Airbnb & VRBO Performance in Key West Florida.

Short-Term Rental Regulations in Key West, Florida for 2024

Definition and Zoning

• A short-term or vacation rental is defined as a residential dwelling rented on a transitory basis for 28 days or less.

Licensing Requirements

• Obtain an annual special vacation rental permit from the Planning & Environmental Resources Department for each dwelling unit.
• Secure a valid and current Florida Department of Revenue sales tax identification number and a tax receipt from the City of Key West.
• Obtain a Monroe County Business Tax Receipt.

Manager and Responsible Agent

• Ensure the vacation rental unit has a designated manager holding a special vacation rental manager license issued by the Planning & Environmental Resources Department.
• Appoint a designated responsible agent to manage and oversee the vacation rental property, ensuring compliance with all applicable laws and regulations.

Fire and Life Safety Inspections

• Initial and renewal permits require a Fire and Life Safety Inspection by the Fire Marshal’s office to ensure adherence to fire and safety regulations.

Occupancy Limits

• Compliance with occupancy limits determined by the size of the unit, following guidelines outlined in local regulations and the Florida Building Code.
• Maximum overnight occupancy does not exceed two persons per bedroom, plus an additional two persons in one common area, or more than two persons per bedroom if there is at least 50 square feet per person, plus an additional two persons in one common area.

Insurance Requirements

• Property owners must maintain liability insurance coverage to safeguard against potential damages or injuries on the rental property.

Tax Obligations

• Compliance with tourist taxes levied by Monroe County and the State of Florida on rentals of living or sleeping accommodations for periods of six months or less.
• Airbnb collects and remits the Tourist Development Tax (TDT) and the Monroe County Local Option Sales Tax (LOST) directly; VRBO hosts must remit these taxes independently.

Building and Housing Standards

• Adherence to minimum construction, design, and maintenance standards for buildings, including regulations on habitability, health, and safety as outlined in Chapter 14 of the Key West Code of Ordinances.

Registration and Compliance

• Registration with the state and local authorities; local governments can charge a reasonable fee for registration, and fines can be imposed for violations.
• Compliance with local ordinances, with the possibility of registration suspension for repeated violations.

Community and HOA Rules

• Adherence to other binding agreements such as leases, condo board regulations, co-op rules, and HOA rules.

Annual Renewal

• Vacation rental licenses are valid for one year and require annual renewal to ensure ongoing compliance with regulations.

Top Neighborhoods for Airbnb Revenue in Key West, Florida

1. Duval Street

• Airbnb Rental Income: $7,293 per month
• Airbnb Daily Rate: $398
• Occupancy Rate: 63%
• Appeal: Duval Street is the heart of Key West's vibrant nightlife, shopping, and dining scene. Its proximity to popular attractions like the Southernmost Point, Key West Lighthouse, and numerous bars and restaurants makes it a prime destination for tourists seeking an active and lively experience.

2. Upper Duval

• Airbnb Rental Income: $11,223 per month
• Airbnb Daily Rate: $402
• Occupancy Rate: 63%
• Appeal: Upper Duval offers a slightly more laid-back atmosphere while still being within walking distance to the main attractions of Duval Street. It provides a balance between nightlife and a more relaxed, local experience.

3. Historic Seaport

• Airbnb Rental Income: $7,293 per month
• Airbnb Daily Rate: $397
• Occupancy Rate: 63%
• Appeal: The Historic Seaport area is known for its charming waterfront, marinas, and historic buildings. Guests are drawn to its unique blend of maritime history, seafood restaurants, and the opportunity to enjoy water activities.

4. Truman Annex

• Airbnb Rental Income: $6,568 per month
• Airbnb Daily Rate: $399
• Occupancy Rate: 63%
• Appeal: Truman Annex is a tranquil and upscale neighborhood close to the Harry S. Truman Little White House and other historic sites. It offers a more secluded and family-friendly environment while still being near Key West's main attractions.

5. White Street Gallery District

• Airbnb Rental Income: $9,365 per year (approximately $781 per month)
• Airbnb Daily Rate: Not specified, but high occupancy rates indicate premium pricing
• Occupancy Rate: 76%
• Appeal: This neighborhood is known for its artistic vibe, featuring numerous galleries and studios. It is appealing to guests looking for a cultural experience and a quieter, more artistic side of Key West.

