Overview: Are Short-Term Rentals Allowed in Mexico Beach?

• Yes. Short-term rentals are permitted in Mexico Beach, Florida under Bay County’s comprehensive vacation rental framework and Florida’s statewide licensing and preemption laws.
• Mexico Beach properties are subject to Bay County Ordinance 23-18 (effective August 1, 2023), which governs STRs in unincorporated areas, including the City of Mexico Beach. Under this ordinance, properties may operate with an issued Short-Term Vacation Rental Certificate after inspection and compliance with state and local rules.
• Florida state law (Chapter 509, Florida Statutes) allows vacation rentals and requires a state license from the Florida Department of Business and Professional Regulation (DBPR). Local governments may regulate aspects like registration, safety, noise, parking, signage, and reporting, but they may not prohibit vacation rentals or regulate the duration/frequency of rental.
• A key Florida Attorney General opinion (AGO 2018-06) confirms that an accessory structure used solely for sleeping cannot be licensed or operated as an independent “vacation rental”; it can only be used as part of the principal dwelling if it lacks complete living facilities (e.g., no kitchen).

How to Start a Short-Term Rental Business in Mexico Beach

1. Confirm Property Eligibility and Local Rules

• Ensure the property is a qualifying dwelling type (single-family, duplex, triplex, or quadruplex), or verify condominium licensing if applicable. Recreational vehicles and mobile homes are also recognized under the county certificate framework for STRs.
• If a property includes accessory structures (e.g., pool houses, cabanas) used only for sleeping, those cannot be licensed as stand-alone STRs under Florida law (AGO 2018-06). They may be used to support the principal dwelling if local codes allow.
• Check HOA covenants and local deed restrictions before purchase.

2. Obtain State Licensing (DBPR)

• Apply for the appropriate Florida DBPR Vacation Rental License:
  • Vacation Rental Dwelling License: Single-family houses, townhouses, duplexes, triplexes, or quadruplexes.
  • Vacation Rental Condo License: Units in condominiums or cooperatives.
• Licensing Options:
  • Single License (one property, owner-managed).
  • Group License (multiple units within one building).
  • Collective License (multiple properties in different locations, up to 75 units).
• Annual License Fees:
  • Full year: $170 + $50 application = $220 total.
  • Half year: $90 + $50 application = $140 total.
  • License expiration: October 1 annually.
• Required Safety Compliance:
  • Balcony inspection certificate (DBPR HR 7020) for buildings over two stories.
  • Human trafficking awareness documentation (state requirement).
  • Building code compliance verification.
  • Safety equipment installation confirmation.

3. Register for State and Local Taxes

• Florida Sales Tax Registration: Required for 6% state sales tax collection.
• Bay County Tourist Development Tax Registration: Required for local lodging taxes applicable to Mexico Beach properties.
• Filing Requirements: Monthly tax reports due by the 20th of the following month through Bay County systems.

4. Apply for Bay County STR Certificate

• Submit application through Bay County Community Connect; pay fees and schedule inspection with Bay County Fire and Life Safety Inspection Bureau.
• Provide required documentation (see next section). Inspection turnaround typically 5–10 business days post-submission.

5. Install and Document Safety Equipment

• Install and verify smoke detectors (bedrooms/common areas), carbon monoxide detectors (near fuel-burning appliances and sleeping areas), and fire extinguishers (accessible on each level).
• Prepare guest information materials (emergency contacts, beach safety flag system, noise and turtle protection guidelines).

6. Operations Setup

• Professional photography and compelling listings emphasizing Gulf access and fishing amenities.
• Pricing strategy that accounts for peak season (May–September), fishing tournaments, and shoulder seasons.
• Set service standards and maintenance protocols; consider local property management if needed.

Required Documents, Permits, Licenses, and Guidelines Bay County Short-Term Vacation Rental Certificate

• Property Coverage: Single-, two-, three-, or four-family houses, recreational vehicles, or mobile homes (high-rise condo units and apartment complexes are exempt).
• Annual Certification Required; properties must register before operating.
• Documentation Needed:
  • Florida DBPR Vacation Rental License (current).
  • Pool Inspection Certificate (from Bay County Department of Health) if applicable (shared pools serving 5+ properties).
  • Balcony Inspection Certificate (DBPR HR 7020) for rentals over two stories.
  • Proof of Liability Insurance.
  • 24-hour Local Contact Information.
  • Safety Equipment Documentation (smoke/CO detectors, fire extinguishers).
• Application and Inspection Process:
  • Submit application via Bay County Community Connect.
  • Pay applicable fees; schedule inspection with Bay County Fire and Life Safety Inspection Bureau.
  • Property owner/manager must be present or provide door code.
  • Certificate issued upon successful inspection.

Florida State Licensing (DBPR)

• Vacation Rental Dwelling License or Vacation Rental Condo License required if renting the property more than three times per year for periods less than 30 days or one calendar month (whichever is less).
• License options (single, group, collective) and fees as listed above.
• Annual inspection and safety compliance documents are part of DBPR oversight.

