Top LocationsIs Airbnb Fort Lauderdale a Good Real Estate Investment in 2020? by Daniela Andreevska November 12, 2019December 12, 2019 by Daniela Andreevska November 12, 2019December 12, 20192020 is quickly approaching, making real estate investors start thinking about the best places to invest in real estate and the top rental strategy in the coming year. How about Airbnb Fort Lauderdale? Are Fort Lauderdale vacation rentals going to be a profitable real estate investment strategy in 2020? Keep reading to figure out.Airbnb Fort Lauderdale Rentals Performance Forecast for 2020Let’s get to the point right away. The best way to decide if buying an Airbnb investment property in the Fort Lauderdale real estate market is worth your money is looking at the rate of return to expect there.Below are all the most important figures which investors should have in mind when deciding in favor of or against a Fort Lauderdale Airbnb rental in 2020. The numbers have been computed by Mashvisor’s Airbnb profitability calculator. This is a specific type of rental property calculator which performs Airbnb investment analysis to provide the return on investment metrics for a specific housing market, neighborhood, or property. This real estate investment tool uses rental comps and other Airbnb data from each neighborhood to come up with a reliable and accurate forecast for the performance of any market or property.Related: 5 Best Real Estate Investment Tools for 2020Fort Lauderdale, Florida Real Estate Market 2020Median Property Price: $689,700Price per Square Foot: $354Fort Lauderdale Homes for Sale: 1,344Fort Lauderdale Single Family Homes for Sale: 477Fort Lauderdale Condos and Apartments for Sale: 710Fort Lauderdale Townhouses for Sale: 117Fort Lauderdale Multi Family Homes for Sale: 10Fort Lauderdale Other Property Types for Sale: 30Average Days on Market: 80Average Monthly Airbnb Rental Income: $3,290Average Airbnb Cash on Cash Return: 1.6%Average Airbnb Occupancy Rate: 58.0%Airbnb Rental Listings: 6,693Walk Score: 48So, what are the most important trends which emerge in the Airbnb Fort Lauderdale market for 2020?1. Fort Lauderdale real estate prices are rather high. The median price of houses for sale in Fort Lauderdale is nearly triple the national average and exceeds home values in many other top markets such as the Dallas real estate market and the Philadelphia real estate market. This means that potential investors should come up with a solid financing strategy before deciding to buy a Fort Lauderdale investment property.2. Condos and apartments in Fort Lauderdale are the dominating property type as they constitute 53% of all listings. However, before buying one of the Fort Lauderdale condos for sale, an Airbnb host needs to check the rules and regulations of the HOA in this regard. Many condo complexes prohibit short term rentals in their housing units.3. The Fort Lauderdale Airbnb rental income is very high compared to the national level. The high Airbnb income makes up for the above-average home prices to bring good return on investment.4. The city-average Airbnb CoC return does not look like a lot and is below the recommended good cash on cash return of 8%. This should not discourage investors looking for the best locations for buying a vacation home in 2020. This rate of return is only the average of all Airbnb listings in the city. Meanwhile, the best Fort Lauderdale neighborhoods for vacation rentals and individual properties can achieve significantly higher return on investment. You will see this with your own eyes in a bit.5. The average Airbnb occupancy rate in Fort Lauderdale is high because of the year-round influx of tourists. The Airbnb occupancy rate is one of the main determinants of the return on investment on short term rental properties, together with the nightly rate.6. All in all, investing in an Airbnb Fort Lauderdale rental property promises to be a good real estate investing decision in 2020.Legal Status of Fort Lauderdale AirbnbBefore moving any further in our discussion of the profitability potential of the Fort Lauderdale housing market for Airbnb properties, we have to discuss local Airbnb laws and regulations. Many top locations for