New to Real Estate · Brick, NJ · Member since 2020 · 115 posts · 39 votes
Hello all,
I am looking into STR's in the Palm Beach county area, preferably near PBG. I know my agent said that condo and HOA's have strict rules about doing STR's in certain communities. Does anyone know which communities allow for STR's in that market? Also, is anyone cashflowing in that market by doing this same strategy? Any insights would be greatly appreciated. Thanks!
Real Estate Agent · South Florida · Member since 2022 · 85 posts · 42 votes
3y
Hey @Jake Drappi, I know a few investors in PBG and Jupiter market, the way to go is Single Family for STR. What I would look for is a neighborhood that has a bright future of appreciation and no HOA or at the very least and HOA with little restrictions. There are many areas that have HOA rules changing rapidly in our area so just be sure you or your agent does their research so you can avoid any headaches in the future. Many say this market is saturated in jupiter/PBG but in my opinion.. with the right deal there is plenty of money to be made with both cashflow and appreciation.
Investor · Tampa, FL · Member since 2020 · 52 posts · 42 votes
3y
We've got some STRs throughout FL... One thing that we've learned about FL is that it's county AND community specific. So although you might be able to have a STR in X county, Y community might allow them, while a neighboring Z community might not.
My suggestion is to contact the HOA before even doing your underwriting. Ideally your agent should be doing this before even sending you properties to underwrite. To be sure, I would do my research on the county and contact the HOA before even making an offer.
Real Estate Agent · South Florida · Member since 2022 · 85 posts · 42 votes
3y
Hey @Jake Drappi, I know a few investors in PBG and Jupiter market, the way to go is Single Family for STR. What I would look for is a neighborhood that has a bright future of appreciation and no HOA or at the very least and HOA with little restrictions. There are many areas that have HOA rules changing rapidly in our area so just be sure you or your agent does their research so you can avoid any headaches in the future. Many say this market is saturated in jupiter/PBG but in my opinion.. with the right deal there is plenty of money to be made with both cashflow and appreciation.
Investor · Member since 2021 · 157 posts · 218 votes
3y
I would avoid HOAs at all costs if possible. I have personally dealt with an HOA that was fine with STRs at first then things went downhill ... it was an actual nightmare.
Rules change, neighbors have someone to complain to, increasing assessments and dues can eat into cashflow, short term rental guests do not tend to follow community rules (parking violations, noise complaints, etc).
Just something else to consider... even if a community doesn't have a formal HOA, they may have "restrictive covenants" that don't allow short term rentals OR could be interpreted to not allow short term rentals (i.e. "no bothersome activity can take place on the property", "no homestays" ). A lot of agents either don't know this or don't bother to check so make sure you are aware.