Resort and Sales Taxes Required for Transient Rentals
Since its creation in 1915, Miami Beach is one of the most visited cities in the United States. A majority of the buildings were originally used as seasonal Miami Beach lodging condos. However, in the 70’s and 80’s a large number of condos were built and a set of new short term rental restrictions by building were implemented. As outlined in the condo documents, short term rental restrictions would limit the number of times a property could be rented throughout a single given year. As a result, these new restrictions by building greatly reduced the amount of legal Miami Beach lodging condos that were now available to vacationers.
Condo conversions in Miami Beach also had the same effect on short term rentals. An estimated 95% of the buildings in Miami Beach today do not allow for short term rentals of Miami Beach lodging condo units. The reason for this….the building’s condo owners created condo documents that would restricted short term rentals.
Condo documents are a set of rules and regulations that control every aspect of the life within a condominium. Short term rental restrictions in condominium documents may regulate the length of time an owner’s unit can be rented as well as the number of times that unit can be rented.
At present, a majority of the buildings in Miami Beach do not accept rentals for less than 6 months although there are some that will accept rentals for a month and only a select few have no rental restrictions.
Potential buyers should always check and read in detail the condo documents before deciding to purchase the unit. Before booking a short term rental from an owner or a management company a guest should first verify that the property is a legal Miami Beach lodging condo. This can be done by asking the owner to see a copy of the city or state license.