Full Definition
Short-term rental (STR) licenses are municipal permits that allow property owners to rent their property for stays under 30 days. Cities regulate STRs differently: some cap the total number of licenses, require owner-occupancy, restrict which zoning districts allow STRs, or impose operating requirements (guest count limits, parking, noise rules). In Orlando's market, Kissimmee/Osceola County has historically been STR-friendly; Orange County and the City of Orlando are more restrictive.
Example
An investor buys a 4-bedroom home near Disney, assuming they can operate it as an Airbnb. After closing, they discover the city has capped STR licenses at 500 and all are taken. The property must be rented long-term at $2,200/month instead of the $200/night STR rate — cutting projected annual revenue by 60%.
Why It Matters
STR license availability is the most important due diligence item for vacation rental investors. Never assume STR is permitted. Always contact city/county planning before purchase, verify license availability, and confirm the specific property's zoning allows STR.