Disadvantages of renting from an unlicensed operator

Vacation homes and aparthotels in Miami Beach that are run by unlicensed operators often use low rates and loose restrictions to lure in guests. Unfortunately, these types of Miami Beach lodging are often inferior to similar properties run by operators who went through the proper channels to receive licensing. Before making down payments on unlicensed vacation homes or aparthotels in Miami Beach, it is important that you fully understand all of the disadvantages involved.

Unlicensed Miami Beach lodging cannot offer the same safety guarantees as licensed buildings. To obtain a license, properties must pass inspections to assess how well they adhere to local building, health and sanitation, fire safety and disability accommodations codes and laws. While unlicensed properties might also meet these standards and have passed inspections, you cannot verify this as easily as you can with their licensed counterparts.

Because it is illegal to operate an extended stay facility without a license, owners who take part in the practice must cover up whatever money they make from renting their properties. As a result, the income taxes on these moneys often go unpaid. In addition, the owners may owe money for local and state taxes on their income or on their properties. If discovered by the federal or state Departments of Revenue, owners who do not pay the appropriate taxes face steep penalties. For you, their tax evasion could mean that you must forfeit your trip, and if the owner is now suffering financial problems, obtaining a refund of your down payment could require an expensive lawsuit.

Although unlicensed extended stay operators in Miami often believe they are above the law, most get caught eventually. Local law enforcement officers keep on the lookout for signs of illegal rentals, and neighbors frustrated by guests coming and going may even report the unlicensed operators to the police. Since their rental operation could be shut down at any time, renting with an unlicensed operator is always a gamble.