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

Yes, short-term rentals are allowed in Sanibel, Florida, but with significant restrictions. Sanibel has implemented some of the most restrictive short-term rental regulations in Florida, designed to preserve the island's residential character and sanctuary atmosphere. The key restrictions are:

• Single-family homes: 28-day minimum rental period
• Condominiums: More flexible options, often allowing weekly rentals or shorter if grandfathered
• Captiva Island (unincorporated Lee County): More permissive with 7-day minimums

These restrictions create a unique two-tier market where condominium complexes typically offer better cash flow potential for STR investors compared to single-family homes.

How to Start a Short-Term Rental Business in Sanibel

Step 1: Market Research & Property Selection

• For Cash Flow Priority: Choose condominiums that allow weekly or shorter rentals
• For Privacy/Space: Consider single-family homes but accept 28-day minimum restrictions
• Research island areas, proximity to beaches, and seasonal demand patterns
• Evaluate potential for owner use during peak seasons

Step 2: Property Type Decision

Condominiums (Recommended for Investment):

• Better cash flow potential
• Allow weekly or shorter rentals in many cases
• Professional management often available
• Higher guest turnover

Single-Family Homes:

• 28-day minimum rental requirement
• More privacy and space for guests
• Lower guest turnover
• Potential for personal use during peak seasons

Step 3: Due Diligence

• Verify property's rental eligibility
• Review condominium association restrictions
• Check rental history if available
• Assess renovation or improvement needs

Step 4: Permitting & Licensing Process

• Apply for City of Sanibel dwelling rental license
• Obtain business tax receipt
• Apply for Florida DBPR vacation rental license
• Register for all required tax accounts
• Secure appropriate insurance coverage

Step 5: Operations Setup

• Choose property management company or self-manage
• Create compelling listings highlighting island amenities
• Establish tax collection and remittance systems
• Develop cleaning and maintenance protocols
• Create guest communications and guidebooks

Step 6: Ongoing Compliance

• Renew all licenses annually
• File taxes on schedule
• Monitor regulation changes
• Maintain property standards
• Respond promptly to compliance issues

Required Documents, Permits, and Licenses

City of Sanibel Requirements

1. Dwelling Rental License

   • Required for all rental properties within city limits
   • Must be renewed annually
   • Application available through City Finance Department

2. Business Tax Receipt

   • Required for all rental operations
   • Previously called occupational license
   • Annual renewal required

State of Florida Requirements

3. DBPR Vacation Rental License
   • Required for all vacation rentals in Florida
   • Application fee: $50 plus additional licensing fees
   • Annual renewal required
   • Online application available through DBPR

Lee County Requirements

4. Lee County Business Tax Receipt

   • Required for properties in unincorporated areas
   • Must be obtained before conducting business in Lee County

5. Tourist Development Tax Registration

   • Required for proper tax collection and remittance

Additional Documentation Needed

6. Florida Sales Tax Certificate

   • Required for tax collection and remittance

7. Liability Insurance Policy

   • While specific minimums aren't mandated by the city
   • Most operators carry $1,000,000+ coverage

8. Condominium Association Approval

   • If applicable, documentation showing STR approval from condo association

9. Property Management Agreement

   • If using a management company

10. Local Contact Information

    • Some associations require designated local contacts

Specific Regulations by Level

City of Sanibel Regulations

• Single-Family Homes: 28-day minimum rental period

  • Sanibel Code permits "Rental of a dwelling unit by one family for periods of no less than four consecutive weeks"
  • This means not only is there only one rental per month, but that rental MUST span four consecutive weeks

• Condominiums: More flexible options

  • Many condo complexes allow weekly rentals (now the shortest Sanibel allows)
  • Some condo complexes are grandfathered to allow daily rentals
  • Each condominium association sets additional restrictions

• Dwelling Rental License: Required for all rental properties

  • Must be obtained and maintained during all terms of rental
  • Valid for one calendar year

Lee County Regulations

• Captiva Island: Governed by Lee County
  • Requires minimum 7-night stay
  • No city-level restrictions (unincorporated Lee County)
  • More permissive rental regulations than Sanibel

State of Florida Regulations

• DBPR Licensing: State requires all vacation rentals be licensed
• Tax Structure:
  • Florida Sales Tax: 7% of gross rental receipts
  • Florida Transient Rental Tax: 6% of gross rental receipts (for stays under 30 days)
  • Lee County Tourist Development Tax: 5% of gross rental amount

Contact Information

City of Sanibel

Finance Department

• Phone: (239) 472-9615
• Fax: (239) 472-3065
• Address: 800 Dunlop Road, Sanibel, FL 33957
• Website: www.mysanibel.com
• For: Dwelling rental licenses and business tax receipts

Building Department

• Phone: (239) 472-4555
• For: Building code and permitting questions

Lee County

Tax Collector (Business Tax Receipts)

• Phone: (239) 533-6000
• Email: bt@leetc.com
• Website: leetc.com

Tourist Development Tax Office

• Website: leeclerk.org/departments/inspector-general/tourist-development-tax
• For: Tourist tax registration and questions

State of Florida

Department of Business & Professional Regulation

• Phone: (850) 487-1395
• Website: myfloridalicense.com
• For: State vacation rental licensing

Additional Resources

McCallion & McCallion Realty

• Phone: (239) 472-1950
• Email: team@mccallionrealty.com
• Address: 1640 Periwinkle Way, Suite 1, Sanibel Island, FL 33957

Sanibel Captiva Island Vacations

• Phone: (877) 388-5050
• Email: info@sancapislandvacationrentals.com

Safety Requirements and Inspections

Required Safety Equipment

• Smoke detectors on each level and in bedrooms
• Carbon monoxide detectors near fuel-burning appliances
• Fire extinguishers on each level
• Clearly marked exits and emergency information
• Pool safety features (if applicable)

Island-Specific Considerations

Given Sanibel's coastal location:

• Hurricane preparedness information for guests
• Evacuation route information
• Beach safety guidelines
• Wildlife interaction protocols (especially for sea turtles and shorebirds)

Inspection Process

While Sanibel doesn't require annual STR-specific inspections, properties must meet:

• Florida Building Code requirements
• Condominium association standards
• Basic safety and habitability standards

Costs and Fees

Permit and License Fees

• Dwelling Rental License: Varies by property type
• Business Tax Receipt: $50-$200 annually
• DBPR Vacation Rental License: $50 plus additional fees
• Safety Inspection Fee: $100-$200 (one-time or as needed)

Tax Obligations

• Florida Sales Tax: 7% of gross rental receipts
• Florida Transient Rental Tax: 6% of gross rental receipts (for stays under 30 days)
• Lee County Tourist Development Tax: 5% of gross rental amount

Enforcement and Compliance

Common Violations

• Operating without proper city licenses
• Renting single-family homes for less than 28 days
• Tax collection/remittance failures
• Operating in violation of condominium association rules
• Failure to renew annual licenses

Penalties

• Fines and citations
• License revocation
• Legal action by the city
• Prohibition from obtaining future licenses

Compliance Tips

• Maintain well-organized documentation
• Work with local accountants familiar with island tax requirements
• Use established Sanibel property management companies
• Stay updated on regulation changes
• Respond promptly to any compliance issues

Source Links

1. Sanibel Single Family Home Rental Restrictions
2. Sanibel Island FL Short Term Rental Regulations Guide
3. My Property, My Rights. Right?
4. Guide to Short-Term Rental Licensing in Sanibel Island, Florida
5. Sanibel Captiva Island Vacations FAQs

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