Best ROI Vacation Rental Areas in Florida?

Question

Hi Everyone,

I am hoping to buy a vacation rental somewhere in coastal Florida in the next 6 or 8 months. I currently own two long term rentals, so I am not a first time investor/landlord, but I am new to the vacation rental business. I live in the Pacific Northwest, so we would use the unit  6 to 8 weeks every winter (flexible--anytime between January and mid April)

I am open to most areas.  but I am having trouble figuring out where to pinpoint my search. I'd want to be within 2 or 3 blocks of a beach, in a suburb or a small town,  and either SFH or small condo property is fine. Any suggestions? Where can I find data that compares prices to rental income throughout Florida? Are there any  consultants that can help me compare average ROI in markets throughout Florida?

Daniel Paloscio · Answer

Be careful w/ Clearwater & St. Pete, both have laws governing rental terms and short term rentals (less than 30 days) are illegal in both municipalities. Additionally, they both are larger cities inside of Pinellas and have in-house council and not only pursue legal action against violators but will stick around and fight. Some of the smaller municipalities hire outside council and will settle more often because litigation gets expensive and is not in their budget. People typically get away with their new listings until neighbors start complaining but once you are on the city's radar you either hire an attorney (and in most cases lose) or you shut down. Just make sure you do the research. I would avoid condos as well because HOA's are usually against short term rentals and if you find an HOA that allows them you risk the rules changing in the future. Before you buy, check out the city's ordinance code. Most are posted online. If you can't find it online you can call the municipality directly and ask.

David Pierce · Answer

Does St Pete Beach allow ST Rentals?

Olga Shahan · Answer

Hello @Terri Donovan I know a community on St. Petersburg Beach that allows short term rentals. It is not a direct beach community (located right across the bridge) so the prices are more affordable. Good formula for return of investment: low expenses / high rent. Association fees range from $369-420 cover some extra expenses like flood insurance, cable, internet and water. It is a vacation style community and rentals are in a pretty good demand. Shoot me a message if you are interested.

Olga Shahan

Realtor in Tampa Bay

Phil Weiler · Answer

Hello @Terri Donovan,

I agree with Account Closed, St. Pete and clearwater are great location. St. Pete is growing rapidly and has a really nice downtown area. Clearwater beach was just voted best beach in the United States so the tourist numbers should stay strong.

Since it is a place that you plan on spending considerable time if you are able I would try to visit some of the areas and find a place you would enjoy and then back research by looking at airbnb and VRBO to see what places are renting for in that area. There are many great towns on the coast and each has there own feel.

Happy investing!

Account Closed · Answer

I'd say Clearwater / St. Pete for some of the best overall value.  Then, depending how much you want to step up, drop down to Palm Beach, Broward and Miami Dade

Share Ross · Answer

@Daniel Paloscio makes a great point! Any area you're considering for STR, call the municipality first and find out what their rules are! Fort Lauderdale has one set of rules and Delray Beach has another set! (Delray is far more relaxed than Fort Lauderdale for right now but that can easily change!)

It's a great way to get going in investing! One thing that's interesting about the Delray Beach STR scene is that there are a TON of events in Delray along with the usual beach/warm weather tourists.

@Terri Donovan I hope you'll come and visit! Reach out anytime!

Sergey Tkachev · Answer

I second St. Pete and Clearwater, and that area in general.  Keep in mind, though, that not everything "a couple blocks from the beach" may be what you expect.  Some areas can be less desirable closer to the beach and become more desirable as you go further inland (the beach is not the problem, the neighborhood is).  So make sure to do your own due diligence on the specific property/area.

Best ROI Vacation Rental Areas in Florida?

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