Overview: Are Short-Term Rentals Allowed in Panama City Beach?

Yes, short-term rentals are explicitly allowed in Panama City Beach, Florida. The city has established a comprehensive regulatory framework through Ordinance 1632, which went into effect February 1, 2024, to govern vacation rentals within city limits. Panama City Beach allows STRs in specific zoning districts and requires operators to obtain proper registration, licensing, and pass safety inspections.

Properties located within the city limits must comply with Panama City Beach regulations, while properties in unincorporated Bay County fall under separate county ordinances. It's crucial to verify your property's jurisdiction using the city's official mapping tools.

How to Start a Short-Term Rental Business in Panama City Beach

Step 1: Determine Eligibility and Zoning Compliance

Before proceeding, verify your property location and zoning classification:

• Eligible Zoning Districts: Commercial High Intensity (CH), Commercial Medium Intensity (CM), Commercial Low Intensity (CL), Limited Multi-family (R-2), Unlimited Multi-family (R-3), and Townhouse (RTH)
• Check zoning using the Bay County GIS mapping system
• Verify city limits using the city's official boundary map

Step 2: Obtain Required Licenses and Registrations

Operators must complete multiple registration processes:

1. Florida State License: Obtain a vacation rental license from the Department of Business & Professional Regulations (DBPR)
2. Business Tax Receipt (BTR): Register with Panama City Beach for local business tax receipt
3. Tourist Development Tax: Register with Bay County TDC
4. Vacation Rental Certificate: Complete city inspection and certification process

Step 3: Submit Application and Documentation

• Complete the Vacation Rental Registration Application
• Submit notarized Affidavit Form
• Email complete application packet to: fireinspections@pcbfl.gov

Step 4: Schedule and Pass Safety Inspection

• Pay required fees ($250 registration, $75 re-inspection if needed, $100 lock-out fee if access denied)
• Schedule inspection through Fire Inspections Division
• You may continue renting while awaiting inspection
• Address any violations and pass re-inspection if required

Step 5: Display Required Signage and Post Documentation

• Install exterior signage showing certificate number and 24/7 contact information
• Post interior notices with emergency information, occupancy limits, and local ordinances

Required Documents, Permits, Licenses, and Guidelines

Primary Registration Documents

1. Vacation Rental Registration Application - Required for all new applicants
2. Notarized Vacation Rental Registration Affidavit - Sworn statement of compliance
3. DBPR License - State vacation rental license
4. Bay County TDC Registration - Tourist development tax registration
5. PCB Local Business Tax Receipt - Local business license
6. Pool Inspection Certificate - Required if property has shared pool (5+ properties)
7. DBPR HR 7020 Balcony Inspection Certificate - Required for rentals over two stories

Additional Compliance Documentation

• Fire Safety Self-Inspection Checklist - Pre-inspection safety verification
• Evacuation Floor Plans - Required for multi-story rentals
• Interior Signage Packets - Emergency and ordinance information
• Exterior Certificate Display - Proof of registration

Physical Requirements

• Fire Extinguishers - Florida certified company installation and maintenance
• Smoke Detectors - Hardwired systems or approved alternatives
• Automatic Sprinkler Systems - NFPA 13 standards for qualifying properties
• Exit Signs - Lighted signs for properties over specific occupancy thresholds
• Secondary Entrances - Additional egress routes as required by code

Specific Regulations for Short-Term Rentals

City of Panama City Beach Regulations (Within City Limits)

Occupancy Limits:

• Maximum occupancy based on one person per 150 square feet of habitable space
• Alternative calculation: one person per 200 square feet if passing enhanced life safety inspection
• Maximum of four people per full bathroom

Operating Requirements:

• Maximum Rental Period: Properties rented for less than 30 days or one calendar month (whichever is less) constitute transient public lodging
• Frequency: Rental to guests three or more times per calendar year triggers STR requirements
• Certificate Display: Must include vacation rental certificate number in all advertisements

Safety Standards:

• Fire safety equipment installation and maintenance
• Emergency evacuation procedures posted
• Beach safety flag warnings displayed
• "Leave No Trace" compliance requirements
• Noise, parking, and occupancy ordinance compliance

Bay County Regulations (Unincorporated Areas)

Applicability:

• Only single-family, two-family, three-family, and four-family structures
• High-rise condominiums and apartment complexes exempt
• Recreational vehicles and mobile homes included

Requirements:

• Annual registration and inspection
• Certificate number in advertisements
• Interior and exterior signage requirements
• Fire safety compliance
• Noise ordinance adherence

