Short Term (VRBO/Airbnb) Rental Investments in Southeast Florida
Short term rentals in Southeast Florida have been seen as a very lucrative investment over the past few years. Largely due to the rise of short-term rentals like Airbnb and VRBO, Southeast Florida’s rental stock has continued to grow, with a 97% annual growth between 2016 and 2017 alone. But, short-term rentals in Southeast Florida come with some risks and, as always, no investment is 100%. Continue reading below as we delve into the tax implications, vacancy rates, and a realistic income that you could expect to earn from your Short Term Rental investment in Southeast Florida.
Search a variety of investment properties below to find the one that is perfect for your short-term rental goals or continue reading here about some of the requirements for short-term rental properties in Southeast Florida.
Short Term Rental Investment Properties
New Search X
106 Radcliffe Ct, Jupiter, FL - $415,000
Immaculate Update Townhome Steps To The Golf Course In Abacoa! Offering An Open Floor Plan With 3 Bedrooms, 2.5 Baths And Detached 2 Car Garage. Large, Screened, Private Outdoor Patio Off The Kitchen/family Room And Balcony Off The Master Bedroom....
163 Spoonbill Ct, Jupiter, FL - $489,000
Nothing Left To Do In This Pristine Updated Home In Desirable Egret Cove At Maplewood Located On An Oversized .39 Acre Lot In A Cul-de-sac With Complete Privacy. This Beautiful Home Offers High Ceillings, A Great Split Floor Plan, Expansive Open K...
350 Bella Vista Ct N, Jupiter, FL - $413,000
Turn Key! This Condo Is Fully Equipped With All The Amenities: Furniture, Linens, Cook And Dish Ware; Tvs Etc.this Condo Was Remodeled Just 2 Years Ago And Everything (including All Stainless Steel Appliances) Were Bought New.walk To The Beach An...
235 Sunrise Ave #mz E 1104, Palm Beach, FL - $235,000
Beautiful Suite Located In Historic Palm Beach Hotel Which Includes A 24 Hour Doorman, Large Private Pool, Gym, Laundry Room, And Spa. This Unit Is The Perfect Home Or A Great Investment Property Due To No Rental Restrictions And Its Close Proxim...
112 Cypress Point Dr, Palm Beach Gardens, FL - $285,000
Beautifully Renovated Two Bedroom And Two Bath Residence Located Mere Steps From The Pool And Boasting A Pond Right Outside The Rear Patio- This Residence Offers Serenity And Convenience At Every Turn In The Highly Regarded Meadowbrook Subdivision...
10980 S Ocean Dr #712, Jensen Beach, FL - $389,000
The Only Thing Missing Is You... From Sunrise To Sunset This 7th Floor Unit Will Astound You! Immaculately Kept, Tastefully Decorated Throughout This Is Truly A Must See. Great Location - Walking Distance To Several Restaurants And Shops From This...
56 Stoney Dr, Palm Beach Gardens, FL - $420,000
Light & Bright With Lots Of Space. Rarely Available 3bed/3.5bath With 2 Primary Suites (downstairs & Upstairs). Features Include; Open Kitchen With Top Notch Appliances, Granite Countertops, Gas Cook Top, Shelved Storage Pantry & Tons Of Cabinet S...
300 N Highway A1a #h204, Jupiter, FL - $395,000
Ocean Parks Elegance-fully Renovated Spacious Condominium. This Unit Has Just Been Finished With New Wood Grain Luxury Vinyl Flooring,new 9 X 3 Cook Island, New White Shaker Soft Close Kitchen Cabinets With Polished Nickel Hardware, New Under Mou...
420 Celestial Way #202, Juno Beach, FL - $399,000
Juno Oceanfront Condo Directly On The Beach With Pool And Hot Tub! Voted One Of Top Beaches 2017 And Very Sought After Safe Neighborhood. Beaches Are Safe 24/7great For Snorkeling, Surfing, Fishing On Beach, Bbq Pits, Picnic Tables, Finding Shells...
11053 Nutmeg Dr, Palm Beach Gardens, FL - $250,000
Location, Location, Location!!!!!!!!!bright & Spacious 2 Bedroom, 2 Full Bath, 2 Patios Perfect For Relaxing And Barbecue. Enjoying The Florida Lifestyle: To Restaurants, Gardens Mall. Kravis Center, Downtown At The Gardens, Golf Courses & P...
Hidden Costs - Short Term Rental Investment Properties
One of the biggest hidden issues with a short-term rental property in North Palm Beach is that you risk overstepping on the permitted uses for the property. For example, one such property in Palm Beach was defined as being used for commercial purposes and not residential. This can happen to you too if you were to rent out the property for less than three months more than three times in that calendar year. This mistake can be incredibly costly too. A commercial property in a residential zone can cost as much as $250 per day for the code violation. $250 per day in code violations means that you would be building $119s in negative equity per day if you rent at the average daily rate in Palm Beach.
Other Taxes - Short Term Rental Investment Properties in Southeast Florida
However, it’s not just at the city level that you should worry about the hoops that you will be expected to jump through. Palm Beach County has a bed tax, which is known as the tourist development tax, which is applicable if you rent out your property for less than six months out of the year. The tax is charged at five percent of the total revenue gained and it might be in addition to the State level sales tax of six percent. Should you think of trying to skip out of paying that five percent, Palm Beach County has been known to take aggressive action against those that violate the tax law. In fact, those caught not paying could potentially face a third-degree felony and a lien can be placed against the violator's bank account by the County. To make it easier, the County suggests that owners of investment property in Southeast Florida sign up for Alavara’s MyLodgeTax™, which makes vacation rental taxes simpler for a $20 monthly fee. If you rent your investment property for more than 30 days out of the year, you should also check with the local county’s property appraisers, too as you might be claiming a credit that you are not entitled to.
Why Purchase a Short Term Rental Investment Property
The labyrinth of taxes and city costs might be exhausting but the profits that are to be had with your investment property might be worth the additional paperwork. For example, from a quick search on Airbnb, a private room that is close to the beach and Carlin Park can bring in $1,725 per month. While an entire three-bed lakefront condo in Juno Beach can command as much as $5,600 per month. Even at a 30% occupancy rate, which is below the average occupancy rate, the Juno Beach property would bring in approximately $21,000 in revenue, minus the 11% of county and state level taxes, that’s a pretty tidy profit of $18,747.59 before costs directly related to the investment property in Southeast Florida.
If you think you’d like to discover the homes for sale near Jupiter, Tequesta, or Singer Island that would make great short-term rental investment properties, contact Beth Bourque at Southern Shore Properties today.
All listings featuring the BMLS logo are provided by Beaches MLS Inc. Copyright 2020 Beaches MLS. This information is not verified for authenticity or accuracy and is not guaranteed.
© 2020 Beaches Multiple Listing Service, Inc. All rights reserved.
Listing information last updated on July 7th, 2020 at 6:00pm CDT.