These neighborhoods are highly appealing due to their unique blend of history, culture, entertainment, and natural beauty, making Key West a highly profitable and desirable location for Airbnb investments.

Creating an Inviting Airbnb in Key West: Furnishing and Design Tips

To craft an Airbnb in Key West that reflects the city's unique charm and appeals to guests, consider the following tips:

Reflect Key West’s Charm

• Use Bright, Tropical Colors: Incorporate vibrant colors that echo the sun-kissed beaches and clear blue skies of Key West.
• Nautical and Vintage Themes: Opt for nautical elements and vintage furnishings to create an authentic island experience.

Balance Comfort and Style

• Plush Seating and Airy Curtains: Choose furniture that invites relaxation while adding aesthetic appeal. Include plush seating, airy curtains, and art pieces depicting local scenery or marine life.
• Modern Appliances and Comfortable Beds: Invest in high-quality, modern appliances and comfortable beds to enhance guest satisfaction.

Add Personal Touches

• Local Art and Literature: Include a collection of books about Key West’s history, a photo album of local wildlife, or artwork from local artisans to create a connection with guests.
• Unique Decor: Incorporate elements that speak to Key West’s rich history and cultural heritage, such as decorative items reflecting the city’s maritime past.

Enhance Outdoor Spaces

• Patio Set-ups and Hammocks: Create inviting outdoor spaces with patio sets for dining, hammocks, and lounge areas that take advantage of the tropical climate.
• Waterfront Views and Boat Docks: If applicable, highlight waterfront views and provide amenities like boat docks, fishing cleaning stations, and outdoor showers to cater to guests interested in water activities.

Upgrade Amenities

• High-Speed Internet and Reliable Air Conditioning: Ensure essential comforts like high-speed internet and reliable air conditioning to provide a comfortable stay.
• Beach Gear and Outdoor Equipment: Provide beach gear such as snorkeling sets, beach chairs, and umbrellas to enhance the guest experience.

Optimize for Family and Pet-Friendly Guests

• Family-Friendly Features: Include amenities like separate living areas, full kitchens, and additional beds to cater to families.
• Pet-Friendly Options: Offer pet-friendly features to attract guests traveling with their pets.

Choose the Right Neighborhood

• Old Town and Duval Street: Invest in properties near Old Town and Duval Street for proximity to major attractions, nightlife, and shopping.
• Waterfront Neighborhoods: Consider waterfront neighborhoods for scenic views and boating activities.
• Residential Areas with Local Charm: Look into residential areas that feature local charm and community amenities to attract a varied demographic of travelers.

Discovering Key West: Local Attractions and Insider Tips

Must-Visit Attractions

1. Mallory Square

• Witness the legendary Key West sunset and enjoy the festive atmosphere with street performers, musicians, and food vendors. Arrive early for a good viewpoint.

2. Duval Street

• The heart of Key West's old town, offering a variety of restaurants, shops, and nightlife. Expect crowds day and night, and enjoy live music and street performances.

3. Ernest Hemingway’s House

• A historic landmark and former home of Ernest Hemingway. Take a 20-30 minute tour and see the famous six-toed cats. Check the official website for hours and pricing.

4. Key West Butterfly and Nature Conservatory

• A tropical greenhouse filled with butterflies, birds, and plants. Be prepared for butterflies to land on you, especially if you're wearing bright colors.

5. Key West Lighthouse

• Climb the 88-step staircase for stunning views of the Atlantic Ocean, Gulf of Mexico, and downtown Key West. Last admission is at 4:30 PM.

6. Fort Zachary Taylor Historic State Park

• A budget-friendly option with historic significance, offering beach activities, swimming, snorkeling, and water sports. Pay per vehicle instead of per person.

7. Key West Shipwreck Museum

• Learn about Key West's maritime history and climb the 65-foot observation tower for aerial views of Mallory Square.

