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

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

Volusia County, home to popular beach destinations like Daytona Beach and Ormond Beach, has specific regulations regarding short-term rentals through booking platforms like Airbnb and VRBO. These rules, primarily outlined in the county's zoning ordinances, aim to balance the interests of property owners, visitors, and long-term residents.

Starting a Short-Term Rental Business in Volusia County

Aspiring short-term rental operators in Volusia County must navigate a complex set of regulations. The county's zoning ordinance, in place since 2004, prohibits rentals of less than 30 days in areas zoned for residential purposes. The code defines these short-term rentals as "hotel/motel use," which is not permitted in residential neighborhoods.

Despite these restrictions, some property owners have found success operating vacation rentals in certain areas of the county. For example, one investor on the BiggerPockets forum shared their experience growing from one vacation rental in Daytona to owning 17 properties. They noted that if proposed changes to allow short-term rentals in unincorporated parts of the county move forward, there could be significant opportunities for investors.

However, the path to legally operating a short-term rental in Volusia County is not always straightforward. In one case discussed on Reddit, an owner of a former motel property zoned as commercial but located in a residential area faced pushback from the city when attempting to run it as a vacation rental. The county has also taken enforcement actions, with one new investor reportedly facing a $10,000 fine for listing their property on Airbnb without any bookings.

Attempts to challenge the county's short-term rental regulations have thus far been unsuccessful. In December 2022, a judge upheld the zoning ordinance prohibiting rentals under 30 days in residential areas. The Vacation Rental Home Alliance of Volusia, a group of short-term rental owners, had argued that the restrictions were preempted by state law, but the court found that the county's rules were grandfathered in before the relevant state statute took effect.

For those considering starting a short-term rental business in Volusia County, carefully reviewing the zoning regulations for your specific property is crucial. In some cases, it may be possible to operate vacation rentals in areas zoned for commercial or hotel/motel use. Connecting with local investor groups and property managers can also provide valuable insights into navigating the regulatory landscape.

As the debate over short-term rentals in Volusia County continues, property owners, managers, and investors must stay informed about any potential changes to the local ordinances. While the current regulations pose challenges, the area's popularity as a beach destination suggests that demand for vacation rentals will remain strong if a path to compliance can be found.

Short-Term Rental Licensing Requirements in Volusia County

To legally operate a short-term rental in Volusia County, property owners must obtain a Tourist and Convention Development Tax account from the county's Revenue Services department. This applies to anyone renting out a room, apartment, house, condo, hotel, motel, recreational vehicle, or watercraft for a term of 6 months or less.

The application process can be completed online through the county's website. New applicants must first register for an account by providing their contact information and details about the rental property. There is no fee to register for an account.

Once registered, owners can log in and complete the Tourist and Convention Development Tax application. Required information includes:

• Rental property address
• Owner name and contact details
• Property manager or responsible party information
• Anticipated start date for rentals
• Number and type of units being rented (e.g., 2 bedrooms in a single-family home)

There is no application fee, but once approved, owners are responsible for collecting and remitting the Tourist and Convention Development Tax on a monthly basis. As of 2023, the tax rate is 6% of the total rental amount. Returns and payments are due by the 20th of the month following the collection period.

It's important to note that obtaining a tax account does not guarantee compliance with other state and local laws. Owners must also contact their city and county zoning departments to determine if short-term rentals are permitted in their area and for what duration. Failure to do so could result in significant fines and penalties.

In December 2022, a Volusia County judge upheld the county's zoning ordinance prohibiting short-term rentals of less than 30 days in residential areas. Owners found in violation could face fines of up to $10,000. The Vacation Rental Home Alliance of Volusia, a group of short-term rental owners, plans to appeal the ruling.

Overall, the licensing process in Volusia County is relatively straightforward from a tax perspective. However, owners must carefully review the zoning regulations for their specific property to avoid costly penalties. The ongoing legal challenges to the county's ordinances add an additional layer of complexity and uncertainty for those looking to start or continue operating short-term rentals in the area.

Required Documents for Volusia County Short-Term Rentals

To legally operate a short-term rental in Volusia County, property owners must obtain several key documents from both the county and state. Here is a list of the required items, their purpose, and where to get them:

Volusia County Tourist Development Tax Account Application

1. Purpose: Allows property owners to register their short-term rental to collect and remit the county's 6% Tourist and Convention Development Tax.
2. Where to get it: Download the application from the Volusia County Revenue Services website (www.volusia.org/revenue) or apply online through their portal.

