Daytona Beach Short Term Rental Update

Daytona Beach Short Term Rental Update

Property Manager · Daytona Beach, FL · Member since 2015 · 78 posts · 86 votes

Four years ago me and some other vacation rental investors in Daytona Beach sued the city in an attempt to allow STR in all of Daytona Beach. We fought for this for several reasons: 1. tourism is our main economy 2. there are an incredible amount of dilapidated homes that could be renovated and made beautiful if the investment return justified it (which STR in a beach town could) and 3.this is a family-friendly, lower-cost and now COVID friendly way to travel.

Bottom line.  We lost.  And then we lost every appeal.  

I have many opinions on why we lost, band don't believe we should have and our points were solid...but that doesn't change that we lost. 

Fast forward to Nov. 2020-The City of Daytona started issuing fines up to $15k for even POSTING on any STR site, even if you never rent a single day. They recently fined one new investor $10k for posting on Airbnb and he had never even booked a reservation. To add insult to injury, he removed the listing the day code notified him of the issue (since it's very difficult to get information on where STR is and is not allowed in most cities) as he didn't even know he was violating anything. $10,000!!!! What?!? The city is aggressively going after every STR owner (my hearing is this Tuesday so I'm sure I will get whacked with a big fine) and adorable vacation homes are showing up for sale weekly.

So what's the good news? Four years ago we saw the writing on the wall on this so I started working with other cities in the area and compiling lists of where STR is legal (and there are plenty of spots to invest in Volusia county that should have great returns, you just have to know where). We are buying STR/Vacation Rental homes as fast as they come on the market and killing it on our returns. Additionally, there are pockets where long-term rental returns are also amazing and can cash flow great, you just need to know where to invest.

Florida has over 1000 people moving in a day, our supply is almost non-existent compared to the past and even condos are giving amazing returns (example: we have a new condo purchased at $270k bringing in $4k a month in short term rental income).  While the economy may dip in the future (and will at some point, when is the question), Volusia County is still poised for strong growth IMO.  Our low cost living, weather and current interest rates make for a very interesting investment in the area or in Florida in general.  Where else can you get a home with a pool a block from the beach under $500k?

We have two vacation rental investor groups starting up next month and meeting monthly. One is for women only (sorry guys, but I'm trying to help my girls invest and grow their wealth..it's my mission lol) and another that is open to anyone interested in learning about STR/Vacation Rental and LTR investing in the area. We talk about exactly how the numbers work and are looking to put together some deals for the group so that people that can't go "all-in" on a property can partner up with others with more experience and grow together. Message me if you would like to come to one of our meetings! It will be fun, we'll have drinks and meet at a local vacation rental-this is a great way to learn more if you are interested in this type of investment.

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Investor · Daytona Beach, FL · Member since 2021 · 10 posts · 9 votes
4y
Originally posted by @Cory Cannon:

There are hundreds of Airbnbs listed now. You think they just don't enforce it anymore? 

Have wondered the same thing. I actually took the time to message a host on Airbnb that has 10 listings scattered throughout Daytona Beach, east of Halifax. Not a single one is located on A1A but in residential neighborhoods. I asked "How are you getting around the city's no STR?"

His is reply word for word... "Hi Stetson! We get everything licensed and play within the guidelines. We don’t get around anything."

I asked if I could have 7-9 minutes of his time for further clarification. I have not heard back. 

I recently have moved to the area and am on the prowl constantly for potential deals. Many of the realtors I've spoken to about STR in the area have mentioned they have sold houses to hosts who have other STR's as well and they just do it anyway. They say they do it because no one can enforce it. Krista so far, is the only person who has told me DON'T DO IT!

The fines are real by the way. You can go to the city website and see the litigations against properties that have posted on Airbnb. They have pictures of their Airbnb posting and everything.

The host I spoke of earlier, that has 10 listings, has hundreds and hundreds of reviews. Therefore, I assume they didn't just start. They been hosting for a LONG time. I am very curious how they are getting around it because I am stocked, locked and ready to lay down some cash on some properties!




