If you’re in the market for a short-term rental to increase your Airbnb rental income, look no further than Airbnb Stuart FL.
Having a short term rental strategy is one of the guaranteed ways of making money in real estate. In the matter of real estate investing, there are several things you must take note of.
In this article, we will discuss the Stuart Florida real estate market and why Airbnb Stuart FL should be in your real estate portfolio.
How Is the Florida Real Estate Market?
The US housing market saw unprecedented growth in 2021. According to CNN, over six million homes were sold at record high prices. Last year, home prices increased by over 20% in some locations, but the increase was twice that in other areas.
The Florida real estate market also experienced an outstanding year as inventory went down and demand went in the opposite direction. According to reports, home prices in almost all areas of Florida saw a double-digit price increase as of Q3 2021.
According to Mashvisor’s data as of February 2022, the median home value in the Florida housing market is $680,781. In the past year, home values in the state rose 23.9%. Compared to the last five years, home values in Florida are up by almost 69%.
The above statistics make Florida a prime location for investing in real estate as it guarantees a positive cash flow and a high return on investment.
When investing in Airbnb Stuart, among everything, you must make sure you look for a property that guarantees a high return on investment and will bring in solid returns.
Why Invest in Airbnb Stuart FL and Why People are Visiting Stuart FL in 2022
There are many reasons to invest in Airbnb Stuart FL, ranging from its affordability, serenity, and depth in culture. And just like the rest of the state, Stuart features interesting destinations that attract visitors, who would also want to book a place to stay in the area.
Florida is one of the top-ranking states in terms of Airbnb return on investment. The Airbnb demand in Stuart, FL mirrors the state’s as it is also seeing unprecedented returns.
Known as the sailfish capital of the world, Stuart, FL is located in Martin County on Florida’s Treasure Coast. It is a unique city with many beaches and tourist attractions. The city was once voted as the “Happiest Seaside Town.”
Museums
Stuart, FL is home to The Elliot Museum, with over 100 classic cars on display throughout its three-story platform. The museum combines history with new-age technology. With the push of a button, you can get any car you’re interested in lowered to the first floor for closer inspection.
Another noteworthy museum in the city is The House of Refuge Museum. It is one of ten houses built along the coastline that was used to help save people from shipwrecks. The House of Refuge is filled with memorabilia and is the only one left of the ten original life-saving stations on Florida’s Atlantic Coast. It is also the oldest building in Martin County.
Stuart Airshow
For over three decades, Stuart regularly hosted a combination airshow and Fourth of July festivals. The airshow is a particularly exciting event for aviation enthusiasts and patriotic Americans.
The airshows are exciting as they feature amazing aviation stunts, such as high and low altitude maneuvers, screaming engines, smoke trails, etc. The event constantly pulls in droves of tourists yearly.
Being close to the shore, Stuart, FL is home to several other exciting features, such as water parks, coastal oceanographic centers, boathouses, etc. All the said crowd-drawing attractions make Airbnb Stuart a viable short-term real estate investment strategy.
How Airbnb Stuart FL Performed in 2021
Before delving deeper into Airbnb Stuart FL, let’s look at how the city performed in 2021. Here’s a quick look on Airbnb Stuart FL according to Mashvisor’s Airbnb data as of January:
- Median Property Price: $625,025
- Average Price per Square Foot: $329
- Airbnb Rental Income: $3,125
- Airbnb Cash on Cash Return: 3.27%
- Airbnb Daily Rate: $233
- Airbnb Occupancy Rate: 46%
- Days on Market: 74
- Walk Score: 41
2021 proved to be one of Airbnb’s most profitable years, but with the rise of the Covid-19 Omicron variant, things took a slower pace because of widespread disruptions in travel patterns worldwide.
But since the US has opened its borders, it is expected to make way for more international visitors, and Airbnb demand will increase. 2022 is expected to be a much more profitable year for Airbnb than last year.
Is It Legal to Operate an Airbnb Stuart FL?
Before deciding to run an Airbnb, it is extremely important to know the laws governing short-term rentals in your city.
Airbnb Stuart FL follows the same short-term regulations as the state, and it is generally owner-friendly to operate an Airbnb income property in Florida. The state requires all vacation rentals to secure a license from the Florida Department of Business and Professional Regulation (DBPR).
Florida defines vacation rentals as “Any unit or group of units in a condominium or cooperative or any individually or collectively owned single-family, two-family, or four-family house or dwelling unit that is also a transient public lodging establishment but that is not a timeshare project.”
Florida’s listing categories can be found here, but for the sake of our article, we’re going to be focusing on two:
- Vacation rental dwelling license: Dwelling licenses are for single-family homes, townhomes, units, or groups of units in a duplex, triplex, or quadruplex.
- Vacation rental condominium license: Condominium licenses are granted to owners of units or groups of units in a complex that will be used as vacation rentals.
