Why Florida’s Short-Term Vacation Rental Management Industry is Changing in 2025

Florida has long been a hotspot for short-term vacation rentals, attracting millions of tourists every year. But in 2025, the vacation rental management industry is facing significant shifts—driven by changing demand trends and a wave of new regulatory proposals. As experts in financial clarity for property managers, CFO Anytime explores these changes and what they mean for your business.

Demand Trends: Now and the Future

• Resilient Tourism but Changing Preferences: Florida remains one of Airbnb’s top destinations, with vacation rentals generating record-high revenues even as international travel has not fully rebounded to 2019 levels. Domestic tourism is up, fueled by families and small groups booking one- or two-bedroom properties instead of larger homes.

• Moderate Growth Amid Challenges: Markets like Orlando expect moderate growth in 2025, with Revenue Per Available Room (RevPAR) forecast to increase by 5.4%. However, this trajectory comes with challenges. New hotel construction is surging, increasing the competition and forcing short-term rental owners to differentiate through better amenities and guest experience.

• Price Sensitivity: Economic pressure, including rising credit card debt and increased traveler frugality, are making guests more price-sensitive. Managers need to employ dynamic pricing models and offer value-added services to capture reservations.

• Impact of Natural Disasters: Hurricanes in late 2024 drove short-term spikes in bookings, but highlight the importance of flexibility—both in pricing and property management strategy.

Regulatory Changes: What’s Looming for 2025

• Centralized Regulation Movement: Proposed bills (Senate Bill 280 and House Bill 1537) aimed to centralize short-term rental regulations through the Florida Department of Business and Professional Regulation (DBPR). These bills would have required statewide licensing, standardized safety inspections, and mandated platforms like Airbnb to collect and remit applicable taxes.

• Local Pushback & Veto: Although both bills passed the Florida legislature in 2024, Governor Ron DeSantis vetoed SB280, keeping regulatory control with local governments for now. Local authorities, especially in Miami Beach and Fort Lauderdale, continue to enforce strict rules such as minimum stay requirements and nuisance ordinances, with heavy registration fees.

• Current Requirements: Property managers must hold a DBPR license for rentals of under 30 days, comply with periodic safety inspections (every three years for buildings taller than three stories), and collect state (6%) and local lodging taxes (up to 13%). Some cities continue to enforce pre-2011 ordinances restricting rental frequency and duration.

• Future Uncertainty: Although there’s no statewide ban, the regulatory landscape remains turbulent—major changes could still be on the horizon as lawmakers seek a balance between economic growth and community concerns.

What Does This Mean for Property Managers?

• Compliance is Crucial: Stay on top of evolving state and local regulations and be prepared for compliance audits. Use platforms and professional property managers who are up to date on the latest laws.

• Differentiation is Key: With more hotel rooms and increased competition, invest in upgrading guest amenities, smart pricing, and excellent customer service.

• Financial Efficiency Matters: Economic and regulatory pressures make financial discipline more important than ever. CFO Anytime can help streamline accounting, optimize tax compliance, and maximize your rental portfolio’s profitability.

Conclusion

Florida’s short-term vacation rental sector is changing fast—driven by shifting guest demands and new, sometimes unpredictable, regulations. Staying informed, investing in guest experience, and focusing on compliance are the keys to staying ahead. As your financial partner, CFO Anytime empowers property managers to thrive no matter how the winds of change blow.