investing in Airbnb have experienced drastic restrictions and even prohibitions in the past couple of years. For example, Airbnb Las Vegas is no longer allowed for a period of less than 30 days. Meanwhile, Airbnb Los Angeles is only legal for primary residences.How about Airbnb Fort Lauderdale? Are short term rentals legal and unrestricted?The great news is that Fort Lauderdale remains one of the relatively few US real estate markets where vacation rentals will be legal for both owner-occupied and non-owner occupied properties. Moreover, Fort Lauderdale Airbnb is an option for both primary residences (homes) and investment properties. This means that even out of state investors can buy an income property for the sole purpose of renting out on Airbnb or another similar homesharing platform.However, there are a few basic Airbnb regulations with which all hosts should comply:All Fort Lauderdale vacation rentals should be registered with the City of Fort Lauderdale on annual basis. The first-time registration fee is $350 for up to 4 rental units under the same roof. Renewing registration costs between $80 for owner-occupied vacation rentals and $160 for non-owner occupied vacation rentals.Airbnb Fort Lauderdale rental properties need to undergo an inspection to confirm that they obey by all requirements. The cost of the first two inspections is included in the registration fee, while each consecutive inspection costs $75.Vacation rentals need to obtain a business license the cost of which ranges between $78.75 and $236.25, depending on the time of the year.Similar to other Florida vacation homes, those in Fort Lauderdale have to pay:6% Florida transient rental tax0.5-1.5% Florida discretionary sales surtax6% Broward County tourist development taxCity of Fort Lauderdale taxesNow that you are aware of the legal requirements for listing a property on Airbnb in Fort Lauderdale, all that’s left is to learn what else is required to become an Airbnb host in 2020.Factors Supporting the Growth of Fort Lauderdale Vacation Rentals1. Tourism and ClimateTourism will continue to be the main driver of the Airbnb Fort Lauderdale industry in 2020. Together with Miami, this is one of the most visited places in all of the US housing market. The warm climate, the year-round sun, and the Fort Lauderdale beach attract millions of tourists each and every year. Demand for short term rentals there does not face much of seasonality because of the climate specificities, making Fort Lauderdale a top destination throughout the year. This assures a high Airbnb occupancy rate which is particularly important when calculating the return on investment of short term rental properties in terms of both cash on cash return and cap rate.Related: What Airbnb Occupancy Rate Can You Expect in 2020?2. Proximity to MiamiThe geographical proximity to Miami, another profitable location for Airbnb rentals, also contributes to making Fort Lauderdale vacation rentals good real estate investment in 2020. Relatively smaller cities and towns have always benefited from being close to major tourist, economic, and financial centers.3. Favorable Airbnb RegulationsThe third most important factor for the expected expansion of the Airbnb Fort Lauderdale rental market in 2020 is the fact that short term rentals in non-owner occupied, non-primary residences remain legal. This is not the case in many of the best places to invest in real estate to rent out on short term basis in the US housing market.Best Neighborhoods in Fort Lauderdale for Short Term RentalsNow that we know that investing in Airbnb in Fort Lauderdale, FL in 2020 is generally a profitable real estate investment strategy, it’s time to think about the practicalities. The Fort Lauderdale housing market is so big that where exactly should you invest? In one of the top areas for Airbnb rental properties of course. Find a Profitable Airbnb Investment PropertyIn addition to real estate market analysis, Mashvisor’ investment property calculator can also conduct neighborhood analysis in real estate to highlight the most profitable locations for either rental strategy in any US market. Looking at the performance of actual rental comps from Airbnb.com and analyzing the big data by property type and number of bedrooms, Mashvisor’s Airbnb profit calculator lists the best Fort Lauderdale neighborhoods for investing in short term rental properties:Related: How to Find Real Estate Comps in 2020#1 Rock IslandMedian Property Price: $270,900Price per Square Foot: $158Average Days on Market: 80Average Monthly Airbnb Rental Income: $5,280Average Airbnb Cash on Cash Return: 15.3%Average Airbnb Occupancy Rate: 55.4%Walk Score: 41The Rock Island neighborhood is the absolute best place to invest in an Airbnb Fort Lauderdale property in 2020. It yields the highest cash on cash return among all areas.