Tax Registrations

• Florida Department of Revenue Sales Tax Registration.
• Bay County Tourist Development Tax Registration (local lodging taxes).
• Monthly filing requirements; online filing available.

Operational Documentation and Guest Materials

• Bay County STR Certificate (prominently displayed).
• Florida DBPR License (available for inspection).
• Guest Information Packet:
  • Beach safety flag system and ocean conditions.
  • Sea turtle nesting guidelines (May–October).
  • Noise ordinance and parking information.
  • Hurricane evacuation plan and emergency contacts.
• Occupancy Limit Documentation (maximum guest capacity).
• Parking Documentation (available spaces and rules).
• Insurance Policy and Safety Equipment Records.

Specific Regulations (City, County, State) State-Level Regulations (Florida)

• DBPR Licensing: Vacation rentals are licensed public lodging establishments. Licensing and inspection requirements are administered by the Division of Hotels and Restaurants.
• Preemption and Local Authority: Florida law preempts local governments from prohibiting vacation rentals or regulating rental duration/frequency. Local ordinances may address noise, parking, registration, signage, and safety inspections.
• Occupancy Standard (SB280): Maximum of two people per bedroom overnight, with two additional people permitted in common areas, provided each person has at least 50 square feet of space.
• Human Trafficking Awareness: Required documentation for licensees.
• Balcony Inspection: DBPR HR 7020 certificate required for rentals over two stories.

Bay County Regulations (Ordinance 23-18)

• Registration and Certificate: Mandatory Short-Term Vacation Rental Certificate for qualifying properties in unincorporated Bay County, including Mexico Beach. Annual renewal required.
• Inspection and Safety Standards: Fire and Life Safety Inspections prior to issuance and annually thereafter; smoke, CO detectors, and fire extinguishers required.
• Local Contact Requirement: 24-hour contact person designated for each property.
• Display Requirements: Certificate number displayed on the front of the building; guest information materials posted inside the property.
• Tax Administration: County collects local lodging taxes and administers monthly filing requirements.

City of Mexico Beach Regulations

• Accessory Structures: The City may allow accessory structures to be used for sleeping quarters but may prohibit their independent rental as vacation rentals; Florida law also treats “sleeping facilities” as not constituting a “dwelling unit,” and therefore not a “vacation rental” (AGO 2018-06).
• Beach and Community Rules (guest-facing):
  • No pets on the beach.
  • No fires, bonfires, or fireworks.
  • No glass containers on the beach.
  • Keep music/noise at reasonable levels.
  • No overnight camping or leaving items on the beach overnight.
  • Fill holes dug in the sand before departing.
  • No vehicles on the sand.
  • Golf carts must be registered and driven by licensed drivers during permitted hours.
  • Canal boating rules include a strict no-wake policy and bans open fires on docks/boats.

Contact Information (Local Authority in Charge of STRs) Bay County Fire & Life Safety Inspections

• Phone: (850) 248-6040
• Website: baycountyfl.gov/671/Fire-Life-Safety-Inspections
• Contact via: Bay County Community Connect portal (application and scheduling)

Bay County Tourist Development Tax

• Phone: Contact Bay County Clerk of Court for current numbers
• Website: baycoclerk.com/other-services/tourist-development-tax/
• Filing: Online through county portal

Florida Department of Business and Professional Regulation (DBPR)

• Phone: (850) 487-1395
• Website: myfloridalicense.com
• Licensing: Online application/renewal portal

Florida Department of Revenue (DOR)

• Phone: (850) 488-6800
• Website: floridarevenue.com
• Tax Registration: Online registration for sales tax

Mexico Beach City Hall

• Phone: (850) 648-8700
• Use for city-specific questions (golf carts, canal rules, municipal inquiries)

Links to Source Pages

• The Offer Sheet: Mexico Beach STR overview and Bay County rules — local.theoffersheet.com/legal/mexico-beach-fl/
• Forgotten Coast Vacation Rentals: Mexico Beach guest rules — www.forgottencoastrental.com/rules-and-regulations-in-mexico-beach-fl/
• Minut: US STR laws overview (Florida section) — www.minut.com/blog/short-term-rental-laws-us
• Florida Attorney General Opinion (AGO 2018-06): Municipalities, vacation rentals, and accessory sleeping quarters — www.myfloridalegal.com/ag-opinions/municipalities-vacation-rentals-dwelling-unit

Notes for Investors

• Operating Environment: Mexico Beach offers an attractive, relatively unregulated beach destination with clear county-level rules and strong demand from beachgoers and anglers.
• Compliance Strategy: Prioritize DBPR licensing, Bay County certificate and inspection, tax registrations, and guest-facing safety communications. Maintain thorough documentation for inspections and renewals.
• Market Positioning: Emphasize authentic beach experience, fishing amenities, and modern, compliant properties. The regulatory framework supports premium, compliant operations and helps distinguish serious operators in the market.
• Ongoing Monitoring: Regulations evolve. Verify updates with Bay County and DBPR before making investment decisions.