Some Landlords may not realize, but they must be licensed by the Florida’s Division of Hotels and Restaurants (“Division”) when they own a rental property that meets the definition of “nontransient” public lodging. This article briefly explains Florida’s basic requirements for those landlords who must be licensed with the Division.
Florida Division of Hotels and Restaurants
The Division was created pursuant to Florida Statutes (FS) ch. 509, and the Division’s general duties are found in F.S. 509.032(1):
“The division shall carry out all of the provisions of this chapter and all other applicable laws and rules relating to the inspection or regulation of public lodging establishments…for the purpose of safeguarding the public health, safety, and welfare. The division shall be responsible for ascertaining that an operator licensed under this chapter does not engage in any misleading advertising or unethical practices.”
They have authority to establish rules and regulations under their authority and to enforce the laws and regulations.
Landlord-Tenant Act Prevails
F.S. ch. 509 provides that it does not circumvent the Florida Residential Landlord-Tenant Act relative to nontransient rental relationships and procedural requirements set forth therein. F.S. 509.034 states:
“Sections 509.141-509.162 and 509.401-509.417 apply to transients only. This chapter may not be used to circumvent the procedural requirements of the Florida Residential Landlord and Tenant Act.”
In other words, landlords must still comply with the Florida Residential Landlord-Tenant Act (F.S. ch. 83, pt. 2), notwithstanding chapter 509.
License Requirement for Public Lodging Establishment
Persons who own “public lodging establishment” under chapter 509 must be licensed by the Division. F.S. 509.241(1) requires that “[e]ach public lodging establishment … shall obtain a license from the division”, and it further states that “[s]uch license may not be transferred from one place or individual to another.” Once the license is received, the “license issued by the division shall be conspicuously displayed in the office or lobby of the licensed establishment.” F.S. 509.241(3).
Get License Prior to Operations
F.S. 509.241(2) requires that a person receive the required license from the Division for their public lodging business prior to operation. It states, “[e]ach person who plans to open a public lodging establishment… shall apply for and receive a license from the division prior to the commencement of operation.”
Penalty for Operating Without a License
F.S. 509.241(1) provides the criminal penalty for failing to register when the person is required: “[i]t shall be a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083, for such an establishment to operate without a license.” F.S. 509.261 also authorizes the Division to issue fines and suspend licenses when the licensee violates chapter 509.
Unsafe Conditions of Premises
The Division may fine, suspend, or revoke the license of any public lodging establishment when the property is, essentially, unsafe. F.S. 509.261(6)(b) states the Division may do so when:
“Such establishment has been deemed an imminent danger to the public health and safety by the division or local health authority for failure to meet sanitation standards or the premises have been determined by the division or local authority to be unsafe or unfit for human occupancy.”
The Division’s authority in this regard is of particular importance for landlords who own multifamily properties. That is, while landlords must comply with its obligations under F.S. 83.51, when the landlord is a licensee under chapter 509, the Division has additional authority regarding the safety of the premises.
What is a “Public Lodging Establishment”?
All public lodging establishments in Florida must be licensed by the Division. What is a “public lodging establishment”?
F.S. 509.242(1) provides in its list of public lodging establishments the following types: hotel, motel, vacation rental, nontransient apartment, transient apartment, bed and breakfast inn, and timeshare project. Among this types, the definition relevant to long term-rental landlords includes “nontransient apartment.”
“Nontransient apartment”, which is 509.242(1)(d) defines, is “a building or complex of buildings in which 75 percent or more of the units are available for rent to nontransient tenants.”
Thus, when a landlord owns a nontransient apartment which leases at least 75 of its units to nontransient tenants, the landlord must register its business with the Division. Now we need to know, what is the definition of a “nontransient” public lodging?
What is Nontransient Public Lodging?
F.S. 509.013(4)(a)(2) defines “nontransient” public lodging as follows:
“any unit, group of units, dwelling, building, or group of buildings within a single complex of buildings which is rented to guests for periods of at least 30 days or 1 calendar month, whichever is less, or which is advertised or held out to the public as a place regularly rented to guests for periods of at least 30 days or 1 calendar month.”
In short, when the landlord rents (or advertises as such) at least 75% of its rental units for periods of at least 30 days or 1 calendar month, the landlord must be licensed with the Division.
Exception to the Rule
F.S. 509.013(4)(a) excludes the following from the definition of “nontransient public lodging”: “[a]ny place renting four rental units or less, unless the rental units are advertised or held out to the public to be places that are regularly rented to transients.”
Thus, if the apartment that meets the definition of “nontransient” public lodging rents only four units or less within a single complex, that property is excluded from the Division’s license requirement.
Conclusion
Landlords of nontransient public lodging establishments must have a license with the Division, and failure to do so can lead to penalties, such as fines and even criminal prosecution. Landlords who are renting at least 75% of the apartment units (which are at least 5 units on the premises) for at least 30 days/1 calendar month must comply with F.S. ch. 509.
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