Florida Rentals-minimal lease terms and location

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Florida Rentals-minimal lease terms and location

Maria Walsh
Member since 2021 · 10 posts · 0 votes

My name is Maria and my husband and I are looking to invest in a condo rental property on the west coast of Florida. We were looking to have a place where we could list on Airbnb or VRBO. Most of the investment properties that we are looking at have minimal lease terms from the HOA of one month to six months.

We are not opposed to buying this type of property.

Questions:

1. Those that have these investments--with minimal lease terms--do you have problems getting tenants?
2. We have been looking at all locations on the west coast--what is the best location for these investments that have these minimal lease terms?
3. For a property that is not within walking distance to the beach--how far away from the beach will still attract tenants?

Thank you--

Maria Walsh

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Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
5y

You don’t want to buy in those buildings jif you’re looking to do vacation rentals. Those are likely warrantable condos. They don’t want rentals. 

Find an hoa that is cool with short term. Non warrantable is what you’re looking for. 

Podcast Guest on Show #30
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  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    5y

    You don’t want to buy in those buildings jif you’re looking to do vacation rentals. Those are likely warrantable condos. They don’t want rentals. 

    Find an hoa that is cool with short term. Non warrantable is what you’re looking for. 

    Podcast Guest on Show #30
    3Reply
  • Maria Walsh
    OP
    Member since 2021 · 10 posts · 0 votes
    5y

    @Luke Carl. Thank you.

    0Reply
  • Mike S.
    Investor · Broward County, FL · Member since 2018 · 1k+ posts · 938 votes
    5y

    There is no minimum term lease limit in Florida.

    However, as you have mentioned, some HOA may limit the number of turnover tenant per year (de facto limiting the minimum lease time), limit minimum lease time, or completely forbid lease and require the owner to be the occupant. So make sure that you read the HOA or condo association rules seriously before any commitment. Or better, buy a property that is not subject to an HOA.

    Also, if you are leasing for 6 months or less, you will be subject to the 6% Florida short term rental tax.

    You may also have city and county additional taxes, business tax receipt, and mandatory inspections for short term rental depending on the jurisdiction where your property is located. These additional costs and formalities can be very substantial and time intensive.

    1Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    5y

    Buy a SFR in Cape Coral. 7 day minimum per the city but many don't follow that rule. Most areas there are no HOA to deal with. The cape is popular and growing. My friend owns STR there and he does well. I own annuals there and do well. I can help you find a place. Let me know.
    John

    1Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    5y

    Even better buy a SFH. You can get much better returns and less competition than a condo.

    1Reply
  • Kerry BairdPro Member
    Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
    5y

    I contacted the City Hall or Town Hall in every municipality near me.  The big MSA is Melbourne.  But each little area has a rule concerning short term rentals.  The big picture is that the State of Florida said in a ruling, If a municipality didn't already have a pre-existing rule regarding short term rentals as of 2011, then the municipality cannot ban STRs.  So, coming down the barrier island, Satellite Beach is a NO, Indian Harbour Beach is a YES, Indialantic is a NO, Melbourne Beach is a YES, and the unincorporated areas are OK unless someone complains.  These small municipalities are all in Brevard County.

    I got a State license and signed up to pay State taxes.  I signed up for County taxes.  I went to the Town Hall and asked if they had a law on the books and spoke with an individual who said my municipality has a "love hate relationship" with vacation rentals.  She gave me no indication that I needed to file any additional anything.  After operating 1 rental for 2 years and another for just a few months, I just got notification from the code enforcement at my municipality (whom I had visited in person) that I didn't file a paper correctly and fines are possible.

    I'm not trying to chase you off from investing in Florida, but instead inform you that there is a small gauntlet to run, in addition to the HOA-and-condo concerns.

    1Reply
  • Maria Walsh
    OP
    Member since 2021 · 10 posts · 0 votes
    5y

    Thank you all for the great information. I am thinking that a SFH is better for us.

    0Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    5y

    @Maria Walsh let me help you find something. 

    0Reply
  • Peter Davis
    Real Estate Broker · Cape Coral, FL · Member since 2014 · 382 posts · 300 votes
    5y

    @Maria Walsh

    Hi Maria,

    To your original questions, whether condo or SFH, you will not have a problem finding tenants, particularly in the winter months. Cape Coral, Fort Myers, Estero, Bonita Springs, and Naples are all popular areas. Most buyers I've worked with are happy to be within a half hour to the beaches, which these towns are.

    0Reply
  • Maria Walsh
    OP
    Member since 2021 · 10 posts · 0 votes
    5y

    @Peter Davis. Thank you so much. That was really good information for our search.

    0Reply
  • Suhaib Rehman
    Member since 2018 · 40 posts · 18 votes
    1y
    Quote from @John Thedford:

    Buy a SFR in Cape Coral. 7 day minimum per the city but many don't follow that rule. Most areas there are no HOA to deal with. The cape is popular and growing. My friend owns STR there and he does well. I own annuals there and do well. I can help you find a place. Let me know.
    John

    HI  John. How is the market for SFH or condos in cape coral now? Is insurance rate high?


    0Reply
  • Stetson MillerBusiness Member
    Real Estate Broker · Fort Myers, FL · Member since 2019 · 576 posts · 423 votes
    1y

    Hi @Suhaib Rehman,

    I don't believe John has been active on BiggerPockets for some time now, but the Cape Coral market, and a few others surrounding, are certainly still feasible for investment purchases depending on your strategy and investment parameters. Insurance costs are going to be extremely relative to a list of variables that differ with every property, but if you know what to target and what to watch out for, these costs do not at all prevent positive cash flow on the right opportunities

    [email protected]850-259-2910
    Stetson Miller Realtor545 Reviews
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    0Reply
  • Todd AndersonPro Member
    Real Estate Agent · Cape Coral, FL · Member since 2023 · 392 posts · 175 votes
    1y

    Maria, as others have said the best thing about SFR is no HOA. I talk with a lot of investors who are stuck when the HOA fee goes up and they no longer cashflow.

    With SFR you are in control and have many other exits. I have three homes listed right now that have great revenue form STR. they are all showing occupancy for last year over 90%

    Connect if you would like more info.

    [email protected]651-492-5652
    0Reply
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