Eric Feichthaler

Mr. Feichthaler:

I plan on renting my house for a few months this winter to make some extra cash. I will put the listing out on VRBO. While renting, I plan to stay with my son who also lives in Cape Coral. Are there any concerns I should have?

— Andrew B.

Dear Andrew:

With a booming economy and housing market, and the upcoming tourist season looking to bring a lot of people to our area, I can see why you are considering renting your home for some extra money. There are items to consider in how you list the property and the agreements made with renters, but my main area of concern is twofold.

First, the state defines short-term rentals as any rental for six months or less. Your proposal clearly fits within this. This means that you are responsible for collecting and remitting both state and county sales tax (6.5%) and Lee County Tourist Development Tax (5%). Website platforms like VRBO typically collect and remit taxes on your behalf, but you will want to make sure they are aware of both taxes. If they fail to collect and pay the tax, the ultimate responsibility is on you as landlord.

The second concern is your homestead exemption. As our readers know, the homestead exemption provides many benefits to homeowners, including a reduction in taxable value, a cap on annual increases in taxable value (Save Our Homes) and protection from creditors. The law provides that, if you rent your homestead for more than 30 days per calendar year for two consecutive years, the homestead exemption is lost. Also, because homestead is determined as of Jan. 1 of each year, you will lose your homestead exemption if the house is rented on the day of Jan. 1 in any year. You will also have reporting requirements to the county, and the frequency of reports depends on how often you rent. So, to keep your exemption, be aware of these rules, and be sure to have it as your homestead, unrented, on this and every Jan. 1.

You will also want to check with your homeowner’s insurance company to confirm liabilities that can arise will be covered if a tenant is in place. There are other issues to consider as well, so consider seeking legal advice before proceeding.

I wish you and all of our readers a Happy Thanksgiving weekend.

Eric P. Feichthaler has lived in Cape Coral for over 33 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Southwest Florida to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through the Cape Coral Caring Center, Cape Coral Historical Museum, and Cape Coral Kiwanis. He has been married to his wife, Mary, for over 20 years, and they have four children together. He earned his board certification in Real Estate Law from the Florida Bar. He is AV Preeminent rated by Martindale-Hubbell for professional ethics and legal ability, and is a Supreme Court Certified Circuit Civil Mediator.

This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.