Buying a Miami Condo for Airbnb? What the Brickell Case Should Teach You

On October 23, CBS News Miami reported that the City of Miami had issued a notice of violation over The Club at Brickell Bay, a 43-story, 643-unit tower at 1200 Brickell Bay Drive. City officials found more than 300 vacation rentals advertised in a building where only 30 short-term units are permitted. Fines could reach $5,000 a day.

I'm not writing this to pile on one building. These are allegations, and I haven't seen a ruling on them. I'm writing because anyone buying a Miami condo on the theory that "Airbnb will pay the mortgage" is taking on a version of this same risk, and most of that risk can be checked before closing.

What happened in Brickell

The city's August 11 letter, as reported by The Real Deal, said the building was being operated as a "transient public lodging establishment" and called that "a significant life safety issue," because the building wasn't approved for fire, life safety or disability requirements. It ordered illegal rentals to stop.

The later steps depend on the report. CBS said the notice went to the company holding the property's certificate of use, with an October 30 compliance deadline. That company told CBS it has no role in the residential units and that the condo association is responsible. An attorney for the association said the notice wasn't directed at it. The Real Deal, citing the Miami Herald, reported a citation to the association's board, with a hearing tentatively set for December 9.

As of November 2, I couldn't find public reporting on what happened after the October 30 date.

The rules may also tighten. Commissioner Damian Pardo told CBS he plans to propose citywide short-term rental registration and a dedicated task force. A resolution he sponsored in September, as The Real Deal reported, sought closer scrutiny but added no restrictions by itself.

Four layers of rules, not one

A listing going live doesn't mean a unit is legal. In the City of Miami, you have to clear four layers.

The State of Florida

Under Section 509.013, a "transient public lodging establishment" is a unit rented more than three times in a calendar year for less than 30 consecutive days, or advertised as regularly rented that way. For a condo unit, that generally means a Vacation Rental – Condominium license from the state's DBPR. The DBPR guide also lists balcony inspection and sprinkler conditions for certain buildings.

State law also limits local governments. Section 509.032(7)(b) says a local law may not prohibit vacation rentals or regulate their duration or frequency, unless it was adopted on or before June 1, 2011. That doesn't excuse you from licensing, building and safety rules.

The city

Miami's short-term rental form warns that you may not be allowed to operate in certain transect zones, naming T3 and T4R. The city's workflow runs through zoning confirmation, a building permit, a new certificate of occupancy, the state license, a new certificate of use and a business tax receipt. It also calls for an operational management plan. Whether a given local rule survives state preemption is a question for an attorney.

Miami-Dade County

The county sends owners inside a municipality to that city for its rules, but it requires both a city and a county business tax receipt, plus a Tourist Tax Account. Section 33-28 of the County Code applies directly in unincorporated areas. Miami Beach and other cities have their own rules, so check with them.

The association

This is the layer buyers skip. Miami's evaluation form must be signed by both the unit owner and an authorized association representative, and "both signatures are required." The association attests, based on a vote of its governing body, that its documents allow short-term rentals. Both sign under penalties of perjury, and the city may audit the building's records.

Timing matters too. Under Section 718.110(13), an amendment restricting rentals applies only to owners who consent and to those who take title after its effective date. If the restriction is on the books when you close, it applies to you, whatever the seller was doing.

The 25% line

Here's the number I would look at first. The city's form says that if more than 25% of total units convert to short-term rental, it "will trigger a Change of Occupancy for the entire building," and it points to R1 occupancy requirements under the Florida Building Code. The association must track the count.

At The Club at Brickell Bay, the 30 permitted units are less than 5% of 643. The 25% line would be about 161 units.

A practical example: reading the building like an engineer

Take a hypothetical 200-unit tower. The association's documents allow short-term rentals, and 50 units are already approved. As an engineer and Certified General Contractor, I see something else: you'd be unit 51.

Unit 51 pushes the building past 25%. A change of occupancy puts the whole building's fire, life safety and accessibility conditions on the table, and only a licensed design professional reviewing that specific building can tell you what it would take. Until that's settled, your unit's approval may be stuck.

The second thing I check is inside the unit. The Real Deal reported that some two-bedroom units at The Club were subdivided with unpermitted walls to fit up to 14 people. If you buy a unit that was altered, you inherit that condition. Pull the permit history and compare the floor plan to what was approved. Then look at the building's certificates of occupancy and use yourself, because the city's process depends on both being active.

Run the numbers honestly

AirDNA's public dashboard for Miami showed about 55% occupancy, a $262 average daily rate and $25,400 in annual revenue per listing when I checked. The page is undated, so treat those as rough context. They're gross figures, before HOA dues, cleaning, insurance, management, licensing and vacancy.

Taxes belong in the model too. Florida's DR-15TDT form lists Miami-Dade's local transient rental tax at 6%, or 7% in Miami Beach and 4% in Surfside and Bal Harbour. That's in addition to the 6% state sales tax and any applicable surtax. Your accountant can confirm what you must collect and file.

Before you make an offer

• Get the declaration, bylaws, rules and any recent amendments, and have a real estate attorney read the rental provisions.
• Ask the association, in writing, how many units are approved and pending.
• Confirm the transect zone with the city's Zoning Department.
• Confirm that the building has an active certificate of occupancy and certificate of use.
• Check permit history for the unit, especially any added walls.
• Ask your lender and insurance agent, in writing, how short-term use affects your loan and policy.
• Run the numbers as a long-term rental. If the deal only works with nightly stays, you're betting on rules you don't control.

FAQ

Is Airbnb legal in Miami condos?
It depends on the zoning, the building and the association's documents. In the City of Miami, a condo unit needs association sign-off and city and state approvals, and T3 and T4R zones may not qualify.

What is the 25% rule in Miami?
According to the city's form, if more than 25% of a building's units become short-term rentals, it triggers a change of occupancy for the entire building.

Can my condo association stop me from renting short term?
Often, yes, through its governing documents. Under Section 718.110(13), a later rental amendment binds owners who consent and those who acquire title after it takes effect. Ask an attorney how this applies to your unit.

Thinking about an investment condo?

If you're looking at a unit in Southeast Florida, send me the address before you make an offer. I'll help you read the property and the numbers, and I'll tell you which questions to take to your attorney and accountant.

• WhatsApp: +1 (786) 853-1813
• Email: dayner@dayneralvarez.com
• Real estate services: dayneralvarez.com/#realestate

This article is for general information only and is not legal, tax or financial advice. For your specific situation, consult an attorney, accountant or licensed inspector.

• Short-term rentals
• Miami condos
• Real estate investing
• Condo associations

Sources

1. CBS News Miami, "Brickell condo owner calls building an 'illegal hotel' as Miami issues notice of violation" (Oct. 23, 2026)
2. The Real Deal, "Infamous 'Animal House' Brickell condo cited for illegal hotel operations" (Oct. 23, 2026)
3. The Real Deal, "City Orders Brickell Condo to Halt Illegal Short-Term Rentals" (Aug. 14, 2026)
4. The Real Deal, "Miami puts short-term rentals under microscope" (Sept. 9, 2026)
5. City of Miami, Short-Term Rental/Lodging Evaluation Form
6. City of Miami, Short-Term Rental/Lodging Process Workflow
7. Miami-Dade County, Short-Term Vacation Rentals
8. Florida Statutes, s. 509.013
9. Florida Statutes, s. 509.032
10. Florida Statutes, s. 718.110
11. Florida DBPR, Vacation Rentals guide
12. Florida Department of Revenue, Form DR-15TDT (R. 10/26)
13. AirDNA, Miami overview (public dashboard, undated; accessed Nov. 2, 2026)