt specifically for short-term rentals. The city evaluates the application against its regulations and zoning criteria to ensure compliance before granting approval.

Proof of Property 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 title.

Government-Issued Identification: A copy of a government-issued photo ID, such as a driver's license or passport, is required to confirm the identity of the short-term rental operator.

Building and Housing Inspection: Kissimmee enforces specific building and housing standards based on the Florida Building Codes. Hosts may need to schedule a home inspection to verify that their property meets the minimum construction, design, and maintenance requirements for habitability, health, and safety.

Tax Registration: Short-term rental operators in Kissimmee must register with the appropriate tax authorities to collect and remit applicable taxes on their rental income. This includes registering for state sales tax and any local tourist development taxes or lodging taxes imposed by Osceola County or the city.

While the specific requirements may vary depending on the property's zoning district or other factors, these core documents form the typical package needed to legally operate a short-term rental in Kissimmee. It's crucial for hosts to familiarize themselves with the city's ordinances and initiate the application process well in advance of listing their property to ensure compliance and avoid potential fines or legal issues.

Kissimmee Short-Term Rental Taxes

Short-term rental operators in Kissimmee are subject to several taxes that must be collected from guests and remitted to the appropriate authorities:

State Sales Tax: Florida imposes a 6% sales tax on short-term rental stays of 6 months or less. This tax is collected by the host and remitted to the Florida Department of Revenue.

Discretionary Sales Surtax: In addition to the state sales tax, Osceola County (where Kissimmee is located) charges a 1.5% discretionary sales surtax on short-term rentals. This surtax is also collected by the host and remitted to the Florida Department of Revenue along with the state sales tax.

Tourist Development Tax: Osceola County levies a 6% tourist development tax (often referred to as a "bed tax") on short-term rental stays. This tax is collected from guests by the host and remitted directly to Osceola County's Tax Collector's Office.

In total, short-term rental hosts in Kissimmee are responsible for collecting a combined tax rate of 13.5% on their rental income. This breaks down to 7.5% (6% state sales tax + 1.5% discretionary surtax) remitted to the Florida Department of Revenue and the 6% tourist development tax to Osceola County.

It's crucial for hosts to understand their tax obligations and maintain meticulous records of all rental income and taxes collected. Failure to properly register, collect, and remit these taxes can result in penalties, interest charges, and potential legal issues.

Hosts should also be aware that tax rates and regulations are subject to change, so it's advisable to periodically review the latest requirements from the Florida Department of Revenue, Osceola County, and the City of Kissimmee to ensure continued compliance.

Florida Wide Short-Term Rental Rules

In addition to any specific regulations at the city or county level, there are also some general rules and guidelines that apply to short-term rentals throughout the state of Florida:

Licensing Requirement: Florida state law requires all vacation rentals to be licensed through the Department of Business and Professional Regulation (DBPR). A "vacation rental" is defined as any unit or group of units in a condominium, cooperative, or individually/collectively owned single-family, two-family, or four-family house or dwelling that is rented for periods of less than 30 days at a time and more than three times per calendar year.

Tax Obligations: Short-term rental operators in Florida must collect and remit several taxes on their rental income. This includes the 6% state sales tax, any applicable county tourist development taxes (typically ranging from 2-6%), and potentially other local taxes like municipal resort taxes. Proper registration and payment of these taxes is crucial.

Consumer Protection Laws: The Florida Consumer Protection Law outlines the rights of consumers engaging in transactions like short-term rentals. Hosts must provide accurate property information, respect booking terms, and maintain safe, habitable conditions for guests. Violations can result in penalties from the state's consumer protection agency.

Homestead Exemption: Property owners in Florida may be eligible for a homestead exemption of up to $50,000 off their property's assessed value for tax purposes if it is their permanent residence. However, frequently renting out the home could jeopardize this exemption by indicating it is not truly the owner's primary residence.

Federal Laws: In addition to Florida's state laws, short-term rental hosts must also comply with relevant federal regulations. This includes fair housing laws prohibiting discrimination against guests based on protected characteristics like race, disability status, or familial status.

While the specifics may vary across Florida's cities and counties, these statewide rules create an overarching legal framework that all short-term rental operators must follow. Violating licensing requirements, tax obligations, or consumer protection laws can result in fines, penalties, or other legal issues for hosts. Staying compliant is essential for successfully operating vacation rentals in the state.

Does Kissimmee Strictly Enforce STR Rules?

Based on discussions from hosts on online real estate forums like BiggerPockets and Reddit, it appears that Kissimmee does not have a strong reputation for aggressively enforcing short-term rental regulations compared to some other cities. While Kissimmee has rules in place governing STRs, the general sentiment is that the city takes a relatively relaxed approach that allows Airbnb and vacation rental activity to operate with minimal interference from authorities.

Several BiggerPockets members who run short-term rentals in Florida mentioned facing little to no issues from the city when operating listings in Kissimmee. One host directly stated they had multiple Airbnb properties in Kissimmee without experiencing any compliance crackdowns or penalties from local officials.

The lack of complaints about stringent enforcement on these forums suggests Kissimmee is more permissive when it comes to short-term rentals. In most discussions about challenging regulatory environments, hosts are quick to call out cities, making it difficult for Airbnb operators. However, there is a noticeable absence of such negative comments related to Kissimmee's rules and oversight.

While the city's ordinances technically require permits, business licenses, and tax registrations for STR operators, the anecdotal accounts indicate these regulations are not being pursued aggressively in practice. Many hosts seem to be running Airbnb listings in Kissimmee without dealing with major legal hurdles from the city.