State of Florida Requirements

DBPR Licensing:

• State vacation rental license required for all transient public lodging
• Annual renewal mandatory
• Compliance with Florida Building Code
• Public lodging establishment classification

Tourist Development Tax:

• 5% county bed tax on all short-term rentals
• Quarterly filing with Bay County Clerk of Court
• Registration prerequisite for city/county approval

Contact Information for Local Authorities

Panama City Beach Fire Inspections Division

• Phone: (850) 233-5100 ext. 2413
• Email: fireinspections@pcbfl.gov
• Physical Address: 17007 Panama City Beach Parkway, Panama City Beach, FL 32413
• Main Phone: (850) 233-5100
• Purpose: Vacation rental registration, inspections, certificate issuance

Panama City Beach Business Tax Office

• Email: businesstax@pcbgov.com
• Physical Address: 116 S. Arnold Road, Panama City Beach, FL 32413
• Purpose: Business tax receipt issuance and renewal

Bay County Emergency Services (Unincorporated Areas)

• Phone: (850) 248-6040
• Physical Address: 700 Highway 2300, Southport, FL 32409
• Fax: (850) 784-4010
• Emergency Phone: 911
• On-Duty Battalion Chief: (448) 217-4929
• Hours: Monday-Friday, 7:30 a.m. - 5:00 p.m.
• Purpose: County vacation rental inspections and compliance

Florida Department of Business & Professional Regulation

• Website: myfloridalicense.com
• Purpose: State vacation rental licensing

Bay County Tourist Development Council

• Website: tdc.baycoclerk.com/TouristTax/
• Purpose: Tourist development tax registration and compliance

Fees and Costs

Panama City Beach (City Limits)

• New Registration Fee: $250
• Re-inspection Fee: $75 (if initial inspection failed)
• Lock-out Fee: $100 (if access denied during inspection)
• Re-registration Fee: $150 (for renewals)
• Payment Methods: Credit/debit cards (American Express not accepted)
• Payment Portal: Search for invoice

Bay County (Unincorporated Areas)

• Initial Inspection Fee: $250
• Re-inspection Fee: $50
• Lock-out Fee: $100
• Renewal Fee: $150

Additional Potential Costs

• State DBPR License: Varies by property type and size
• Business Insurance: Recommended but not mandated
• Professional Fire Safety Equipment: Installation and maintenance costs
• Pool Inspection: If applicable ($varies)
• Balcony Inspection: Required for properties over two stories ($varies)

Penalties for Non-Compliance

Monetary Penalties (City of Panama City Beach)

• First Offense: $500
• Second Offense: $1,000
• Third and Subsequent Violations (within 12-month period): $1,000 + certificate revocation for one year

Additional Consequences

• Certificate Revocation: Applies to individual units, not entire management companies
• Code Violations: Referred to magistrate for non-compliance
• Ability to Operate: Certificate required for legal operation - operating without one is unlawful
• Advertising Restrictions: Certificate number must appear in all advertisements

Important Deadlines and Renewal Information

Annual Requirements

• Certificate Renewal: Annually, with renewal notifications sent in advance
• Inspection Cycle: Annual inspection required for continued operation
• Business Tax Receipt: Annual renewal required
• DBPR License: Annual state license renewal

Key Dates

• New Registration: No specific deadline, but processing time should be considered
• Renewal Timeline: Begin renewal process before expiration to avoid operational gaps
• Inspection Scheduling: Contact Fire Inspections after payment to schedule

Sources and Links

Primary Regulatory Documents

• PCB Ordinance 1632 - Primary vacation rental ordinance
• Vacation Rental Registration Application - Official city application
• Vacation Rental Registration Affidavit - Required notarized affidavit
• Vacation Rental Guidelines for Compliance - Comprehensive compliance guide

Forms and Resources

• Interior Signage Requirements - Required posting information
• Beach Safety Flag Warnings - Beach safety compliance
• Leave No Trace Requirements - Environmental compliance
• Request for Exemption Form - For properties seeking exemption

Mapping and Verification Tools

• Bay County GIS Mapping - Zoning verification
• City Limits Verification Map - Jurisdiction determination
• Bay County Property Appraiser - Property classification verification

County Resources (for Unincorporated Areas)

• Bay County Vacation Rental Application
• Bay County Fire Safety Checklist
• Ordinance 23-18 - County vacation rental ordinance

This guide provides comprehensive information for operating short-term rentals in Panama City Beach and surrounding Bay County areas. Always verify current requirements with local authorities and consult with legal professionals for complex compliance questions.