Orlando – known as “The City Beautiful” – is a top destination for vacationers, which means short-term rentals (like Airbnb and VRBO listings) are very popular. Whether you’re a homeowner hoping to host guests or a traveler curious about the rules for vacation rentals, it’s important to understand Orlando’s specific laws. In recent years, the city has implemented regulations to allow home sharing while protecting neighbors’ quality of life.
This friendly guide breaks down Orlando’s short-term rental regulations – from licensing and zoning to taxes and neighborhood rules – so new and experienced hosts (and even curious travelers) know exactly what to expect.
Licensing & Registration Requirements
Orlando requires short-term rental hosts to get proper licenses and registrations before welcoming guests. Here are the key requirements:
- City of Orlando Home Sharing Registration – If you plan to rent out part of your home for less than 30 days at a time, the City of Orlando mandates a Home Sharing Registrationorlando.gov. Hosts must live on-site and be present during the guest’s stay (this is home sharing)orlando.gov. Only one rental party can be booked at a time, never multiple groups simultaneouslyorlando.gov. You’ll need to apply through the city’s portal and prove the home is your primary residence (two forms of proof are required)orlando.gov. The city charges an annual fee for this permit – $275 for the first year, and an annual renewal of $100 if you’re the owner-occupant (or $125 if you’re a tenant host with owner’s permission)orlando.gov. Renewal may involve an inspection to ensure the property still meets safety and code standardsvacationrentallicense.com. Importantly, your City registration number must be included in any online listing or advertisement for your rentalorlando.gov, so the city knows you’re properly licensed.
- State of Florida Vacation Rental License – In addition to the city’s requirements, Florida state law treats short-term rentals as public lodging. If you rent out a dwelling more than 3 times in a year for periods of less than 30 days, you are considered a vacation rental business and must obtain a license from the Florida Department of Business & Professional Regulation (DBPR)gosummer.com. This state license (through DBPR’s Division of Hotels and Restaurants) ensures your property meets health and safety standards at the state level. Even if you’re just renting a single room in your house, if it’s advertised to the public on Airbnb/VRBO and rented frequently, it likely falls under this requirement. Be prepared for state inspections for things like smoke detectors, extinguishers, and general safety compliance as part of maintaining the licensesteadily.comsteadily.com.
- Local Business Tax – Operating a short-term rental is essentially running a business, so hosts may need to register for local business taxes. Orlando and Orange County both levy a business tax receipt (sometimes called an occupational license) for operating any business. For example, Orange County requires hosts to obtain a county Business Tax Receipt in addition to the short-term rental permitbnbcalc.com. The City of Orlando requires a business license (tax receipt) for certain types of rentals, such as if you’re running a Bed & Breakfast or renting an entire dwelling in a commercial zoneorlando.govorlando.gov. When you apply for Orlando’s home-sharing registration, check with the city if an additional business license is needed in your case. Typically, the annual registration fee covers the privilege of home hosting, but if you go beyond “just renting a room” (for instance, converting your property into a dedicated short-term rental business or B&B), additional business tax registration will apply.
Tip for hosts: It might sound like a lot of paperwork, but these steps are crucial. The good news is once you’ve registered and licensed properly, you can legally earn income from short-term renting and avoid hefty fines. Always start with the City’s home-share registration if you’re within Orlando city limits – they’ll guide you on any other licenses needed. And if your property isn’t within the city (i.e. it’s in unincorporated Orange County), be aware the county has its own permit system ($63 permit valid for 2 years, plus a required county business tax receipt)
bnbcalc.com – so check your property address to know which rules apply.
Zoning Restrictions: Where are Short-Term Rentals Allowed?
Zoning laws tell you where short-term rentals can operate in Orlando, and the city’s rules here are pretty strict. In general, Orlando only allows short-term rentals in residential areas if they are done as “home-sharing” with an owner or long-term tenant on-site
hometeamvr.com. This means the property owner must actually live at the home and rent out only a portion of it (like a spare bedroom or an in-law suite) to short-term guests
hometeamvr.com. You cannot simply rent an entire investment house to tourists on a nightly basis in a typical Orlando neighborhood – doing so is not permitted under the city’s code for single-family residential zones
Here are the key zoning points to know:
- Residential Zones (Owner-Occupied Only) – In standard residential neighborhoods, you cannot list an entire home on Airbnb for short stays as a business. Orlando city code outright prohibits an individual homeowner from renting out an entire dwelling for under 30 days more than once per yearorlando.gov. In other words, if you have a house in Orlando, you can’t turn it into a full-time vacation rental unless you live there and do it as a home-share. The home-share ordinance (2018) created a legal avenue for owner-occupants to host short-term guests in part of their home, but not to vacate and rent the whole property continuouslyhometeamvr.com. So if you’re a host in the city, plan to stick to renting out extra rooms or an accessory apartment while you remain on-site.