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  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 993 posts · 1k+ votes
    5y

    Do you have some examples of the properties you're mentioning?  A quick cursory glance on realtor.com and I'm seeing prices much higher for condos or homes near the beach.

    Cosmic Vacations4.9172 Reviews
  • Investor · Orlando, FL · Member since 2020 · 17 posts · 3 votes
    5y

    I’m in Orlando, and looking more at the other coast, but interested in the group!!

  • Property Manager · Daytona Beach, FL · Member since 2015 · 78 posts · 86 votes
    5y

    Hi Ryan!  Okay, four examples from the past three months of homes/condos me or clients have purchased that are in zones where vacation rentals are legal:  Unit 1:  2 bed/1 bath purchased for $225k, currently finishing up construction to update and make it a 3/2 bath that will sleep 8-10 people.  Renovations approx $75k, will be installing a pool in September so all in about $360k.  Steps to ocean.  Unit 2:  4 Bed/3 bath pool home, purchase price $449k (with seller credit of $15k towards new roof). Purchased fully furnished and ready to rent.  Unit 3:  3 bed, 1.5 bath right near beach and restaurants, $3k reno (basically nothing) purchased fully furnished and ready to rent for $235k.  Unit 4: 2 bed/2 bath turnkey condo purchased for $270 currently renting for about $4k per month and booked completely until August.  

  • Property Manager · Daytona Beach, FL · Member since 2015 · 78 posts · 86 votes
    5y

    Hi Ezra!  I will send you info!

  • Property Manager · Orlando Kissimmee, Daytona Beach & Cocoa Beach · Member since 2016 · 331 posts · 166 votes
    5y

    Hi Christa. I just bought last month in DBC. I like to be the part of new groups and simply stay connected. I sent you pm

  • Investor · FL · Member since 2020 · 8 posts · 3 votes
    5y

    Hello we are trying to house hack in the Daytona Area! We currently live in Orlando. It would be an honor to join your group!

  • Real Estate Agent · orlando, FL · Member since 2009 · 159 posts · 121 votes
    5y

    Hello Krista, Id definitely be interested in joining the group. I have five airbnbs in Central Florida but I'm looking to get something on the coast. ButI'd really like to know what places you found that allow short-term rental along the beach?

  • Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    5y

    Fascinating to read that the city will sue for just posting on Airbnb! Outrageous! 

    Kudos to you for helping women get into the game and build wealth! 

  • Property Manager · Daytona Beach, FL · Member since 2015 · 78 posts · 86 votes
    5y

    @Ryan Moyer, I will send you some examples of ones for sale later this week.  I went under contract on one last week for $239k so they are out there you just have to be ready the second they hit the market.  

  • Rental Property Investor · Ormond Beach, FL · Member since 2010 · 11 posts · 2 votes
    5y

    Hello. I would love to join your group also. I have two rental properties, one in Flagler Beach as a long-term rental and one in Ormond Beach as a short term rental.

  • Investor · IA · Member since 2021 · 9 posts · 8 votes
    5y

    Hello Krista, I will be interested in your group. I am presently not in the area but I went to Embry-Riddle and looking at purchasing/partnering up in STR there. We have 5 STRs in Iowa (where I am currently)

  • Member since 2019 · 1 post · 0 votes
    5y

    @Krista Goodrich

    Hey Krista! My name is Sean Smith. I’m relatively new to the area. In June, my wife and I bought our home in Ormond Beach. In November, we closed on a 5 unit in Daytona. We were Airbnb our home in Los Angeles until the city guidelines shut us down and had to rent it out for a long term rental. That was a really long way of saying I would love to be in your group. Please send me the information, if the offer is still available. Thank you!

  • New to Real Estate · Orange County. CA · Member since 2020 · 26 posts · 6 votes
    5y

    Hi Krista, 

    Very interested in joining your group. Also do you have a map/boundary of the Daytona area where they do allow STR? I would love to take a look at it!

    Thanks!!

  • Rental Property Investor · Charlotte, NC · Member since 2017 · 11 posts · 7 votes
    5y

    Hi Krista, I really like your mission to help women specially. I'm not local but I'd like to be part of this if possible. Just getting into the STR biz and looking for my first property. Coastal Florida is very appealing If you could some info my way, I'd really appreciate it.

