Short-Term vs. Long-Term Rentals in Northeast Florida: Complete Investor Guide

By Inna Moskalyk

Sep 10, 2024

Short-Term vs. Long-Term Rentals in Northeast Florida: Complete Investor Guide

Last Updated: January 2026 – Includes current municipal regulations

Thinking about investing in rental property in Northeast Florida? Your first major decision is whether to pursue short-term rentals (STRs) like Airbnb and VRBO, or long-term rentals (LTRs) with traditional lease agreements.

Both strategies work in Jacksonville and St. Johns County-but the regulations, tax implications, and profit potential differ significantly depending on where your property is located.

This guide breaks down the rules by municipality, compares ROI potential, and helps you choose the right strategy for your investment goals.

Understanding the Basics

What Qualifies as a Short-Term Rental?

In most Florida jurisdictions, a short-term rental is defined as:

Property rented for fewer than 30 consecutive days
Rented more than 3 times per year for periods under 30 days

STRs are treated similarly to hotels-requiring licenses, inspections, and tax collection.

What Qualifies as a Long-Term Rental?

Long-term rentals typically involve:

Tenancy of 6 months or longer (181+ days for tax purposes)
Standard landlord-tenant law applies
No hospitality licenses required
No tourist development taxes

Regulatory Breakdown by Location

The most important factor in choosing your strategy is where the property is located. Let’s break this down by municipality.

Jacksonville (Duval County)

Definition: Property rented <30 nights OR >3 occasions annually for ≤30 days each

Zoning Requirements:

Commercial and Historic Core zones: STRs generally permitted
Residential zones (single-family, duplex, townhouse): Require a Short-Term Vacation Rental Certificate

Required Licenses and Documentation:

Short-Term Vacation Rental Certificate (City Planning Department) – annual renewal
Land Use Permit (must be filed by property owner)
Florida DBPR Vacation Rental License
Local Business Tax Receipt (Duval County) – annual
State Business Tax Receipt
Florida Sales Tax Certificate
Tourist Development Tax Registration
Fire inspection certificate

Occupancy Limits: 2 persons per bedroom + 2 additional guests, maximum 16 total

Important Note: Jacksonville’s regulations are considered less permissive than some Florida cities due to strict zoning restrictions in residential areas.

St. Augustine (City Limits)

The City of St. Augustine adopted comprehensive STR regulations in 2019.

Zoning-Based Rental Periods:

RS-1 & RS-2 zones: Weekly rentals minimum (no nightly rentals allowed)
HP-1 zone: Monthly rentals minimum
Other zones: Nightly rentals permitted

Required Documentation:

Annual Short-Term Rental Registration (fees vary by bedroom count)
Florida DBPR License (Transient Public Lodging)
Florida Sales Tax Certificate
Annual Life Safety Inspection by Fire Department
Proof of liability insurance ($1 million minimum recommended)
Designated local contact (must respond within 1 hour)

Occupancy Limits: Maximum 12 individuals (2 per bedroom + 2 children under 18)

Parking Requirements: 1 on-site parking space per bedroom (concrete, asphalt, pavers, or gravel surface)

For complete regulations, visit the City of St. Augustine STR Portal.

St. Augustine Beach

St. Augustine Beach has its own distinct requirements:

Business Tax Receipt required (both city AND county)
Transient Rental Permit from the city
Building Department inspection
Zones permitted: Commercial and Medium-Density Residential only
Unit cap: 100 STR units in residential zones (limited availability)

St. Johns County (Unincorporated Areas East of ICW)

Unincorporated St. Johns County areas have evolving regulations:

STR operator registration required
Guest limits: Maximum 10 guests (phased enforcement)
Parking, noise, and garbage disposal rules actively enforced
Tourist Development Tax collection mandatory
Neighborhood complaints can trigger enforcement

State-Level Requirements (All STRs)

Regardless of location, all Florida short-term rentals require:

DBPR license if renting >3 times annually for <30 days
Collection of 6% state sales tax
Collection of applicable Tourist Development Tax (varies by county)

Tax Implications

Short-Term Rental Taxes

STR operators must collect and remit:

Tax	Rate	Notes
Florida Sales Tax	6%	Collected from guests
Duval County TDT	6%	Tourist Development Tax
St. Johns County TDT	4%	Tourist Development Tax
Federal Income Tax	Varies	Net rental income

Filing frequency: Typically monthly or quarterly depending on volume

Many platforms like Airbnb collect and remit some taxes automatically-verify what’s covered in your area.

Long-Term Rental Taxes

LTR landlords have simpler tax obligations:

No hospitality taxes (sales tax, TDT not applicable)
Standard income tax on net rental income
Depreciation deductions available (27.5 year schedule)
Property tax at non-homestead rate (no exemption for investors)

For more on rental property tax strategies, see our Tax Deductions Guide.

