Becoming a legal AirBnB rental in Miami Beach

15 Replies

Originally posted by @Jean H. :
@Ray S. For some reason, BP isn’t letting me link. So go to MeetUp.com and look up Airbnb Hosts Miami.

 Oh wow, that looks great. Thanks for letting me know, I'll be there.

I've done that for property owners whose properties I sold (obviously at top dollar since the short term rentals were allowed AND we established all the systems in place for the CAP rate to be almost double of any other Miami Beach asset. Both seller & buyer were thrilled. The former 1031 exchanged the fourplex into something closer to her new residence; the latter, got a no hustle, yet good investment (as compared to everything else on MB). If have questions, please feel free to connect.

Hey-- I have spent a lot of time in Miami growing up and have also done a fair of amount of scouting for AirBNBs in the area.

I feel Miami can be a good market, but you'll face a couple of issues:

1) HOAs will usually not allow this in any building

2) To do it legally, at least on the beach, you will likely need to buy in a Condo Hotel.  They charge a lot more $/sq ft for this privilege, and personally I dont find the return to justify it.

So maybe check out Little Havana, Design District, or another tourist area that's not on the beach itself.  Or you can risk it, but I hear they are giving out $20k fines altho not sure if these are actually being enforced. 

@Noah Mencia, yes, he will have to be careful about what is allowed by the local & state jurisdiction & comply with both. Condo hotel will be great for daily rentals. Can also make a lot more money (than your regular annual leases) on monthly or 3 months at a time (lots of people, who move here need a temporary place to stay AND find it difficult to get one). For the other two options, just have to find a building that allows-I have a growing list of those.

Originally posted by @Noah Mencia:

Hey-- I have spent a lot of time in Miami growing up and have also done a fair of amount of scouting for AirBNBs in the area.

I feel Miami can be a good market, but you'll face a couple of issues:

1) HOAs will usually not allow this in any building

2) To do it legally, at least on the beach, you will likely need to buy in a Condo Hotel.  They charge a lot more $/sq ft for this privilege, and personally I dont find the return to justify it.

So maybe check out Little Havana, Design District, or another tourist area that's not on the beach itself.  Or you can risk it, but I hear they are giving out $20k fines altho not sure if these are actually being enforced. 

 I have also seen that it is becoming increasingly difficult and more expensive to get involved in Airbnb in Miami Beach but other areas in the near vicinity have great potential. 

Originally posted by @Karl Hinkel :
Originally posted by @Noah M.:

Hey-- I have spent a lot of time in Miami growing up and have also done a fair of amount of scouting for AirBNBs in the area.

I feel Miami can be a good market, but you'll face a couple of issues:

1) HOAs will usually not allow this in any building

2) To do it legally, at least on the beach, you will likely need to buy in a Condo Hotel.  They charge a lot more $/sq ft for this privilege, and personally I dont find the return to justify it.

So maybe check out Little Havana, Design District, or another tourist area that's not on the beach itself.  Or you can risk it, but I hear they are giving out $20k fines altho not sure if these are actually being enforced. 

 I have also seen that it is becoming increasingly difficult and more expensive to get involved in Airbnb in Miami Beach but other areas in the near vicinity have great potential. 

Yeah, Miami Beach in a full-on war on AirBnB. There are only very few areas it is allowed, and that is shrinking. And for a lot of them, the expenses are too high. There are a lot of condo hotels where you can buy a condo and rent it out through them or on your own, but you can't make any money through those. I didn't buy my property for AirBnB, but wanted to see if it was at all possible, even if it's a longshot. 

Just a question as an observer and someone who is interested in short term rental properties in the future. I noticed many jurisdictions are requiring that the operator/owner occupy the property for a certain amount of time per year among other overzealous regulations. This is obviously not realistic, especially if it’s not your primary residence and/or you own multiple properties. It appears they’re trying to stomp out STR owners and investors in favor of the huge hotel chains. Why the war on short term rental properties by municipalities? Is this not still a capitalist society? Did I miss something? You should be able to do whatever you want with your properties as long as it doesn’t violate any criminal laws.

Originally posted by @Tyson Dierschke :

Just a question as an observer and someone who is interested in short term rental properties in the future. I noticed many jurisdictions are requiring that the operator/owner occupy the property for a certain amount of time per year among other overzealous regulations. This is obviously not realistic, especially if it's not your primary residence and/or you own multiple properties. It appears they're trying to stomp out STR owners and investors in favor of the huge hotel chains. Why the war on short term rental properties by municipalities? Is this not still a capitalist society? Did I miss something? You should be able to do whatever you want with your properties as long as it doesn't violate any criminal laws.

1 - They don't want to screw over the hotel industry that pays so much of the taxes and help drive tourism. Especially in FL where there are no state taxes. And in Miami, which is fairly expensive, AirBnB hosts that undercut the hotels make it a lot harder for them to compete.

2 - Residential areas that are near or within tourist areas end up being part time hotels and people living there have to deal with non-stop partying, noise, overcrowded common areas, and people who generally just don't respect the property or other tenants. I've dealt with this first hand where I live. 

3 - In Miami Beach the AirBnB's are bringing in people who can get a cheap rental and squeeze 10 people into a rental, each paying like $50 a night, and staying down the st from a really high-end hotel. They tend to be the party crowd and can be a menace to the other vacationers who are paying top dollar to stay in a really nice hotel/area. 

I think Miami Beach and all cities should be very tough on short-term rentals, but allow it to those who manage the property well as a fulltime BnB, not within an apartment or condo complex that's mostly residential, or in an area where having a lot of people coming in and out wouldn't affect the neighbors. If I were allowed to run my place as an AirBnB, I would take it seriously, abide by all local laws, be mindful of the neighbors, pay all my taxes, ect. 

Ray S. , your last paragraph sums it up. It should be up to the owner/host and the neighbors to regulate the guests. If ordinances regarding noise and such are violated, they should be enforced.

I just stayed in an AirBNB place on Anna Maria Island (which by the way, is absolutely amazing!). In the rules from the host it clearly says no parties, or pets, or smoking, etc. Most of the residences were vacation rentals and, for the most part, it was very pleasant and quiet.

I think most guests will comply. And those who don’t get bad reviews and eventually are rejected by hosts in the future.

I don’t have a problem with a lodging tax for short term rental properties. I just don’t think it should be the same as hotels pay. It’s two totally different property types.

I think without the many short term rentals on Anna Maria, the thriving businesses and restaurants there would be in trouble.

We own a short term / seasonal rental in Cortez, which is 3 minutes from Anna Maria island on the mainland. I think using a local certified property management service helps keep a lid on a lot of the issues revolving around over occupied properties, loud parties and problems with the neighbors. Our P.M. is a local and he also own rentals both on and off the island. He is intimately familiar with the local and state regulations and ordinances. It is definitely worth his fee. We live in Georgia and are thrilled with the results. 

Miami Beach Mayor Philip Levine is very hostile towards short term rentals, AirBnB in particular. He is running for Florida governor. If he wins, what impact will he have on Florida's short term rental market?