Palm Coast staff says short-term rental ordinance will take effect March 3; residents ask for exemptions for owner-occupied Airbnbs

City staff told the Palm Coast City Council at a Jan. 14 workshop that the new short-term rental ordinance — including an occupancy cap — will be implemented March 3, 2025, and that the city will prepare application and inspection processes before that date.

The timeline came after several residents urged the council to exempt owner-occupied short-term rental hosts from aspects of the ordinance and warned the rules would cause financial harm. “We have been proud Airbnb owners for almost 10 years,” said Cathy Davidson, a Palm Coast resident speaking during public participation. “We shouldn't be punished because you have some bad actors.”

Why it matters: The ordinance sets rules that affect property owners who rent rooms or whole homes for short periods. Several speakers said the proposed occupancy cap would reduce their rental income and asked the city to allow exceptions for owner-occupied hosts who manage their properties full time.

Details from the meeting: City staff (responding to questions) said the ordinance’s implementation date is March 3, 2025, and that between now and then the city will “prepare the checklist, build our process, train our staff, and then, start taking applications.” A staff member responding to public comments noted the tax collector’s office is capturing short-term rental data and will provide a monthly report the city can use for enforcement and fee collection.

Speakers pressed staff on enforcement capacity and inspections. “Who's going to do all the inspections?” asked Robert McDonald, a resident, pointing to stretched code-enforcement resources across large service areas. Public speakers asked whether the city will allow exemptions tied to owner-occupancy and recommended making any exemption revocable if complaints arise.

City history and next steps: Staff reminded the council the ordinance was heard earlier in the fall and winter — first reading in September and a second reading on Dec. 17 — and said it is now in the implementation phase rather than being reconsidered. Staff offered to deliver a briefing to the council on the implementation plan before March 3.

Public reaction and caveats: Owner-occupied hosts quantified potential losses: one speaker estimated a $500-per-month drop in income under the new rule. Council members and staff acknowledged those local economic impacts but reiterated that the city will train staff and coordinate with the tax office and code enforcement before taking applications.

What was not decided: The workshop did not include a council vote to change the ordinance. Staff said they would return with the implementation checklist and process and that the council could request further briefings.

Ending: Staff asked council members whether they wanted a pre-rollout briefing; councilors expressed interest in receiving that implementation briefing before the March 3 start date.