Short Term Rental Condos in Palm Beach County: Lease Minimums, City Rules and Condo-Hotel Options
October 1, 2026 · 8 min read · By Onias Derilus, Broker
How condo lease minimums, city rental rules, state licensing and tourist taxes fit together for investors who want a condo they can rent by the night or week in Palm Beach County.
Short term rental condos sound like an easy investment in a tourist county. In practice, most condos in Palm Beach County cannot be rented by the night or the week. Three layers of rules decide what you can do: the condo association's documents, your city's code and Florida law. On top of that, state licensing and tourist taxes apply to every stay. This guide explains how those layers fit together, why flexible-rental buildings trade differently, and what to confirm before you make an offer.
Key takeaways
- The condo documents usually control first. Many associations set lease minimums of several months, and those rules can block nightly rentals even where the city allows them.
- Florida law bars local governments from banning vacation rentals or limiting how long or how often they rent, but rules adopted on or before June 1, 2011 are grandfathered.
- Lake Worth Beach has upheld a zoning rule requiring rentals of at least 60 days.
- Palm Beach County charges a 6% tourist development tax on rentals of 6 months or less, on top of sales tax. The Tax Collector lists the combined rate as 12.5%.
- Fannie Mae treats projects that require owners to join a rental pool as ineligible, which can limit financing in condo-hotel buildings.
Why most condos are not short term rental condos
A condo is a shared building. Your neighbors share the elevators, the pool and the security desk, and many of them do not want a new guest every few days. As a result, most associations limit leasing in their declaration or rules.
Common limits include a minimum lease of 3, 6 or 12 months, a cap on how many times a year a unit can be rented and a waiting period before a new owner may lease. Many buildings also require board approval for each tenant. In other words, a unit near the beach is not a nightly rental unless its documents say so.
So read the declaration, the bylaws and the rules before you write an offer. Then ask the manager for the current leasing rules in writing. A listing that says "rentals allowed" may only mean annual leases.
How Florida law shapes short term rental condos
State law adds two important pieces. One protects owners from new association rules. The other limits what cities can do.
Association rental amendments
Under section 718.110(13), a condo amendment that bans rentals, changes the rental term or limits how often owners can rent applies only to owners who agree to it and to owners who buy after it passes. That protects current owners. However, it also means you, as a new buyer, would be bound by any amendment already in place. So the date you buy matters.
Local government limits
Next, section 509.032(7) says a local law may not prohibit vacation rentals or regulate how long or how often they are rented. Still, that rule does not reach local laws adopted on or before June 1, 2011. As a result, some cities kept older minimum-stay rules, and those still apply today.
Keep in mind that this state limit covers cities and counties, not condo associations. A private building can still restrict rentals through its own documents.
City rules for short term rental condos in Palm Beach County
Palm Beach County has dozens of cities and towns, and each can add its own registration or inspection rules within state limits. Here are three examples that investors often ask about.
West Palm Beach
The City of West Palm Beach says the same rules apply whether you list on a platform like Airbnb or sign a lease with a long-term tenant. Every rental unit needs a rental tax application, a zoning review and a code compliance inspection. Buildings with 3 or more units under one roof also need a fire inspection. See our West Palm Beach page for local listings.
Lake Worth Beach
Lake Worth Beach is stricter. According to the city's vacation rental page, the City Commission chose to uphold its zoning rule for rentals of not less than 60 days. The city also requires residential rental business licenses. So a nightly or weekly rental model does not fit there.
North Palm Beach and other towns
Some towns run their own registration programs. For example, the Village of North Palm Beach requires owners who rent more than 3 times a year for stays under 30 days to register. Registrations must be renewed each year by October 1, with an inspection. Riviera Beach, Boca Raton and other cities each have their own process, so call the city before you buy.
State licensing for short term rental condos
Florida treats frequent short stays as public lodging. Under section 509.013, a transient public lodging establishment includes a unit rented to guests more than three times a year for stays of less than 30 days in a row.
Those units need a license from the Division of Hotels and Restaurants. The division's guide lists a separate Vacation Rental Condominium license for units in a condo or co-op. It also offers group and collective licenses for managers who run many units.
Tourist development tax and sales tax
Taxes come out of every booking. The Palm Beach County Tax Collector charges a 6% tourist development tax on rentals of 6 months or less. That is in addition to state sales tax, which the office lists at 6.5% in the county, for a combined 12.5%.
