Tips in illegal short term rentals
- QUICK FACTS
Short term rental is defined as any lease that is shorter than 6 months.
2008: City of Miami Beach passed a law to ban short term rentals of all single family homes in residential districts, no exceptions this includes all islands and all neighborhoods of Miami Beach.
2010: City of Miami Beach passed a law to ban short term rentals of all apartments in RM1 residential districts including the art deco district of South Beach. Only 50 apartments are eligible to be grand fathered in, all of Miamihabitat’s properties have been grand fathered in, meaning that they can operate legally.
2011: Most municipalities of Miami Dade enacted short term rentals bans
- Information by the city of Miami Beach
Letter of the city of Miami ( 2012)
Video of the city of Miami Beach (2012)
- Requirements to engage in short term rentals
Zoning code requirements:
Short term rentals can be conducted by the districts where they are authorized, these districts are composed of mainly commercial districts and a few exceptions in residential districts.
Building requirements to engage in short term rentals:
Properties that engage in short term rentals should meet all building, fire, and accessibility codes.
Inspections are routinely conducted by the State of Florida, Dade County, and by City of Miami Beach to make sure that all guests will be appropriate protection in a up to code property.
Obtaining all proper licenses and payment the relevant taxes:
Short term properties should be properly licensed:
Transient apartments license from the State of Florida
Transient apartments license from the City of Miami Beach
Having a state license only is not sufficient, both licenses should be obtained.
Additionally short term operators should pay sales taxes and resort taxes for an amount that equals 13% of the rental fee. It is the law.
- Risks relating to illegal short term rentals
*Risk of renting an illegal short term rentals (based on zoning regulations)*
Risk for the owner:
Owners will face fines and will be forced to halt their illegal activities. From a liability standpoint the property being rented should have all life safety protection including sprinklers and fire alarms, extinguishers, exit signs and ECT...
Problems can occur with renters and the financial consequences for the owner is enormous.
Risk for the renter:
Renters face the risk of being evicted, having to find other lodging, and having to sue the owner to be reimbursed their money.
There are also risks in staying in a property that is not properly protected with life safety devices.
Risks of renting an illegal short term rental is based on building internal regulations:
It is estimated that 95% of buildings in Miami Beach do not allow for rentals that are shorter than 6 months. Illegal renters can be evicted by the management company that operates the building.
How do illegal short term operators get in trouble?
All neighborhoods in Miami Beach know about those restrictions. Neighbors can and will just call compliance or the police department to report illegal activity.
- The city of Miami Beach will respond to all complaints by neighbors by dispatching code compliance officers and police officers to write and a violation and possibly evict people on the spot.
- Code compliance and police department have a record of all violators and patrol the neighborhoods to eliminate illegal activity.
- Code compliance officers scan the internet to find illegal operators placing advertising in all major website such as Homeaway.com and VRBO.com.
- All violators are being investigated and then indicted