5 Things to Know About South Florida Airbnb Legislation
This year has brought some newer changes to South Florida Airbnb legislation. Discover the 5 things you should know about the legislation here!
The launch of Airbnb in 2007 changed the hospitality industry forever. More and more people around the globe have begun using Airbnb as a potentially more cost-effective alternative to staying in hotels.
However, new legislation in some areas has caused some major changes to Airbnb, especially for its hosts. These changes can particularly be seen in the South Florida Airbnb market.
How could these new rules and regulations affect you? Read on to learn the five things you need to know about the recent South Florida Airbnb legisla
When Did the Legislation Pass?
In December 2016, the Miami Beach Commissioners passed legislation that requires all residents to provide affidavits before becoming potential Airbnb hosts.
In order to advertise as a Florida Airbnb in Miami, your residence must be in the designated short-term rental area. You must also obtain a business tax receipt and a resort tax account.
In January 2017, Airbnb and the town of Surfside, Florida reached an agreement regarding the town's hosts.
The agreement ensured that Airbnb would collect the four-percent resort tax from its local hosts and then send that money to Surfside.
2,000 Airbnb guests stayed in Surfside in 2016. Airbnb hosts in Surfside made an average of $5,700
The Success of Airbnb in Miami-Dade County
There are nearly 33,000 Airbnb hosts throughout Florida.
Airbnb believes that almost one-third of the Airbnb listings in Florida are in the four major counties of South Florida. According to company's statistics, South Florida hosts generated $273 million in revenue in 2016.
Of that $273 million, hosts in Miami-Dade County earned $113 million of it.
Hosts in the second most successful county in South Florida, Broward, made $28 million.
Why Target South Florida Airbnb Hosts?
As mentioned above, Airbnb hosts in Miami brought in $113 million in 2016. That's an incredible amount of revenue.
However, that type of success poses a possible threat to the traditional hotel industry in South Florida.
Tourism is a huge component of the area's economy. But what if more and more tourists begin using Airbnb?
Members of the hotel industry believe that Airbnb hosts should be held up to the same type of scrutiny that they face.
Condo associations in South Florida also pushed for more regulations for Airbnb hosts. These new restrictions give the associations more power and control over the Airbnb market.
Now, hosts must obtain their respective condo association's approval before advertising their property on Airbnb.
Florida Airbnb hosts must pay state and local tourist taxes on all revenue they make from rentals.
In 2016, Airbnb collected $20 million in state and local taxes from Florida cities.
The new tax agreement between Airbnb and Surfside went into effect on March 1, 2017. Now, Airbnb hosts in Surfside must pay the four-percent resort tax, which they didn't have to previously.
Legislators in Surfside hope that the money collected from this tax will help to stimulate the town's economy.
Miami Beach has become much stricter over the years when it comes to illegal Airbnb rentals.
The city has issued $4 million in fines to those who have broken its laws.
Violators of the Miami's Airbnb laws face fines that start at $1,000. These fines can go as high as $20,000, though.
With fines that pricey, it all but guarantees that South Florida residents will comply with the new rules and regulations when using Airbnb as hosts.
Do you have questions or concerns about how this new legislation will affect your revenue? Contact us so we can help!