close
close

Key Biscayne takes action against fraudulent short-term rentals


Key Biscayne takes action against fraudulent short-term rentals

A Key Biscayne resident wrote to the Village in March that Airbnb residents called police because he looked suspicious. “I don’t like being uncomfortable in my own home during the holidays,” the Woodcrest Road resident wrote.

A resident of the OceanSound Condominium wrote to the Village last Thursday, “Why are units being rented out for the weekends?” The condominium associations have also contacted Village Hall to complain about “our short-term renter problem,” according to emails obtained by the Independent.

To enforce an ordinance in place since 2011, the municipality will now spend $20,000 annually on a subscription service that scans Internet listings of rental properties to identify non-compliant owners.

The 2011 regulation prohibits short-term rentals of less than 15 days and also requires property owners to register as businesses by obtaining a business tax receipt and complying with security measures.

“It’s not cheap, but we expect to recoup some of it through fees and possible penalties,” said Jeremy Gauger, director of construction, planning and zoning.

The village considered three subscription services before choosing GovOS.

“One of our selection criteria was that we find software that would minimally burden our three-person staff with additional hours while improving enforcement,” Gauger said. “This system will create a case file for us that, if it makes it that far, will be ready for submission to the special judge.”

– Sponsored –

Beginning September 16, Village Code Compliance Officers will begin issuing warnings to any properties not complying with the new enforcement measures. Properties that continue to be non-compliant will be issued a warning, which carries a daily fine of $250, beginning October 14.

Carlos Mendia, chairman of the Ocean Village Condominium Association, said enforcing the existing restriction will ensure greater safety, especially for children and the elderly.

“I’m glad they’re doing it, and I’m going to support them,” he said. “I don’t want someone walking across my hallway every three or four days.”

It was not easy for local authorities to regulate short-term rentals.

Key Biscayne passed its ordinance weeks before the state legislature passed a law prohibiting local governments from regulating vacation rentals. Still, the Florida League of Cities managed to get lawmakers to add a grandfather clause that would allow existing ordinances – like the one in Key Biscayne – to remain in place.

Governor Ron DeSantis vetoed a measure to regulate vacation rentals on June 27, saying the proposal would create “bureaucratic red tape” for local authorities.

For Key Biscayne, the existing ordinance remained virtually ineffective for 13 years.

“How do we prove that someone was there, and only for three days, without tracking them?” Gauger asked. “Basically, you’re trying to prove something negative.”

The municipality initially has modest goals with the new software before tightening enforcement, he said.

“We want people to be safe and register the business, and if they’re in an apartment building, for example, they have to meet certain fire safety requirements that we have to enforce,” Gauger said.

A search on Airbnb.com turned up about a dozen apartments and condos on Key Biscayne available for rent for the coming weekend alone. Some of the units may be owned by the same person but belong to different limited liability companies, which presents an obstacle, Gauger said.

Another difficulty is whether a property is exempt from property tax.

Homeowners can rent their property for up to 30 days per calendar year without affecting their homestead tax exemption. However, if a home is rented for more than 30 days for two years in a row, it may lose the homestead tax exemption.

This means that a homeowner not only loses their tax benefit of up to $50,000 on the taxable value, but also the protection against a rapid increase in home prices due to inflation.

Gauger expects some property owners will not be happy to see the 2011 ordinance finally go into effect. “(But) their neighbors will be very happy about it,” he says. “Plus, it increases the value of other people’s homes by improving the quality of life.”

Invest in local news for your city. Your donation is tax deductible

John Pacenti

JOHN PACENTI is a correspondent for the Key Biscayne Independent. John has worked for The Associated Press, Palm Beach Post, Daily Business Review and WPTV-TV.

Leave a Reply

Your email address will not be published. Required fields are marked *