Miami Regulations: Short-Term Rentals and Legal Structures

One of the most common questions I hear from investors exploring Miami is: “Can I rent this property on Airbnb?” The answer is not always simple — because in Miami, regulations around short-term rentals can vary dramatically depending on the city, the neighborhood, and even the building itself.

Short-Term Rental Regulations in Miami

Short-term rentals (30 days or less) are heavily regulated across South Florida.

• Miami Beach: Very restrictive. In many zones, daily and even 30-day rentals are banned unless the property has a special license. Fines can reach thousands of dollars per violation.

• City of Miami: Rules vary by zoning district. Some areas allow rentals of 30 days or more, while daily rentals are limited or prohibited. Business licenses and registration are required where allowed.

• Condo Associations (HOAs): Even if the city permits short-term rentals, many condos do not. Some buildings prohibit Airbnb entirely or set minimum rental periods (often 6 months to 1 year).

Tip: Always verify both zoning regulations and HOA rules before moving forward with a short-term rental investment.

Where Miami Allows and Prohibits Rentals

In general:

• Daily rentals (Airbnb-style): Restricted in most residential areas, especially Miami Beach. Allowed only in specific mixed-use or commercial zones.

• 30-day rentals: More flexibility across the City of Miami, but subject to zoning and licensing requirements.

Why Bank Loans Don’t Apply to Daily Rental Properties

If you’re considering a property exclusively for daily rentals, you need to know this: banks won’t finance it.

Here’s why:

• Traditional mortgages are designed for residential properties, not hotels.

• A condo or unit that allows daily rentals is treated as a condo-hotel or commercial property.

• Lenders see this as higher risk, since income depends on short-term occupancy and market volatility.

Result: These properties are cash-only purchases. Investors must be prepared with full equity up front, or in some cases explore private financing options.

Legal Structures for Investors

Beyond regulations, smart investors think about how they hold their property. The right legal structure can protect your assets and optimize your taxes.

• LLC (Limited Liability Company): A popular choice that separates personal assets from property liabilities.

• Corporations: Sometimes used for larger portfolios, but less common for individual investors.

• Foreign Investors: Many international buyers set up U.S. LLCs or partnerships to simplify tax reporting and estate planning.

Tip: Always consult with an attorney and CPA before choosing your structure. The upfront planning can save you major costs and headaches down the road.

My Final Take

Miami remains one of the most attractive markets for investors — especially those considering Airbnb and short-term rentals. But success depends on two things:

1. Knowing exactly where rentals are allowed, and

2. Structuring your purchase the right way — legally and financially.

As your advisor, I’ll guide you not only on the best neighborhoods and properties, but also on the practical steps — zoning, licenses, HOA rules, and structures — to ensure your investment is both profitable and compliant.

Let’s connect — I’ll walk you through the regulations, financing realities, and structures that matter most.