Legal aspects of renting my units - need advice

[MagicMedic]

I book timeshares with the points I own in HICV. I would like to rent some of the weeks out but am confused about how to comply with all applicable laws, taxes, licensing, etc.

Does anyone know of a resource I can use which will guide me into compliance with the rules and laws in Florida?

 

[TUGBrian]

here is our how to rent article http://rent.tug2.net

Welcome to TUG!

 

[DeniseM]

I book timeshares with the points I own in HICV. I would like to rent some of the weeks out but am confused about how to comply with all applicable laws, taxes, licensing, etc.

Does anyone know of a resource I can use which will guide me into compliance with the rules and laws in Florida?

Most of the the items you are asking about only apply to rental businesses. They primary requirements for a private owner are:

-Know what you need to do to get a guest confirmation from HICV
-Declare it on your income tax

 

[MagicMedic]

Thanks Denise,

My only concern is that I will be renting out ten or more weeks per year and I don't want to be accused of running a business without being compliant with the law. I know for example that anyone can buy and sell cars but if you do it more than a certain number of times per year you have to have a dealers license.

Do you know if there is a statute or resource where I can research what the rules are?

 

[DeniseM]

Thanks Denise,

My only concern is that I will be renting out ten or more weeks per year and I don't want to be accused of running a business without being compliant with the law. I know for example that anyone can buy and sell cars but if you do it more than a certain number of times per year you have to have a dealers license.

Do you know if there is a statute or resource where I can research what the rules are?

What experience do you have with timeshare rentals?

Before you jump through the hoops to set up an actual business, I would try a few rentals to see if there is a market for what you are offering, and if rental rates are high enough to make it worthwhile.

Renting is a lot more work than most people realize, and the market for HIVC timeshares is not going to be at the high end.

Have you looked at the Comps on timeshare rental sites like TUG and Redweek to see what the competitive rates are for HIVC rentals, and if they are high enough to pursue a business renting timeshares?

Do you know which HIVC resorts/seasons/units generate the highest rental rates?

If you decide that it is something you want to pursue, then you can contact you local city or county business licensing entity and see what their requirements are to become a licensed business. The laws are going to be state and local - not national.

 

[tschwa2]

We can't give you legal advice. You should talk to an attorney. Looking at the tax pages for both Florida and Orange county it looks like if you are collecting a rental fee for anyone staying less than 6 continuous months tax is due and the person collecting the fee is responsible and can be charged a penalty for not filing on a monthly basis whether or not you collected any rental for that month.

I doubt a lot if any here comply. I doubt if you rent a week or two that they would go after you. I would imagine that those who rent 30 days or more like you are planning may find your self in trouble one day. I would imagine there are some here who rent more than 100 wyndham nights or more in Florida. I have no idea if they collect and pay taxes or not. I did not see any waiver for less than x days in my quick look at the tax pages. I know for example in Maine if you rent our less than 14 nights per calendar year you are not required to collect and file occupancy taxes. I think many Tuggers are in the boat that they do not rent out more than 2 weeks in any single location.

This one from Orange County doesn't specifically mention timeshares.

FAQ: Tourist Development Tax
What is the Tourist Development Tax?
The Tourist Development Tax is a tax on the total consideration that must be paid by the guest for the rental or lease of living quarters and accommodations in a hotel, motel, rooming house, trailer camp, condominium, apartment, multiple-unit structure, mobile home, trailer, single-family home, or any other sleeping accommodations that are rented for a period of six months or less. The authorization to levy and administer Tourist Development Taxes of up to six percent is stated in Section 125.0104, Florida Statutes, and in Chapter 212, Florida Statutes.

How much is the Tourist Development Tax?
The current tax rate is 6%, effective as of September 1, 2006

.

This one from the state of Florida does.

Examples of transient accommodations include:
• Hotel or motel.
• Apartment house or any other multiple unit structure (for example: duplex, triplex,
quadraplex, or condominium).
• Roominghouse.
• Tourist or mobile home court (for example: trailer court, motor court, recreational vehicle
camp, or fish camp).
• Single-family dwelling.
• Garage apartment.
• Beach house or cottage.
• Cooperatively owned apartment.
• Condominium parcel.
• Timeshare resort.
• Mobile home.
• Vehicle or other structure, place, or location held out to the public to be a place where
living quarters or sleeping or housekeeping accommodations are provided to transient
guests in exchange for payment.
• Boats with a permanent fixed location at a dock and not operated on the water away from
the dock by the tenant.


Who Must Register to Collect Tax?
The owner of living or sleeping accommodations must register each taxable accommodation
separately. You can register to collect and report tax through our website. The site will guide you
through an application interview that will help you determine your tax obligations. If you do not have
Internet access, you can complete a paper Florida Business Tax Application (Form DR-1).
If the property owner uses a real estate brokerage firm, other entity, or other person (not an
employee) to collect or receive rent or license fees on behalf of the owners (lessors), then such firm,
entity, or person must register. Agents who are registering multiple properties for management and
rental may complete an Application for Collective Registration for Short-term Rental of Living or
Sleeping Accommodations (Form DR-1C). You must complete a separate application for each
county where property is located.

The 6% Florida tax would be in addition to the 6% or so assessed by the county.

 

[MagicMedic]

Wow. That's a lot to digest. Great info. Thanks for the thoughtful reply.