Buying A Vacation Rental In Deerfield: Rules & ROI Factors

Thinking about buying a vacation rental in Deerfield Beach but not sure where to start? You want clear rules, real costs, and a reliable way to size up returns. In this guide, you’ll learn the city and state requirements, taxes, insurance and flood factors, demand trends, and a simple ROI framework you can use before you buy. Let’s dive in.

Vacation rental rules in Deerfield Beach

When registration is required

If you rent a home or condo to transient guests more than three times in a calendar year for periods under 30 days, the City of Deerfield Beach treats it as a vacation rental that must be registered. The city requires an initial registration and annual renewal by October 1. You can find the registration package on the city’s Applications and Forms page and confirm active listings through Code Compliance.

• Review and download the city forms on the Applications and Forms page: Deerfield Beach Applications and Forms
• Check the city’s Code Compliance page for the public vacation rental listing and enforcement contacts: Deerfield Beach Code Compliance

What you must submit

City guidance and the Land Development Code Section 98-106 outline required items. The packet typically includes a local Business Tax Receipt, proof of Broward County Tourist Development Tax registration, state licensing when applicable, Florida Department of Revenue registration, required postings, and fees. The city can inspect, issue fines, or revoke a registration for violations. See the full registration checklist in the city’s packet: Vacation Rental Registration Package.

Occupancy and safety standards

Deerfield Beach follows common occupancy standards such as two persons per bedroom plus two, subject to fire code. Required on-site postings include local contact details and house rules. Safety items can include smoke and CO detectors, a fire extinguisher, and pool safety compliance. Confirm the full checklist in Section 98-106 and the registration affidavit: Vacation Rental Registration Package.

State DBPR license

Florida classifies many short-term whole-unit rentals as vacation rentals that need a license from the Department of Business and Professional Regulation, Division of Hotels and Restaurants. If you rent the entire unit regularly for short stays or more than three times per year, a DBPR license is typically required. Local registration usually comes first, and DBPR can take action if local rules are not met. Review classifications and standards here: DBPR vacation rental guide.

HOA and condo rules

Condo and HOA documents can limit or prohibit short-term rentals even when city and state rules allow them. Always review covenants, bylaws, minimum lease periods, and approval procedures before you buy. The DBPR guidance explains how state licensing interacts with private association restrictions: DBPR vacation rental guide.

Taxes on short-term stays

State transient rental tax

Florida levies a 6% state transient rental tax on accommodations rented for six months or less. This is separate from county hotel or tourist taxes. See the statute for details: Florida Statutes 212.03.

Broward County tourist tax

Broward County imposes a 6% Tourist Development Tax on short-term rentals. Many platforms collect and remit some taxes automatically, but you are responsible for registering and confirming correct filings. Learn more here: Broward County Tourist Development Tax.

Business tax receipts and filings

Plan to register for a Deerfield Beach Business Tax Receipt and set up state and county tax accounts before you list. Filing frequency can be monthly or quarterly depending on your account. Verify current steps with the city and county before accepting bookings.

Insurance and flood risk

Standard homeowners policies do not cover flood damage. Many Deerfield Beach addresses are in FEMA flood zones, and lenders often require flood insurance in Special Flood Hazard Areas. FEMA and Broward County updated flood maps effective July 31, 2024, so check your parcel and get quotes for property, windstorm, flood, and short-term rental liability coverage early in your underwriting. Start here: Broward County flood zone maps.

Demand and seasonality

Deerfield Beach benefits from Greater Fort Lauderdale’s visitor flow. As a regional proxy, recent Broward tourism reports show hotel occupancy near 72% with an average daily rate around $181.99. Vacation rental performance varies by neighborhood, bedroom count, finishes, and beach access, and seasonality is real. Winter and spring often command higher rates and occupancy. Review regional context here: Broward tourism and economic report.

