Hey everyone! My lovely fiancé & I are preparing to buy our first home here in Southwest Florida. It will initially be our personal residence, but after 2.5-3 years will turn into a short-term rental property for us. I was wondering from your guys’ experience, do rental properties not directly on the “beach” still do well? or is it a must to be in walking distance to the ocean? Thanks everyone!
Investor · Ogden, UT · Member since 2018 · 295 posts · 208 votes
6y
Hey @Ryan Sargent I don't think you have to be right on the beach. Rental rates are higher right on the beach, or right across from it with a view. But that doesn't mean you can't do really well one block off the beach or even 10 blocks off the beach. I have 7 STRs that are all 20 minutes from the beach and I have consistent demand paired with lower purchase prices so the numbers work really well. Search on Airbnb and see what other properties are renting for off of the beach and how many nights they are occupied (look at their calendar availability) to help run your own numbers and make sure they work. You can also use airdna to aggregate STR data.
Altamonte Springs, FL · Member since 2017 · 24 posts · 14 votes
6y
You may want to look at the short term rental regulations before you buy. Different areas have different rules, with some being fairly lax to just outright ridiculous because they don't want them.
Now, to answer your original question, no, it doesn't have to be walking distance to the beach, but that's always a nice thing to have. Close proximity to shops and restaurants is great, as well.
Investor · Ogden, UT · Member since 2018 · 295 posts · 208 votes
6y
Hey @Ryan Sargent I don't think you have to be right on the beach. Rental rates are higher right on the beach, or right across from it with a view. But that doesn't mean you can't do really well one block off the beach or even 10 blocks off the beach. I have 7 STRs that are all 20 minutes from the beach and I have consistent demand paired with lower purchase prices so the numbers work really well. Search on Airbnb and see what other properties are renting for off of the beach and how many nights they are occupied (look at their calendar availability) to help run your own numbers and make sure they work. You can also use airdna to aggregate STR data.
Investor · Chicago, IL · Member since 2020 · 148 posts · 97 votes
6y
Guests typically look for properties in close proximity to the beach. However, if you are not on the beach a property with other great features can make up for it. In FL, a pool is a must and a south facing lot seems preferred for more sunlight. As mentioned above, be sure to research the rental regulations in the areas you are looking. Hire an experienced realtor who is knowledgeable in their vacation rental market to help you search in a rental friendly area to find the right property for your investment goals. I am happy to connect if you have more questions about the FL markets!
Rental Property Investor · Member since 2018 · 66 posts · 71 votes
6y
@Ryan Sargent We have 4 vacation rentals thats located approx. 1,000 ft from the beach but you still have to cross a low traffic 4 lane road (2 lanes each way) so it takes 5-6 minutes to walk. 2-3 minutes for a bike ride which we do provide as well to make the trip easier for some. We're right in the mix of restaurants, amusement park areas, golf cart rentals, arcades, go-kart tracks, etc. Just making sure that you're positioned in a good location with easy, quick access to the beaches is going to go a long ways and be worth the extra you'll pay for the home to be closer. Also having the restaurants, etc close by is what people are looking for when they come down to the beach. We did well even with Covid and have already grossed over six figures for the year which we're extremely happy about. I do personally think that when vacationers stop traveling as much like in the times we're having now with Covid and other market downturns then it's beneficial to be either on the beach, have an ocean view, or be located very close to it.