8. Key West Aquarium

• A family-friendly attraction featuring hundreds of marine species, including sharks, stingrays, and tropical fish. Interactive touch tanks and educational programs available.

9. Key West Tropical Forest & Botanical Garden

• Explore native hammock, freshwater wetlands, butterfly gardens, and formal plantings. A serene and natural side of Key West.

10. Key West Historic Seaport

- A hub for shops, eateries, and events. Offers a variety of activities and is a great place to explore what Key West has to offer.

Insider Tips

1. Sunset Celebrations

• Watch the sunset at Mallory Square or Bistro 245 for a memorable experience. Be prepared for crowds and arrive early for a good spot.

2. Water Activities

• Enjoy kayaking or paddleboarding through the mangrove swamps with tours from Lazy Dog. No significant mosquito issues in these areas.

3. Unique Experiences

• Take a ride on a floating tiki bar for a fun and unique experience. Choose from mangrove tours, sunset tours, or swimming tours.

4. Historic Sites

• Visit the Martin Hellings House, a historic site and home of the Key West Woman's Club, and the Oldest House Museum for a glimpse into Key West's past.

5. Bahama Village

• Explore this historic neighborhood to experience Bahamian culture, cuisine, and traditions. Sample local recipes and shop in the Bahama Market.

6. Seaplane Adventures

• Take a seaplane tour to the Dry Tortugas and Fort Jefferson. Spot marine life and snorkel in clear waters.

7. Discounts and Passes

• Consider purchasing the Key West Vacation Pass for significant savings on tours, attractions, water sports, and more.

By sharing these attractions and tips, you can help your guests make the most of their visit to Key West, ensuring a memorable and enriching experience.

Practical Tips to Run a Successful Short-Term Rental Business in Key West, Florida

To ensure a smooth and successful short-term rental business in Key West, Florida, several practical tips can be implemented:

Noise Regulations and Guest Communication

Inform your guests about quiet hours and noise regulations to maintain a peaceful environment for both your guests and the local community. Include this information in your welcome message or house manual to avoid any potential issues.

Comprehensive House Manual

Create both digital and physical house manuals that include essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This helps guests navigate the property easily and reduces the number of inquiries you receive.

Simplified Check-in Process

Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide clear instructions on how to access the property, and include photos of the entrance and any specific steps required for entry.

Parking Instructions

Include detailed parking instructions with photos in your house manual to help guests find and use the designated parking areas. This can prevent confusion and ensure that guests park in the correct spots, respecting local regulations and neighboring properties.

By implementing these tips, you can enhance the guest experience, reduce potential issues, and maintain compliance with local regulations, ultimately contributing to the success of your short-term rental business in Key West.

Here is a brief list of house cleaning providers in Key West, Florida:

House Cleaning Providers

KW Deep Cleaning Service

• Offers residential, office, commercial, window, and vacation rental cleaning services.
• Customized cleaning plans, experienced and trustworthy team, and commitment to quality.

Maid By The Sea Cleaning

• Provides top-quality cleaning services for vacation rentals, private homes, and commercial spaces.
• Services include tailored cleaning checklists, trustworthy and background-checked staff, and a Clean Home Guarantee.

For additional options and reviews, you can also refer to the following resources:

Care.com

• Lists various house cleaning services in Key West with details on rates, reviews, and experience.

Angie's List

• Provides ratings and real reviews for house cleaners in Key West to help you make an informed decision.

Key West, Florida Short-Term Rental Management Fees: A Comprehensive Guide

In Key West, Florida, the fees for managing short-term rentals can vary significantly, typically ranging from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management, which includes comprehensive tasks such as guest communication, marketing, and maintenance, tends to be on the higher end of this spectrum, often around 15% to 30% per booking. Basic services, which may only cover essential management tasks, can be more affordable, usually starting at around 10% of the monthly rent.

In addition to the management fees, property owners may also incur additional costs for services like cleaning, repairs, and interior design. These extra fees can add to the overall expense but are often necessary to maintain the property's condition and attract repeat guests. Professional management companies, such as MasterHost and Key West Residential Property Management, offer various service packages that cater to different needs and budgets, ensuring that property owners can optimize their rental income while minimizing their direct involvement.