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

Yes, short-term rentals are explicitly allowed in Sebastian, Florida. The city has established a regulatory framework for vacation rentals of less than 30 days, with specific requirements for registration, licensing, taxation, and safety compliance. However, it's important to note that Accessory Dwelling Units (ADUs) cannot be used for transient short-term rentals under current city ordinances.

How to Start a Short-Term Rental Business in Sebastian, FL

Step-by-Step Process

1. Property Qualification: Ensure your property meets zoning requirements and is suitable for short-term rental use
2. Business Registration: Obtain all required licenses and permits before operating
3. Tax Registration: Set up systems for collecting and remitting required taxes
4. Safety Compliance: Complete required inspections and implement safety measures
5. Marketing Setup: Create compliant advertising that includes all required information
6. Local Contact: Establish 24/7 local contact person arrangements

Required Documents, Permits, Licenses, and Guidelines

City-Level Requirements

Local Business Tax Receipt

• Mandatory for all STR operators in Sebastian
• Must be obtained from the City of Sebastian
• Part of the initial registration process

Property Registration

• Registration with the City of Sebastian is mandatory
• Properties must be registered before operating
• Registration includes property details and owner information

Safety Inspections

• Vacation rentals are subject to city safety inspections
• Inspections verify compliance with fire safety and building codes
• Required before initial operation and potentially periodically

County-Level Requirements

Tourism Development Tax (Bed Tax) Registration

• Must be registered with the Indian River County Clerk of Court
• Required for collecting county tourism development taxes
• Separate registration from city requirements

State-Level Requirements

State Business License

• Property owners must be licensed by the state of Florida
• Required before obtaining local business tax receipt
• State compliance with Florida vacation rental laws

Taxation Requirements

Tourist Development Taxes

• Hosts must collect and remit tourist development taxes on rental income
• Typically ranges between 7.5% and 12% of revenue
• Separate from state sales tax obligations

State Sales Tax

• Collection and remittance of state sales tax is required
• Part of overall tax compliance for vacation rental operators

Specific Regulations for Short-Term Rentals

City of Sebastian Regulations

Occupancy Limits

• Local governments can impose occupancy limits based on bedroom count
• Standard limit: two people per bedroom plus two people in common areas
• Alternative standard: each person must have at least 50 square feet of space

Local Contact Requirement

• A local contact person must be available 24/7 to address guest needs
• Contact information must be provided to guests and city officials
• Must be able to respond to complaints and emergencies

Advertising Requirements

• Specific information must be included in all advertising
• City regulations require certain disclosures in rental listings
• Must include safety information and occupancy limits

Noise and Neighborhood Impact

• Regulations designed to reduce impact on residential neighborhoods
• Specific rules on noise levels and quiet hours
• Parking limitations to prevent neighborhood congestion

Safety and Building Compliance

• Properties must comply with local fire safety regulations
• Building code compliance is mandatory
• Regular inspections ensure ongoing compliance

County Regulations (Indian River County)

Bed Tax Collection

• Mandatory collection of tourism development taxes
• Registration with Clerk of Court required
• Regular reporting and remittance schedules

County-Level Compliance

• Compliance with Indian River County vacation rental ordinances
• Coordination with county officials for tax collection
• Adherence to county-wide safety and zoning standards

State Regulations (Florida)

Statewide Compliance

• Must comply with Florida vacation rental statutes
• State licensing requirements for rental operators
• Adherence to Florida Building Code standards

Potential New Requirements

• Senate Bill 280 may introduce new statewide registration requirements
• Potential additional inspections and permit requirements
• Compliance with evolving state regulations

Accessory Dwelling Unit Restrictions

ADU Prohibition on STR Use

• Critical: Accessory Dwelling Units cannot be used for transient short-term rentals
• ADUs are specifically prohibited from commercial STR purposes
• Only permitted for long-term residential rental or owner occupancy
• This restriction applies regardless of other compliance with STR regulations

Contact Information for Local Authority

City of Sebastian

Primary Contact Information

• Address: Sebastian City Hall, 1225 Main Street, Sebastian, FL 32958
• Phone: Contact City Hall during business hours
• Hours: Monday through Friday, 8:00 AM to 4:30 PM (closed 12:00 PM to 1:00 PM for lunch)
• Website: www.cityofsebastian.org

Departments for STR Inquiries

• Building Department: For safety inspections and permits
• Planning and Zoning: For zoning compliance questions
• Code Enforcement: For complaint handling and compliance issues
• City Hall Main Line: For general registration questions

Online Resources

• Building Forms and Permits: Available through city website
• Code Enforcement Complaint Form: Available online for reporting issues
• City Directory: Complete contact information for all departments

County Contact

Indian River County Clerk of Court

• Tourism Development Tax registration and collection
• Contact county offices for bed tax registration
• County-level vacation rental compliance inquiries

Links to Source Pages

Primary Regulatory Sources

Sebastian Short-Term Rental Ordinance Discussion (2018)

• Source: TCPalm News Article - Sebastian eyes short-term rental rules
• Content: Planning Commission recommendations for STR regulations including registration, safety inspections, and occupancy limits

Accessory Dwelling Unit Ordinance (2025)

• Source: Sebastian PD - Ordinance O-25-06 Accessory Dwelling Unit
• Content: Explicit prohibition of ADU use for transient short-term rentals with detailed regulations

Current STR Market Regulations

• Source: RedAwning Market Overview - Sebastian Florida STR Regulations
• Content: Current 2024 regulations including licensing, taxation, local contact requirements, and occupancy standards

City Facility Rental Information

• Source: City of Sebastian - General Information
• Content: City contact information and general municipal services (not STR-specific but useful for navigation)

Important Note: Regulations may change, and this guide is based on available information as of 2024-2025. Always verify current requirements with local authorities before starting or operating a short-term rental business in Sebastian, Florida. The prohibition on ADU usage for STRs is particularly important for investors considering these units for vacation rental purposes.