The growing problem of unlicensed vacation rentals in Florida is costing the state millions per year in lost revenue and threatening the safety of both renters and their neighbors, according to a new report from Florida TaxWatch.

The nonpartisan, nonprofit taxpayer research organization released the new report, “Unlicensed Vacation Rentals: An Analysis of Florida’s Tourism-Driven Economy,” on Jan. 16, calling the unlicensed short-term rentals in the state a “burgeoning issue” that is having an outsized effect on the state economy.

“Although illegal, unlicensed vacation rentals can be found throughout the state,” the report states. “Unlicensed vacation rentals avoid the costs associated with licensure, including licensing fees, balcony inspections and safety training for housekeeping and reception staff. This not only puts the renter at risk but also creates a cost advantage over competing, legitimate businesses.”