Local Licensing
Background information
Overview
In an effort to create or enhance the oversight of rental properties, many municipalities have established landlord licensing or registration requirements at the local level. In some cases, these requirements apply to both short-term (also known as vacation rentals) and long-term rentals.
Problem
Additional licensing or registration requirements imposed at the local level can increase costs and create additional administrative burdens for property owners. For example, the registration or licensing requirements typically involve a fee to process the application and, in some cases, require property owners to comply with specific resident screening requirements. The forms associated with this registration process often require the contact information for the property manager and other management company personnel, which can change on a routine basis, to be kept on file and up to date with the city.
In the case of short-term rental ordinances, some local governments have also imposed additional inspection requirements on apartment communities, on top of the traditional building inspections conducted on an annual basis.
Background
The concept of regulating rental properties at the local level (housing or vacation rentals) is not unique to Florida. For example, in 2018 the City of Portland passed an ordinance requiring landlords to register apartments with the goal of establishing a “census” for the number of rental units within the city. However, when evaluating potential policies proposed at the local level, it is important to be aware of the applicable Florida statute.
State law (509.032 (7) (a)) preempts the regulation of public lodging establishments to the state. Further, Section 509.032(1) makes the Division of Hotels and Restaurants of the Department of Business and Professional Regulation the primary regulatory agency for transient public lodging (apartment communities).
In light of these preemptions, some local ordinances related to additional regulations for rental units specifically exclude public lodging establishments. One example is Broward County’s Landlord Registration and Residential Rental Property Inspections Program. The county included an exemption in the definition of a residential unit, which states, “Residential rental unit shall not include any dwelling unit that is owned by a federal, state, or local housing program or the federal Department of Housing and Urban Development, hotels, motels, public lodging establishments, as defined in Section 509.013, Florida Statutes, or any community residential facility licensed and inspected by the state of Florida.”
Other Examples of Landlord Registration Requirements in Florida
NOTE: The examples below do not constitute a comprehensive list of local landlord licensing/registration requirements in the State of Florida. The list below is provided for educational purposes. Please consult your local city and county codes to determine if similar requirements apply within your apartment community’s jurisdiction.
City of Coral Springs
In 2011 and 2012, Coral Springs passed Ordinance 2011-122 and Ordinance 2012-115 to establish the Landlord Registration Program. The program requires all residential units to be registered or renewed annually with the city’s Code Compliance division. The purpose of this program was to establish a database that can be used to contact property owners if there is a safety violation or an emergency on the property. In addition to the application that is required, landlords must pay a $56 registration or renewal fee per parcel to have their property in compliance. It is important to note however, that the Coral Springs ordinance only exempts hotels. Therefore, the registration requirements can be imposed on apartment communities.
City of Daytona Beach
In 2012, Daytona Beach’s City Commission adopted an ordinance to establish a Residential Rental Inspection Program. The goal of this program was to ensure that housing options within the city meet a set of minimum standards. Under the program, single-family homes, duplexes, triplexes, or quadplexes must obtain a rental property license from the city. The city charges an initial application fee of $40 and an initial inspection fee of $50 per unit. Upon renewal, the city charges a renewal fee of $15 and an inspection fee of $68 per unit. It is important to note however, that the city specifically does not regulate residential properties with five or more units (such as apartment communities) because they are regulated by the State of Florida.
The City of Miami Gardens
In 2005, the City of Miami Gardens passed an ordinance to establish a landlord permit process. Under the ordinance, any single-family home, two-family dwelling, three-family dwelling, four-family dwelling, multifamily dwelling, rooming house, or other dwelling must obtain a landlord permit from the city. The city’s ordinance exempts dwelling units owned by governmental entities (such as affordable housing properties owned by the U.S. Department of Housing and Urban Development). The city charges a $24 application fee and this permit must be renewed on an annual basis.
Strategy
There are a number of strategies the association can employ when presented with a policy that imposes local landlord registration or inspection requirements. Below are several strategies to consider. Please keep in mind that the options below are merely intended to give you and your association the ability to brainstorm and assess the specific solution(s) that will work best in your local area.
Potential Options:
- Advocate for an exemption by citing state law 509.032 (7) (a), which preempts the regulation of public lodging establishments, which includes apartment communities, to the state.
- In the event an exemption is unlikely and the ordinance is expected to pass, lobby for a delayed phase-in of the requirements to give property owners additional time to comply and plan for the new mandates.
- In the event an exemption is unlikely and the ordinance is expected to pass, advocate for a reduced/waived penalty for the first instance of noncompliance if the noncompliance was due to the property owner being uninformed about the new registration/licensing requirement.
Questions to consider:
- How likely is the ordinance to pass? In some cases where change is inevitable, it can be valuable to work with, rather than against the municipality as they work on the ordinance. This is a policy decision the association will need to make on a case-by-case basis.
- Does the ordinance include any penalties for noncompliance? If so, how cumbersome or costly are they?
- Are there other housing industry stakeholders that may be interested in fighting this ordinance alongside the association? Examples include but are not limited to: Florida Realtors and the Florida Chapter of the National Association of Residential Property Managers (NARPM).
Additional resources: