The following information on the leasing of Jupiter Bay condominium units by owners and rental agents is provided:» Jupiter Bay Condominium Association's Rental Policy » Condominium Unit Rentals (Frequency, Times & Length) » Agencies that Rent Units for Jupiter Bay Owners » Parking Permit Processing » Condominium Unit Sales » Condominium Ownership » Conclusions
FL Statute 718.106(4) says “When a unit is leased, a tenant shall have all use rights in the association property and those common elements otherwise readily available for use generally by unit owners and the unit owner shall not have such rights except as a guest, unless such rights are waived in writing by the tenant. Nothing in this subsection shall interfere with the access rights of the unit owner as a landlord pursuant to chapter 83. The association shall have the right to adopt rules to prohibit dual usage by a unit owner and a tenant of association property and common elements otherwise readily available for use generally by unit owners.
Information is based on a full year of 2018 leasing and ownership data.
For the past 18 years, the Jupiter Bay Condominium Association’s receptionist has been tracking the issuance of Parking Permits and related leases on an Excel spreadsheet. The data includes date, permit #, unit, renter’s/guest’s name, vehicle identification (make, model, license # & state), unit owner’s name, rental agent and lease period.
In 2008, 2010 and 2013 this permit/lease data was analyzed to determine vehicle parking and unit leasing information to help Association management:
- Understand the composition of the residents and vehicle parking, and
- Provide requested data to prospective owners, real estate agents and mortgage lenders.
This report uses a full year of 2018 leasing data and QuickBooks unit ownership data to update permit/leasing/sales information and provide perspective on demographic changes occurring within the Jupiter Bay community.
Jupiter Bay's Rental Restrictions
Jupiter Bay is classified under Florida Statute 509 as a “Transient public lodging establishment” because units are rented to guests more than three times in a calendar year for periods of less than 30 days or 1 calendar month, whichever is less.
- Parking permits are required for all vehicles that park overnight on association property.
- Restrictions, applicable to both renters and owners, include the following (from Section #10 of Jupiter Bay’s Declaration):
- 10.1 – “The number of persons occupying a unit will at all times be reasonably related to the size of the unit.” Occupancy is limited to 4 persons for a one-bedroom unit and 6 persons for a two-bedroom unit.
- 10.4 – “No commercial vehicles, non-passenger vans, motorcycles, limousines, large or modified pick-up trucks, agricultural vehicles, dune buggies, trailers, busses, or boats shall be used, operated, stored or parked in any parking area, street, or other portion of the condominium property” except for short-term delivery and contractor vehicles (during normal business hours).
- 10.9 – “Domestic household pets not to exceed 20 pounds are permitted” but when outside the unit, they must be on a leash or under the owner’s direct control.
- The West C Association has several additional restrictions:
- Rentals must be for at least 30 days except for several holiday rental exceptions.
- All rentals must be reviewed and approved in advance by the Association.
- Unit sales require a $100 transfer fee, 1st time renters of a unit are charged a $75 processing fee, and owner Guests not residing with the owner must pay a $25 fee.
Leasing of Jupiter Bay's Condominium Units
• Paragraph 10.1 of the Association’s Declaration says that “Leasing or renting of a condominium unit by a Unit Owner is permitted.” Consequently, Jupiter Bay has few restrictions and many rentals.
• A 2002 Arbitrator Ruling said that the Association can enforce occupancy limits and require that leases be in writing and filed with the Association prior to occupancy by the tenant, not less than 3 business days in advance of the intended occupancy.
• Because of Jupiter Bay's liberal rental policy, it is classified under Florida Statute 509 as a “Transient public lodging establishment”. This definition applies to any unit, group of units, dwelling, building, or group of buildings within a single complex of buildings which is rented to guests more than three times in a calendar year for periods of less than 30 days or 1 calendar month, whichever is less, or which is advertised or held out to the public as a place regularly rented to guests.
• The Jupiter Bay Condominium Association does not lease units. Owners who lease their units do it themselves or work through a rental agency.
• 23 different rental agencies were used by JB owners in 2018. No agent is affiliated with or endorsed by the Association.
• Services provided by these agents vary from providing tenants to property management and unit remodeling/upgrading.
Important Information Regarding Rentals
• A Guest/Lease Registration Form must be completed for each non-owner unit occupancy and submitted to the Association Office.
• Per FL Statute 718.106 (4), When a unit is leased, a tenant has all use rights in the association property and those common elements otherwise readily available for use generally by unit owners, and the unit owner forfeits those rights except as a guest.
