Short and long-term rentals are big business in Florida, from daily rentals for vacationers to snowbird seasonal rentals and annual leases, HOAs, cities and municipalities each have their own rules pertaining to rental restrictions.

To date, HOAs have been permitted to adopt amendments changing the leasing rights of owners in their communities at any give time. The Florida Homeowner's Association Act, Chapter 720 of the Florida Statutes, regulates the leasing of parcels within an HOA. Recently, Section 720.306 6(h)1 was added, stating that any rental agreement-related amendment to that community's governing documents taking place after July 1, 2021 applies only to parcel owners that acquired title after the effective date of said amendment. Furthermore, this rule only applies to those wishing to enact lease agreements of more than six months at a time. From a shorter-term rental perspective, this new section states that amendments to governing documents that prohibit rentals more than three times in a calendar year applies to all owners, regardless of when that amendment was passed.

For condominium communities specifically, "any amendment which prohibits an owner from leasing their unit, alters the duration of the rental term, or limits the number of times an owner may rent their unit during a specified period, only applies to those owners who take title after the effective date of the amendment. There is no six-month or three times per year exception in the Condominium Act. 

From an insurance standpoint, regardless of the length of lease a parcel or condo owner decides to enact on their property (within HOA guidelines), a change of insurance is required.

For a single family home, this insurance changes from an HO-3 policy to a DP-3 landlord policy. With condos, the standard HO6 policy remains, but the underwriting profile is changed from "owner occupied" to "renter occupied." Either way, the cost of insurance a unit or homeowner holds as a landlord will increase to help cover liability risks tied to renters and their guests.

Additionally, it is important to know that some insurers won't cover properties with leases of less than a year, so be sure to clarify with your dedicated agent.

If your HOA allows for daily rentals, a DP-3 policy code change (to "short-term rental") is required tied to increased liability of numerous individuals and families going in and out of properties throughout the year. 

While we don't expect you to remember the names of the different types of policies, we do hope you'll be sure to reach out to us if you anticipate any type of change to your property's ownership or leasing status. We're always here to help… contact us anytime! 

Tina Lange is a Licensed Realtor and Marketing Manager for WREN Insurance.