Dana Point, CA · Member since 2019 · 4 posts · 4 votes
I lived in Tampa for two years, but I now live in California. I want to invest in an Airbnb in Tampa. I know it’s a growing market, especially for the state of Florida. This would be my first investment property. I wouldn’t live in Florida. Any tips or comments about this location? Also doing an Airbnb out of the state I live in?
@Mark Holmes Tampa is a great market with strong revenue for short term rentals. If you have particular neighborhoods or cities you are looking at, I can provide you with an analysis to assist you in a decision. When it comes to operating out of state, I can also provide you with some systems to help you manage your property. If you would like to be hands off I can assist you in managing it as well. Feel free to reach out to me and connect.
@Mark Holmes Tampa is a great market with strong revenue for short term rentals. If you have particular neighborhoods or cities you are looking at, I can provide you with an analysis to assist you in a decision. When it comes to operating out of state, I can also provide you with some systems to help you manage your property. If you would like to be hands off I can assist you in managing it as well. Feel free to reach out to me and connect.
@Mark Holmes. Tampa Bay is a great place to invest in str. Pinellas County is more strict than Hillsborough County so just make sure to check the specific municipality if you are considering a property in Pinellas. Just helped a client close on a property this week, which he will use as a str. Feel free to shoot me a message if you have any questions specific to the area. Best of luck.
The Tampa Bay Metro is a great are for STR / Short Term Rentals! Hillsborough only has 3 incorporated cities that you need to know the rules for: Tamps, Plant City and Temple Terrace, the rest is all unincorporated county.
Pinellas is a great place to invest, too -- it's all close to the beach! There are 24 incorporated cities in Pinellas, all with different rules, and some have different zones in the town, too!
Florida has a law that stops cities from getting more strict or disallowing STR if they weren't already banned by 2011, but there are several that have laws on the books banning it. Clearwater and Clearwater Beach actively pursue people that advertise rentals under 30 days. Some missed their opportunity to legally ban it but are actively antagonistic to investors, too.
Regardless, it is still an amazing place to see great returns. It's still actively growing, and actvely hosting tourists. And despite the strong seller's market, you can still get great deals.
If you can swing buying one, I see so many requests for properties near the beach. The snow bird market is strong too so you could get good rent from snowbirds for longer stays
@Mark Holmes 30 Day Min Restrictions from HOA's! I can't stress that enough. That is generally the deal breaker for the most investors I've worked with. Really, HOA restrictions can be very strange on lots of potentially good looking investment properties for gulf coast Florida. "Only 6 different rentals or tenants allowed per Year", "2 week Min Stays", "30 day min, 55+ community only". "6 month min.".... The more headache involved with any restriction to use your property how you'd like to use it creates friction with the association, potential fines, lawsuits, and they can even start hassling guests. Also, ROI tends to go down the closer you get to the beach as even if there are HOA's that allow vacation rental. their fees and and higher price you're paying to acquire the property generally don't make it investment grade or cash-flow worthy and most likely be breaking even or offsetting some costs. Other than that, if you get something that is a good price, has a pool, free and clear to rent it how you want it > with it being located centrally in the state of Florida it will have a nice comfortable climate for getting steady occupancy throughout the course of the year Vs. Southern Florida where it becomes a swampy hell in the summer time, or northern Florida where it will get a bit chilly in the winter months. Good luck with your search and hope you get an agent that knows what's up.
@Dan Maciejewski How do you feel about STRs near downtown St Pete? I hear Pinellas is difficult with STRs but I see a lot of AirBNBs down there. I live in Tampa and would like to pick up a few to AirBNB.
@Dan Maciejewski How do you feel about STRs near downtown St Pete? I hear Pinellas is difficult with STRs but I see a lot of AirBNBs down there. I live in Tampa and would like to pick up a few to AirBNB.
That's a great idea! A lot of people are buying for STR right now and we are seeing a lot of occupancy. St Pete proper does not allow under 30 day rentals for non-owner-occupant homes, but there are plenty of areas near to invest. I am re-re-confirming Gulfport but last I checked they are welcoming and the city is improving their downtown every day!
St Pete Beach is a different city. It has different zones (like a lot of the beach cities) which have different restrictions, so you're looking at it property by property.
From the city website:
Short-term rentals of less than one month (or transient occupancy as defined in the Land Development Code) are not permitted in many districts.
The City does allow transient occupancy of less than 30 days up to 3 times per 12 month period in the RM zoning district and properties located in the Pass-A-Grille Overlay District.
Rentals of one month or more are allowed in all residences throughout the City.
Permanent transient lodging uses require a business tax license and are reviewed by both Zoning & the Fire Marshall prior to issuance of a license.
Rentals of one month or more in single-family properties do not require a business tax license.
