Panama City Beach STR occupancy restrictions, wrong?

Panama City Beach STR occupancy restrictions, wrong?

Colorado Springs, CO · Member since 2016 · 45 posts · 10 votes

It’s beginning to be clear that Panama City Beach, Fl does not want lower end vacation rentals. We had invested in an older beach front condo building. Originally a motel. Our place is a 300sqft studio with a kitchenette. Affordable beachside vacations. The city has begun onerous regulations. I get having to pay the taxes. But restrictions on occupancy has really hit our potential guests. The city council and fire dept, have misinterpreted a life and safety code and is restricting 1 person per 150 sqft. They are allowing us to round up, so we are only allowed to have 3 persons, regardless of age. We had to turn away a military family of 4, we were the only place in their budget that was on the beach. Panama City beach is the only municipality I can find that has made these occupancy restrictions. Others are 4 people per bathroom in Florida. I understand over crowding vacation rentals or party houses in residential neighborhoods. But they don’t require these restrictions on hotels and motels. We once stayed in a hotel with several bunk beds, 4 showers. In a space that was just a bit larger than 300sqft. They are also now requiring fire sprinklers and fire alarms regardless of the building type if it’s more than 1 story tall. Pool inspections, deck inspections, Florida business licenses and Florida hospitality license.

Does anyone know what profession can set a building and space’s occupancy? I have read and watched videos on the life and safety code and it’s not based on square footage but by space design. Door width, stair width, exit width. And the 150sqft per person is just the minimum occupancy not the maximum.

Sorry for the length, but we are loosing money and need help!

Jeremiah

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Kerry BairdPro Member
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
1y

@Jeremiah Dye, my FL municipality also changed the occupancy to 8 people.  My big house can sleep 21.  I typically have a set or two of grandparents, parents and kids.  Many municipalities are using onerous regulations to make it difficult to stay in compliance.  The Governor supports tourism, but many localities do not.

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    1y

    STRS  and vacation rentals are not for the faint of heart.

    There are more risks and potentially more money to be made if your willing to risk it.

    Unfortunately I do not know a simple solution to your problem except charge more money based on lower occupancy.

  • Kerry BairdPro Member
    Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
    1y

    @Jeremiah Dye, my FL municipality also changed the occupancy to 8 people.  My big house can sleep 21.  I typically have a set or two of grandparents, parents and kids.  Many municipalities are using onerous regulations to make it difficult to stay in compliance.  The Governor supports tourism, but many localities do not.

  • Atlanta · Member since 2022 · 711 posts · 642 votes
    1y
    Quote from @Jeremiah Dye:

    It’s beginning to be clear that Panama City Beach, Fl does not want lower end vacation rentals. We had invested in an older beach front condo building. Originally a motel. Our place is a 300sqft studio with a kitchenette. Affordable beachside vacations. The city has begun onerous regulations. I get having to pay the taxes. But restrictions on occupancy has really hit our potential guests. The city council and fire dept, have misinterpreted a life and safety code and is restricting 1 person per 150 sqft. They are allowing us to round up, so we are only allowed to have 3 persons, regardless of age. We had to turn away a military family of 4, we were the only place in their budget that was on the beach. Panama City beach is the only municipality I can find that has made these occupancy restrictions. Others are 4 people per bathroom in Florida. I understand over crowding vacation rentals or party houses in residential neighborhoods. But they don’t require these restrictions on hotels and motels. We once stayed in a hotel with several bunk beds, 4 showers. In a space that was just a bit larger than 300sqft. They are also now requiring fire sprinklers and fire alarms regardless of the building type if it’s more than 1 story tall. Pool inspections, deck inspections, Florida business licenses and Florida hospitality license.

    Does anyone know what profession can set a building and space’s occupancy? I have read and watched videos on the life and safety code and it’s not based on square footage but by space design. Door width, stair width, exit width. And the 150sqft per person is just the minimum occupancy not the maximum.

    Sorry for the length, but we are loosing money and need help!

    Jeremiah


     I am in the PCB market. They do not require sprinklers for a property with more than 1 floor. I have multiple properties and some are 2 story, no sprinkler required. as for fire alarms, those should be required for any rental and that shouldn't be a surprise.

    the sq footage restrictions have been around for awhile, they just weren't as hard on enforcing them. Also, the state recommendation is for 1 person per 150 sq ft, but each county can choose their own. reading what is going on and talking to other owners in FL, most counties are now just aligning with the state recommendations. and yes, hotels operate under different occupancy rules, but they also have more requirements around sprinklers, emergency egress and lighting, inspections, etc.

  • Colorado Springs, CO · Member since 2016 · 45 posts · 10 votes
    1y

    @Trent Reeve smoke alarms yes. I am all for safety. My complaint is that they are misinterpreting the life and safety code. Also, my condo building was built before many building codes existed in the area. The city informed us that the association may have to have install sprinklers into every room. Our building is concrete. And the alarms I was talking about were for an entire building system that is monitored. We have fire pull boxes.

    • Atlanta · Member since 2022 · 711 posts · 642 votes
      1y
      Quote from @Jeremiah Dye:

      @Trent Reeve smoke alarms yes. I am all for safety. My complaint is that they are misinterpreting the life and safety code. Also, my condo building was built before many building codes existed in the area. The city informed us that the association may have to have install sprinklers into every room. Our building is concrete. And the alarms I was talking about were for an entire building system that is monitored. We have fire pull boxes.


