Posted on Wednesday, 07.29.2009
For the past 15 months, the City of Miami Beach has been working on a short term rentals ordinance for apartments in multi-family districts of Miami Beach. The City initially wanted to ban all short term rentals in Miami Beach, but found themselves faced with intense pressure and push-back from owners as well as multiple lawsuit threats.
The City of Miami Beach then realized that owners have property rights that can’t just be taken away. Case studies throughout Florida and all over the US show that cities have attempted to ban short term rentals in the past but, in most cases, they lost.
Property rights (anywhere such as Venice Beach, Key West, etc.) are Constitutional rights. The City of North Miami passed an ordinance in 2008 to ban short term rentals; however, they took the precaution to "grandfather" in people that legally rented short term rentals previous to the enactment of the ordinance.
The grandfather rights are given to the people that were formerly legally involved in short term rentals, meaning that they paid all applicable sales taxes and transient taxes.
The new ordinance will regulate short term rental activity and put restrictions and regulations on vacation property owners such as:
- A minimum requirement of 1 week rental
- The condo building must allow (not-prohibit) short term rentals
- Property manager must be recognized by the City of Miami Beach
- Manager’s contact information must be provide for renters and neighbors
- Fines, penalties, suspension and license revocation will be given for vacation rental owners that don’t control their renters
- Registration and a license must be granted by the City of Miami Beach
- Sales and resort taxes must be paid to the City, Dade County and the State of Florida
Where would it apply?
The Planning Board decided that the new ordinance would apply to the RM1 Flamingo Park district and to a portion of the RM1 North Beach neighborhood. Miami Beach short term rentals in all other multi-family neighborhoods will not be authorized, with the exception of those owned by people who actively rented short term rentals previously and that have done so legally; they will be grandfathered in. The Planning Board will meet again in August 2009 to decide what criteria will be used to determine which home owners will be grandfathered in.