To find the zoning of a property, all you need is to find the property on the City’s Official Zoning Map, available via the link below, or at City Hall in the Community Development Department
Hello BP members. I am surprised that so many are interested in STR's and they know no one who has them or has done their due dilligence online to find an Airbnb management company to ask questions? My friend was selling the two houses on one lot, next to my longterm Rental house that I am selling and I found a Company on West Hillsborough Ave. who only manages their own properties. She gave me another company who was moving down the street from my house on N. Florida Ave. That guy came over and had a look at my friends two houses on one lot and he came back with a written estimate of what they would need to set up as an Airbnb property. They wanted me to finish all the Rehabbing. Then, they wanted $20,000 to furnish and install 24 hour serveilance cameras and special locks and build two separate patios in the back with barbeques etc.They would decide on the inside paint etc. that they thought would be best. Every four years they would require me to pay for all new furniture etc. They would have the right to pay a sub-manager with their own Team of people for repairs and Accounting etc. The whole thing would cost me up to 50% of the Gross rents. I was to call them back if I did a deal with my friend for the property and finished my rehab project. When I called back, he said that because of the Pandemic and the uncertainty with a new Administration and changing Rules, that they would not be able to take on any new Airbnb properties and just stick with the ones they had, to wait it out and see what happens. I know two owners of Airbnb houses that rent in Safety Harbor and across from the house I am selling in N. Seminole Heights. Both of them self-manage to make it work. In fact my friend said that the lady in Safety Harbor with two big houses, sleeps in the one that is currently empty as her rotating crash pad. The guy across from my house has a Team when he needs a repair and a lady who shows up the morning that the tenants move out and does the cleaning etc. He took six months to rehab the 4/3 block house and it rents for $230 a day. There are two, 1/1 two story houses in the back with garages that rent for $93 a day. The front house is rented for months at a time with four box trucks parking in front when it is moving or sheetrock companies of men. Or six SUV's or Trucks like for the Superbowl. This week it was three SUV's with families. I am thinking of selling some of the properties I have in Rio de Janeiro and move to the North of Brazil and get something in my target city with twenty miles of unspoiled beaches on a rivermouth to Airbnb or Hometogo. That way I would have a place to stay when I am in there. In Brazil when you Sell a property and reinvest within 90 days, there is no Tax to be paid. I find myself moving to safer and quieter places with the thing that no one seems to consider, besides Location, Location...what about Location with ocean or mountain views?
50% of gross rents sounds outrageous. I spoke to Vacasa and TurnkeyVR in the Tampa area and they are 25% and 18% respectively.
Yeah, Vacasa is pricey but not 50% pricey! They are super professional from my experience. Our (my) local rep is on here and has been super helpful to my clients. No idea what the company he was talking to was dealing with. On the Pinellas side of the bay, STRs are booming in occupancy and more and more people are investing in them. The hotels are going to be slower to recover because we are getting so much STR inventory.
Also, I just saw that Vacasa is acquiring Turnkey!
50% of gross rents sounds outrageous. I spoke to Vacasa and TurnkeyVR in the Tampa area and they are 25% and 18% respectively.
Yeah, Vacasa is pricey but not 50% pricey! They are super professional from my experience. Our (my) local rep is on here and has been super helpful to my clients. No idea what the company he was talking to was dealing with. On the Pinellas side of the bay, STRs are booming in occupancy and more and more people are investing in them. The hotels are going to be slower to recover because we are getting so much STR inventory.
Also, I just saw that Vacasa is acquiring Turnkey!
Oh wow! Maybe I should sign with TurnkeyVR to get grandfathered in on their 18% rates... And yeah, I'm excited to get involved in the STR market here. It's just hard to make the numbers work with the home prices where they are. Seems that in order to make more than 2-5% in Tampa with mortgage + STR, you have to rehab something.
50% of gross rents sounds outrageous. I spoke to Vacasa and TurnkeyVR in the Tampa area and they are 25% and 18% respectively.
Yeah, Vacasa is pricey but not 50% pricey! They are super professional from my experience. Our (my) local rep is on here and has been super helpful to my clients. No idea what the company he was talking to was dealing with. On the Pinellas side of the bay, STRs are booming in occupancy and more and more people are investing in them. The hotels are going to be slower to recover because we are getting so much STR inventory.
Also, I just saw that Vacasa is acquiring Turnkey!
Oh wow! Maybe I should sign with TurnkeyVR to get grandfathered in on their 18% rates... And yeah, I'm excited to get involved in the STR market here. It's just hard to make the numbers work with the home prices where they are. Seems that in order to make more than 2-5% in Tampa with mortgage + STR, you have to rehab something.
You can make it work with turnkey properties but you have to be in the right area. We're lucky we're right by the best beaches in the country so we can get amazing rates during season(s). The rates vary a lot, so make sure you're using the on and off seasons when you run your numbers.
But also, yes, mostly in this market, finding a value-add property is the way to maximize returns. On long term and short term rentals. Plus you get to make it the way you want it!
Hey everyone! Thanks for the kind words @Dan Maciejewski ...I just wanted to chime in on a couple of things that I've seen in the forum.
1. Management fees will always vary from company to company. At the beach specifically you can find anywhere from 15% up to 40% (and yes, there are people that for some reason pay 40%). The important thing is to always get these companies down to an apples to apples comparison by researching exactly what is included in their management fee. Many companies will say their management fee is a certain percentage and then when random fees are added in they end up being 10-12% higher. Think marketing fees, credit card fees, house visits, toiletries between each guest, batteries, light bulbs, propane refills, etc. Always put every company on equal footing when making a decision to figure out true value. Then you need to ensure that the revenue drivers are going to be comparable (where and how they'll market the property).
2. Gulfport is a 30 day minimum rental zone outside of the commercial area along the beach and up the main street. @Dan Jennings ...There are some rentals in the properly zoned area, but most of the people in Gulfport are operating outside of the zoning restrictions.
3. Zoning in general can be tough to overcome, but remember that HOA's (condo investments) always set their own restrictions, so regardless of what the city has set their zoning as for single family homes you can get around that by investing in a rental friendly condo to get into the exact location that you'd like.
I am interested in a waterfront property in Hillsborough county. Does anyone know if this area has a low or high season? Does anyone have any idea of how much revenue a 2/2 waterfront on a canal would produce? Thank you all!
@Mark Holmes Tampa is a great market with strong revenue for short term rentals. If you have particular neighborhoods or cities you are looking at, I can provide you with an analysis to assist you in a decision. When it comes to operating out of state, I can also provide you with some systems to help you manage your property. If you would like to be hands off I can assist you in managing it as well. Feel free to reach out to me and connect.