I am looking to purchase a piece of residential property in Daytona Beach, Florida but am unsure on the correct way to go about listing it on AirBnB.
I understand that Daytona Beach has pretty strict local laws regarding no short term rentals on residentially zoned properties, but I’m think there may be a way around it, but want to make sure and hopefully can get some advice from a real estate attorney based in Florida.
If I were to purchase the house through an LLC, could I get away with saying that airbnb guests are just company clients occupying the property?
If so, how would the income be taxed? Need any licenses?
Thank you very much for any suggestions!
(I understand this could be a very grey area but willing to give it a shot)
Hi Dylan, first of all congrats for thinking about investing in a short term rental property!
I would highly recommend going by the rules. I have been managing short term rentals for more than 3 years now and I have learned a think or two about this type of situations. Short term rentals can be very profitable and this is what makes it so tempting to try and break some rules and get away with it. The truth is that you may be able to but it is not worth it risking it for two reasons. In my experience, sooner or later you will get in trouble with either neighbors, city, booking websites or even get reported by guests staying at your property which are unhappy with something in the property. It is also possible to get away with it but this brings me to my second reason for not recommending to do this: You will be always worried about getting in trouble and this will ruin your experience even if you are profitable. Example, if you have a problematic guest, which happens often in this industry, you will be going to bed thinking about them and praying that everything will go well and they won't cause any problems with neighbors which may expose you. This goes against my way of investing and running business and I don't recommend starting your first short term rental investment this way.
There are plenty great properties in areas which welcome short term rentals. You will both be profitable and most importantly stress free! Just get in touch with a local realtor who specializes in short term rentals or with on of the best short-term rental property management companies in town and they will be able to provide you with suitable properties and even give you track records of previous years so you know what to expect. Even if you decide to self-manage they can represent you in the transaction and both sides will be happy.
Please keep me updated and let me know what you have decided to do! Good luck! :)
@Alberto Nikodimov Thank you for the reply, I will definitely take that into consideration and will keep you updated!