Thinking about turning a Hollywood Beach property into a short‑term rental? You are not alone. The promise of high winter demand, a walkable Broadwalk, and steady tourist flow is compelling. At the same time, rules, taxes, association limits, and seasonality can make or break returns. In this guide, you will learn what to verify before you list, how to estimate profitability, and the operational steps that protect your investment. Let’s dive in.
How Hollywood regulates short‑term rentals
Know the layers of rules
Short‑term rentals in Hollywood sit under multiple rulebooks that work together. You will navigate Florida law, Broward County requirements, City of Hollywood ordinances, and any private restrictions from your condo association or HOA. Each layer can set different obligations, and many change over time.
Before you purchase or list, confirm current requirements directly with each authority. Rules are frequently updated, and many enforcement actions are complaint‑driven.
City of Hollywood items to verify
Cities often require registration or a business tax receipt for short‑term rentals. You should verify whether the City of Hollywood requires a specific short‑term rental registration, inspections, and safety checks. Ask about zoning districts that allow transient use, occupancy limits, and any parking or noise standards that apply to your address.
Confirm if a local 24/7 contact person is required for complaints, and whether you must display a registration number in your listing. Request the current fee schedule, inspection process, and penalties for violations.
Broward County taxes and responsibilities
Broward County administers a tourist development tax that generally applies to short stays. You will likely need to register to collect and remit county tourist tax in addition to other taxes. County offices may also handle certain code and noise issues that affect rentals near the beach.
Ask Broward County for current tax rates, filing frequency, and whether any platforms remit on your behalf. If a platform does not remit, you are still responsible for correct collection and payment.
Florida state law and tax compliance
Florida statutes classify many short‑term rentals under public lodging law. The rules differ based on rental frequency, duration, and services offered. You should confirm with the state whether your property type fits within public lodging rules and what safety standards apply.
Florida also requires registration for state sales tax and the state portion of transient rental tax. Contact the Florida Department of Revenue to register and confirm current rates, deadlines, and filing procedures.
Condos, HOAs, and private restrictions
Association rules often control rental terms even when the city allows short‑term rentals. Many condo and HOA documents set minimum rental periods, limit the number of rentals per year, or prohibit nightly rentals.
Before you buy or list, review the declaration, bylaws, and rules. Ask management for written clarification of current rental policies and any pending amendments. Private restrictions can be enforced by the association regardless of city rules.
Enforcement and penalties
Common enforcement tools include warning letters, fines per incident or per day, and suspension or revocation of local registrations. Repeat violations can escalate and may trigger civil actions.
If you receive a notice, respond promptly, document corrective steps, and follow the appeal process if needed. A fast, cooperative approach can prevent larger issues.
Taxes and registrations to plan for
What you will likely need
Plan for three compliance tracks:
- State sales and transient rental tax registration with the Florida Department of Revenue.
- Broward County tourist development tax registration and filings.
- City of Hollywood business registration or short‑term rental licensing, if applicable.
Keep a calendar of due dates, display any required registration numbers in your listings, and keep copies of all permits and certificates.
Recordkeeping and audit readiness
Maintain detailed records of bookings, nightly rates, taxes collected, cleaning invoices, repairs, and remittances. Store records for the period required by law. If an audit occurs, clear documentation helps you avoid penalties and interest.
Owners with multiple properties or complex arrangements should consider professional tax guidance. A specialist can align your filings with state and county rules.
Insurance, mortgages, and disclosures
Standard homeowner policies often exclude business activity. Speak with an insurance broker who works with Florida coastal short‑term rentals. Many owners secure a dwelling or commercial policy with a short‑term rental endorsement, general liability coverage, and an umbrella policy for added protection.
Disclose rental use to your lender. Short‑term rental activity can affect mortgage terms and insurance premiums, especially in hurricane‑exposed areas.
Returns 101 on Hollywood Beach
What drives revenue here
Demand in coastal South Florida tends to peak from roughly November through April. Holiday weeks, festivals, and special events can boost rates and occupancy. Properties near the Hollywood Beach Broadwalk, dining, and water access often command pricing premiums compared to inland locations.
Your pricing plan should reflect seasonality, event calendars, and minimum stay rules that align with city and association standards. Keep a flexible strategy so you can adapt to changing travel patterns.
Metrics that matter
Track the following to understand performance:
- ADR: your average nightly rate.
- Occupancy rate: percentage of nights booked.
- RevPAR: ADR multiplied by occupancy, a quick way to compare performance across properties.
- Average length of stay: impacts turnover costs and cleaning schedules.
Use reputable market data tools or local property managers to benchmark ADR and occupancy for similar properties in your area.
Expenses to budget
A clear budget helps you price correctly and avoid surprises. Plan for:
- Platform fees: often 3 percent to 15 percent, depending on how fees are charged.
- Management fees: 15 percent to 35 percent for full‑service operators.
- Cleaning: per turnover costs vary with unit size and guest count.
- Utilities and internet: frequently 5 percent to 15 percent of revenue.
- Maintenance and repairs: commonly 5 percent to 10 percent of revenue set aside.
- Licensing, supplies, marketing, and occupancy taxes: variable by property and jurisdiction.
Include property taxes, insurance, HOA or condo fees, and reserves for owner stays or blocked dates. Your model should show both best‑case and conservative scenarios.
A simple ROI template
Use this framework to estimate returns. Replace the placeholders with your own numbers.
Nights available per year = 365 minus owner days minus maintenance blocks.
Booked nights = nights available multiplied by your target occupancy rate.
Gross revenue = booked nights multiplied by ADR.
Subtract platform and management fees, cleaning, utilities, maintenance, insurance, supplies, and licensing costs.
