Overview: Short-Term Rentals Allowed in Captiva, FL

Yes, short-term rentals are explicitly allowed in Captiva, Florida. Captiva Island operates under Lee County jurisdiction and maintains a business-friendly regulatory environment for legitimate short-term rental operations. Unlike its neighboring Sanibel Island (which requires 28-day minimum stays for homes), Captiva properties enjoy the significant competitive advantage of a 7-day minimum stay requirement, making it one of the most attractive STR markets in Southwest Florida.

This comprehensive guide provides investors with everything needed to legally operate and succeed in the Captiva Island short-term rental market.

How to Start a Short-Term Rental Business in Captiva Island

Step 1: Market Research & Property Selection

• Demand Analysis: Study seasonal patterns and rate variations across different areas of the island
• Location Assessment: Evaluate beachfront vs. interior properties, proximity to amenities
• Property Type Selection: Consider condos vs. single-family homes, resort communities vs. private properties
• Competition Analysis: Research existing rental properties and pricing strategies
• ROI Evaluation: Calculate potential returns considering premium Captiva pricing

Step 2: Regulatory Compliance Verification

• Lee County Requirements: Verify STR permission and registration requirements
• State Licensing: Understand Florida DBPR vacation rental licensing process
• Community Restrictions: Review HOA or resort community rental policies
• Zoning Confirmation: Ensure property is in appropriate zoning district

Step 3: Property Acquisition and Preparation

• Purchase or Authorization: Secure property ownership or management agreement
• Island-Appropriate Design: Create luxurious, beach-themed accommodations that match Captiva's upscale market
• Hurricane Preparedness: Install storm shutters, emergency supplies, evacuation procedures
• Premium Amenities: Add high-end features that justify premium pricing (pools, beach access, golf carts)

Step 4: Multi-Level Licensing and Registration

State Level:

• DBPR Application: Apply for Florida vacation rental dwelling license ($150)
• Sales Tax Registration: Register for Florida sales tax collection

County Level:

• Tourist Tax Registration: Register with Lee County for 5% tax collection
• Local Contact Designation: Identify and register 24/7 local representative
• Business Registration: Complete any required county business registration

Step 5: Operational Systems Setup

• Property Management: Establish cleaning, maintenance, and guest services
• Reservation Systems: Set up booking platforms with proper tax collection
• Guest Communication: Create comprehensive welcome guides and house rules
• Emergency Procedures: Develop hurricane and medical emergency protocols
• Transportation: Arrange golf cart rentals, parking permits, island access information

Step 6: Tax Compliance and Financial Management

• Tax Collection Systems: Set up processes for both state and county tax collection
• Professional Support: Consider local accountants familiar with STR tax requirements
• Record Keeping: Establish comprehensive financial and operational record systems
• Insurance Coverage: Secure appropriate property and liability insurance

Step 7: Marketing and Guest Experience

• Premium Positioning: Market property as luxury Captiva Island experience
• Professional Photography: Showcase island lifestyle and property amenities
• Competitive Pricing: Develop dynamic pricing strategy for seasonal demand
• Guest Services: Create concierge-level guest experience appropriate for premium market

Step 8: Ongoing Operations and Compliance

• Regulatory Updates: Stay informed about changes in state and county regulations
• Community Relations: Maintain positive relationships with neighbors and island community
• Property Maintenance: Regular upkeep appropriate for harsh coastal environment
• Performance Optimization: Continuously improve guest experience and financial returns

Required Documents, Permits, Licenses, and Guidelines

State Level Documentation

1. Florida DBPR Vacation Rental License: Current state licensing with $150 annual fee
2. Florida Sales Tax Certificate: For 6% state sales tax collection
3. State Business Registration: Certificate from Florida Department of State

Lee County Documentation

4. Tourist Development Tax Registration: For 5% county tax collection and remittance
5. Local Business Registration: Lee County business license as applicable
6. Local Contact Designation: Written documentation of 24/7 local representative

Property and Operational Documents

7. Property Ownership Verification: Current deed or property management agreement
8. Insurance Documentation: Comprehensive liability coverage (minimum $1 million recommended)
9. Guest Information Materials: House rules, emergency procedures, island information

Community-Specific Documentation

10. HOA/Community Compliance: Documentation of community association approval if required
11. Resort Community Access: Guest access agreements for resort amenities if applicable
12. Parking and Transportation: Golf cart rental agreements, parking permits as needed

