Linda Coiro : Short Term Rentals in a Vacation Rental Town

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Short Term Rentals in a Vacation Rental Town

By: Linda Coiro
Thursday, April 12, 2007 9:14 PM

I live in a vacation rental area, Destin, FL. Does anyone have any stats on the pros and cons of allowing short term (meaning weekend or more) rentals in a complex or home development in regard to resale values? Is there a place where I can find data supporting this? Alot of times clients ask "but does this place allow short term rentals?" I need some information on if this helps or hinders sales and whether it can support property values in a weak market. I have a client who owns a townhome in a 9-unit complex near the beach where they do not allow short term. Six months is the minimum. Truthfully, with its proximity to the beach and the local amenities, it would make a great short term rental complex. My client is wanting to sell the unit but finding more inquiries about it being a vacation rental property rather than a long term residence. Thanks for any input.

Sincerely,

Linda Coiro, Realtor, e-PRO, Markham Real Estate, Destin, FL, www.PerchedinParadise.com

Comments

Member Since '07

Gena Plante said:

Linda, in the state of Florida a short term is considered 6 months or less, if the the docs from the association say minimium of 6 months, then right up your lease for 6 months and 1 day. If you do consider a short term lease, keep in mind you have to collect sales and usage tax and tourist tax, meaning you have to add the taxes to the rent to cover this. We do short term and it is more of a headache than anything, you have to file the taxes on a monthly basis, 6% to the State of Florida and what ever your county tax is to the county, for instance Volusia Co. is 6.5%, equally 12.5% that we charge the customer. You have to register each of your clients and they must sign a form that they will accept short term leases and that you as the acting agent will file these taxes for them. I could go all day about short term. If you need more specific answers let me know

April 13, 2007 6:06 AM

Member Since '04

Ric Champlin said:

Linda,

Here in the FL Keys it is a benefit to have a home in the rental program. I approach it from the standpoint that 'let renters help pay your mortgage' By rental I am talking about transient rentals which are a minimum of 7 days. Our company handles these rentals so this way we stay intouch with the buyers. Many homes rent for 30 plus weeks per year at around $1500.00 per week.

April 13, 2007 7:50 AM