Subtract property taxes and HOA or condo dues.
Net operating income (NOI) = gross revenue minus all operating costs above.
Cash flow before debt service = NOI minus annual mortgage payments.
Return metrics:
- Cap rate = NOI divided by purchase price.
- Cash‑on‑cash return = annual pre‑tax cash flow divided by total cash invested.
- Gross rental yield = gross revenue divided by purchase price.
| Line Item | Input | Notes |
|---|---|---|
| Purchase Price | $ | Include closing costs separately |
| ADR | $ | Average nightly rate |
| Occupancy Rate | % | Target annual occupancy |
| Nights Available | # | 365 minus owner and blocked days |
| Gross Revenue | $ | ADR x Booked Nights |
| Platform Fees | $ | Percentage or fixed per booking |
| Management Fees | $ | Percentage of revenue |
| Cleaning | $ | Per stay x number of turnovers |
| Utilities & Internet | $ | Monthly x 12 |
| Maintenance Reserve | $ | Percentage of revenue |
| Insurance | $ | Annual premium |
| Property Taxes | $ | Annual |
| HOA/Condo Dues | $ | Annual |
| Licensing & Supplies | $ | Annual estimate |
| NOI | $ | Revenue minus operating costs |
| Debt Service | $ | Annual mortgage payments |
| Cash Flow | $ | NOI minus Debt Service |
Operations that protect your ROI
Registration, signage, and local contact
If a local registration is required, display the registration number in your listing. Maintain a 24/7 local contact who can respond to noise, parking, or maintenance issues. Clear on‑property signage for trash, parking, and quiet hours helps reduce complaints.
Safety and accessibility
Meet fire and life‑safety standards with smoke and carbon monoxide detectors, fire extinguishers, and clear escape routes. If you have a pool, follow barrier and safety rules and post clear instructions. Avoid discriminatory practices and consult professionals if guests request accessibility information.
Guest screening and house rules
Set firm, easy‑to‑read house rules covering occupancy limits, quiet hours, parking, pet policies, and damage procedures. Use booking tools that provide identity checks and damage protection. Consider privacy‑compliant noise monitoring that detects decibel levels, not conversations.
Hurricane preparedness
For coastal properties, hurricane season planning is essential. Outline your cancellation and refund policies for named storms, maintain storm shutters or impact windows, and stock emergency supplies. Confirm how your insurance handles windstorm and named storm deductibles.
Professional partners
Local property managers who understand Hollywood Beach seasonality, city processes, and Broward County taxes can increase revenue and reduce headaches. Tax professionals with transient occupancy experience can keep filings accurate and on time.
Risks and how to mitigate them
Regulatory changes
Cities and counties can change rules, fees, or enforcement priorities with little notice. Monitor agendas and updates, keep documentation current, and maintain good standing with every agency.
Association restrictions
Condo and HOA amendments can limit or prohibit short‑term rentals. Review governing documents before buying, and ask for written confirmation of the current rental policy and any proposed changes.
Insurance and liability
Coverage gaps are common when a homeowner policy is used for a commercial rental. Work with a broker who understands short‑term rentals, and confirm liability limits are adequate for guest injury scenarios.
Market volatility
Tourism cycles, weather events, and broader economic changes can swing occupancy and ADR. Stress‑test your model with lower occupancy and rates, and keep cash reserves to ride out slow periods.
Neighborhood relations
Noise, trash, and parking drive many complaints. Strong screening, clear rules, fast response to issues, and a reliable local contact reduce neighbor concerns and enforcement risk.
Buyer and seller checklists
If you are buying for STR use
- Verify city licensing, inspection, and zoning permissions for the specific address.
- Confirm Broward County and state tax registration steps and rates.
- Review condo or HOA governing documents for rental terms and caps.
- Obtain insurance quotes for short‑term rental coverage and hurricane risk.
- Model returns using conservative ADR and occupancy assumptions.
- Speak with a local property manager about pricing, seasonality, and operations.
If you are selling a property with STR potential
- Compile proof of compliance, licenses, and inspection results.
- Prepare a summary of historical bookings and gross revenue if available.
- Provide HOA or condo rental rule documentation and contact details.
- Highlight location advantages such as proximity to the Broadwalk, beach access, and dining.
- Present professional visuals and a clear guest experience to appeal to investor‑buyers.
Your next step
Short‑term rentals on Hollywood Beach can perform well when you approach them like a business. The right property, clean compliance, strong insurance, and a seasonally tuned strategy are the pillars of durable returns. If you want a senior advisor to help you evaluate opportunities, underwrite cash flow, and coordinate managers and compliance, we are here to help.
Connect with the local team that supports investors from acquisition through management. Schedule your consultation with Brosda and Bentley Realtors.
FAQs
Do I need a permit to operate a short‑term rental in Hollywood?
- Many cities require a business tax receipt or short‑term rental registration. Verify current City of Hollywood requirements, inspections, and fees before listing.
What taxes will I owe on short stays in Broward County?
- Expect Florida sales tax and Broward County tourist development tax, along with required registrations and filings. Confirm current rates and due dates with the respective agencies.
Can my Hollywood Beach condo be rented nightly?
- It depends on your association’s governing documents. Many condos set minimum lease terms or limit the number of rentals per year, regardless of city rules.
How do I estimate my Hollywood Beach rental’s ROI?
- Use ADR, occupancy, and seasonality benchmarks for similar units, then apply the ROI template in this guide. Model conservative and best‑case scenarios to gauge risk.
What insurance do I need for a coastal short‑term rental?
- Consider a policy with a short‑term rental endorsement or commercial coverage, general liability, and possibly an umbrella. Confirm hurricane and windstorm deductibles and exclusions.
