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The firm’s latest Miami Herald “Real Estate Counselor” column was authored by Jacob Leuze and appears in today’s edition of the newspaper. The article, which is titled “Illegal Short-Term Rentals at Brickell Condos Are on the Rise – What Can Associations Do,” focuses on the laws and condominium association rules governing short-term rentals. It reads:
. . . A recent report by CBS Miami chronicled the substantial difficulties encountered in enforcing a local ban on short-term rentals for several Brickell-area condominiums. Short-term rentals are regulated in part by the zoning ordinances and requirements promulgated by the City of Miami, and they are typically not allowed in the residential buildings located in the neighborhood.
“It has been increasing,” says Ernesto Cuesta, president of the Brickell Homeowners Association, in the station’s report on unlawful short-term vacation rental activity within residential condominiums in the Brickell area. Cuesta also notes unit owners have been attempting to bypass the local ordinances by executing 30-day lease agreements, which are then utilized as a subterfuge to facilitate unauthorized daily rentals.
“That lease is being used as a cover-up to rent on a daily basis to other people,” Cuesta asserts.
The report indicates that the news outlet conducted a review of more than 120 short-term rental complaints filed with the City of Miami’s code inspectors since January. Of those complaints, a dozen resulted in the imposition of property liens.
“Code compliance responds to all short-term rental complaints, regardless of location,” responded Orlando Rodriguez, the assistant director for the City of Miami Office of Communications. “We are aware of the issue in Brickell and the rest of the city. All complaints follow the process: initiation, investigation and adjudication, if necessary.”
Airbnb provided a written statement:
“When signing up to host on Airbnb, hosts agree to abide by Airbnb’s Community Standards and our Terms of Service, which stipulate that they must be in compliance with local rules and regulations. This is also made clear in our dedicated page on responsible hosting in the U.S. To obtain a short-term rental license in Miami, hosts must verify their listing is consistent with zoning requirements in the city and apply for a business license. Once registered, hosts must add their registration details to their listing on Airbnb. We maintain an active line of communication with Miami to help uphold the city’s short-term rental laws, including through ongoing collaboration on enforcement issues, support for the licensing system, and coordination around potential violations or problematic listings.”
Pursuant to Florida law, owners of short-term rental dwellings are required to obtain a state license from the Department of Business and Professional Regulation, and they may also be subject to additional permitting or licensing requirements imposed by the local municipality or county in which the property is situated. Furthermore, property owners must register with the Florida Department of Revenue for purposes of tax compliance.
Numerous municipalities and counties have enacted ordinances and laws imposing zoning restrictions, occupancy limitations, and permit requirements. Such ordinances and laws frequently mandate a designated responsible party capable of quickly responding to any issues that may develop at the property. While short-term rentals may be permissible in zoning districts designated for residential uses, local ordinances often impose additional restrictions applicable to specific neighborhoods.
In addition to maintaining compliance with all applicable state statutes, local ordinances and community association rules, the owners of a short-term rental properties should develop and utilize a comprehensive “house rules” document. It should clearly communicate policies concerning noise restrictions, occupancy limits, parking rules, and other important policies for transient tenants. Owners should also designate a local contact capable of responding to any issues within 24 hours, and they should maintain accurate records of guest information, tax payments, and inspection documents.
Despite the existence of extensive regulatory frameworks at both the state and local levels addressing short-term rentals, the identification and enforcement of violations involving unlawful rentals such as those in the recent news report remain complex and can present significant challenges. Condominium associations are therefore strongly encouraged to approach such matters with due diligence. Their boards of directors and property managers may consider implementing restrictions such as minimum lease durations, tenant application and approval procedures, security deposits and application fees, and caps limiting the percentage of units within the condominium that may be leased.
Condominium associations should work with highly qualified counsel in condominium law to assist in the review of their governing documents to determine what steps they may take to restrict short-term rentals. Attorneys may also assist in the drafting, adoption and enforcement of restrictions limiting short-term rentals. Once such restrictions have been duly adopted in accordance with association governing documents and statutory requirements, the restrictions should be clearly communicated to all unit owners, and enforcement efforts must be fair and consistent throughout the community. . .
Jacob concludes his article by noting that for many associations, the regulation of short-term rentals will require considerable attention and decisions. He writes that these matters require a balanced approach that takes into account the realities of the current market, the preferences of the association’s membership, and the rights and responsibilities of all the parties involved. Jacob advises that with the assistance of qualified legal counsel and other relevant professionals, associations can develop and implement effective policies and practices tailored to the unique needs of their community.
Our firm salutes Jacob for sharing his insights on the issues surrounding short-term rentals in communities with associations with the readers of the Miami Herald. He and the firm’s other South Florida community association attorneys write about important matters for associations in this blog and our Herald column, which appears every two weeks on Sundays, and we encourage association directors, members and property managers to click here and subscribe to our newsletter to receive our future articles.