  • Property Manager · Daytona Beach, FL · Member since 2015 · 78 posts · 86 votes
    5y

    Hi all! I just posted info on several STR properties so check out my latest post and if interested in any of them LMK. Also, we are having a Vacation Rental Zoom on 2/10 at 6pm Eastern time, message me if you want the link to join.

    @Penny Pells DM your budget and such. 

    @Kade Robertson I do but I spent 4 years putting it together and it's how I grow my business so will give info but I hold my maps dear, hope you understand.  

    @Sean Smith-come join us on 2/10 6pm, it's at a beach house in Ormond but offering Zoom too (but locally will have wine and cheese lol).  DM if you want details.  

    @Harshad Leland-let me know parameters of what you are looking for and how I can help.  

    @Ron Baxter-join us locally 2/10 6pm Ormond Beach beachhouse (or Zoom in) so we call meet each other.  

    @Mike Shulman-come out to the beach 2/10 or Zoom in and join our crew!

    @Crystal Alleyne-love meeting other boss ladies!  Zoom or join us 2/10 6pm Ormond Beach.  

    @Valentina Naumenko-come meet some other boss ladies and guys 2/10 6pm Ormond Beach or Zoom in!

    Can't wait to meet you all and if you are investing or start investing let's all track how we do, numbers, etc to see where we start and where we go...it's super fun to watch your portfolio and wealth grow!

  • Investor · Miami, FL · Member since 2013 · 807 posts · 475 votes
    5y

    It's good to see someone fighting for property owners rights in Volusia.

    I own some properties in Daytona Beach and the ROI is excellent compared to some of the larger cities in Florida. I also own a property remodeling and architectural services company with a headquarters in Daytona. The company maintains a minimum ratio of 50% women.

    I would appreciate it if you could send me more information about the groups you are starting.

  • Member since 2020 · 8 posts · 8 votes
    5y

    @Krista Goodrich

    Thanks for putting up the fight not giving up till the end. More people like you are needed to eventually make it right!

  • Member since 2018 · 14 posts · 6 votes
    5y

    Hi @Krista Goodrich! I would like to be included. I spoke along with you and two other gentleman before the previous County Council meeting during Open Comments. I'll also be there on the 18th. Looking forward to meeting you officially!

  • Property Manager · Daytona Beach, FL · Member since 2015 · 78 posts · 86 votes
    5y

    YAY!  We have yards signs that say "I support Vacation Rentals"  if you are on the beachside I can deliver to you and we need as many out as we can get before the 18th.  Text me 6789281100 or I will look for you on Facebook!  Looking forward to officially meeting you!

  • Investor · New York City, NY · Member since 2017 · 18 posts · 4 votes
    4y

    Hi @Krista Goodrich - I am a little late to the party here but came across your post. Do you still have that STR group you mentioned? I have been actively looking in the Daytona area but have been limited to the few condo buildings that actually allow weeklies, and I'd be curious about the other opportunities you mentioned. Thanks!

  • Elkridge, MD · Member since 2017 · 3 posts · 0 votes
    4y

    Any good property management groups in Daytona Beach? I purchased my first STR, and in the process of getting it up and ready for renting.

  • Investor · New York City, NY · Member since 2017 · 18 posts · 4 votes
    4y

    @William Camacho - congrats on the purchase! Did you buy a condo or a single fam? 

  • Elkridge, MD · Member since 2017 · 3 posts · 0 votes
    4y
    Originally posted by @Sean Carroll:

    @William Camacho - congrats on the purchase! Did you buy a condo or a single fam? 

    Single Family. 3 bed (all can fit queens) 2 bath and 2 car garage.

  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    4y

    This is wonderful information.  Thank you for sharing!

  • Investor · New York City, NY · Member since 2017 · 18 posts · 4 votes
    4y

    @William Camacho - good for you! This thread hasn't been too active but I'm looking for a manager as well. Curious with your single fam - what's been your findings/experience regarding the recent ban on short term rentals that the county says they are enforcing in Volusia County? Did you get the license from the city? Or are you in an area that's zoned for STR?

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