Old vacation rental regulation feud reignites between cities and state lawmakers

by | Mar 14, 2023



  • A bill aimed at limiting local governments’ power in regulating vacation rental properties has been voted favorably by the Senate Committee on Regulated Industries.
  • The legislation proposes that cities would no longer have the power to issue specific registration requirements for rental properties but would be limited to setting general registration standards that comply with state law.
  • The measure includes a provision capping property registration fees at $50 for a single application, and local governments would only be able to impose parking and trash rules identical to those applicable to permanent residents.
  • Coastal city representatives opposed the bill, expressing concerns regarding the feasibility of implementing a statewide regulation that maintains control over vacation rental operations.

A bill proposed by Sen. Nick DiCeglie aimed at restricting local governments’ power in regulating vacation rental properties was voted favorably on by the Senate Committee on Regulated Industries. The legislation, which has been revisited by state officials for nearly a decade, has become a point of contention between lawmakers and cities.

The proposed measure would curtail the authority of local governments in regulating rental operators. Under the bill, cities would no longer have the power to issue specific registration requirements for rental properties. Instead, they would be limited to setting general registration standards that comply with state law.

The proposal also includes a provision capping property registration fees at $50 for a single application. Additionally, local governments would only be able to impose parking and trash rules that are identical to those applicable to permanent residents, removing its ability to address rental property-specific issues such as noise and overcrowding.

“My goal here is to strike a balance. We have local governments, we have the platforms, and then we have hotels and lodging. Those are the stakeholders that I’ve already had conversations with. It’s important to strike a balance on an issue that is very emotional for a lot of folks,” DeCeglie said.” I want to try to improve the environment here locally — and especially from a legislative standpoint, there’s a good argument to put this behind us.”

Several coastal city representatives, including those from Indiatlantic, Satellite Beach, and Vero Beach, presented their opposition to the bill before the committee. The speakers expressed concerns regarding the feasibility of implementing a statewide regulation that maintains control over vacation rental operations.

Opponents of the bill argued that implementing a standardized registration fee, which is lower than the current fee charged by several towns that receive a high volume of tourists, may result in a sudden surge of visitors that the cities may not be equipped to handle efficiently. Additionally, those who opposed the bill advocated for cities to have the flexibility to collaborate with the state to address specific issues, rather than be forced to comply with set standards that may not apply to individual scenarios.

“Every city is different. We have space launches up in Cape Canaveral constantly,” said Jason Steele, who represents portions of the Space Coast. “Millions of people come in there. To be able to only charge a fifty-dollar fee for a vacation rental is just not going to work. I’d like to at least see an amendment where you did not cap the amount of money cities can charge.

DiCeglie contended, however, that local governments are seeking complete control over vacation rental properties, which he considers to be a problematic approach. In defending his bill, he argues that a higher degree of state oversight would improve local communities.

“I want to make this very clear, local governments will tell all of us that they want full control over vacation rentals,” said DeCeglie. “That is extremely problematic. I think the conversation has moved far past what kind of autonomy and control local governments can have in this space.”

The bill comes as Florida registered a record 137.6 million visitors last year. People from other states accounted for just under 93 percent of Florida’s tourists with the overall visitor total 12.9 percent higher than in 2021 and 5 percent higher than in 2019, the last full year before the COVID-19 pandemic hit the state.

A study conducted and published by the University of Central Florida’s Rosen College of Hospitality Management showed the economic impact of Florida’s vacation home rental industry to exceed $27 billion. The report states that Florida’s vacation home rental industry represents $16.6 billion in direct spending and $10.8 billion in indirect spending, with direct spending supporting roughly 115,000 jobs.

“Our research confirms that Florida’s lodging industry for vacations, beyond traditional hotels and resorts, which include rentals like houses, apartments, and condos, boosts the economy significantly. Renters remain in the state longer, some up to 30 days, and spend more money, on average $1,000 per person,” says Robertico Croes, associate dean of research at the Rosen College. “These long-term stays also provide more than 100,000 jobs for people supporting the vacation rental businesses.”

1 Comment

  1. Pedro Perez

    Residential vacation homes are a great problem for permanent residents. Noise, traffic, pollution at a great cost to the local tax payers. Control should be by the local authorities only. Stop tar real estate lobby.

 

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