What to know when investing in Orlando

[Matthew Lamoreaux]

BP had a great article about investing in Orlando but listed below are some things you have to be aware of before jumping into this market. The flip is that all the counties to the south (those nearest WDW) are where a majority of the STR's currently reside due to more lax regulations on STR's. Listed below are the main things to think about when investing the Orlando/Orange County area. Unincorporated Orange County (outside City of Orlando) Key definitions & permit requirement

• The county defines a short-term rental (STR) as the rental of all or part of a dwelling unit for lodging for a period of less than 30 days. 

• A permit is required: you must apply for a “Short-Term Rental Permit” from the county. 

• The permit is valid for 2 years and must be renewed. 

Where STRs are allowed / zoning

• STRs are permitted in single‐family dwelling units within single‐family residential districts or designated single‐family residential areas, with a permit. 

• They’re also permitted in multifamily residential districts and in commercial districts / areas if there is a previously approved residential dwelling unit, subject to the permit. 

• One key restriction: Accessory Dwelling Units (ADUs) are not allowed for STR use in the county.

Major operational standards

• No exterior signage advertising the short-term rental. 

• Minimum of 2 off‐street parking spaces available for guests.

• Vehicle limit: Typically 1 vehicle per 1-bedroom unit, or 2 vehicles for 2+ bedrooms, unless the Director approves more based on site conditions.

• Occupancy limits: Generally maximum of 2 persons per bedroom + 2 extra persons for overnight occupancy. The Director can allow more on a case‐by‐case basis. 

• Quiet hours / noise control: Must comply with the county’s noise ordinance (example: exterior noise not continuously above specified decibel limits). 

Application / documentation

• You will need to submit: a completed STR permit application, letter describing proposed rental use, floor plan, copy of a blank lease agreement, proof of ownership.

• Fee: The application fee is cited as about $63 for the application / two‐year permit in many guides.

Tax obligations

• Hosts must collect and remit:

  • Florida Sales Tax (6%) on rental stays of six months or less. 

  • Orange County Discretionary Sales Surtax (about 0.5%) in addition. 

  • Orange County Tourist Development Tax (TDT) ~6% on short-term rentals of less than six months. 

Enforcement / penalties

• Non‐compliance can lead to permit revocation and bans (e.g., if two violations occur the STR operations can be suspended for up to one year).

• Fines may start at $250 for first offense, increasing for repeat violations. 

City of Orlando (if property is within city limits)

If your property is within the City of Orlando proper, the rules are somewhat different and stricter in many cases. For example:

• The “home-sharing” concept is allowed (owner lives on-site and rents part of the property). 

• Rental of the entire property in a standard residential zoning district is generally not allowed under the home‐sharing ordinance; full usage may only be allowed if property is in certain commercial or mixed use zones. 

• First‐year registration fee of $275; subsequent years ~$100 (owner‐occupied) or ~$125 (non‐owner‐occupied). 

• Maximum occupancy: No more than 4 unrelated persons per booking OR maximum of 2 persons per room, whichever is less. 

• Ownership/occupancy requirement: Owner or long-term tenant must reside on‐site. 

Important Considerations

• Zoning matters: Just because you are in Orange County doesn't automatically mean any property can be used as an STR. You need to verify that the specific zoning classification of the parcel allows STRs under the county code.

• HOA & private covenants: Even if county/city zoning permits STR use, your homeowners association or private covenants may prohibit short‐term rentals. The city's home-sharing FAQ specifically calls this out.

• Location matters: If your property is inside a city (e.g., Orlando) the city rules apply. If unincorporated county, then county rules apply.

• State law overlay: The state of Florida sets some baseline requirements (e.g., tax collection) but local governments control zoning, permitting, occupancy, etc. 

• Enforcement may be variable: While rules are on the books, several sources mention that enforcement is complaint‐driven and may vary.