The Miami Beach Times recently released results to a survey completed by AirDNA and IPX 1031 regarding the top cities for Short Term Rentals. “Florida is home to seven of the top ten cities with the most Airbnbs per capita. Kissimmee, FL comes in at No. 2 with Walt Disney World Resort and Universal Studios next door, Daytona Beach comes in at No. 4, while Miami, Fort Lauderdale, Orlando, and Hollywood round out the top ten.” With over 3,400 vacation rental listings per 50,000 people, Miami Beach claims the number one destination and hot spot for travelers. Despite Florida’s strict Short Term Rental regulations, the rental business is booming. (Click here to complete an online quote request in 5 minutes).
Miami Beach has rigorous regulations in place, restricting Short Term Rental leases to a minimum of six months in many parts of the city including areas with single family homes and other multifamily residential buildings. The approved Short Term Rentals will have to obtain a Business Tax Receipt in order to operate their transient business in the City.
The Miami-Dade circuit court recently fined a City resident for unlawfully operating their Short Term Rental, while the City is confident that regulations will be enforced besides the exuberant volume of rentals in Miami. “The short-term fines were increased by the City of Miami Beach in 2016, to $20,000 for the first violation, that had previously been $1,500 for single-family and $500 for multifamily residences. Currently the fines are each subsequent violation increases by $20,000, and in case of multiple violations they can be as high as $100,000.”
How Short Term Rentals Can Coincide with Local Regulations
Cities are attempting to regulate Short Term rentals to eliminate community nuisances and level the playing field between traditional hotel/motels and these up-and-coming Short Term Rentals or Vacation Rentals.
It is a complicated issue which cities should address. Short Term Rentals do change the personality of communities. However, there is a greater issue at large. Cities should opt to require commercial insurance coverage for Short Term Rentals in order to protect these owners and their business investments. By also requiring owners to include the city as additionally insured on the policy, the city will have peace of mind in the case of a large-scale lawsuit.
By requiring hosts to purchase insurance, these rental properties are less likely to cause a nuisance to the community as they will undergo greater scrutiny by insurance Underwriters thereby eliminating unprofessional hosts. By following the examples of several cities across the US, city leaders can ensure that their communities are properly protected from the hazards of Short Term Renting.
Read more here and here to see cities that currently enforce insurance requirements. When you’re finished, give Proper a call to speak with an experienced Account Executive – (888) 631-6680!