Top LocationsAirbnb Miami Beach Laws: What You Need to Know by Yassine Ugazu December 29, 2019December 17, 2019 by Yassine Ugazu December 29, 2019December 17, 2019Short-term rentals face a number of legal challenges in many jurisdictions across the country. While some municipalities see them as a net positive for the local economy, several others view them as a direct threat to local B&Bs and small hotels as well as affordable housing, which prompts them to impose restrictive regulations on them. A good example of the latter is Miami Beach. So what are the Airbnb regulations in the city? Is Airbnb legal in Miami Beach? And what is the ideal real estate investment strategy for the Miami Beach real estate market? This article will explore the legal status of Miami Beach short-term rentals and provide you with a detailed overview of the regulatory framework of Airbnb Miami Beach.Related: 10 Best Places for Buying a Vacation Home in 2020An Overview of Airbnb Miami Beach LawsAs stated above, Miami Beach has some of the most restrictive short-term rental rules in the country. As a result, property owners have to abide by a wide range of laws that include strict zoning rules that limit short-term rentals to only certain areas. Here is an in-depth look at the current legal situation of Airbnb Miami Beach.Related: 20 Cities with No Airbnb Legal Issues in 20201- Short-term rental eligibilityThe city of Miami Beach imposes several requirements on Airbnb hosts. First and foremost, the host must be the income property owner as the city does not allow renters to accommodate short-stay tenants. In the zones where short-term rentals are allowed, the activity is not limited to primary residences and the owner is not required to occupy the property for any period of time before renting it out. Another important requirement to keep in mind are the rules pertaining to condo associations/HOAs. Owners who are affiliated with such entities need to have a letter stating that short-term rental properties are allowed.2- Permitted zonesOne of the most restrictive aspects of Airbnb Miami Beach is the city’s zoning rules. In fact, short-term rentals are only permitted in certain residential areas. Most of the areas where short-term rentals are not allowed are situated in Miami Beach’s main single-family residential districts. Consequently, it is imperative that you check the city’s zoning map to get an idea of where the permitted zones are located if you want to invest in Miami Beach real estate.3- Registration The Airbnb Miami Beach registration process is quite lengthy. Moreover, it requires getting a State Vacation Rental Dwelling license, a business tax receipt number, and a resort tax certificate number. Registration can take up to two months and it involves submitting a host of documents. Here is what you will need for each step:State Vacation Rental Dwelling LicenseFlorida sales tax numberFederal Employer Identification NumberSocial Security NumberCertificate of Balcony InspectionBusiness Tax Receipt NumberState Vacation Rental Dwelling License numberProof of ownershipLetter from condo association/HOANotarized affidavit formResort Tax Certificate NumberDriver’s license numberSocial security numberBusiness Tax Receipt number4- TaxesLike nearly every jurisdiction in the Florida housing market, the city of Miami Beach assesses tourist taxes on short-term accommodations of up to 6 months. In fact, the tourist tax rate is 6% in most Florida cities. This includes a 3 percent Convention Development Tax, a 2 percent Tourist Development Tax, and a 1 percent Professional Sports Facilities Franchise Tax. However, only the Convention Development tax is applicable in Miami Beach.Related: Cities with the Worst Airbnb Taxes and Fees5- PenaltiesMiami Beach imposes very high fines for illegal short-term renting. In fact, these penalties are by far the highest in the US housing market. Hosts who don’t abide by the latest Miami Beach short-term rental ordinance can incur fines as high as $20,000 for the first offense. Furthermore, the fines escalate with each additional offense.As you can see, the short-term rental market in Miami Beach is currently controlled by some very strict regulations. But will this change in 2020? Let’s go over some recent Airbnb Miami Beach legal developments.Potential Changes to the Current Airbnb Regulations The Airbnb legal challenges that owners face have promoted many of them to attack the city’s ordinances in court. Furthermore, Airbnb Miami Beach laws and fines were deemed illegal in a recent case. It is not yet clear what this means for the future of non-owner occupied rental properties in Miami Beach as the city does not appear to be backing down from its anti-short-term rental stance. As a result, pessimistic observers expect more Airbnb legal issues in the coming years.The Ideal Alternative to Short-Term Rentals in Miami Beach, FLNavigating through a maze of legal ambiguity or operating in markets that limit short-term rentals to the primary residence is not ideal for real estate investors. Nonetheless, there is a profitable alternative to Airbnb Miami Beach. Opting for a traditional real estate investment strategy can yield tremendous results in the Miami Beach housing market. In fact, there are several positive trends that bode well for the future of long-term rentals in the city. Here are some of them:The Miami Beach real estate market is a large rental market with renters making up 63% of all residents.The city attracts a constant influx of retirees who are looking to rent, making a Miami Beach real estate investment profitable.The average monthly rental income for long-term rentals in Miami Beach is $2,563, according to Mashvisor’s data.Miami Beach is a “very cold” buyer’s market according to Zillow.Here is one of the best neighborhoods in Miami Beach where you should consider buying a rental property:Hibiscus IslandMedian Property Price: $1,602,475Price per Square Foot: $750Price-to-Rent Ratio: 76Rental Income: $1,746Cap Rate / Cash on Cash Return: 1.2%To find the perfect Miami Beach investment property, use Mashvisor’s rental property finder. This advanced tool can help you zero-in on top-performing income properties that match your preferences in a matter of minutes!Mashvisor’s Rental Property FinderCheck out some of the stats on these Miami Beach investment properties for sale that we have pulled from the tool:Traditional Investment Property for Sale #1List Price: $257,000Traditional Cash on Cash Return: 11.5%Traditional Investment Property for Sale #2List Price: $85,000Traditional Cash on Cash Return: 7.2%Traditional Investment Property for Sale #3List Price: $425,000Traditional Cash on Cash Return: 6.0% Sign Up for FreeAirbnb Miami Beach: The Bottom Line Given the legal hurdles to overcome and the multitude of laws that restrict short-term rentals, implementing an Airbnb Miami Beach rental strategy is not recommended. The best course of action at this point is to opt for a long-term rental strategy or to simply wait for a laxer regulatory climate. Start Your Investment Property Search! START FREE TRIAL AirbnbAirbnb RegulationsMiami Beach FLNeighborhoodProperty for SaleTraditional 0FacebookTwitterGoogle +PinterestLinkedin Yassine UgazuYassine is a versatile content writer who enjoys crafting compelling copies and articles about the various facets of real estate. Previous Post How to Make Money in Real Estate as a Beginner Next Post How Property Owners Can Update Their Property to Conserve More Water Related Posts How Does the New Orleans Real Estate Market Look for Property Investments at the Beginning of 2018? Las Vegas Real Estate Market 2018 – A Good Place to Invest? 3 Best Cities for Foreign Investors in US Real Estate Everything to Know About Dallas Real Estate Investing Should You Invest in Airbnb Joshua Tree in 2020? Top 4 Benefits of Investing in San Diego Real Estate 4 Best Rust Belt Cities to Invest in Real Estate Is the Las Vegas Real Estate Market Good for Investment Properties? 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