       I am just wondering why yours is so different than mine. I also have 2 units in a concrete building. the only changes i had to do, change the smoke alarms from battery to powered and networked and an emergency light on stairs for units more than 1 story. No sprinklers required. Not sure why yours needs an alarm that is "monitored", i haven't seen that requirement from any owners. There are a couple of PCB owners Facebook groups and that would have been mentioned if it was being pushed on a lot of owners.

      But I can see why, Florida had a condo not updated and it collapsed and people died. And up and down PCB, complexes have not been updating and now are rushing to do things they should have been updating over years. Yes, its an onus on the owners, but when i change my hat to be a guest, I would hope I'm coming to a safe place. Florida relies so much on tourism, they need rentals to be safe. just mu opinion

  • Colorado Springs, CO · Member since 2016 · 45 posts · 10 votes
    1y

    @Kerry Baird sadly DeSantis vetoed a bill last year that would outlaw municipalities to enact certain restrictions on vacation rentals.

  • Colorado Springs, CO · Member since 2016 · 45 posts · 10 votes
    1y

    @Kerry Baird here is the video from the company that wrote the life and safety code. I’d like to challenge their interpretation of the restrictions. Because I think they are either misinterpreted intentionally or unintentionally.

    https://youtu.be/FbiVenRL5JQ?si=LTnXGkqNZ7Iq_iqx

  • Kerry BairdPro Member
    Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
    1y

    My community recently elected a mayor who is against STRs. They changed ordinances to include reducing occupancy to 8 people, added a noise ordinance which is at speaking level sounds (no more Marco Polo from pesky tourists), changed parking laws which only affect visitors but not residents (no parking in street or over sidewalk), changed offender/predator rules so there is no space in the municipality where one can stay (a park bench is a “park” and they put benches all over the place and offenders cannot be within so many feet of these spaces).  I was accused publicly by a neighbor of hosting so I can welcome child offenders. 

    To get my certificate, I must have an internal emergency light.  This requires a permit.  They will not give me a permit for the emergency light, so I cannot renew my certificate.    

    Municipalities are using lawfare to prevent STRs.

  • Colorado Springs, CO · Member since 2016 · 45 posts · 10 votes
    1y

    @Kerry Baird wow, that is excessive.

  • Colorado Springs, CO · Member since 2016 · 45 posts · 10 votes
    1y

    @Trent Reeve oh yeah, I want to host a safe place. We haven’t been given notice that it’s a requirement, but every inspection has a different person come out and tell other owners different things. They wouldn’t pass us the first time because we didn’t have a “ground” on our outlets. Which when the building was built ground wasn’t a requirement. There is no “ground” anywhere. I had to hire an electrician to come out and state that and then submit it before they approved.

    • Atlanta · Member since 2022 · 711 posts · 642 votes
      1y
      Quote from @Jeremiah Dye:

      @Trent Reeve oh yeah, I want to host a safe place. We haven’t been given notice that it’s a requirement, but every inspection has a different person come out and tell other owners different things. They wouldn’t pass us the first time because we didn’t have a “ground” on our outlets. Which when the building was built ground wasn’t a requirement. There is no “ground” anywhere. I had to hire an electrician to come out and state that and then submit it before they approved.


       There has been a problem with the newly trained fire dept inspectors and getting different information. I recommend reaching out to the Fire Capt, he has been very open on the items and helped me make sure i didnt go overboard trying to meet what I thought were requirements.

  • Colorado Springs, CO · Member since 2016 · 45 posts · 10 votes
    1y

    @Trent Reeve thanks for the advise.

  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    1y

    Pinellas County FL is 2 per bedroom up to 10 total, though loosely enforced luckily.

  • Melissa HaworthBusiness Member
    Real Estate Agent · The Panhandle | The Emerald Coast | Panama City Beach | Destin · Member since 2017 · 257 posts · 101 votes
    1y

    Hey Jeremiah, totally feel your frustration on this one. You're not alone. The shift in local enforcement in Panama City Beach has been hitting a lot of older condo owners, especially those offering affordable, family-friendly options.

    One thing I’ve learned with PCB is that enforcement and interpretation can vary by department, and unfortunately, older buildings are getting swept into rules that weren’t originally written for them. That 150 sqft per person rule is usually a baseline, not a hard cap like they’re applying it. You're right that true occupancy limits are often based on design factors like exits and fire egress, not just square footage.

    If you haven’t already, I’d suggest talking to a licensed fire protection engineer or a code consultant. They can often issue an occupancy load report that looks at your unit’s actual layout and life safety compliance, not just a square foot number. It’s not a guarantee the city will change course, but it gives you a stronger position if you want to appeal or request a variance.

    Also, even though it’s frustrating, this could be a good moment to reposition your unit a bit. Market it as the perfect beach retreat for couples, solo travelers, or business stays. I’ve seen owners in similar situations find success by leaning into those niches and pricing accordingly, especially during shoulder seasons.

    You’re clearly doing everything you can, and your place is filling a real need. Don’t give up. Sometimes just having the right documentation or professional opinion can shift the conversation with local officials.

    Happy to share contacts if you want to dig into this further.

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