Rental Property Investor · Naples, FL · Member since 2019 · 28 posts · 18 votes
I am a local investor here in Naples, FL. I own and manage two duplexes and have long term renters in place but I am fascinated at the Airbnb space. I know short term rentals are illegal in Naples, so how is it that you can host Airbnb in Collier County? What's the difference between signing a lease for a month or renting a booking a place for a month on Airbnb?
Real Estate Broker · Fort Myers, FL · Member since 2019 · 576 posts · 423 votes
5y
@Brian Camey Got it, sorry about that! Per the city ordinances, it is illegal, there's no questioning that. Enforcement is a different issue. However, it will never be my recommendation to try and rent a property in opposition to city code, in which you're relying on that income stream to support the business. Even though many people do it, and do get away with it, the chances of having that income stream cut off at any second makes it way too risky in my opinion.
This has been an incredibly helpful forum, thanks for keeping up on replies- Florida seems to be pretty tricky with Airbnb, especially collier county. Just to make sure I’m doing this right and at least setting myself apart from the ones who are causing problems here- what licenses did you get that you would recommend? Are these found and completed online or in the county offices? Once again- thanks so much for your guys help- the county/government websites haven’t been super helpful
Naples, FL · Member since 2021 · 3 posts · 0 votes
5y
I rent studio's through AirBnB and VRBO. I used to go to the courthouse tax office and pay the tourist tax and sales tax. Lately AirBnB took that part over from me. I never had a problem but I am in the R3 BMUD zoning. It is the owners that don't pay taxes that are creating a problem for the county.
The county knows that money spend on AirBnB stays in the county. Money spend on multinational hotels goes away and get's spend somewhere else. If you pay your taxes and have a busness licence there is no problem.
Inspector · Naples · Member since 2022 · 27 posts · 17 votes
4y
Nice to see we have an expert in our midst. Linda, please feel free to call James French the head of Collier County Growth Management. What you will find out is less than a 6 month lease is not permitted. Smart seasonal rentors call it a 6 month lease but nothing makes the tenant stay 6 months. It sounds like you went to great lengths to register and license yourself. I would then assume you have the proper insurances on the properties. Liability being a huge concern should someone get injured while on your rental property. Normal homeowners or even commercial ryders will not suffice. I know I am not losing my properties to a slip and fall lawsuit because of underinsured coverage. When you start renting in unincorporated Collier, you may find the tenants less than forthright in their intentions. Also, do you do a background check? What if your one night tenant commits a Felonious crime in your home? Are you prepared for that? YOUR rental property could be held by the government as evidence. Sure, this can happen on any rental, but when you turn it once a year vs 360 nights a year....you can calculate the odds.
I tried short terms in Naples Park this season. Although the rents were appealing, the amount of labor and reporting makes it unappealing. A quick check with the State Hotelier board says less than .001 of the projected ARBNB and nightly rentals report taxes. In 2023, legislation has already been written to heavily tax and add inspections like a normal lodging location to private rentals. I just don't see how it would be worth all that. I can rent a summer season rental and a winter season rental and make out just fine.
While talking to Mr French at CCGM, ask him about future zoning and fire inspections you will be facing. You are running a commercial operation out of residential zoning.
@Linda Weiner I would definitely suggest doing a bit more research on it! See my previous response for the exact Collier County Ordinance number and wording. In the City of Naples, they've explicitly stated many times that they support the county's decision on the STR ban. Unless you have applied for and currently hold a transient lodging facility permit, then you are in violation of that code.
They're now looking to increase enforcement standards, as well as fees for those found in violation of these ordinances, so I would definitely recommend looking into it more!
You are very correct on the crackdown. Fire is now going to do inspections, Zoning will be checking parking and anything they can check and fine for. The county will make more on fines than the weak sales taxes might generate. The thing NO ONE checks is liability insurance. Homeowners policies do not cover this and if the County does nothing to monitor and control these mini businesses, they will be sued just like the owners for not managing the commercial operations these become.
Yes, of course you need to be licensed and you also need a sales tax certificate. It's not expensive.
@Linda Weiner Thanks for the comments/notes throughout this thread! I'm just getting started in AirBnB's in north FL. Is the Hotel license and Sales Tax Certificate needed for STR's anywhere in the state, or are your comments specific to the Naples area? If I do need the Hotel license, how would I go about getting it? Thank you!
Real Estate Agent · Minneapolis, MN · Member since 2017 · 13 posts · 6 votes
4y
@Brian Langstrom - how many STRs did you have in Naples Park? How long? What type of properties were they (beds/baths, age, etc.)?
I've checked with several STR property managers in the area (I'm not going to use them) but they are slammed with demand and have stated they are short so many homes with week-long vacationers looking to rent. Seems to me, a very good systems set up would mitigate a lot of the labor/reporting. Additionally, what property type, nightly rate, and age of home, and good insurance, would deter some of what you are talking about (risks). Like any real estate, lower end places attract more riff raff. Good systems, screening, and higher-end property... these risks seem to be way less and I've chatted with some new construction STR owners in the area..
Inspector · Naples · Member since 2022 · 27 posts · 17 votes
4y
Hello Adam
I have two duplexes. Age around 15-20 years old but recently updated. Compared to my yearly and seasonal properties, the wear and tear was 3x what long term is. I manage them but do have a company that screens the renters. I was using KW for a management company on the LTR but their policies and staff did not meet my expectations. AKA....risky tenants for the KW gain.
I am seeing softness in the STR market till season. Then it is strong as normal. So make your money Jan-Mar.