The tax applies to the full rental charge, including mandatory cleaning and pet fees. Owners must register a tourist tax account with the Tax Collector. Vacation rental operators also need a short-term rental local business tax receipt for each account. Some booking platforms collect certain taxes for you, but confirm which ones before you rely on that.
Condo-hotels and flexible-rental buildings
A small number of buildings are designed for short stays. Some run like hotels, with a front desk and an on-site rental program. Others simply allow owners to rent for short periods on their own.
These buildings often trade at different values than standard condos. On one hand, they offer rental income that most condos cannot. On the other hand, they can be harder to finance and resell. For example, Fannie Mae's Selling Guide lists projects that require owners to put units into a rental pool as ineligible. It also flags projects that limit an owner's ability to use the unit. As a result, buyers may need a larger down payment or a portfolio loan.
Also ask how a rental program splits income. Management fees, booking fees and furniture rules can take a large share of gross rent. Request several years of the program's actual results for the unit, rather than a sales estimate.
What investors should confirm before buying
Before you make an offer on a condo for short stays, confirm each of these in writing:
- The minimum lease term and the yearly rental limit in the current documents and rules.
- Whether any pending amendment would change leasing, and when a new owner becomes bound by it.
- The city's registration, inspection and business tax rules for that address.
- Whether the unit needs a state vacation rental license and how long the license takes.
- Tourist tax registration and who collects the tax on each platform.
- Whether a lender will finance the building, and on what terms.
- The association's budget, reserves and any planned special assessments.
Then run the numbers on realistic occupancy, not peak-season rates. Include dues, insurance, cleaning, management fees, furniture and vacancy. If the numbers only work with a nightly model, make sure the rules truly allow it.
What the condo market looks like for investors
Buying conditions matter as much as rental rules. In August 2026, Palm Beach County's condo and townhouse median sale price was $300,000, per Miami Realtors. Those homes took a median of 69 days to go under contract, and the county had 6.7 months of supply. That gives condo buyers more room to negotiate than house buyers.
Long-term rents give you a baseline to compare against. According to Pure Equity's MLS data as of October 1, 2026, West Palm Beach had 2,386 active rental listings with a median asking rent of $2,250. Riviera Beach had 262 at a median of $2,500, and Lake Worth Beach had 321 at a median of $1,995. Those figures mix condos and houses. See our Riviera Beach page for local listings.
Short term rental condos vs. annual rentals
For many investors, a condo leased for a year at a time is the simpler path. It fits most association rules, needs no lodging license and avoids the tourist tax. However, the income is usually lower than a well-run short stay unit. So compare both models on the same building before you choose. If you later decide to exit, our guide on selling a short term rental covers future bookings and buyers.
Frequently asked questions
Can I rent my Palm Beach County condo on Airbnb?
Only if the condo documents, the city's rules and state licensing all allow it. Many associations set minimum lease terms of several months, which rules out nightly stays.
Can a city ban short term rental condos in Florida?
A local law adopted after June 1, 2011 may not prohibit vacation rentals or regulate their duration or frequency. However, older local rules are grandfathered, and condo associations can still restrict rentals.
What taxes apply to short stays in Palm Beach County?
The county charges a 6% tourist development tax on rentals of 6 months or less, plus sales tax. The Tax Collector lists the combined rate at 12.5%.
Are condo-hotel units harder to finance?
Often, yes. Fannie Mae lists projects that require owners to join a rental pool as ineligible, so buyers may need a portfolio loan or more cash down.
Sources
- Florida Statutes, s. 718.110
- Florida Statutes, s. 509.032
- Florida Statutes, s. 509.013
- DBPR Division of Hotels and Restaurants, vacation rental guide
- Palm Beach County Tax Collector, tourist development tax
- City of West Palm Beach, rental property guidelines
- City of Lake Worth Beach, vacation and short term rentals
- Village of North Palm Beach, vacation rental
- Miami Realtors, Palm Beach County August 2026 market report
- Fannie Mae Selling Guide, ineligible projects
Own a rental condo and weighing a sale? Start with a free home valuation to see what it could sell for today. Investing? Request an investor property and rental analysis from a Pure Equity agent before you buy. Contact our team.
