Vacation Rental Property Owners Sue State For Coronavirus Losses

ACROSS FLORIDA — Florida vacation rental property owners plan to file a lawsuit against Gov. Ron DeSantis, claiming he illegally denied them use of their property when he prohibited vacation rentals during the coronavirus pandemic.

While hotels, motels, inns, resorts and timeshares are able to remain open under the governor's March 27 Executive Order 20-87, the governor prohibited the rental of vacation property in the state, including Airbnb rentals.

On April 29, DeSantis reiterated the order to keep vacation rentals closed while opening restaurants, retail and museums, saying, “Many cases of COVID-19 in Florida have resulted from individuals coming into the state of Florida from international travel and other states, posing great risk to Florida residents."

He said "vacation rentals and third-party platforms advertising vacation rentals in Florida present attractive lodging destinations for individuals coming into Florida.”

"Gov. DeSantis provided no explanation for the continued closure of vacation rentals, even though—as lodging options—vacation homes are more conducive to the state’s social distancing recommendations than the other lodging types he has allowed to remain open, including hotels, inns and timeshares," said Jeff and Gina Paglialonga, vacation rental property owners and owners of Teeming Vacation Rentals, a vacation rental management company that manages hundreds of vacation rentals in Florida.

In response, the Paglialongas sent a Demand Letter to Governor DeSantis on behalf of Florida vacation rental property owners, the first step to a legal challenge.

Vacation rental managers have expressed anger and frustration about DeSantis’ decision to keep vacation rentals closed while allowing every other lodging types to remain open.

"I have lost thousands of dollars due to the outbreak of COVID-19," said Deb Schultz of Clearwater. "I guess I could understand the reason for the ban if everything was banned. At this moment, you can walk into any hotel, motel, inn or resort and rent a room, and now you can swim in their pools. But if you're a vacation rental owner of a home here in Florida, you cannot rent out your home and the ban is indefinite. There is no expiration date on it."

Schultz believes it's far more risky to stay in a hotel than rent a vacation home.

"Wouldn't you think that it would be much safer for your family to stay in a private home that's touched by only them and sanitized by a cleaning crew before they arrive than to be in a hotel room where thousands of people have touched the buttons in the elevator or the chairs in the lobby or the handrails in the stairways?" she asked.

Schultz said she's applied for unemployment twice but was denied because she's self-employed.

"We are losing so much money with this ban," she said. "It is blatantly clear that Gov. DeSantis is all for big business and not for the little guy or the middle class with this ban on vacation rentals and not hotels motels, inns and resorts."

“These executive orders have forced vacation rental owners to refund all guests scheduled to check in during the banned period under the threat of vacation rental license forfeiture," said Fassett, Anthony & Taylor P.A. attorneys of Orlando in the letter to DeSantis on behalf of rental property owners.

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The law firm maintains that the state's closure of private property is tantamount to a "taking of private property" and deserves compensation under the Fifth Amendment to the U.S. Constitution.

"The executive orders also require vacation rental owners to let their properties sit idle during the peak of the rental season in Florida," continued the letter. "Together, these state actions constitute unprecedented and historic destruction and taking of private property held by vacation rental owners."

According to a University of Central Florida research study, “The 2018 economic impact of Florida’s vacation home rental industry represents $16.6 billion in direct spending and $10.8 billion in indirect spending, totaling $27.4 billion.”

In 2018, the total number of tourists staying in vacation rental homes in Florida was 14,233,274, 11.2 percent of the total 127 million tourists that came to Florida in 2018.

“The direct spending amounts to nearly $46 million a day and approximately $1.9 million every hour" and supports roughly 115,000 jobs, according to the study.

"There is no set duration, end date or object standard for expiration," said Jeff Paglialonga. "Our property rights are conditioned on the subjective whims of one man. As a vacation rental manager managing over 360 properties and an owner of eight short-term rental units ourselves, I was appalled at the singling out of our industry in the executive order.

Paglialonga isn't sure what form legal action will take, but he's urging other rental property owners to join the fight.

He's set up a Gofundme page to help raise the legal funds. So far, 12 people have donated $5,370.

Paglialonga can be contacted at jeff@teemingvr.com.

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