Why Dunedin’s Short-Term Rental Rules Matter for Real Estate Agents
Dunedin, Florida — the charming Gulf Coast city known for its craft breweries, the Pinellas Trail, and proximity to Honeymoon Island and Caladesi Island — has become one of the most desirable destinations for short-term rental investors in Pinellas County. But the city’s regulatory framework around vacation rentals is something every Tampa Bay real estate agent needs to understand thoroughly before advising buyers, sellers, or investors.
As we move through 2026, short-term rental enforcement across Pinellas County has become an increasingly significant issue. The Tampa Bay Times reported in mid-2025 that Pinellas County was pressing vacation rentals to comply with established rules, with legal challenges brewing as a result. Dunedin is no exception — the city has its own set of rules that agents need to be well-versed in to protect their clients and maintain credibility in this competitive market.
Understanding Dunedin’s Short-Term Rental Regulatory Framework
Dunedin regulates short-term rentals — generally defined as rentals of residential property for periods of less than 30 consecutive days — through its land development code and local ordinances. Here are the key provisions agents should understand:
Zoning Restrictions
Short-term rentals in Dunedin are not permitted in all zoning districts. The city’s land development code specifies which residential and mixed-use zones allow transient rental activity. Agents working with investor-buyers should always verify the zoning designation of a property before making any representations about its short-term rental potential. The City of Dunedin’s Community Development Department can confirm whether a specific parcel is eligible for vacation rental use.
Registration and Licensing Requirements
Operators of short-term rentals in Dunedin are generally required to obtain a local business tax receipt from the city. In addition, Florida state law requires short-term rental operators to:
- Obtain a license from the Florida Department of Business and Professional Regulation (DBPR)
- Collect and remit Florida sales tax (currently 6%) to the Florida Department of Revenue
- Collect and remit the Pinellas County Tourist Development Tax (also known as the “bed tax”)
Agents should remind clients that operating without proper licensing can result in fines and enforcement actions at both the local and state level.
Florida’s Preemption Framework
One of the most complex aspects of short-term rental regulation in Florida is the relationship between state and local authority. Florida law includes a preemption provision (established under Florida Statutes §509.032) that limits municipalities’ ability to outright ban vacation rentals. However, cities like Dunedin retain the authority to regulate short-term rentals through zoning, noise ordinances, parking requirements, occupancy limits, and other land-use tools — as long as those regulations don’t amount to a de facto prohibition.
This legal landscape has been evolving, and the legal challenges reported across Pinellas County in 2025 underscore the importance of staying current. Agents should monitor updates from Florida Realtors (FAR) and consult with real estate attorneys when advising clients on properties intended for short-term rental use.
Practical Impacts on Listing and Selling in Dunedin
Listing Properties With STR Potential
When listing a Dunedin property that is currently being used as a short-term rental — or one that a seller wants to market as having STR potential — agents need to exercise caution. Here’s a checklist:
- Verify the zoning designation — Confirm with the City of Dunedin that the property’s zoning allows short-term rental activity.
- Confirm active licenses — Check that the seller holds a current DBPR license and local business tax receipt. An active license history can be a selling point for investor-buyers.
- Review HOA or condo association restrictions — Many homeowners’ associations and condominium declarations in Dunedin (and throughout Pinellas County) independently restrict or prohibit short-term rentals, regardless of what the city’s zoning code allows.
- Disclose known restrictions — Under FREC (Florida Real Estate Commission) standards and FAR best practices, agents must disclose material facts that could affect a buyer’s intended use of the property. If a property cannot legally be used as a short-term rental, this is a material fact.
- Avoid income guarantees — Never represent specific rental income projections as guaranteed. You can share historical data the seller provides, but frame it appropriately and recommend buyers conduct independent due diligence.
Working With Investor-Buyers
Dunedin’s appeal to short-term rental investors is obvious: it draws visitors year-round thanks to its walkable downtown, waterfront parks, and proximity to some of Florida’s highest-rated beaches. The snowbird season (typically November through April) drives especially strong occupancy, and interest in Florida vacation destinations remains robust heading into 2026.
When representing buyers looking for STR-eligible properties in Dunedin, agents should:
- Start with zoning verification before scheduling showings on properties intended for rental use
- Connect buyers with a CPA familiar with Florida’s short-term rental tax obligations, including sales tax and the Pinellas County Tourist Development Tax
- Recommend a real estate attorney to review any HOA or condo documents for rental restrictions
- Discuss insurance requirements — Short-term rental properties typically need commercial or specialized landlord insurance policies, not standard homeowners’ coverage
Marketing Dunedin STR Properties Effectively
If you’re marketing a Dunedin listing with short-term rental appeal, strong visual content is essential. Vacation rental investors evaluate properties differently than traditional homebuyers — they’re looking at the property through the eyes of a guest.
Professional Photography and Video
Highlight the features that drive booking revenue: outdoor living spaces, updated kitchens, proximity to downtown Dunedin and the waterfront, pool areas, and staging that evokes a vacation atmosphere. Professional real estate photography and video tours help investor-buyers visualize the guest experience and project potential returns.
Zillow 3D Home Tours
Interactive 3D tours are particularly valuable for marketing properties with STR potential. Many vacation rental investors are out-of-state buyers — snowbirds, remote investors, or second-home seekers from other parts of the country. A Zillow 3D Home tour allows these buyers to walk through the property virtually, examine room layouts, and assess the overall condition without an in-person visit. This can significantly accelerate the sales timeline.
Drone Photography
Dunedin’s waterfront location and proximity to Honeymoon Island State Park make drone photography a powerful marketing tool. Aerial imagery can showcase a property’s relationship to the water, nearby parks, downtown walkability, and the Pinellas Trail — all features that drive guest bookings and increase perceived value for STR investors.
Floor Plans
Detailed floor plans help investors evaluate bedroom configurations, square footage, and potential for modifications that could increase occupancy or booking rates. This is especially relevant for larger Dunedin homes that might accommodate multiple guest groups.
Staying Ahead of Regulatory Changes
The short-term rental regulatory environment in Pinellas County — and across Florida — continues to evolve. The legal challenges reported in 2025 suggest that municipalities and rental operators are still working through the boundaries of local regulation versus state preemption. For agents working the Dunedin market, staying informed is not optional — it’s a core professional responsibility.
Here are reliable sources to monitor:
- City of Dunedin official website — Check for ordinance updates and public hearing notices related to land development code changes
- Florida Realtors (FAR) — FAR tracks legislation and regulatory developments affecting short-term rentals statewide and provides guidance to members
- Stellar MLS — Watch for changes in listing fields or disclosures related to rental restrictions in Pinellas County
- Pinellas County Tax Collector — For updates on Tourist Development Tax collection requirements
- Florida DBPR — For state licensing requirements and enforcement updates
Position Yourself as the Local Expert
With Florida Realtors projecting a housing market comeback in 2026, and investor interest in Gulf Coast vacation rentals showing no signs of slowing, Dunedin represents a significant opportunity for agents who understand the rules. The agents who take the time to learn the city’s short-term rental regulations — and who can walk buyers and sellers through the licensing, tax, and zoning landscape with confidence — will earn more referrals, close more deals, and build lasting reputations in one of Tampa Bay’s most attractive markets.
Whether you’re helping a seller maximize the value of an active STR property or guiding an out-of-state investor through their first Dunedin purchase, your expertise on the regulatory side is just as important as the marketing. Pair that knowledge with professional photography, Zillow 3D Home tours, drone imagery, and detailed floor plans, and you’ll give your clients — and yourself — a clear competitive advantage.
