By Andy B. Cooper — Florida Licensed Real Estate Broker, SFR Certified · Cabana West Real Estate
Every winter, demand for furnished seasonal rentals rises across Palm Beach County as visitors, snowbirds and, in Wellington, the equestrian community arrive. For owners, renting for the season can offset the cost of a second home. But a seasonal rental is a business in the eyes of the state and the county, with taxes and registrations that many first-time hosts don't know about. Here's what to put in place.
Is your rental "transient"?
Florida treats rentals of six months or less as transient accommodations. According to the Florida Department of Revenue, these rentals are subject to the 6 percent state sales tax plus any applicable discretionary sales surtax, and counties may add local option taxes such as a tourist development tax. Rentals under a bona fide written lease for continuous residence longer than six months are excluded.
Most winter season rentals, typically a few weeks to four or five months, fall on the transient side of that line.
State registration
The Department of Revenue says every person who rents, leases or grants a license to use transient accommodations is required to register with the Department. After registering you collect the tax from guests and file returns. If you rent through a platform, check what the platform collects and remits on your behalf and what remains your responsibility.
Palm Beach County tourist development tax
On top of state sales tax, the Palm Beach County Tax Collector administers a 6 percent tourist development tax on transient rentals of six months or less. The Tax Collector states that anyone offering transient accommodations must register a TDT account online, and that vacation rental operators need a Short-Term Rental Local Business Tax Receipt for each account. Returns are filed monthly, due on the 1st and considered late after the 20th, and you must file even when you had no rentals that month. The tax applies to rental revenue including mandatory fees like cleaning and pet fees.
Check your HOA or condo rules first
Before you advertise, read your association's documents. Many Palm Beach County communities set minimum lease terms, limit how many times a year a unit can be rented, require tenant approval or ban short-term rentals altogether. Some charge application fees and need weeks to approve a tenant. If your community doesn't allow what you're planning, it's far better to find out now. Our article on HOA vs. condo associations explains where those rules come from.
Homestead and seasonal renting
If the home is your homestead, renting it can affect your exemption. Talk to the Palm Beach County Property Appraiser before renting a homesteaded property. Our homestead guide explains the exemption and the rules it's based on.
Insurance
A standard homeowners policy may not cover a home rented to others. Call your insurance agent and ask specifically about seasonal or short-term rental coverage, liability for guests, and coverage for your furnishings. Ask the tenant to carry renter's insurance too.
Pricing a seasonal rental
Seasonal rents in our area depend on location, size, finishes, furnishings, amenities and dates. A Wellington home close to the show grounds during peak months prices very differently from the same home in late spring. Look at comparable furnished rentals for the same dates, not annual lease rates. If you're in Wellington, see our page on seasonal equestrian rentals for how that market works.
Preparing the home
- Deep clean and service the AC before the first guest.
- Stock the kitchen and linens to the standard seasonal guests expect.
- Lock away personal items and valuables in a secured owner's closet.
- Provide clear instructions for trash days, pool, alarm and Wi-Fi.
- Arrange local contacts for maintenance and emergencies.
- Take dated photos of every room before check-in.
Put it in writing
Use a written agreement that covers dates, rent, deposits, taxes, occupancy limits, pets, cleaning, utilities, damage and cancellation. A local real estate professional or attorney can help make sure it fits Florida law and your association's rules.
How Cabana West helps owners
We help owners estimate seasonal rent, screen tenants, coordinate with associations and handle leases, in English and Spanish. If you're weighing a seasonal rental against an annual lease, we can compare both. See our rentals page or contact us.
FAQ
Q: Do I have to collect sales tax on a winter rental in Florida?
Rentals of six months or less are transient accommodations, subject to the 6 percent state sales tax plus any applicable discretionary surtax, according to the Florida Department of Revenue.
Q: What is the tourist development tax in Palm Beach County?
The Palm Beach County Tax Collector administers a 6 percent tourist development tax on transient rentals of six months or less, filed monthly.
Q: Can my HOA stop me from renting seasonally?
Association documents often set minimum lease terms, rental limits or approval requirements. Read them before you advertise.
Q: Does renting affect my homestead exemption?
It can. Ask the Palm Beach County Property Appraiser before renting a homesteaded property.
Andy B. Cooper is a Florida Licensed Real Estate Broker, SFR Certified, with Cabana West Real Estate, serving Wellington, Palm Beach County, and all of Florida. Cabana West is a bilingual (English/Spanish) brokerage.
Disclaimer: This article is general educational information, not legal, tax, insurance or financial advice. Laws and requirements change. Confirm details with the official sources linked above and with a licensed professional before acting.