- Exceptions for Certain Properties – What if you really want to rent out an entire house to vacationers? The property must be in a zoning district that explicitly allows “Commercial Dwelling Units” or transient rentals, which are typically limited to commercial, mixed-use, or special tourism zones. A Commercial Dwelling Unit is basically city-speak for an entire home or apartment rented short-term (7 to 29 days at a time)orlando.gov. These are only allowed where zoning permits transient lodging. For example, some downtown high-rise condos or properties near the tourist corridor might be zoned to allow short rentals, but you’d need to verify on Orlando’s zoning map. If allowed, the city treats rentals of under 7 days as a hotel/motel use, which is even more restrictedorlando.gov – essentially, if you’re not in a hotel zone, you can’t do nightly rentals. This means even in the few areas where an entire home can be rented, the stays usually must be a week or longer by codeorlando.gov. Additionally, operating such a rental would require obtaining a Business Tax Receipt and possibly a special permit like a conditional use approval. Another exception is running a Bed and Breakfast: homeowners can convert their property into a small B&B (renting out all bedrooms except one for the owner) if they get a special permit and follow city code rules (e.g. no more than 2 guest rooms in residential zones)orlando.govorlando.gov. B&Bs require the owner to live on-site and serve breakfast, etc., and they fall under separate zoning provisions than regular home sharing.
- Unincorporated Areas – Many “Orlando” vacation rentals you see online aren’t actually in the City of Orlando; they might be in unincorporated Orange County or neighboring cities. Orange County recently passed an ordinance legalizing short-term rentals (even of entire homes) in residential areas, with certain conditions (like occupancy limits and parking rules)bnbcalc.combnbcalc.com. So, a house just outside Orlando city limits might be allowed to operate as a full vacation rental with a county permit. If you’re a real estate investor looking at the Orlando market, this distinction is crucial. Inside Orlando city limits, rentals are essentially “hosted only”; outside the city, you have a bit more flexibility under county rules. Always verify the jurisdiction of a property – the City of Orlando’s online resources even advise checking if an address is “Unincorporated” and then following Orange County’s laws in that caseorlando.govorlando.gov.
In short, Orlando’s zoning aims to protect residential neighborhoods from becoming rows of mini-hotels. If you’re a host, plan to share your home (not absent yourself entirely) unless you have a rare property in a tourist/commercial zone. And if you’re a traveler booking a stay in the city, expect that your Airbnb might be a room in someone’s home or a traditional B&B, rather than an entire house – many of the full-house rentals are in the greater Orlando area outside the city.
Tax Obligations (Occupancy Taxes and Business Taxes)
Renting short-term in Orlando comes with important tax responsibilities. These taxes ensure that the booming tourism economy contributes to the community. Here’s what hosts need to know:
- State and County Occupancy Taxes – In Orange County (which includes Orlando), short-term rentals are subject to both Florida state sales tax and a county “tourist development tax.” Florida imposes a 6% state sales tax on rental charges for stays of 6 months or less, and Orange County adds a 0.5% local sales surtaxbnbcalc.com. On top of that, Orange County charges a 6% Tourist Development Tax (TDT), often called a “bed tax” or occupancy tax, on short-term rentalsbnbcalc.com. This TDT 6% is calculated on the total rent (including any cleaning fees you charge). In total, guests face 12.5% tax on their Orlando stays, and as the host, you are responsible for collecting and remitting these taxesbnbcalc.com. Practically, this means you must register with the Florida Department of Revenue to report and pay the 6.5% sales taxes, and separately remit the 6% tourist tax to the Orange County Comptroller’s office, usually on a monthly basisbnbcalc.combnbcalc.com. The good news: major platforms like Airbnb and VRBO will often collect these taxes from your guests automatically and send them to the state/county on your behalf. (Airbnb, for instance, has agreements in Florida to handle state and county taxes in many areas.) However, the ultimate responsibility lies with the host – you need to ensure those taxes are being paid properlybnbcalc.com. If you do any direct bookings outside of a platform, you’ll have to collect and remit taxes yourself. Failing to pay these can result in penalties or interest, so don’t skip this step.
- Business Tax and Income Tax – As mentioned earlier, hosts may need to obtain a Business Tax Receipt (BTR) from Orange County (and possibly the City of Orlando if applicable) to legally operate. The BTR is essentially a small annual tax for the privilege of doing business. In Orange County it’s obtained via the Tax Collector’s office after you have your state tax registration in placebnbcalc.com. Additionally, remember that your short-term rental income is taxable income. You’ll need to report it on your federal and state income tax returns. Florida has no state income tax, but the federal government will expect its share of your rental earnings (minus deductions for expenses, of course). Keep good records of your rental income, the occupancy taxes you’ve collected, and your expenses – many hosting expenses (cleaning, maintenance, supplies, portions of utilities, etc.) can be written off, which helps at tax time.
Quick recap of taxes: Guests pay 12.5% on top of the rent in hotel-type taxes for Orlando rentals (this combines state sales tax and county tourist tax)
bnbcalc.com. As a host, you must register, collect, and remit these to the authorities, unless a platform does it for you. You’ll also likely pay ~$50-$100 per year for local business licenses, and don’t forget to report your rental income on your taxes. Staying compliant with tax obligations is a must – it’s part of being a responsible host and avoids any legal trouble down the road.