• Per FL Statute 718.116(11)a, If a unit is occupied by a tenant and the unit owner is delinquent in paying any monetary obligation due the association, the association can demand that the tenant pay the association the rental payments due and continue such payments until all of the owner’s monetary obligations are satisfied. Delinquency for rental purposes is defined as overdue payments for late fees, interest, attorney fees and assessments as of the rental application date.
• Per FL Statute 718.303(4), The Association has the right to deny delinquent owners and their renters/guests use of common facilities and services including swimming pools, tennis courts, etc. However, no tenant shall be denied access to any available franchised or licensed cable television service.
• Condominiums rented or leased for 6 months or less in Palm Beach County, require collection of a Tourist Development Tax equal to 6% of the total taxable rental receipts. Failure to collect and pay this tax and the 7% sales tax on unit rentals is a theft of state funds and carries felony charges.
Condominium Unit Rentals (2018)
Overall Number of Rentals
Quantity of Rentals
Agencies that Rent Jupiter Bay Units
Agency Rentals at Jupiter Bay
Principal Rental Agencies Used
Total Days of Unit Rentals
Agency Rentals per Rented Unit
Days Rented per Rented Unit
Rental Agents by Building
Rental Agent Usage
Parking Permits & Leases
Tenants Drive Parking Permit Activities
Leases Only Accounted for 52% of Permits
Purchasers of Jupiter Bay Condos
Most Units are being Purchased by Investors
This chart excludes multiple sales, only considering the final owner’s condo usageInvestor is defined as an owner who rents their unit 5 or more times a year or has annual rentals.
Home Addresses of Jupiter Bay Owners
JB Owners Represent 30 of the 50 States
1. Except for West C building, Jupiter Bay has extremely lax rental policies, restricting only size of pets, type of vehicles and number of unit occupants. No lease approvals nor transfer fees (except West C) are required.
2. The number of units rented in all buildings except West C has increased over the last 5 years, from 55.4% to 62.7%.
3. The average number of rentals per unit has increased (30 units rented 10 times or more) and rental length has decreased (223 rentals less than a week) trending toward a hoteling community.
4. The number of Owner and Guest of Owner rentals is increasing, bypassing the local brick-and-mortar agencies. These rentals were 20.9% and 24.0% of total 2018 rentals, respectively.
5. Jupiter Bay is becoming an investor/tenant community instead of a primary/secondary home community. Based on the current trend, number of Investor-owned units will exceed number of non-rented units in 2019.
Association & West Building-by-Building Comparison
Condominium Usage by Association
Length of Condo Unit Rentals
Days Rented per Lease
Rental by Owner
- With the increase of online condo rental companies, such as Vrbo, Airbnb, HomeToGo, RentByOwner and others, more Jupiter Bay owners are renting their own units.
- In 2018, 21% of Jupiter Bay condo rentals were owner-managed, saving these owners the typical 15 to 20% local agency commission.
- Although, this provides extra net income, it places additional responsibility and tasks on the condominium owner including:
- Tenant Qualification
- Lease execution
- Fee collection
- Tax payments
- Record keeping/retention
- Post-rental inspection
- Some of these tasks can be performed by the online condo-rental company.
- Fees include security deposit, rental, cleaning and taxes. Both county and state taxes must be collected on any rental of six months or less and forwarded, in a timely manner, to the respective government department.
Rental Agencies Added / Deleted
Agencies Added since 2013
Agencies Not Leasing in 2018
Agency Rentals per Lease
Average Lease Period
Annual Jupiter Bay Rentals
# of Rentals is Increasing
Annual Number of Parking Permits
More Parking Permits were Issued each Year
Jupiter Bay Condo Sales are Brisk
Annual # of Condo Sales are Consistent
Condominium Usage (10-Year Period)
Investor-owned Almost equals Not-Rented
128 Jupiter Bay Owners have Florida Addresses
35.7% of Owners are Floridians
1. What kind of community do we want Jupiter Bay to be?
- A primary/secondary home community where owners can enjoy the Florida lifestyle, know their neighbors, build friendships, and socialize or
- An Investor-owned transient condominium community where residents are constantly changing, and absentee landlords maximize income from as many rentals as possible.
2. Should all 8 associations restrict rental periods, collect transfer fees and approve leases (like the C West building)? Could transfer fees help offset the cost of issuing parking permits to tenants?
3. Are one or two rental agencies controlling the selling/buying of Jupiter Bay condos enabling these agencies to sell primarily to Investors?
4. Will online rental agencies eventually replace the brick-and-mortar agencies that most Owners use today?
5. Why are so many rentals classified as “guest of Owner”, including some with 5-7 rentals totaling over 100 rented days?