Why Florida is a Great Place to Invest in Short-Term Rentals
Vacation Rentals In South Florida
With 43 booming vacation rental markets, Florida is an investor’s top choice across the United States. A recent report by AirDNA, a company that collects and analyzes short-term vacation rental data, dubbed the Sunshine State one of the best places in the country to invest in commercial residential property. Cities like Tampa, Miami, and Fort Lauderdale were given grades of A and above, based on a variety of factors, including demand, revenue growth, and seasonality, among others.
It’s no secret that the Fort Lauderdale real estate market is red-hot, but is it a good place to own and rent vacation property? Let’s take a better look at why you might want to consider Florida to invest in commercial property.
In Florida, the high season pretty much runs year-round. While there may be more tourism around certain holidays, the warm, sunny weather of the south means that there is relatively high occupancy 12 months a year.
On top of this, southern Florida has a booming economy that is fuelling population growth, infrastructure improvements, and local economic development. In other words, more people are coming to Florida for business, as well as to live, increasing demand for housing and accommodations, both short- and long-term.
Florida property owners benefit from relatively low regulation on short-term vacation rentals, whether traditional leases or via websites like Airbnb and HomeAway. Combine this with overall low state tax rates, and you have yourself a pretty sweet deal.
While short-term rentals are regulated – for example, you must have your building inspected – there are no rules in place prohibiting or limiting short-term rentals, which includes non-traditional rentals through third-party agencies.
Ask any South Florida real estate lawyer whether or not it’s worth it to invest in rental properties – you’re bound to get an enthusiastic “yes.” Residential real estate in Florida can be expensive, particularly in the luxury real estate market, but rental rates are also quite high – particularly for short-term stays.
With an average daily rental price of just over $150 and a 56% occupancy rate, these types of investments have the potential for profitability. Plus, buying property in a steadily warming Florida housing market could get you a positive return on investment in other ways, such as resale value.
To speak with a Fort Lauderdale commercial real estate attorney today call Schecter Law at (954) 779-7009. With experience in both commercial and residential real estate, I can help walk you through the property-buying process from start to finish.