Many Airbnb hosts are wondering what the best place for investing in short term rentals is. There are, of course, several factors, which determine the suitability of the location as an Airbnb destination. For instance, when it comes to real estate market analysis, it is important to consider the Airbnb cash on cash return and the Airbnb cap rate as well as average Airbnb rental income in the chosen area. Other factors such as the number of Airbnb guests and the seasonality of the occupancy rate are also essential. Needless to say, if you want to be a successful real estate investor, you should definitely keep up with the Airbnb legal requirements.
As a real estate investor, you might have already read a lot about Airbnb Miami Beach. Investing in Miami Beach has its pros and cons as every other location on the Airbnb market. If you are interested in financing Airbnb Miami Beach property, this is the right place for you! We will review Airbnb Miami Beach, both its benefits and negative sides. Additionally, we will discuss whether or not you should buy an Airbnb Miami Beach investment property, so let’s get started.
#1 About Airbnb Miami Beach
Investing in Miami Beach is a popular idea amongst real estate investors. Sure enough, there is a reason behind this. Miami Beach is a great and also very well-known tourist destination. The location attracts people not only from the United States, but also from all over the globe. Airbnb Miami Beach has booming occupancy rate for several reasons. Airbnb guests can enjoy a very relaxing beach vacation. To add value to this peaceful holiday, there are various spa centers in Miami Beach. However, that is not the only thing with which Airbnb Miami Beach attracts visitors. Tourists can treat themselves to fine dining in one of the many luxurious restaurants in the area. Moreover, there is a great night life experience available for travelers and locals. For Airbnb guests who enjoy taking a walk and learning something new, there are various historic architecturally protected buildings in the area.
Due to all the previously described factors, it can be concluded that investing in Miami Beach is a great opportunity for Airbnb hosts. Even though it sounds like the perfect spot for your short term rental, there are a lot of Airbnb legal requirements, which may stop any real estate investor from financing a Miami Beach investment property. What are they? Let’s find out!
#2 Miami Beach Investment Property: Airbnb Legal Requirements
Owning and managing an Airbnb Miami Beach property comes with its benefits as well as obstacles. The biggest challenge which Airbnb hosts face in this specific area are the local laws and regulations with regards to short term rentals. Here are the Airbnb Miami Beach requirements you need to take into consideration:
- Land Development Regulations
The first step is to check the land development regulations. This is due to the fact that your Airbnb Miami beach property needs to be consistent with a specific set of requirements. These requirements may vary depending on the specific zone of the area.
- Airbnb Miami Beach Requirements
When it comes to Airbnb Miami Beach, there are specific laws and regulations for almost everything. This includes but is not limited to: the construction and the design as well as the maintenance of properties. Thus, you need to be very careful when planning you Airbnb Miami Beach investment.
Operating in Airbnb Miami Beach means that you are obliged to pay a tourist taxation. This is of crucial importance in order to manage your real estate investing business under the Airbnb legal terms for the area. This taxation applies to any type of rental property in Miami Beach which is leased for a period shorter than six months. It is important to take this in mind prior to making calculations of your potential Airbnb rental income.
- Business License
Another Airbnb Miami Beach requirement is having a business license. The latter is needed in order to legally operate as an Airbnb host. It is one of the most important steps to take, yet the one which may be easily neglected. So, keep this at the back of your head if you are planning to finance short term rentals in the area.
Additional rules may apply to you, depending on the specific zone of your choice, property type, etc. That is why it is important that you conduct in-depth research prior to any real estate investments. It is also vital to explore the market. This is why we will go over the real estate market analysis next.
#3 Real Estate Market Analysis
As a real estate investor, it is crucial to know the market before investing in it. With short term rentals, there are numerous things to take into consideration. Such are, for instance, the Airbnb cash on cash return as well as the Airbnb cap rate. Luckily for you, a real estate tool called a rental property calculator can simplify the task. Mashvisor’s rental property calculator can show you the Airbnb cash on cash return and the Airbnb cap rate as well as other valuable information. The rental property calculator can also provide insightful data about the region of interest, the optimal rental strategy, and so on and so forth.
Nevertheless, when it comes to Airbnb Miami Beach, there are some numbers we need to pay special attention to. According to AIRDNA, the occupancy rate in the area is around 64%. This may be used as an indicator of how good the Airbnb business is performing in Miami Beach. Additionally, the Airbnb rental income is approximately $190 per night. If you have decided to invest in a short term property there, it might be useful to know that most of the Airbnb guests (39%) choose a one-bedroom apartment, followed by studios (26%). This might point you out towards what property types attract tourists in the area.
Airbnb Miami Beach is a great opportunity for every real estate investor. However, you need to be careful in being consistent with all the regulations and manage to make profit at the same time. Take your time, do you research, use Mashvisor, and become one of the successful Airbnb Miami Beach real estate investors.