Business Tax Receipt Application (for certain cities like New Smyrna Beach)

1. Purpose: Registers the short-term rental as a business with the city and ensures it is located in a properly zoned area.
2. Where to get it: Contact the city's building department for the application. In New Smyrna Beach, it's available on their website (www.cityofnsb.com).

Florida Department of Business & Professional Regulation (DBPR) Vacation Rental License

1. Purpose: Registers the property as a transient public lodging establishment with the state, subject to inspections and safety regulations.
2. Where to get it: Apply online through the DBPR's website (www.myfloridalicense.com). The license type will be either a "Vacation Rental - Condo" for individual units or "Vacation Rental - Dwelling" for single-family homes.

Certificate of Balcony Inspection (for 3+ story buildings)

1. Purpose: Certifies that balconies, stairways, and railways have been inspected and are safe, secure, and free of defects. Required for buildings with 3+ stories or balconies 17+ feet above the ground.
2. Where to get it: Have a qualified inspector complete the DBPR's Certificate of Balcony Inspection form, available on their website.

Other documents that may be required include:

1. Proof of property ownership or a rental agreement with the owner
2. A valid government-issued ID for the applicant
3. A written agreement authorizing an agent to register properties on the owner's behalf (if using a property manager)

It's crucial for short-term rental operators to carefully review the requirements for their specific property, as regulations and required documents can vary by city and zoning district. Failure to obtain the proper licenses and certificates can result in significant fines and penalties.

By gathering these key documents and working with local officials, owners can ensure their short-term rentals are in compliance with Volusia County's rules and set themselves up for a successful venture in this popular Florida destination.

Volusia County Short-Term Rental Taxes

When operating a short-term rental business in Volusia County, Florida, it's crucial to understand and comply with the applicable tax regulations. The primary tax for vacation rentals is the Tourist Development Tax, which consists of two components:

Volusia County Tourist Development Tax: This is a 6% tax on the total rental amount, including any mandatory fees like cleaning or resort fees. Property owners or their agents are responsible for collecting this tax from guests and remitting it to the Volusia County Revenue Services department by the 20th of each month.

Florida State Sales Tax: In addition to the county tax, the state of Florida charges a 6.5% sales tax on short-term rentals. This includes a 6% state sales tax and a 0.5% discretionary sales surtax. Airbnb and Vrbo collect and remit this portion on behalf of hosts, but owners must verify that it's being done correctly.

In total, the Tourist Development Tax in Volusia County is 12.5% of the rental amount. It's important to note that failing to collect and remit these taxes can result in significant penalties and interest charges. The county may audit rental records going back several years and assess fines for non-compliance.

To streamline the process, short-term rental operators can register for an account on the Volusia County Revenue Services website. This allows for online filing and payment of the Tourist Development Tax. Those who file and pay electronically may be eligible for a collection allowance of 2.5% of the tax due, up to a maximum of $30 per return.

Possible Deductions and Write-Offs

While short-term rental income is subject to taxes, hosts may be able to deduct certain expenses to reduce their tax liability. Some common deductions include:

1. Mortgage interest
2. Property taxes
3. Rental insurance
4. Utilities
5. Cleaning and maintenance costs
6. Repairs and supplies
7. Advertising and platform fees

It's recommended to consult with a tax professional to determine which deductions apply to your specific situation and to ensure proper documentation of expenses. By carefully tracking income and expenses, short-term rental operators can minimize their tax burden while remaining compliant with local regulations.

Florida-Wide Short-Term Rental Rules

In addition to local regulations in Volusia County, short-term rental hosts must also comply with state-level laws and requirements. Here are some key Florida statutes and rules that impact vacation rentals across the state:

Vacation Rental License: Florida law requires anyone renting out a property for periods of less than 30 days and more than three times per year to obtain a Vacation Rental Dwelling License from the Department of Business and Professional Regulation (DBPR). This involves an initial $150 fee, plus a $300 renewal fee due annually.

Tourist Development Tax: Also known as the "bed tax," this is a 6% tax on the total rental amount for stays of six months or less. Hosts are responsible for registering with the county tax collector, collecting the tax from guests, and remitting it to the state on a monthly basis.

Florida State Sales Tax: In addition to the Tourist Development Tax, short-term rentals are subject to the state sales tax of 6%, plus any applicable local option taxes which can range from 0.5-1.5%. Vacation rental platforms like Airbnb and Vrbo collect and remit these taxes on behalf of hosts in Florida.

Homestead Exemption: Properties being used as short-term rentals do not qualify for the Florida Homestead Exemption, which can provide significant property tax savings for owner-occupied homes. Hosts must notify the county property appraiser if they convert a homesteaded property to a rental.

