MTR rules for central Florida
Hello,
So I saw that most places categorize rentals as just str or long term, mtr is just another option investors came up with but in the eyes of the state it’s not recognized with its own rules and regulations. I’m looking to have a mtr in the central Florida area, but I was wondering if it’s better to classify it as a long term rental to avoid all the str laws or will this get me into any trouble based on their rulings as to what differentiates a str vs ltr ? How have you guys in the central Florida area done it and do you have any advice or recommendations? I would use the long term strategy as the exit strategy since str laws are stricter.
As a general rule, If tenants occupy the property for 30 days or more, they are generally treated like long-term tenants, with the primary difference being specific terms in the lease agreement tailored to the mid-term duration. However, if the occupants stay for less than 30 days, the rental is typically considered a short-term rental and subject to different regulations.
You don't state what state laws you are trying to avoid. Generally, relevant Florida Statutes regarding laws (e.g. Division of Hotels and Restaurants, F.S. ch. 509) differentiate tenancies by either being less than 1 month or more than 1 month. However, tax laws treat tenancies less than 6 months differently than tenancies more than 6 months. Also, keep in mind that just calling a rental property "long term" doesn't change the reality if you are really renting as short term. Best wishes.
Also, I'll add in that in Orange County (most of Orlando) the minimum length is 7 months, if it's within an HOA, they may have a 12 month minimum. So you will have to watch out for municipality, county and HOA rules to determine what you are able to do.
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Real Estate Agent
- Shawn McCormick
I think it's always important to check with the specific city or town that you are looking in as each can have different rules/regulations on LTR vs STR
I know in Orlando in most areas that don't allow air bnb, will allow you to have an air bnb as long as you live in one side of it while having it as an air bnb. As long as there's no HOA rules there should be no problem doing a medium term rental. You could also try doing a padsplit, its another way to get more rent for a property by renting the rooms individually.
@Anastasia Rodriguez you don't classify the rental the length of stay of your tenants will decide what kind of rental you have and you have to follow the laws for long term rental if your length of stay is usually more than 30 days depending on the state. If it is less then you follow STR laws and licensing requirements. The caveat with FL is that the tax laws will consider you a STR for paying transient occupancy tax if the occupancy (I believe ) is less than 6 months. So look into your local and state laws to determine what laws you need to follow.