Thinking about turning a North Palm Beach property into a short-term rental? The opportunity can be attractive, but the rules and taxes can make or break your returns. You want steady income without compliance surprises or cash flow misses. In this guide, you’ll learn what to verify with the Village, county, and state, how to model ROI, and the key costs to budget before you buy or list. Let’s dive in.
Why rules matter for ROI
Short-term rentals live under a different rulebook than long-term leases. Registration, inspections, and taxes change your net income and your risk profile. If you miss a step, you can face fines, permit issues, or forced downtime that hurts revenue.
A clean underwriting model starts with accurate assumptions about local rules, transient taxes, and business licensing so you can price correctly and protect your investment.
North Palm Beach rules to confirm
Every municipality sets its own expectations. In the Village of North Palm Beach, confirm these items directly with the code of ordinances and the Village’s short-term rental materials before you operate.
Registration and permits
- Verify whether the Village requires a dedicated short-term rental registration and annual renewal.
- Budget for application and renewal fees. Many programs issue a certificate number that must be posted at the property and in listings.
- Confirm where STRs are allowed by zoning and whether different dwelling types have different rules.
Minimum stays and occupancy
- Ask if there is a minimum stay requirement, such as 7, 14, or 30 nights, and whether it varies by zone.
- Confirm occupancy limits. Many jurisdictions tie occupancy to bedrooms or square footage. These limits affect pricing, cleaning cadence, and guest policies.
Inspections and safety
- Determine whether the Village requires an initial inspection before permitting and any periodic re-inspections.
- Typical life-safety items include smoke and CO detectors, safe egress, pool gates or barriers, and electrical safety.
- Budget for upgrades if your property needs improvements to pass inspection.
Local contact, parking, and noise
- Many programs require a 24/7 local contact who can respond promptly and whose information must be posted.
- Review parking, trash, and noise rules. Clear guest house rules reduce complaints and help you avoid fines.
Advertising and HOA conflicts
- Some codes require you to display your registration number and local contact info on all listings and on-site signage.
- Confirm whether your HOA, condo association, or deed restrictions allow STRs. Association rules can be stricter than the Village and may prohibit or cap rentals.
Enforcement and penalties
- Understand the fine schedule, repeat-offender penalties, and conditions that can lead to suspension or revocation of operating privileges.
- Plan for proactive compliance and neighbor communication to reduce complaint risk.
County and state taxes that hit cash flow
Short-term rentals are typically subject to both county and state transient taxes. These taxes are usually collected from guests and remitted by you or your platform, but you remain responsible for proper registration and filings.
Palm Beach County Tourist Development Tax (TDT)
- The county levies a bed tax on short-term stays, generally under six months.
- Model the current TDT rate as a percentage of gross rental revenue. You must register for a TDT account and file on the county’s schedule.
Florida sales tax and local surtax
- Florida state sales tax applies to short-term rentals, and a discretionary county surtax may also apply.
- Register with the Florida Department of Revenue, collect the correct combined rate on taxable charges, and file on the required schedule.
Registration and filings
- Expect separate registrations and returns: one for county TDT and another for state sales tax and any local surtax.
- Filing frequency is typically monthly or quarterly, depending on volume. Keep accurate records of gross receipts and tax collected.
Platform collection vs your duties
- Some platforms collect and remit certain taxes, but their coverage can vary. Even when a platform remits, you may still need to register and reconcile statements.
- Confirm whether cleaning fees and other pass-through charges are taxable, and align your listing settings to collect correctly.
Business Tax Receipts and licensing
- Confirm whether the Village of North Palm Beach requires a Business Tax Receipt to operate a rental business.
- Check if Palm Beach County requires a separate county BTR.
- Budget annual BTR fees and any related documentation, such as proof of insurance or a certificate of use, if applicable.
How to model returns
Your pro forma should reflect real operating dynamics of short stays. Build conservative assumptions, then run sensitivity tests on occupancy and ADR.
Revenue assumptions
- Gross potential revenue = ADR x available nights x occupancy.
- Include other revenue, such as cleaning fees or extra guest fees, if permitted. Confirm taxability of these charges.
Operating costs to include
- Platform and host fees.
- Property management commission if you do not self-manage.
- Cleaning and turnover costs per booking.
- Utilities, internet, and cable, which run higher for STRs.
- Maintenance and consumables. A 5 to 10 percent rule of thumb is common.
