The Real Costs of Owning a Vacation Rental in Pinellas County

Gross booking revenue is the number everyone looks at first, but it’s the costs that decide whether a vacation rental works for you. From our property management work, the same items come up again and again. Here is the list we’d want any buyer to work through before making an offer.

Taxes on short stays

In Florida, rentals of six months or less are taxable. In Pinellas County that means three separate taxes on the rent you charge:

• 6% Florida state sales tax, reported to the Florida Department of Revenue.
• 1% Pinellas County discretionary sales surtax, also reported to the Department of Revenue with the state tax.
• 6% Pinellas County tourist development tax, often called the bed tax, which is paid to the Pinellas County Tax Collector rather than the state.

That is 13% in total on taxable rent. Some booking platforms collect and send part of these taxes for you, but not always all of them, so confirm what each platform handles and register for whatever is left.

Licenses and rules

• State license. The Florida Department of Business and Professional Regulation (DBPR) licenses vacation rentals under section 509.241 of the Florida Statutes. A condo unit generally needs a license if it is rented more than three times a calendar year for stays of less than 30 days, or is advertised as regularly rented to guests.
• City zoning. Many residentially zoned properties in Clearwater can’t be rented for less than 31 days. Our short-term rental rules guide explains how this works in each beach town.
• Association rules. Each condo association sets its own minimum stay, registration process, guest limits and sometimes fees. A building that allows short stays today can vote to change its rules later.
• Local business tax. Cities and counties can require a local business tax receipt for rentals, so check with the city where the property sits.

Property tax without the homestead cap

A rental isn’t your homestead, so it doesn’t get the homestead exemption or the 3% Save Our Homes cap on assessment increases. Non-homestead property has its own cap of 10% a year on assessment increases, which doesn’t apply to school taxes, according to the Pinellas County Property Appraiser. When a property sells, its assessment generally resets to market value, so the seller’s tax bill is not a reliable guide to yours.

Insurance

Expect to need a policy that covers rental use, not just a standard owner policy, plus liability cover and possibly flood insurance. Ask insurers specifically about short-term rental use, because some policies exclude it. Our Florida property insurance guide explains the main policy types.

Running costs owners forget

• Association dues, and a reserve for special assessments.
• Cleaning and laundry between every stay.
• Management fees if you use a manager, or your own time if you don’t.
• Platform service fees, card processing and channel management software.
• Electric, water, internet and streaming services, which you pay even when the unit is empty.
• Supplies such as linens, towels, toiletries and kitchen basics.
• Furnishing and refreshing the unit, because guests notice tired furnishings.
• Repairs and a maintenance reserve, especially for air conditioning and appliances in salt air.

Seasonality and cash flow

Income on the beach is seasonal. In our look at a year of booking data, March booked 90% of available nights while September booked 50%, at a much lower nightly rate. Most of the costs above don’t fall in the quiet months, so in our opinion it’s wise to keep a cash reserve and to plan for a slow late summer and fall.

Build your own worksheet

Before you buy, we’d suggest writing out a full year: realistic booked nights and rates by month, all 13% of taxes, every fixed cost, management and cleaning, and a reserve. Then test it with a quieter year. If the numbers only work in a perfect year, that’s worth knowing before you sign.

We can help with the local pieces. Ask for a free rental income estimate, read about our property management service, or contact us to talk through a specific building.

Sources

• Florida Department of Revenue, local option transient rental tax rates (DR-15TDT), listing Pinellas at 6%, in addition to the 6% state sales tax and any discretionary sales surtax.
• Pinellas County, tourist development tax, six percent on accommodations rented for six months or less.
• Florida Statutes, section 509.241, public lodging and vacation rental licenses, and the DBPR Division of Hotels and Restaurants guide to vacation rentals.
• Pinellas County Property Appraiser, Save Our Homes and portability brochure, including the 10% non-homestead cap.
• PriceLabs market data for short-term rental listings near Clearwater Beach, October 2024 to September 2025.