ROI Comparison

Short-Term Rental Potential

Advantages:

Higher gross income potential (especially in tourist areas)
Flexibility to use property personally
Dynamic pricing during peak seasons
Potential for 2-3x long-term rental income in prime locations

Challenges:

Higher operating costs (cleaning, supplies, management)
Significant seasonality in most areas
Higher turnover and vacancy risk
Intensive management requirements
Regulatory compliance burden

Best locations for STR: St. Augustine historic district (where permitted), beach areas, golf resorts

Long-Term Rental Stability

Advantages:

Consistent, predictable monthly income
Lower turnover and vacancy costs
Simpler management requirements
Less regulatory burden
Easier to scale with professional property management

Challenges:

Lower gross income potential
Less flexibility for personal use
Tenant quality risk (though screenable)
Longer vacancy periods when turnover occurs

Best locations for LTR: Jacksonville suburbs, master-planned communities, areas near major employers and schools

Best Strategy by Property Location

Coastal/Tourist Areas (STR Potential)

If your property is in a tourist-friendly zone:

St. Augustine historic district: Strong year-round demand, weekend guests
Beach communities (where permitted): Premium summer rates
Golf resort areas: Seasonal demand from golfers

Consider STR if regulations allow and you can handle management intensity.

Suburban/Family Areas (LTR Preferred)

Properties in these areas typically perform better as long-term rentals:

Jacksonville suburbs: Strong renter demand from professionals
Master-planned communities (Nocatee, Durbin Crossing): Family renter demand
Near schools and major employers: Workforce housing demand

Our Jacksonville Rental Market Investment Guide covers specific neighborhoods in detail.

Can You Switch Between Strategies?

Technically yes, but consider:

STR to LTR: Generally straightforward-remove from platforms, find tenant
LTR to STR: More complex-verify zoning permits STR, obtain all licenses, may need to wait until tenant lease ends

Some investors use a hybrid approach: STR during peak tourist season, then medium-term rentals (1-6 months) during off-season to traveling professionals or healthcare workers.

Insurance Differences

This is critical and often overlooked:

Short-Term Rental Insurance

Standard homeowner’s insurance does NOT cover STR activities
Specialized short-term rental insurance required
Commercial liability coverage recommended ($1 million minimum)
Umbrella policy advisable

Long-Term Rental Insurance

Landlord insurance (different from homeowner’s)
Liability coverage for tenant injuries
Loss of rent coverage option
Generally less expensive than STR policies

Getting Started: Your Checklist

Starting a Short-Term Rental

Verify zoning allows STR at your property address
Apply for all required municipal permits
Obtain Florida DBPR vacation rental license
Register for sales tax and TDT collection
Schedule required inspections
Secure specialized STR insurance
Designate local contact person (if required)
Set up listing platforms and pricing strategy
Establish cleaning and turnover systems

Starting a Long-Term Rental

Prepare property for rental (repairs, updates)
Obtain landlord insurance
Set competitive rent based on market research
Create tenant screening criteria
Develop a lease agreement (Florida-compliant)
Market property and screen applicants
Complete move-in inspection and documentation
Establish rent collection and maintenance systems

For tenant screening assistance, see our Tenant Placement Services.

Frequently Asked Questions

Which is more profitable-short-term or long-term?

It depends on location, property type, and your management capacity. STRs can gross 2-3x LTR income in prime tourist areas but have higher expenses and seasonality. In suburban areas, LTR typically provides better net returns with less effort.

Can I switch from long-term to short-term?

Yes, if zoning permits. You’ll need to wait for current lease expiration, obtain all required permits/licenses, and set up STR operations. Some areas have STR caps that may prevent conversion.

What’s the minimum rental period I can offer?

It varies by municipality and zone:

Jacksonville residential zones: Requires STR certificate
St. Augustine RS-1/RS-2: Weekly minimum
St. Augustine HP-1: Monthly minimum
Other St. Augustine zones: Nightly permitted

What happens if I operate an unlicensed STR?

Fines vary by jurisdiction but can be significant. Jacksonville and St. Augustine actively enforce STR regulations. Repeat violations can result in liens on property.

Make an Informed Investment Decision

Both short-term and long-term rental strategies can succeed in Northeast Florida-but matching your strategy to your property’s location and your management capacity is essential.

Not ready to sell but want rental income? Whether you pursue STR or LTR, the timing might be right. Check out our guide on When to Sell Your Home for perspective on holding vs. selling decisions.

Considering a rental property investment in Jacksonville or St. Johns County? Contact me for an investor consultation. I’ll help you find properties matched to your investment goals and rental strategy.

Inna Moskalyk specializes in investment properties throughout Northeast Florida, including Jacksonville, Ponte Vedra, St. Augustine, and St. Johns County.

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