More often than not, a commercial landlord will ask for a personal guaranty from a prospective tenant when negotiating a lease. A personal guaranty gives the landlord the ability to seek from the guarantor any unpaid rent in addition to the business entity that is renting the space. Many times, the guarantor is the owner of the commercial entity seeking to lease the commercial space and is providing a personal guaranty in his/her individual capacity.
Given its status as a tourist destination, and the proliferation of online rental platforms, it would seem that Collier County is the perfect place for Airbnb and similar services to thrive. While these platforms continue to grow, both the City of Naples and Collier County have taken the position that daily, weekly, and/or monthly rentals of single-family homes (also known as vacation rentals, short-term rentals, transient rentals, and/or transient occupancy) are generally prohibited.
Home rentals have been popular in Florida for decades. Prior to the age of Airbnb (which launched in 2008), short-term rentals were allowed to exist “off the radar” with little to no zoning-based enforcement. Successive single-family rentals were not particularly problematic in single-family zoning districts before the internet. As technology continues to evolve, renters, neighbors, elected officials, and code enforcement have easy access to vacation rental information.
In 2011, amendments to state law preempted local governments from adopting ordinances relating to the “use” and “occupancy” of short-term rentals. In 2014, this preemption was removed and replaced with a preemption on local regulation of “duration” and “frequency” of short-term rentals. The remainder of this post will explain the current status of regulation of short-term rentals of single-family homes in the City of Naples and in unincorporated Collier County.
City of Naples Short Term Rentals
In 2018, we shared an article explaining the Florida Legislature’s decision to reduce the business rent tax (“BRT”) from 5.8% to 5.7% for leases commencing in 2019 and beyond. On Election Day 2018, the voters in Lee and Collier counties voted in favor of a discretionary sales tax (the “Sales Tax”), 0.5 percent and 1…
Commercial space is rarely “walk-in ready” for the tenant. As a result, landlords and tenants must negotiate for leasehold improvements in order for the leasing transaction to move forward. This can impact new leases, amendments or renewals of existing leases.
Florida’s Third District Court of Appeal handed down a win for local governments on Wednesday when the Court reversed a previous Circuit Court injunction that barred the City of Miami from enforcing a ban on short-term rentals in residential areas of the City.
In 2017, the City of Miami adopted a resolution that affirmed the City’s zoning regulations “as they pertain to short-term/vacation rentals,” and stated that neighborhoods zoned as T3 were limited to permanent residential use, which precluded rental accommodations per night, week, or anything less than one month.
Notably, the T3 zone encompassed most of the City’s single-family houses and duplexes. When residents who had been using Airbnb to rent their properties spoke against the resolution, residents were directed to state their name and address for the record, and the City Manager made the comment that the City was “now on notice” of those who spoke against the City’s code and that he would direct his staff to enforce the City code.
In Jahangiri v. 1830 North Bayshore, LLC, the owners of a Miami deli tried to exercise their first renewal option under a commercial lease. The tenants were not able to exercise their first renewal option because the Court ruled that the renewal provision lacked a definite price term or definite procedure to determine the price term in the future.
La Bottega on the Bay, LLC, entered into a written lease for commercial property in Miami with landlord 1830 North Bayshore, LLC. The lease contained the following provision:
RENEWAL OPTIONS: Upon six months [sic] notice and provided [lessee] is not in default of any provision of this Lease, LESSOR agrees that [lessee] may renew this Lease for two five-year renewal options, each renewal at the then prevailing market rate for comparable commercial office properties.”
Throughout the initial five-year term, the tenants timely paid rent and were otherwise in compliance with the terms of the lease. Upon trying to renew the lease under the Renewal Option, the landlord refused to renew. The tenants then sued to enforce the Renewal Option.
On December 20, 2017, I co-authored an article, Business Rent Tax Reduced Beginning January 1, 2018, that discussed the Florida Legislature’s decision to lower the Business Rent Tax (“BRT”) from 6.0 percent to 5.8 percent.
On March 23, 2018, Governor Scott and the Florida Legislature delivered another win for Florida’s business community with House …
An interesting ruling came down this week in an Airbnb case stemming from tenants illegally offering apartments for short-term rentals in violation of their lease agreements in South Florida.
Bay Parc Plaza Apartments filed suit in 2017 against Airbnb with multiple claims of trespass, tortious interference with a contract, and violations of the Florida Deceptive and Unfair Trade Practices Act.
Airbnb attempted to have the case dismissed based on protections under the Communications Decency Act (CDA). Because the CDA protects operators of internet services from liability for content posted from third parties who use their services, Airbnb argued that short-term rental listings on their website posted by tenants within an apartment building qualified as third party content and Airbnb, therefore, is immune to suit for that content under the CDA.
You might be thinking “why do I care because I rent my home or apartment and don’t own either commercial or rental property?” Consider this: if your landlord has to pay higher taxes, guess whose rent…
Summer is a busy season for moving in Florida. This time of year is a popular time for families to move because it follows the spring real estate season and because school is out, parents won’t have to deal with enrolling their children in a new school mid-year. Landlords should ensure that they are aware of and in compliance with Florida law prior to renting.
Before signing a rental agreement or lease, landlords are encouraged to seek legal counsel to ensure that their lease complies with Florida law and that they are aware of the laws governing the landlord tenant relationship.
In Florida, landlords are responsible for maintaining the dwelling. At all times during tenancy, the landlord shall (1) comply with the requirements of applicable building, housing, and health codes; (2) maintain the roofs; (3) doors; (4) floors; (5) steps; (6) porches; (7) exterior walls; (8) foundations; (9) and all other structural components in good repair. The landlord must also maintain the plumbing in reasonable working condition.