- Insurance. Short-term rental endorsements can cost more than standard landlord policies.
- Property taxes, HOA dues, and any association STR fees.
- Registration, inspection, and BTR costs.
- Accounting and tax remittance administration.
- Reserves for capital, repairs, and downtime.
Example pro forma (illustrative only)
- ADR: 300 dollars; occupancy: 50 percent; nights available: 365. Gross rental revenue equals 54,750 dollars.
- Cleaning fee revenue: 100 dollars per booking, roughly 47 bookings. About 4,700 dollars total if allowed and taxable.
- Expenses: platform fees at 3 percent (about 1,642 dollars), management at 25 percent of revenue (13,688 dollars), cleaning costs at 120 dollars per turnover (5,640 dollars), utilities (5,000 dollars), maintenance at 5 percent (2,738 dollars), insurance premium uplift (1,200 dollars), registrations and inspections (500 dollars), accounting and admin (600 dollars), reserves (3,000 dollars).
- Pretax NOI before debt service is roughly 19,964 dollars when you treat transient taxes as pass-throughs collected from guests.
This is a starting point. Your actual returns hinge on local seasonality, minimum-stay rules, and whether you self-manage.
Sensitivity to test
- Occupancy at 40, 55, and 70 percent.
- ADR bands for high season and low season.
- Owner-manage vs. full-service management.
- Minimum-stay rules that change turnover and cleaning frequency.
Compliance costs to budget
- One-time registration and initial inspection fees.
- Safety upgrades, including detectors, egress lighting, and pool barriers.
- Annual renewals for Village registration and BTRs.
- Periodic re-inspection fees.
- Insurance premium increases or short-term rental policy riders.
- Bookkeeping or accountant support for monthly or quarterly returns.
Practical risk controls
- Appoint a reliable local contact or manager with 24/7 availability.
- Post clear house rules for parking, trash, and quiet hours.
- Use preventative maintenance and pre-arrival checklists to avoid emergency calls.
- Add noise monitoring and security deposits to reduce party risk.
- Keep neighbor communication friendly and proactive.
Your next steps
- Confirm the Village’s current STR registration process, fees, minimum stays, and inspection checklist.
- Register for county TDT and Florida sales tax accounts and choose filing frequencies that match your volume.
- Verify whether your HOA or condo allows STRs and any internal registration steps.
- Decide whether to self-manage or hire a professional manager and update your pro forma accordingly.
- Build a compliance calendar and a documentation folder for permits, insurance, and tax filings.
Work with a trusted local advisor
If you want a second set of eyes on your assumptions or you are deciding between long-term and short-term strategies, you do not have to go it alone. With 45 years serving coastal buyers and sellers from Martin County into northern Palm Beach, Barbara offers practical guidance, conservative modeling, and steady negotiation when you are ready to buy, sell, or reposition a property. Let’s Connect with Barbara C. Smith to talk through your plan and the numbers that matter most.
FAQs
What taxes apply to North Palm Beach short-term rentals?
- Short stays are typically subject to Palm Beach County’s Tourist Development Tax and Florida state sales tax, plus any local discretionary surtax. You collect from guests and remit through separate county and state accounts.
Do platforms like Airbnb handle all taxes for me?
- Not always. Platforms may collect certain taxes in some jurisdictions, but you often still need to register, file returns, and reconcile statements. Confirm exactly which taxes the platform handles and which are your responsibility.
Are cleaning fees taxable on Florida short-term rentals?
- Cleaning fees are often taxable with the rental charge. Verify current Florida and Palm Beach County guidance and set your listing to collect the correct combined tax.
Does North Palm Beach have a minimum stay rule?
- Minimum stays can exist and may vary by zone or property type. Confirm the Village’s current rule and model how it affects occupancy, turnover costs, and ADR.
What permits or licenses do I need before listing?
- Confirm the Village’s short-term rental registration, any required inspections, and whether a Village and county Business Tax Receipt are needed. Keep copies handy for renewals and listings.
Can my HOA prohibit short-term rentals even if the Village allows them?
- Yes. Association rules can be stricter and may prohibit or cap short-term rentals. Always review HOA or condominium documents before underwriting.
How should I estimate STR operating expenses?
- Include platform or management fees, cleaning and supplies, utilities, maintenance, insurance, registration and inspection costs, tax remittance admin, and reserves. Then test sensitivity for occupancy and ADR.
