Hillsborough County Short-Term Rental Laws

In the past decade, the popularity of short-term rentals has exploded, thanks in large part to sites like Airbnb and VRBO. This is particularly true in Florida, where tourists flock year-round to take advantage of our gorgeous beaches, amusement parks, natural beauty, recreational opportunities, and more. But are short-term rentals legal?

In Hillsborough County, you can rent out your property for seven nights or less - if it falls within an approved commercial or residential zone. However, you must comply with specific rules and regulations, including getting a business license from both the state of Florida and the county. Your homeowner’s association (HOA) may have additional rules about short-term rentals that you should learn before listing your property.

At Eaton Realty, we work with buyers, sellers, renters, and investors throughout Hillsborough County, Florida. Our team can help you find and purchase a property to rent as a short-term rental or help you manage an existing rental property.

Looking To Buy A Short-Term Rental Property? Speak With A Realtor › 813-672-8022

Are Short-Term Rentals Allowed in Hillsborough County?

In Florida, short-term rentals - also known as transient rental accommodations - are well-regulated at the state level. However, only some counties have specific regulations and ordinances related to short-term rentals. Florida law does not permit local governments to ban short-term rentals or regulate the length or frequency of stays. Still, they can enact rules to control the negative impact of vacation rentals on a community.

Typically, a rental is considered “short-term” if you rent it for seven days or less. To operate a short-term rental in Florida, you need a business license from the state. You will typically also need a license from the county where the property is located. Any proceeds from these rentals will be subject to state and local taxes.

Hillsborough County does not directly regulate short-term rentals. However, there are some limitations on short-term rentals based on the zoning of a particular neighborhood. In other words, if your property is zoned for transient rental accommodations, you can list it as a short-term rental property (provided that you obtain the proper licenses). If you rent out your property short-term when it isn’t zoned for this type of activity, you could face steep fines.

Generally, some residential and commercial zones permit short-term rentals. The Hillsborough County Land Development Office is a good source of information on what uses they allow in your zoned area. If you are unsure whether your property is zoned for transient rentals, contact the Land Development Office for their advice.

The purpose of these rules is to preserve the integrity of neighborhoods. People who buy a home in a community usually don’t want it to become overrun with tourists on vacation. For this reason, short-term rentals are only permitted in certain residential and commercial areas in Hillsborough County.

Short-term rentals can be incredibly profitable in Florida, which typically sees high numbers of tourists throughout the year. If you are purchasing a property intending to rent to vacationers - or think it may be a possibility - then you should ensure that any real estate you buy is in the right zone for transient rental accommodations. An experienced Hillsborough County real estate agent can work with you to ensure that any investment property you purchase is in the right area for these types of rentals.

What Do I Have to Do to Rent Out My Property on a Short-Term Basis in Hillsborough County?

Before listing your property as a short-term rental, you will need to check to ensure it is appropriately zoned. If it isn’t, you will not be able to rent it out on a short-term basis. If you rent it anyways, you could be fined.

If your property is eligible for short-term rentals, the next step will be obtaining a vacation rental license from the Florida Department of Business and Professional Regulation (DBPR). Also known as a general business license or a business tax receipt, you can apply for this license by filling out form DR-1.

The fee for this license varies based on the number of units in the property and whether you get a license for a full year or half year, ranging from $150 to $350 for a single/group license. You are not required to obtain this license if you are renting out part of your residence while you are also living there.

In addition to a license from the state, you must also obtain a general business license from Hillsborough County. You can file for this license online and pay the fee online, via mail, or at a Hillsborough County Tax Collector dropbox. Once you have state and local business licenses, add these numbers to your short-term rental listing(s).

These licenses are generally valid for one year, meaning you must renew them annually. Be sure to check to make sure that your business licenses are valid before renting out your property on a short-term basis.

Importantly, if you earn money from short-term rentals in Hillsborough County, you must pay state and local taxes on these profits. Consult with a tax professional to learn more about filing a business tax return and paying these taxes.

In addition to these requirements, it is important to check to see if any other rules or contracts may prohibit using your property as a short-term rental unit. For example, if you belong to a HOA or own a unit in a building subject to a co-op, they may expressly prohibit transient rental accommodations. If you are currently renting your home, you should check your lease and with your landlord before attempting to sublet your unit on a short-term basis.

Find Your Next Hillsborough County Rental Property Eaton Realty

Becoming a landlord can be a great way to earn passive income. Our realtors can help you find and purchase good investment properties. We can open a search for you, schedule showings, and advise on how lucrative a location may be for rental income.

Based in Lithia, Eaton Realty offers real estate services throughout Hillsborough County, Florida. Our team can even provide full-service property management to give you peace of mind in knowing your investment is being taken care of, even when you aren’t around.

If you’d like to learn more, fill out our online contact form or give us a call at 813-672-8022 to talk to a team member.

Resources:

• https://www.forbes.com/sites/forbesbusinesscouncil/2023/01/23/6-trends-that-short-term-rental-property-owners-and-managers-should-expect-in-2023/?sh=5975df617ace
• https://floridarevenue.com/Forms_library/current/gt800034.pdf
• https://floridarevenue.com/taxes/eservices/Pages/registration.aspx
• http://www.myfloridalicense.com/DBPR/hotels-restaurants/licensing/lodging-fees/
• https://www.hillstax.org/taxes/business-tax-services/
• https://www.hillsboroughcounty.org/en/businesses/zoning/zoning-counseling