#2 Lauderdale WestMedian Property Price: $260,800Price per Square Foot: $144Average Days on Market: 61Average Monthly Airbnb Rental Income: $4,100Average Airbnb Cash on Cash Return: 12.1%Average Airbnb Occupancy Rate: 67.8%Walk Score: 78One of the main reasons for the high profitability of short term rentals in the Lauderdale West neighborhood is the high Airbnb occupancy rate.#3 Durrs HomeownersMedian Property Price: $180,800Price per Square Foot: $149Average Days on Market: 112Average Monthly Airbnb Rental Income: $3,420Average Airbnb Cash on Cash Return: 11.8%Average Airbnb Occupancy Rate: 50.7%Walk Score: 61Affordable housing prices make the Durrs Homeowners neighborhood so profitable for investing in rental properties including vacation rentals. The property price is one of the main determinants of return on investment in real estate.#4 River LandingsMedian Property Price: $924,500Price per Square Foot: $269Average Days on Market: 176Average Monthly Airbnb Rental Income: $4,410Average Airbnb Cash on Cash Return: 10.8%Average Airbnb Occupancy Rate: 66.3%Walk Score: 33Buying an Airbnb property in the River Landings neighborhood will bring you a high rate of return due to the above-average rental income and the high Airbnb occupancy rate. However, you have to be able and ready to pay a much higher price than in the rest of the Fort Lauderdale, Florida housing market.#5 Home Beautiful ParkMedian Property Price: $204,000Price per Square Foot: $92Average Days on Market: 137Average Monthly Airbnb Rental Income: $2,800Average Airbnb Cash on Cash Return: 9.5%Average Airbnb Occupancy Rate: 52.7%Walk Score: 77The Home Beautiful Park neighborhood has the highest walk score in the entire city, which makes it an ideal location for attracting Airbnb guests.#6 Melrose ManorsMedian Property Price: $222,000Price per Square Foot: $136Average Days on Market: 87Average Monthly Airbnb Rental Income: $2,960Average Airbnb Cash on Cash Return: 9.3%Average Airbnb Occupancy Rate: 58.9%Walk Score: 58The good cash on cash return for Fort Lauderdale vacation rentals in the Melrose Manors neighborhood is the result of low home values, relatively high rental income, and good Airbnb occupancy rate.#7 River RunMedian Property Price: $298,500Price per Square Foot: $221Average Days on Market: 197Average Monthly Airbnb Rental Income: $4,410Average Airbnb Cash on Cash Return: 7.9%Average Airbnb Occupancy Rate: 66.3%Walk Score: 65Another one of the best Fort Lauderdale neighborhoods for buying an Airbnb property is the River Run neighborhood. While property prices are affordable, the expected Airbnb rental income for 2020 is particularly high.#8 River Garden Sweeting EstateMedian Property Price: $233,700Price per Square Foot: $159Average Days on Market: 148Average Monthly Airbnb Rental Income: $3,050Average Airbnb Cash on Cash Return: 7.9%Average Airbnb Occupancy Rate: 54.5%Walk Score: 35Another place where you can invest in Airbnb in 2020 in the Fort Lauderdale real estate market is the River Garden Sweeting Estate neighborhood. This is a buyer’s market where real estate listings spend a lot of time on the market and where prices are low, which makes it a perfect choice for first-time property investors.#9 Riverland VillageMedian Property Price: $314,800Price per Square Foot: $234Average Days on Market: 148Average Monthly Airbnb Rental Income: $4,040Average Airbnb Cash on Cash Return: 7.8%Average Airbnb Occupancy Rate: 64.2%Walk Score: 58The Riverland Village neighborhood is another area which enjoys particularly high Airbnb occupancy rate, resulting in high Airbnb income and CoC return.