The Fort Walton Beach City Council reviewed a draft ordinance Tuesday night that would establish new regulations for short-term vacation rentals, with officials aiming to balance property rights with neighborhood compatibility concerns.

• The proposed 20-page ordinance, presented at the March 25 meeting by City Attorney Jeff Burns, combines elements from both Walton County and Destin’s existing short-term rental regulations, which have withstood legal scrutiny since being passed in 2022 and 2019 respectively.

Burns stated that “by total sheer luck, Airbnb actually reached out to us and sent us something they approve of. And it actually happened to be very much in line with what we have here.” He explained that the ordinance’s format is recognized as standard around the state and has generally been acceptable to the short-term rental industry.

The ordinance would require short-term rental owners to register properties with the city annually, display a city-issued decal, and post signage showing contact information for the responsible party and the property’s maximum occupancy. Owners must designate a local responsible party who resides within 30 miles to respond to issues within one hour.

Maximum occupancy would be limited to the lesser of three options: one person per 150 square feet of heated space, two persons per bedroom plus four additional people, or a total of 24 persons per rental. The ordinance also sets minimum parking standards of one space per 2.5 occupants and requires fire safety measures including smoke detectors, fire extinguishers, and emergency lighting.

• The draft explicitly prohibits commercial special events, such as weddings or company retreats, in residential zoning districts and bans charter bus services from transporting individuals to rental properties.

Councilman Bryce Jeter expressed support for the regulations while emphasizing enforcement concerns. “Anything we do up here comes back to enforcement. It goes back to code, it goes back to us regulating and reporting what we see,” Jeter said.

Some council members raised questions about specific provisions. Councilman David Schmidt expressed concerns about requiring signs at rental properties, suggesting it might create a negative environment for investors.

• Councilman Payne Walker questioned the enforceability of occupancy limits. “It’s cat and mouse,” Walker said. “This all looks really good, but I don’t think we have the staff, I don’t think we have the police force.”

A resident who spoke during the public comment period noted his own experience with short-term rentals, mentioning he had received “over 60 calls for noise” at his property but “not a single citation,” suggesting current noise ordinances may be sufficient if properly enforced.

Councilman Nic Allegretto recommended getting additional feedback from short-term rental owners and neighbors before finalizing the ordinance.

“I want to make sure that we factor everything in to say, this is the best ordinance that we can craft as a municipality based on all of the rules that exist through the state,” Allegretto said.

The ordinance will undergo further refinement before its first reading at the April 8 council meeting. It will also be reviewed by the Local Planning Agency next week.