Time from time our customers thinking of buying a condo-hotel or a residential condo, say they don't want to rent regularly, but would do it a few times during the biggest events of the year. And our biggest events are race month in February culminating with Daytona 500, Coke Zero 400 NASCAR race in July, Bikeweek in March and Biketoberfest in October, Turkey Run in November and a few smaller events throughout the year.
With condo-hotels, we always say that if you do not plan to keep the unit on rental program when you are not using it, you should think twice before buying it. It is the wrong use of a condo-hotel. As investments, they don’t make much sense even if you rent them, unless you buy crazy low and then flip, but if you do not plan on renting, then it makes no sense at all.
With condos the answer is not cut and dried. It depends what the rental restrictions are. Rentals in residential condominiums are regulated, and with the exception of just a few condominium buildings allowing weekly rentals, and a few more allowing 2 weeks minimum, others would be longer, up to a year, and you simply won’t be able to do it.
The rule of thumb is that less expensive residential condos have more restrictive rental policies, than many of the most expensive and luxurious condos built in the last few years.
The beauty of vacation rentals is that you can use your condo whenever you want. But even if you are lucky to be in the condo, where they allow short-term rentals, you need to know the limitations. Some condos, where owners can have pets, do not allow guests with pets.
And there is also a tax thingy, which many people do not know about, but which can bite you and even land you in a slammer.
If you are renting your condo (or home, or townhouse) for less than 6 months, you have to pay 6.5% sales tax to the State of Florida. And in addition to 6.5% tax to the State, you also have to pay 6% Tourist Development Tax to Volusia County (often referred to as bed tax).
And take it seriously. Failure to register and pay tax is a misdemeanor or felony punishable by a fine or imprisonment (FL. Statute 212.12(2)(d)).
So, if you want to make some money during next big Daytona event, go and register with the revenue Division of the county, and also with Florida Department of Revenue, and make sure you pay every penny you own.
Or call our property manager Vadim 386-405-2156 for no jail no headache vacations (LOL)
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