I am interested in purchasing a short term rental vacation home. I am looking around at Miami. I am looking at so many beach front properties that are on the market for $400-500k. The HOA is usually around $700 a month which is on the higher side but these properties are sitting on the market for 6 months - 2 years! I don't understand why so many are sitting? Wouldn't they have great short term rental potential? The specific home I am looking at is 6039 Collins Ave APT 615,Miami Beach, FL 33140 but there are many others with the same situation. Thank you for your help!
Hi @Paige Feddersohn welcome to BP! So... Miami/Miami Beach is sort of a different world in REI. The market here is filled with so much cash, from both locals and foreigners from LATAM and other places. In regards to your specific question of "Wouldn't they have great short term rental potential?" - Miami Beach is very strict on short-term rentals and issues the highest fines in the country ($20,000) if you are caught operating a short-term rental without all the proper licensing, certificates, etc. And only certain areas of Miami Beach can be approved for short-term.
Here's where you can get more info: http://www.miamibeachfl.gov/business/vacation-shor...
Many people are operating short-term rentals in MB and many of them are doing it illegally. Good luck in your search!
@Paige Feddersohn Few things to point out.
1. $700 HOA fee is way too high to be profitable as a short-term rental or long term regardless of the amenities at the building. If you factor in a Property Manager, Utilities, Worn/Tear and Mortgage you will more than likely be in the negative.
2. If still interested I would ask the realtor for the bylaws of the building. Condos typically require 30-night minimum or 2-6 rentals per year. It is usually the condo-hotels that allow daily rental and a few other buildings.
3. Personally, I would look at Fort Lauderdale or Hollywood beach and invest in a Single Family home. You get more bang for your buck because the purchase prices are lower and you can command the same rates as Miami. Both cities allow vacation rentals once you are registered. If SFH is too much work to manage you can look at some really nice townhomes as well.
Any other questions feel free to message me. I've dealt with every jurisdiction in South FL and was one of those who had fines up to 100k operating illegally so I've got alot of skin in the short term rental game lol.
That makes sense. I will keep looking! Florida might not be for me. Thank you for the response! Hopefully no more fines for you lol.
Thank you for the link! That is really helpful I read FL was thinking about allowing short term rentals in all of Florida. That would be interesting to see if it passes!
@Paige Feddersohn Yes, no more fines lol..when you end up in a situation like mine you surprisingly become friends with all the higher-ups. South FL is a great place for vacation rentals though...our rates are much higher in comparison to other locations and we constantly have events popping up every month which keeps occupancy high as well as a surcharge in rates. Good Luck!
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