Overview: Are short‑term rentals allowed in Crystal River, FL?

• City of Crystal River: Yes, but tightly constrained. The city’s 2005 ordinance prohibits operating a short‑term rental (less than 3 consecutive months) outside the waterfront‑commercial zoning district. Properties that can demonstrate they were operating a “resort housing unit” prior to the ordinance may continue to operate (grandfathered). Within the waterfront‑commercial district, short‑term rentals are allowed and are the primary permitted use.
• State (Florida): Short‑term rentals are allowed. Florida law limits municipalities from regulating the duration or frequency of stays and from restricting advertising; local governments may regulate vacation rentals only for health, safety, and welfare. County approval for vacation rental operations does not override the city’s zoning ordinance.
• Bottom line: If your property is outside the waterfront‑commercial district, a traditional STR (< 90 days) is prohibited. If inside the district, an STR is allowed. The city has focused recent enforcement on finding illicit listings and pursuing violations.

How to start a short‑term rental business in Crystal River

1. Confirm eligibility before acquisition

• Validate zoning at the property parcel level and confirm whether your intended use is allowed in that zoning district. In the City of Crystal River, short‑term rentals are permitted within the waterfront‑commercial zoning district and prohibited elsewhere (unless you can prove you had a pre‑existing operation prior to 2005).
• Obtain written confirmation from the City (Building/Zoning or Code Compliance) that an STR is an allowed use at your specific address. If you’re outside the waterfront‑commercial district, do not plan on an STR business; consider a conventional long‑term rental instead.

2. Secure property rights and compliance

• If eligible, secure a clear title and HOA/POA approvals (if applicable) to operate transient lodging. Build and maintain documentation showing continuous operation for pre‑existing status where relevant.

3. State and county compliance (not a substitute for city zoning)

• Register your vacation rental with the Florida Department of Business and Professional Regulation (DBPR), obtain the required state license, and meet all state requirements.
• Comply with Florida’s transient rental tax obligations, including Florida’s Sales and Use Tax (6%) and any applicable Tourist Development/Tourist Impact taxes levied locally. The City references Citrus County Tourist Development Council (TDC) collecting taxes from area hoteliers/hospitalities; confirm current tax rates and remittance procedures with Citrus County Tax Collector and state tax authorities.

4. City and local touchpoints

• Meet city business tax receipt requirements (if any) and any utility/service obligations for transient lodging. Follow city noise, trash, parking, and safety standards.
• Display required postings and safety information inside the unit.

5. Operational readiness

• Draft house rules and operations plans that align with city standards (occupancy, parking, trash, noise) to reduce nuisance complaints. Invest in guest communication and 24/7 support; the city has used online advertisements and complaints as evidence in enforcement actions.

6. Portfolio scale strategy

• Start with a single compliant asset in the waterfront‑commercial district and validate demand, operating margins, and regulatory fit before scaling. Given enforcement discussions, the city may further tighten oversight of advertising and noncompliant units.

Required documents, permits, licenses, and guidelines

• State of Florida
  • DBPR Vacation Rental License (registration of the vacation rental).
  • Florida Sales and Use Tax registration for transient rentals.
  • Compliance with state fire safety, life safety, and sanitation requirements applicable to lodging.
• Citrus County
  • Business Tax Receipt (if required by the County for the type of use/business).
  • Compliance with county tax collection and any local tourist taxes related to lodging.
• City of Crystal River
  • Property must be located within the waterfront‑commercial zoning district (or be grandfathered prior to 2005) for a legal STR; otherwise, STRs are prohibited.
  • City business tax receipt (if applicable).
  • Adherence to city building, life safety, and zoning standards for transient lodging.
  • Implementation of city nuisance standards (noise, parking, trash) to mitigate code enforcement issues.
• Operations
  • Guest welcome packets, house rules, and 24/7 contact information.
  • Emergency procedures and posted egress/safety information.

Specific regulations for short‑term rentals

• City of Crystal River

  • A 2005 ordinance prohibits renting residences outside the city’s waterfront‑commercial zoning district for less than three consecutive months. Homeowners who can prove they operated a short‑term rental or “resort housing unit” prior to the city law are exempt (grandfathered).
  • Code enforcement uses online listings as evidence to find and pursue violations. The city has considered contracting with third‑party platforms to identify unlawful rentals.
  • The city’s leaders have debated enforcement tools and advertising oversight; residents have reported nuisance concerns (noise, disruptive guests) and urged stronger enforcement.
  • State law limits the city’s ability to further restrict visitor frequency, duration, or advertising. City staff caution that changes to the ordinance might jeopardize the city’s remaining control or grandfathering provisions.

• Citrus County

  • The County was approved by DBPR for operation of vacation rentals during the COVID‑19 recovery (effective immediately), but county approval does not override the City of Crystal River’s zoning ordinance. Property owners must comply with both state rules and city zoning.

• State of Florida

  • Vacation rentals are regulated by DBPR. Florida law generally preempts local governments from imposing stricter caps on rental duration or frequency and from restricting advertising, but allows local governments to regulate for health, safety, and welfare. You must register your vacation rental and collect/transmit applicable state and local taxes.

Contact information (local authority in charge of STRs)

• City of Crystal River (primary local authority for zoning/use)
  • Phone: 352‑795‑4216
  • Website: www.crystalriverfl.org/
• Florida Department of Business and Professional Regulation (state licensing)
  • Website: www.myfloridalicense.com/ (Emergency Information: www.myfloridalicense.com/emergency)
• Citrus County Tourist Development Council (taxes/records for lodging)
  • Website: www.discovercrystalriverfl.com/ (see COVID‑19 recovery plan referenced by Citrus County BOCC)

Links to source pages

• Citrus County BOCC news release announcing DBPR approval for vacation rentals: citrusbocc.com/news_detail_T12_R958.php
• Crystal River City Council discussion on enforcement of short‑term rental rules: www.chronicleonline.com/news/local/crystal-river-city-council-mulls-over-short-term-rental-enforcement/article_31058fa1-ab5c-5adf-b63a-a6d27f43abaa.html
• Crystal River ordinance update (approval to hire rental tracker): www.chronicleonline.com/news/local/crystal-river-council-votes-4-1-to-hire-vacation-rental-tracker-for-13-208/article_7935f0f4-18a2-5685-84ba-ea60ce48e2e8.html
• Citrus County Code of Ordinances (official reference): library.municode.com/fl/citrus_county/codes/code_of_ordinances
• City of Crystal River (official municipal site): www.crystalriverfl.org/
• DBPR emergency information page for regulated businesses: www.myfloridalicense.com/emergency

Key takeaways for investors

• Crystal River has a restrictive STR regime: short‑term rentals are generally prohibited outside the waterfront‑commercial zoning district. Inside that district, STRs are allowed and are the primary permitted use.
• Enforcement is active and evolving; the city has used online advertising as evidence and considered vendor tools to identify violations.
• Florida law limits local caps on stay duration and advertising but allows local health, safety, and welfare regulation. County approval does not replace city zoning.
• Due diligence must begin with zoning verification. If the subject property is not in the waterfront‑commercial district, plan for a long‑term rental strategy rather than an STR.