Each license category is further split into three types of licenses, based entirely on the number of vacation rental properties registered by the owner:
- Single license: Given to owners with just one vacation rental property.
- Group license: Given to cover multiple rental units in one building.
- Collective license: Given to multiple vacation rental properties in different locations.
After receiving the appropriate license for your rental property, the next step is to list the property on Airbnb or other short-term rental platforms.
Who Should Apply for a Vacation Rental License in Florida?
If your vacation rental does any of the activities listed below, you must apply for a license if you:
- Advertise your vacation rental property, whether online (Airbnb rental properties or other short-term rental platforms), or offline (in print, etc.), you’re required to apply for a license;
- Are actively renting out your property exclusively to the public instead of using it yourself or friends and family, you must apply for a license; and,
- Are renting out your property more than three times in a year or periods less than one month at a time, you need to apply for a license.
When it comes to taxes, guests who book Airbnb listings in Florida must pay their taxes as part of their reservation. The taxes are then remitted on behalf of the host. In the case of a homestead exemption, the property owner may be eligible to receive a property tax exemption of up to $50,000. For more information on Florida’s tax on short-term rentals, visit the Florida Department of Revenue website.
The regulations essentially mean that Airbnb hosts who rent out a room or a portion of their properties do not need to apply for licenses as they’re not considered public lodging by the state.
How to Choose the Best Airbnb Investment in Stuart, FL
Before committing to an Airbnb income property, there are several steps you must take to ensure you’re getting the best out of your Airbnb rental, in addition to what we already mentioned above, such as the location and the laws governing short-term rentals in your state.
With those out of the way, here is a step-by-step guide to help you search for the best property for Airbnb Stuart FL:
Decide on the Most Suitable Property Type
Mashvisor’s neighborhood analytics has the important information you need to decide whether to buy an investment property in that particular area.
The nature of the market should decide the kind of property that would guarantee the highest return on investment. If your Airbnb location is in the heart of the city, it would be profitable if you invest in a condo or small apartment. If your preferred location is in the mountains or by the beach and you’re looking to host more families and friends than single travelers, the wise choice would be to choose a single-family home.
When looking for a property to invest in, the number of rooms in the apartment is also important as it determines the number of guests your apartment can accommodate. If you’re unsure of the kind of property to invest in Airbnb Stuart FL, Mashvisor’s neighborhood analytics is a great feature to help you make the decision.
When it comes to property management of an Airbnb apartment, you must ensure the apartment you invest in suits your investment goals.
Decide on Your Budget
When choosing the property to invest in, you must ensure you invest in a property that fits your budget. It ensures that you do not risk a default on your mortgage payments. To effectively decide your budget, you need to take account of your sources of income, ongoing expenses, and existing savings.
Before going out to hunt for properties, make sure you set your budget and stick to it regardless of the kind of properties you see.
When setting your budget, it is extremely important to account for other expenses associated with getting a short-term rental, such as registration fees, furnishing expenses, closing costs, renovations, etc. Taking all associated costs into consideration when you set your budget goes a long way to helping you choose the best property to guarantee a return on investment.
Begin the Search for Properties
Mashvisor’s Property Search provides a quick overview of the listings for sale in a city.
After deciding your budget and the type of property you want, the next step is to search for properties to invest in. When searching for short-term rental properties to invest in, make sure to exhaust all possible options – from online searches to newspapers.
To boost your chances of getting a great deal, do not only go for properties that are listed; be on the lookout for foreclosures, off-market properties, and bank-owned properties. Such properties increase your chances of getting a high return on your investments with the right strategy.
When searching for a property, make sure to stick to your budget. Falling for a property that is above your budget is not an advisable real estate investment strategy.
Employ the Services of an Agent
While you can search for the best properties with the right market analysis tools, hiring a real estate agent may be all you need to get a good property. The US housing market right now is a seller’s market. It means you need all the help you can get to get a good deal on a property. And, in some cases, a real estate agent can make all the difference.
Carry Out Thorough Analysis
You can use Mashvisor’s Airbnb calculator to estimate the monthly rental income, expenses, cash flow, and cash on cash return of your Airbnb Stuart FL property.
Once you’ve been able to identify properties that tick all your boxes, make sure to carry out a complete market analysis. It includes using an Airbnb calculator to determine the profitability, etc. In doing this, you’re able to decide on the best Airbnb Stuart FL property that will guarantee positive cash flow.
To effectively carry out your analysis, you must use real estate investment tools. Collating and analyzing data is a lot of work, which is these tools, you can study over three months of research in fifteen minutes.
You can get the average cash on cash return on any area you decide to invest in. You are provided specific information on sites that check your boxes and see how many properties are in the city.
Conclusion
With the right insight and tools, making money in real estate becomes a lot easier for many investors. You can skip the learning phase and avoid risk with the right tools.
With Mashvisor, you get accurate data on your preferred locations, and you’re able to make decisions faster. Click here to sign up for a 7-day free trial of Mashvisor and get 15% off for life.