Hi Felix, Key West has 3 different ways to rent property. 1 is long term lease, 6mos to a year, and is fairly easy to do. That requires a business lic from the City of KW & also Monroe co. Next is short term rental which is from 30 days to 6mos, this is a little more complicated, still requires the 2 business lic's mentioned above but you are required to collect & pay a 12.5% "bed tax" and there are some codes that you have to follow about fire detectors, emergency lighting, etc. Next is Vacation rentals which are normally considered to be less than 30 days, they require the 2 lic's above plus a "transient" lic. They can be purchased with the property or seperately and are restricted to certain areas of the island. You still have the bed tax to collect & more codes to follow. This is a "nutshell" overview & I can give you more details if you give me a call.
About renovations, the mid-town & new-town areas are "easy" -- you just have to follw building codes. The Old Town area is a little more complicated because you have building codes plus HARC codes ( which is charged with keeping old town historical ). Again, a good local contractor can help you thru the process and cut down on the head aches.
Coldwell Banker Schmitt
Rental Property Manager
1201 White Street Suite 101
Key West, FL 33040