Overview: Are Short-Term Rentals Allowed in Mary Esther, FL?

Yes, short-term rentals are explicitly allowed in Mary Esther, Florida. The City Council passed Ordinance 2024-01 on March 4, 2024, establishing a regulatory framework for "vacation rentals" within city limits. This ordinance, which aligns with state law (Florida Statutes Chapter 509), permits STRs but mandates strict registration, compliance, and operational standards to mitigate impacts on residential neighborhoods. The regulations became effective on October 1, 2024.

How to Start a Short-Term Rental Business in Mary Esther

1. Secure a State License: All vacation rentals are classified as "transient public lodging establishments" under Florida law. A vacation rental license from the Florida Department of Business and Professional Regulation (DBPR) is mandatory. Begin the application process at myfloridalicense.com.
2. Obtain a City Certificate of Registration: Apply for a City of Mary Esther Vacation Rental Certificate of Registration. Applications must be submitted by August 1 for initial registration, with the certificate valid from October 1 to September 30 annually. The application process is detailed in the "Required Documents" section below.
3. Designate a Responsible Party: A critical requirement is appointing a "Designated Responsible Party" who must be available 24/7 and able to respond to issues within one hour.
4. Remit Required Taxes: You are responsible for collecting and remitting state sales tax and the local Tourist Development Tax (TDT) for Okaloosa County. The TDT is remitted to the Okaloosa County Clerk of Courts. Registration for TDT is done online at okaloosatouristtax.munirevs.com.
5. Post Required Information: Once approved, you must post the Certificate of Registration inside the primary door of the rental property.

Required Documents, Permits, Licenses, and Guidelines

• State Requirements (DBPR):
  • Vacation Rental License (DBPR Form VRTSP or equivalent).
• County Requirements (Okaloosa):
  • Registration and payment of the Okaloosa County Tourist Development Tax (5%).
• City Requirements (Mary Esther - Ordinance 2024-01):
  1. Completed application for a Vacation Rental Certificate of Registration (supplied by the City).
  2. Proof of current ownership of the vacation rental property.
  3. Payment of the annual registration fee (fee schedule set by City Council resolution).
  4. Completed "Designation of Responsible Party" form.
  5. A signed acknowledgment form from the Designated Responsible Party.
  6. Copy of the City of Mary Esther local business tax receipt.
  7. Copy of the current, active State of Florida DBPR vacation rental license.
  8. Statement identifying the gross floor area and maximum occupancy per the Florida Fire Prevention Code (150 sq ft gross floor area per person).
  9. If applying via an agent, a letter of authorization from the owner.
  10. Any other information reasonably requested by the City.
• Additional Guidelines:
  • Okaloosa Island: If your property is on Okaloosa Island, you must also comply with the Okaloosa Island Protective Covenants and Zone B-1 restrictions. Contact the Okaloosa County Growth Management office at 850-651-7180 or visit myokaloosa.com/gm/home.
  • Homestead Exemption: If the property is not your permanent residence, you are likely not eligible for a homestead exemption. Failing to remove it could result in significant back taxes. Consult the Okaloosa County Property Appraiser at (850) 651-7240 or okaloosapa.com.

Specific Regulations for Short-Term Rentals

• City of Mary Esther (Ordinance 2024-01):
  • Registration & Certificate: Mandatory annual registration. A separate certificate is required for each property.
  • Occupancy Limits: Maximum occupancy is governed by the Florida Fire Prevention Code (currently, 150 sq ft per person). This must be stated on the registration form and the certificate.
  • Designated Responsible Party: Must be available 24/7 by phone and able to respond to issues within 1 hour. Must keep a register of all occupants for at least 2 years and have authority to remove unruly guests (per F.S. 509.141-143).
  • Posting Requirements: The Certificate of Registration must be posted next to or on the interior side of the primary door.
  • Advertising: Advertising must not imply occupancy exceeding the registered maximum. Doing so is a violation.
  • Inspections: The responsible party must consent to allow official code, fire, and building inspectors access for required inspections.
  • Violations & Penalties: Violations (including renting without a certificate, exceeding occupancy, false information) result in fines. Each day of violation is a separate offense. Repeated violations can lead to suspension of the certificate for up to 90 days or permanent revocation.
• Okaloosa County (Tourist Development Tax):
  • The TDT (5%) is in addition to the state sales tax (6%) and is applicable to all rentals of six months or less. Registration and payment are handled online.
• State of Florida (Chapter 509, F.S.):
  • A "vacation rental" is any unit meeting the definition (e.g., single-family up to a four-family dwelling) that is offered for rent more than three times in a calendar year for periods of less than 30 days.
  • State law (SB 280, passed in 2024) sets a statewide framework, including a prohibition on cities regulating the duration or frequency of stays, a $500 cap on fines, a requirement for a 24/7 response contact, and the allowance for a "reasonable" registration fee. Mary Esther's ordinance incorporates these rules.

Contact Information for Local Authority

• City of Mary Esther (for Certificate of Registration):
  • Interim City Clerk: Dillon Morris
  • Phone: 850-582-5166
  • Website: Mary Esther City Hall (Check the "City Council" or "Ordinances" sections for relevant documents and updates).
• Okaloosa County Growth Management (for Okaloosa Island Covenants & Zoning):
  • Phone: 850-651-7180
  • Website: Growth Management Department
• Okaloosa County Clerk of Courts (for Tourist Development Tax):
  • Email: TouristTax@OkaloosaClerk.com
  • Phone: 850-651-7200 x3492
  • Website: Tourist Development Tax
  • Online Registration & Remittance: okaloosatouristtax.munirevs.com
• Florida Department of Business and Professional Regulation (DBPR) (for State License):
  • Phone: 850-487-1395
  • Website: DBPR Hotel & Restaurant Licensing
• Complaints & Enforcement:
  • Law Enforcement (non-emergency): Okaloosa County Sheriff's Office: 850-651-7400
  • Complaints against lodging establishments (including STRs): Florida DBPR: 850-487-1395 (or submit the HR-7003 form online).

Links to Source Pages

• Okaloosa County Short-Term Rental Information
• City of Mary Esther Vacation Rental Ordinance (Ordinance 2024-01)
• News Report on Mary Esther's Proposed STR Ordinance
• Fort Walton Beach Proposed STR Regulations (for broader county context) (This source provides additional regional context but is not specific to Mary Esther. The Mary Esther ordinance is the definitive source for city regulations).