ROI drivers and a simple model

Revenue levers

• Average Daily Rate: driven by bedroom count, beach proximity, finishes, amenities, and listing quality.
• Occupancy: varies by season. High season can lift annual yield if you price well.
• Fees: cleaning, pet, and parking fees can affect demand and net revenue.

Cost drivers

• Mortgage: investment loans often require larger down payments and may carry higher rates. Many lenders require 15 to 25 percent down. See typical lender guidance: Bankrate investment property overview.
• Property management: full-service short-term management often ranges from 15 to 30 percent of rental revenue.
• Cleaning and turnover: frequent cleanings add up, often $75 to $250 or more per stay depending on size and amenities.
• Utilities and internet: usually owner-paid for STRs, plus pool care if applicable.
• Insurance: property, wind or hurricane, flood, and STR liability.
• Taxes and registrations: state sales tax at 6 percent and Broward TDT at 6 percent are typically collected from guests, but you must register and remit correctly.
• Maintenance and reserves: routine fixes, furniture, HOA dues, and capital reserves.

Core metrics

• Gross rental yield = annual gross rent divided by purchase price.
• Net operating income (NOI) = gross rent minus operating expenses, excluding mortgage.
• Cap rate = NOI divided by purchase price.
• Cash-on-cash return = pre-tax cash flow after debt service divided by cash invested.

Illustrative example only

This is a simple framework to test a deal. Replace the inputs with Deerfield-specific ADR, occupancy, and quotes before you act.

• Purchase price: 400,000
• Projected rent: 180 nights at 200 ADR = 36,000
• Gross yield: 36,000 ÷ 400,000 = 9.0%
• Operating expenses: management 25% = 9,000; cleaning 5,400; utilities, insurance, taxes, HOA, reserves ≈ 9,000
• Approximate NOI: 12,600
• Cap rate: 12,600 ÷ 400,000 = 3.15%

If financed, your cash-on-cash return depends on the down payment and loan terms. Get real quotes and a localized STR market report before you finalize assumptions.

Due diligence checklist

• Confirm the address is inside Deerfield Beach city limits and allowed for vacation rentals. Review the city’s registration package: Applications and Forms.
• Verify condo or HOA rules for minimum lease terms, caps, approvals, or bans on short stays.
• Check whether your property will need a DBPR vacation rental license and what safety standards apply: DBPR vacation rental guide.
• Register for Broward’s Tourist Development Tax account and learn remittance procedures: Broward County TDT.
• Pull the parcel’s flood zone and request insurance quotes early: Broward flood maps.
• Speak with lenders about investment loan requirements and reserves: Bankrate investment property overview.
• Benchmark ADR and occupancy by bedroom count and proximity to the beach using a reputable STR data source or local manager. Use Broward hotel metrics as regional context: Broward tourism report.
• Set aside reserves for vacancy, hurricane season, and emergency repairs.

Thinking about your next move in Deerfield Beach? If you want a refined, data-informed approach to selecting the right property and navigating city and state requirements, connect with The Buchbinder Group for discrete guidance and curated options.

FAQs

What are the basic rules to run a vacation rental in Deerfield Beach?

• If you rent more than three times per year for stays under 30 days, you must register with the city, meet occupancy and safety rules, and renew annually.

Do I need a Florida state license for my Deerfield Beach rental?

• Whole-unit short-term rentals generally need a DBPR vacation rental license, in addition to city registration and compliance with safety standards.

How much tax do I collect from guests in Broward County?

• You typically collect 6 percent Florida transient rental tax plus 6 percent Broward Tourist Development Tax on stays of six months or less.

Do booking platforms handle my taxes for Deerfield Beach?

• Some platforms collect and remit certain taxes, but you are still responsible for registering, confirming correct collection, and filing as required.

How do flood zones affect my insurance and ROI?

• Many areas near the coast require flood insurance, and premiums can be higher, so check the parcel’s FEMA zone and budget for flood, wind, and liability coverage.

What are typical short-term rental management fees?

• Full-service management commonly ranges from 15 to 30 percent of rental revenue, with cleaning and turnover costs billed separately.