Tax and Business Records

13. Revenue Documentation: Comprehensive rental income records for tax compliance
14. Expense Records: Detailed property management and operational costs
15. Guest Registration: Records of guest stays and contact information

Captiva-Specific Operational Documents

16. Island Access Information: Ferry schedules, bridge information, transportation details
17. Local Vendor Contacts: Cleaning services, maintenance, property management contacts
18. Emergency Procedures: Hurricane evacuation plans, severe weather protocols
19. Island Activity Guide: Information about local attractions, dining, activities

Specific Regulations for Short-Term Rentals in Captiva, FL

Florida State Requirements

• Florida Department of Business and Professional Regulation (DBPR) License: All vacation rentals must obtain state licensing
  • Application: Online through DBPR license portal
  • Fee: $150 for Vacation Rental Dwelling License
  • Classification: Properties classified as "transient public lodging establishments"
  • Requirement: Properties rented for less than 30 days, more than three times per year

Lee County Requirements

• Lee County Business Registration: Required for all STR operations
• Tourist Development Tax Registration: Must register to collect 5% county tax
• Local Contact Requirement: 24/7 local contact person mandatory
• Processing Time: Typically 2-4 weeks for approval

Key Regulatory Advantage: 7-Day Minimum Stay

Unlike neighboring Sanibel Island (which requires 28-day minimum stays for homes), Captiva Island properties governed by Lee County require only a 7-day minimum stay, creating significant advantages for STR investors:

• Higher Turnover Potential: More bookings per season compared to monthly rentals
• Premium Weekly Rates: Ability to command premium rates for weekly stays
• Flexibility: Easier to manage inventory and maximize occupancy
• Market Appeal: Weekly stays align with typical vacation patterns

Zoning Regulations

Short-term rentals are generally permitted throughout Captiva Island in:

• Residential Zones: Single-family and multi-family residential areas
• Resort/Commercial Zones: Areas designated for tourist accommodations
• Mixed-Use Districts: Properties combining residential and commercial uses
• Planned Unit Developments: Including resort communities like South Seas

Tax Structure

• Florida Sales Tax: 6% of gross rental receipts
• Lee County Tourist Development Tax: 5% of gross rental receipts
• Total Tax Burden: 11% of gross rental receipts

Occupancy Limits

• Maximum Overnight Occupancy: Two persons per bedroom, plus an additional two persons in one common area, or more than two persons per bedroom if each person has at least 50 square feet of space

Safety Requirements

• Fire Safety: Smoke detectors, fire extinguishers, proper egress
• Building Code Compliance: Adherence to Florida Building Code standards
• Health and Safety: Basic sanitation and safety equipment
• Emergency Procedures: Hurricane evacuation plans and communication systems

Compliance and Enforcement

• 24-Hour Contact: A responsible party must be available by telephone 24 hours a day, seven days a week, to respond to complaints or emergencies
• Local Codes: Properties must comply with local codes on noise, trash, property maintenance, and other regulations
• Fines and Penalties: Fines for non-compliance can be significant, up to $500 or more per day for operating without proper registration or permits

Contact Information for Local Authority

Lee County Building Department/Zoning

• County Services: General zoning and land use information
• Online Portal: Lee County Citizen Portal for permits and applications
• Website: leegov.com

Lee County Tourist Development Tax Office

• Department: Lee County Clerk of Court Inspector General Department
• Tax Registration: Required for 5% tourist development tax collection
• Website: leeclerk.org
• Tourist Tax Information: Available on clerk's website

Florida Department of Business and Professional Regulation (DBPR)

• Vacation Rental Licensing: State licensing requirements
• Online Portal: DBPR license application system
• Fee: $150 for vacation rental dwelling license

Lee County Development Services

• Permitting and Inspections: Building permits and code compliance
• Land Development: Zoning verification and land use questions
• Business Registration: County-level business licensing

Captiva Island Local Resources

• Captiva Civic Association: Community information and island issues
• Lee County Visitor & Convention Bureau: Tourism industry support
• Local Property Management Companies: Professional STR management services
• Captiva Island Chamber of Commerce: Business networking and local information

Source Links

1. Captiva Island FL Short Term Rental Regulations: Your Exclusive Island Investment Blueprint
2. Airbnb & VRBO Performance in Captiva Florida
3. Sanibel Captiva Island Vacations FAQ
4. Captiva, Florida Short-Term Rental Market Overview

Disclaimer: This article is for informational purposes only and not legal advice. Regulations may have changed since publication. Always check with local authorities and consult a legal professional before making investment decisions. Always consult with local legal and tax professionals before making investment decisions.