Negative Impact for Vacation Rentals Florida Law Makers Pass SB 280

[Adam Bartomeo]

For those of you that know or follow me you know that I am not a fan of vacation rentals in the state of Florida for a multitude of reasons. I have owned Vacation Rentals and my company managed about 20 and the experience was terrible. The guests are horrible, the expenses are very high, and the ROI is awful. People are enamored with vacation rentals because they get caught up in feelings instead of the true numbers. They feel like they will have a profitable investment AND be able to use this investment as a second home. But, the truth is that unless you bought before 2020 you are probably going to have an underperforming asset that is a negative cash flowing liability. The hard part is knowing how much you will make over the course of a year. Unlike an annual rental where the rent is locked in for a year, the prices and amount of vacancies have a high-rate fluctuation.

If you do not live in the state than you may not be aware of SB 280. So, I made a short video with a brief explanation. Over the years it has been up to the city and county to pass ordinances if they choose to regulate vacation rentals. A several cities have implemented rules with the minimum per night stay and registering as a VR. Key West has very strict guidelines for VRs for registration and minimum night stay. Ft Myers Beach regulates the minimum stay to daily, weekly, and monthly based in the street the property is on. Cape Coral has a very loose 7-day minimum stay that isn't heavily enforced. Now, the Senate has passed SB 280 which will involve state regulation of VR's. I highly advise you research the bill which can still be vetoed by the Governor.