#10 SunsetMedian Property Price: $321,300Price per Square Foot: $212Average Days on Market: 97Average Monthly Airbnb Rental Income: $3,830Average Airbnb Cash on Cash Return: 7.4%Average Airbnb Occupancy Rate: 65.4%Walk Score: 65The last on our list of the best places to buy an Airbnb rental property in Fort Lauderdale in 2020 is the Sunset neighborhood. Even at position #10, the location offers high average return on investment.Investment Property Search in the Fort Lauderdale Real Estate MarketThere are over 1,300 homes for sale in Fort Lauderdale, Florida at the moment. How do you know which one to buy in 2020? How do you decide which one will bring you the highest return on investment as an Airbnb rental property?The answer is easy: Use Mashvisor’s must-have real estate investment tools for 2020. In 2020 profitable real estate investing is all about having access to the latest technology in the real estate industry including AI, machine learning, predictive analytics, and big data analysis. All these features are available at Mashvisor’s Airbnb analytics platform.Here are the tools which will help you find the right neighborhood and the best investment property there based on your budget and investment expectations:Heatmap: Mashvisor’s heatmap analysis tools will provide real estate investors with a color-coded Fort Lauderdale neighborhoods map for the following criteria: property listing price, Airbnb rental income, Airbnb cash on cash return, and Airbnb occupancy rate. This is the quickest way there is to conduct neighborhood analysis at the entire market level.Have a look below at the Fort Lauderdale neighborhoods with the highest Airbnb cash on cash return.Mashvisor’s Heatmap: Fort Lauderdale Neighborhoods by Airbnb Cash on Cash ReturnProperty Finder: Mashvisor’s Property Finder tool is the fastest and most efficient way to search through all homes for sale in the Fort Lauderdale, Florida real estate market to find the one which matches your budget, preferred property type, preferred number of bedrooms, and optimal rental strategy, of course.You can see below some of the top-performing single family homes in Fort Lauderdale:Mashvisor’s Property Finder: Fort Lauderdale Investment Properties for SaleInvestment Property Calculator: Mashvisor’s Aibnb profitability calculator will allow you to perform both neighborhood analysis and investment property analysis. You can look at the price, startup costs, recurring expenses, Airbnb rental income, Airbnb occupancy rate, cash flow, Airbnb cash on cash return, Airbnb cap rate, and many other real estate metrics for any listing in Fort Lauderdale or any other US housing market in 2020.Have a look at the rental property analysis of this property in the Lauderdale West neighborhood:Mashvisor’s Airbnb Profitability Calculator: Investment Property Analysis of a Fort Lauderdale RentalBuying an Airbnb Fort Lauderdale rental property is one of the top real estate investing options in 2020. As long as you study the neighborhood well and choose a property carefully, you are guaranteed to make some good money. Sign up for Mashvisor today to start searching for top-performing investment properties in Fort Lauderdale and beyond. Start Your Investment Property Search! START FREE TRIAL AirbnbAirbnb RegulationsCash on Cash ReturnFloridaFort Lauderdale FLNeighborhood Analysis 0FacebookTwitterGoogle +PinterestLinkedin Daniela AndreevskaDaniela is Marketing Director at Mashvisor. She has been writing about real estate investing for a number of years. Previously, she worked in economic policy research and fundraising. Daniela holds a Master degree in Middle East and Mediterranean Studies from King’s College London. Previous Post How Does a Short Sale Work? A Guide for Buyers Next Post Where to Invest in Real Estate: The Highest Cap Rate Cities in 2020 Related Posts Buying Memphis Investment Properties for Sale in 2019: Yes or No? What’s the Deal With the Miami Real Estate Market 2017? 5 Best Lake Towns for Buying a Vacation Home in 2019 Is Investing in Airbnb San Antonio a Smart Move in 2019? Chicago Housing Market 2019: Is It Really Looking That Bleak? 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