Proposed Statewide Registry: In the 2024 legislative session, Florida lawmakers passed a bill that would create a statewide database of all vacation rentals in the state. If signed into law by the governor, hosts would be required to register their properties and potentially undergo inspections. The bill also allows local governments to impose additional regulations and fees on rentals.

It's important to note that while state law generally preempts local governments from prohibiting short-term rentals outright, cities and counties can still impose other restrictions related to noise, parking, trash, and other quality of life issues. And in some cases, local ordinances that were in place prior to 2011 are grandfathered in and can be more restrictive.

Short-term rental hosts in Volusia County and across Florida must stay informed about both state and local rules to ensure they are operating in compliance. Consulting with a qualified attorney and/or local short-term rental alliance can help navigate the complex and ever-changing regulatory landscape.

Does Volusia County Strictly Enforce STR Rules?

Volusia County has a reputation for being one of the stricter areas in Florida when it comes to short-term rental regulations. The county's zoning ordinances, which prohibit rentals of less than 30 days in residential areas, are actively enforced. This has created a challenging environment for Airbnb and other vacation rental hosts.

On the BiggerPockets forums, investors and hosts share stories of the county's strict stance. One user noted that while there is strong demand for short-term rentals in popular destinations like Daytona Beach, "Volusia County has strict laws with rentals booked under 30 days." Others express frustration with the county's enforcement efforts, which can result in significant fines for non-compliant properties.

Compared to other Florida cities and counties, Volusia County is generally considered less friendly to short-term rentals. While some areas have embraced vacation rentals as a driver of tourism and economic activity, Volusia County has prioritized preserving the character of residential neighborhoods. This has led to a more restrictive regulatory framework and active enforcement.

Despite the rules, some hosts do operate short-term rentals in Volusia County, often relying on word-of-mouth bookings or using creative strategies to avoid detection. However, this comes with significant risks. As one Reddit user pointed out, "the current penalty for breaking the law is just a fine. And that is after a bunch of warnings and if they decide to enforce it." Others note that the county has been known to crack down on illegal rentals, with one user even sharing the address of a non-compliant property in Bethune Beach.

Overall, while there is certainly demand for short-term rentals in Volusia County, the strict enforcement of zoning regulations makes it a challenging market for Airbnb hosts. Those considering investing in the area should carefully research the specific rules for their property and be prepared to navigate a complex and potentially risky legal landscape. Compared to more Airbnb-friendly destinations in Florida, Volusia County presents additional hurdles for hosts looking to capitalize on the vacation rental market.

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

Starting a short-term rental business in Volusia County requires careful planning and compliance with local regulations. Here are the key steps to get your venture off the ground:

1. Research zoning regulations: Before investing in a property, thoroughly review the county's zoning ordinances to ensure short-term rentals are permitted in your desired location. Volusia County prohibits rentals of less than 30 days in most residential areas, so focus on properties zoned for commercial or hotel/motel use. Contact the county's zoning department and provide the specific address to confirm eligibility for short-term rentals.
2. Obtain necessary licenses and permits: Once you've identified a compliant property, apply for a Tourist Development Tax Account with the Volusia County Revenue Services department. You'll also need to register for a Vacation Rental Dwelling License with the Florida Department of Business and Professional Regulation (DBPR). Start the licensing process early, as it can take several weeks to receive approvals. Factor in these timeframes when planning your launch.
3. Set up your business entity: Consult with an attorney or accountant to determine the best legal structure for your rental business (e.g., LLC, sole proprietorship). Register your business with the state and obtain an Employer Identification Number (EIN) from the IRS. Consider opening a separate bank account for your rental business to streamline bookkeeping and tax reporting.
4. Prepare your property for guests: Invest in quality furnishings, linens, and amenities to create a welcoming space for visitors. Hire a professional photographer to showcase your rental's best features in your online listings. Focus on creating a unique and memorable experience for guests. Highlight local attractions, provide recommendations for dining and activities, and consider offering extra perks like beach gear or bicycles.
5. Create a pricing and marketing strategy: Research comparable rentals in your area to determine competitive nightly rates. List your property on popular vacation rental platforms like Airbnb and Vrbo, and consider creating a dedicated website to showcase your rental. Use dynamic pricing tools to automatically adjust rates based on demand, seasonality, and other factors. This can help maximize your revenue and occupancy.
6. Develop a system for managing bookings and guest communication: Establish clear check-in and check-out procedures, and provide detailed instructions for accessing the property. Use a dedicated email address and phone number for guest inquiries, and aim to respond promptly to all messages. Consider using a property management software or hiring a professional manager to handle day-to-day operations, especially if you have multiple rentals.
7. Comply with ongoing regulations and taxes: Regularly review county and state short-term rental regulations to ensure ongoing compliance. Collect and remit the required Tourist Development Tax (12.5% in Volusia County) and maintain accurate records of all income and expenses. Set aside a portion of your rental income to cover taxes and unexpected expenses like repairs or vacancies.