So, in comparison to stricter markets like Miami and Orlando, as well as parts of Osceola County, Kissimmee emerges as a relatively Airbnb-friendly environment. Based on the input from real estate investors on these forums, hosts feel emboldened to operate vacation rentals in Kissimmee despite the official rules on the books. The city appears to be taking a hands-off approach that is enabling a proliferation of short-term rental activity, albeit potentially in violation of certain licensing and permitting requirements.

How to Start a Short-Term Rental Business in Kissimmee

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

• Research the local market and regulations. Familiarize yourself with Kissimmee's zoning laws, permitting requirements, and any restrictions on short-term rentals. Consult the city's Planning and Zoning Division for guidance.
• Identify a suitable property. Look for properties in zoning districts that allow short-term rentals, such as RB-, RB-2, RC-1, and RC-2. Consider factors like location, size, amenities, and proximity to attractions.
• Obtain the necessary permits and licenses. Apply for a Conditional Use Permit and a Short-Term Rental Business Tax Receipt from the city. This process involves reviews and public hearings to ensure compliance with regulations.
• Prepare your property for guests. Furnish and equip your rental to create a comfortable and inviting space. Ensure it meets all building and housing standards the Florida Building Codes set.
• Register for tax collection. Short-term rental operators in Kissimmee must register with the appropriate tax authorities to collect and remit applicable taxes, including state sales tax, county tourist development tax, and any local taxes.
• Create a compelling listing. List your property on popular vacation rental platforms like Airbnb and Vrbo. Craft an engaging description, showcase high-quality photos, and set competitive rates based on market research.
• Implement a guest management system. Develop a strategy for managing bookings, guest communication, check-in/check-out procedures, and property maintenance. Consider hiring a property management company if needed.
• Obtain necessary insurance. Protect your investment by securing appropriate insurance coverage for your short-term rental, such as liability insurance and vacation rental-specific policies.
• Market your rental effectively. Utilize various marketing channels, including social media, to promote your listing and attract potential guests. Consider offering promotions or discounts during slower seasons.
• Stay compliant and provide excellent service. Continuously monitor and adhere to any changes in local regulations. Respond promptly to guest inquiries and feedback, and maintain high standards of cleanliness and hospitality.

Starting a short-term rental business in Kissimmee requires careful planning, compliance with regulations, and a commitment to providing a high-quality guest experience. By following these steps and seeking guidance from local authorities and professionals, you can successfully navigate the process and establish a profitable vacation rental business in this popular tourist destination.

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

To get accurate and up-to-date information about short-term rental regulations and zoning requirements in Kissimmee, Florida, it's best to contact the city's Development Services Department directly. This department oversees planning, zoning, permitting, and code enforcement related to short-term rentals.

Contact information:

Development Services Department
Address: 320 E. Monument Ave, Kissimmee, FL 34741
Phone: 407-518-2000

Within the Development Services Department, you can reach out to the following specific divisions for assistance:

Planning and Zoning Division
Phone: 407-518-2140

This division can provide guidance on zoning regulations, permitted areas for short-term rentals, and the conditional use permit process.

Code Enforcement Division
Phone: 407-518-2505

Code enforcement officers can answer questions about compliance with short-term rental ordinances, occupancy limits, and potential violations or complaints.

Building Division
Phone: 407-518-2120

The Building Division handles permitting and inspections related to construction and renovations and ensures properties meet building and housing standards for short-term rentals.

You can also try contacting the Osceola County Tax Collector's Office for information on collecting and remitting tourist development taxes and other applicable taxes for short-term rentals:

Osceola County Tax Collector
Phone: 407-742-4000

It's advisable to consult with local real estate professionals, property management companies, or legal counsel who specialize in short-term rentals in Kissimmee. They can provide valuable insights and guidance on navigating the specific regulations and requirements in the area.

Reaching out directly to the appropriate city and county departments will help ensure you receive accurate and reliable information about legally operating a short-term rental in Kissimmee. Compliance with all applicable rules and regulations is crucial to avoid potential fines, penalties, or legal issues.

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

After searching through posts on Reddit and Bigger Pockets, there are a few relevant comments from Airbnb hosts discussing the regulations for short-term rentals in Kissimmee, Florida:

On a Reddit thread in the r/AirBnB community, one user mentioned successfully navigating the permitting and tax licensing process for operating a short-term rental in Kissimmee. However, they did not provide many specifics on the experience or their thoughts on the local rules.

In another Reddit post from the r/orlando subreddit, a commenter stated that Kissimmee's short-term rental regulations are not being strictly enforced, and that such rentals are legal in Orange County if the property is a condo or townhouse.

On the Bigger Pockets forum, a member started a thread asking about short-term rental opportunities in Kissimmee. While the original poster was exploring investing in the area, the responses did not directly address the local regulations or provide insights from current Kissimmee hosts.

Another Bigger Pockets thread discussed short-term rentals in the Enclave and Solara communities near Disney World. One host mentioned restrictions on Airbnb guests using certain amenities like the water park in Enclave if the property is not managed by the community's rental program.

Overall, there is limited detailed feedback from Kissimmee-based Airbnb hosts on major real estate forums and communities regarding the city's specific regulations and enforcement. Most comments simply confirm that short-term rentals operate in the area without delving into the permitting processes or challenges hosts face in remaining compliant with local rules.

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.