How to Start an Airbnb Business in Florida

⚠️ Disclaimer: This article is for informational purposes only and does not constitute legal, financial, or real estate advice. Short-term rental laws, licensing, and regulations vary by city and county in Florida. Always consult a licensed attorney, property manager, or local authorities to ensure compliance before starting an Airbnb business or rental arbitrage.

This article defines what Airbnb is, explains the concept of an “Airbnb business,” and explores the different business models available for starting one in Florida.

What Is Airbnb?

Airbnb is not a hotel chain or a real estate company. It is a peer-to-peer software platform, similar in function to other on-demand apps. It connects service providers (hosts) with people seeking a service (guests). In this context, it facilitates travel accommodations in Florida and globally.

Airbnb has been a key part of the “sharing economy.” It lowered the barrier to entry, allowing many people to list their homes and enabling travelers to find and book those accommodations directly from owners. For advice on making your property rent-ready, see Things to Do Before Renting Out Your House In Florida.

What Is an “Airbnb Business”?

An “Airbnb business” is a modern term for several established business types, including a short-term rental (STR) business, a vacation rental business, or a corporate housing company.

These models are similar: they involve putting furniture in a property and renting it to guests for a defined period. While corporate housing typically involves stays of three months or more, Airbnb allows for stays as short as one day. A Florida-based Airbnb business leverages the Airbnb platform as a key technology for marketing and booking these furnished accommodations.

Key Florida Definitions

Before starting, it is critical to understand Florida’s specific legal definitions, which vary from other states.

• Short-Term Rental (STR): In Florida, a short-term rental (or “vacation rental”) is generally defined as renting an entire unit more than three times in a calendar year for periods of less than 30 days at a time.
• Hosted vs. Unhosted: Renting rooms in a home while the host remains on-site (a “hosted” rental) is often regulated differently and may not require a state DBPR license. Renting the entire unit (an “unhosted” rental) is what triggers state licensing.
• Long-Term Rental: A long-term rental is typically an unfurnished home with a lease of six months, one year, or more.

What Starting an Airbnb Business in Florida Actually Requires

Operating a legal short-term rental business in Florida involves more than just furnishing a space. Compliance typically requires:

1. State Licensing: You must obtain a vacation rental license from the Florida Department of Business and Professional Regulation (DBPR).
2. Tax Registration: You must register with the Florida Department of Revenue to collect and remit state sales tax (6%) and any local “tourist development taxes.”
3. Local Licensing: Most cities and counties require you to also obtain a local business tax receipt (BTR) and, in many cases, a separate short-term rental registration or certificate from the local government.

Common Airbnb Business Models in Florida

There are several different models for running a short-term rental business.

1. Renting Your Own Property

This is the original and most straightforward model. It can involve:

• Listing Your Entire Space: A homeowner in Florida lists their entire property, which is the most common form of a vacation rental business.
• Renting Out Private Rooms: A homeowner or long-term renter lists a spare room while they live in the home. This is how the platform began (from “Airbed and Breakfast”) and is often exempt from the state’s DBPR licensing, though local rules still apply.

2. Rental Arbitrage

Rental arbitrage is a model where an individual or company does not own the property. The process involves:

1. Signing a long-term lease on a property (as a renter).
2. Obtaining the property owner’s or management company’s explicit written permission to list the unit as a short-term rental.
3. Furnishing the unit and marketing it on platforms like Airbnb.

The business objective is to generate more in nightly revenue than the cost of the monthly lease and expenses.

Important: This model carries significant legal hurdles. It is often non-compliant if:

• The lease agreement explicitly prohibits subletting.
• The local city ordinance bans non-owner-occupied short-term rentals.
• The HOA or Condo Association rules forbid short-term rentals.

3. Cohosting

Cohosting is a scalable business model, often used in areas with specific regulations. A cohost does not lease or own the property. Instead, they partner with a property owner.

The cohost’s responsibilities typically include:

• Guiding the owner through furnishing and staging.
• Managing the online listing, pricing, and guest communications.
• Handling check-ins, check-outs, and cleaning schedules.

The cohost acts as the operating partner for the listing and earns a percentage of the revenue.

Cohosting and Local Regulations

The cohosting model is often used to operate within specific city regulations. For example, if a city’s ordinance states that only a property’s owner can hold the rental license (prohibiting rental arbitrage), cohosting is a compliant alternative.

In this structure, the owner holds the legal license, and the cohost acts as a paid management service. This allows a professional cohost to legally manage a portfolio of properties for multiple different owners, adhering to the “one-host-per-property” rule.

Conclusion

Understanding these models is the first step. Whether it’s listing a spare room, engaging in rental arbitrage in Florida, or building a cohosting service, each path operates under different rules and has unique challenges. Success in this industry depends on thorough research, professionalism, and strict adherence to all state, county, and city regulations.