By following these steps and prioritizing compliance with local regulations, you can successfully launch and grow a short-term rental business in Volusia County. While the county's strict zoning rules present challenges, carefully selecting your property and providing exceptional guest experiences can set you up for long-term success in this popular Florida destination.

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

When navigating the complex world of short-term rental regulations in Volusia County, it's important to know who to contact for accurate information and guidance. Here are some key resources:

Volusia County Zoning Department: For questions about zoning classifications, permitted uses, building setbacks, and other land use regulations, contact the zoning staff at:

1. Email: zoning@volusia.org
2. Phone: 386-943-7059 (ext. 12719 for specific zoning questions)
3. LobbyHours: Monday through Friday, 8:00 am to 3:30 pm

Volusia County Revenue Services: To register for a Tourist Development Tax account, file monthly returns, or get information about the county's 6% short-term rental tax, reach out to:

• Phone: 386-943-7085
• Email: treasury@volusia.org
• Website: https://volusia.ptghome.com/excisetdt/

Volusia County Planning and Development Services: For broader questions about land development, comprehensive planning, and growth management policies that may impact short-term rentals, contact:

• Main Phone: 386-736-2700
• Website: https://www.volusia.org/services/growth-and-resource-management/planning-and-development/

In addition to these official resources, connecting with other short-term rental hosts and property managers can provide valuable insights and support. Some online communities to check out include:

• Volusia County Short-Term Rental Alliance
• Volusia County Vacation Rental Managers Association: https://www.vcvrma.org/
• Volusia County Real Estate Investors Association: https://volusiarealestateinvestors.com/
• BiggerPockets Volusia County Forums: https://www.biggerpockets.com/forums/532-volusia-county

By engaging with these groups, you can learn from the experiences of other hosts, stay up-to-date on regulatory changes, and advocate for fair and reasonable short-term rental policies in Volusia County.

Remember, while online forums and social media groups can be helpful, always verify information with official county sources to ensure compliance with all applicable rules and regulations. With the right resources and community support, you can successfully navigate the short-term rental landscape in Volusia County.

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

Discussions on online forums like Reddit and BiggerPockets provide valuable insights into the experiences and perspectives of short-term rental hosts in Volusia County. Here are a few notable examples:

Pushback for a Commercial Property Operating as a Short-Term Rental (Reddit)

One host shared their experience owning a former motel property zoned as commercial but located in a residential area. Despite having all required licenses, the city gave them "pushback" and sent code enforcement because short-term rentals were not allowed in residential zones, even though the property was commercially zoned.

Efforts to Expand Short-Term Rentals in Unincorporated Volusia County (BiggerPockets)

In May 2021, the Volusia County Council was set to vote on allowing vacation rentals in unincorporated areas. One host and real estate agent urged fellow investors to attend the meeting and voice support, noting that approval would be "HUGE" for the area, small businesses, and travel. They shared their own story of growing from one vacation rental to owning 17 properties and multiple businesses, all stemming from strong returns on short-term rentals.

Fines and Crackdowns on Non-Compliant Listings (BiggerPockets)

A Daytona Beach host reported that in November 2020, the city started issuing fines up to $15,000 for even posting a property on a short-term rental site, even without any bookings. One new investor was fined $10,000 for listing on Airbnb without reservations, despite removing the listing when notified by code enforcement. The host noted that the city was "aggressively going after every STR owner" and that many vacation homes were subsequently listed for sale.

Navigating Strict Zoning Regulations (BiggerPockets)

Responding to an inquiry about investing in Ormond Beach/Daytona Beach, one user cautioned that "Volusia County has stringent regulations about STR." They explained that short-term rentals are only allowed in tiny zoning areas, essentially requiring the property to be east of A1A, the coastal highway. The host recommended carefully checking with the city and county on zoning before purchasing a property for short-term rental use.

These discussions highlight the complex and often challenging regulatory environment for short-term rental hosts in Volusia County. While some see potential for growth and advocate for more permissive policies, others have faced significant fines and pushback from local authorities. Hosts emphasize the importance of thorough due diligence on zoning and licensing requirements before investing in the area.

As the debate over short-term rentals continues in Volusia County, online forums provide a platform for hosts to share experiences, offer advice, and mobilize support for more favorable regulations. By staying engaged with these communities, prospective and current hosts can gain valuable insights into navigating the local short-term rental landscape.

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.