If you’re interested in buying an investment property, then perhaps you should consider investing in an Airbnb rental in Venice, FL in 2022.
Just like almost every other market in the US, the real estate market in Florida saw an influx of new buyers who were looking to buy a secondary residence as well as investors who wanted to seize the chance before property prices go even higher.
And while the trend of rising prices did not come to a stop during 2021; compared to 2020, property prices have been slowing down.
According to the US housing market forecast for 2022, this growth is expected to slow down further this year due to a number of factors:
- Increasing Mortgage Rate: Mortgage interest rates were extremely low in the past couple of years, which contributed to the accelerated demand for homes. However, it is expected that mortgage rates will increase again this year, which will eliminate a portion of the current demand.
- Inventory Recovery: Another aspect that has affected home prices in the past two years is the inventory shortage that occurred due to the sudden increase in demand. By the end of 2021, however, the inventory was starting to recover, and this trend is expected to continue this year.
- Resumed Construction: Finally, it is expected that the increased costs of construction materials will go back to normal this year, which means that construction of new homes will resume in most markets in 2022.
With all of that said, what does the market look like in Venice, FL? And why do we think it’s a great time for you to buy an investment property there and use it as a short-term rental?
Why Invest in an Airbnb in Venice, FL in 2022?
Investing in the Venice FL real estate market simply makes sense.
The city has been in a period of growth for several years, and it attracts well-qualified residents and tenants. Coupled with the natural beauty of the city and its surroundings, and the serenity that it brings, you’ll be presented with a large pool of tenants who can pay the rent and take good care of your property while enjoying their stay.
Additionally, compared to other parts of Florida and other cities on the eastern seaboard, home prices in Venice FL are very reasonable, and any investor should be able to find an affordable option on the market.
But, as a city with a lot of tourism and a growing market, investing in an Airbnb rental in Venice FL in 2022 is not an obvious strategy for most investors, and here’s why:
- Median Property Price: $511,679
- Property Size: 317 Sq. Ft.
- Traditional Rental Income: $2,307
- Traditional Cash on Cash Return: 3.79%
- Airbnb Rental Income: $1,817
- Airbnb Cash on Cash Return: 1.32%
- Occupancy Rate: 51%
- Walk Score: 31
- Days on the Market: 41
As you can see, when looking at the Airbnb data for Venice, FL 2022, you will notice that traditional/long-term rentals have a higher average cash on cash return than short-term/Airbnb rentals.
This means that traditional rentals are more profitable on average than Airbnb rentals in Venice, FL 2022.
However, it’s important here to keep in mind the context of laws and regulations concerning short-term rentals in Venice, FL.
Airbnb Venice FL – Rules and Regulations
The short answer is: yes.
Running a short-term rental is considered legal in Venice as part of the Sarasota County regulations, but it has some limitations.
According to short-term rental regulations passed by the Sarasota City Commission in 2002, short-term renting is allowed within the city as long as the guest stays for a minimum duration of one week.
This, however, isn’t a strictly enforced rule, as several short-term rentals can be seen listed on Airbnb for a few nights’ stay.
On the one hand, there has been an increase in the number of property owners who were cited by the city for violating this rental ordinance in past years, which led property owners to believe that these regulations will be tightened in the future.
On the other hand, property owners and some policymakers have been fighting for loosened regulations on Airbnb rentals in Venice FL in 2022, as local property owners are benefiting from the option of turning their homes into Airbnb rentals and enjoying the extra income that it generates.
This also contributes to attracting more tourists and visitors to the otherwise quiet city, which leads to growth.
Venice FL, 2022 – Long-Term vs Short-Term Rentals
It is no secret that short-term rentals are generally riskier, but have a chance to generate more money than long-term rentals.
While might not be the case yet with Airbnb Venice FL, in 2022 this could change drastically depending on the city’s regulations as well as the already increasing occupancy rates.
This means that currently mediocre Airbnb rentals in Venice FL can become significantly more profitable within the next year or two. When that happens, you want to already have an established clientele and a good rating on Airbnb in order to stay ahead of your competition.
This doesn’t mean that you’re giving up on the opportunity of renting out your property as a traditional rental. Instead, you can always fall back to using the traditional rental strategy if the Airbnb market doesn’t go in the way that you’re expecting.
This makes investing in an Airbnb in Venice FL a safe investment in 2022 compared to other markets where traditional rentals aren’t doing very well.
The Appeal of Venice FL – Why It Attracts Tourists
Another great reason to invest in a rental property in Venice, FL, is that it’s simply a beautiful place to live, which means many people are either moving there or traveling there for leisure – both of which contribute to the growth of both the short-term and long-term rental markets there.
The city of Venice has amazing white sand beaches that stretch for miles along the coastline. Going further inland, you’ll find yourself in quiet city streets that are shaded by the tall palm trees, which all result in a beautiful afternoon to go for a walk or a picnic.
But this city isn’t just a beauty, it also has big brains – it is a great place to go for finding a job, buy a house, settle down and live comfortably on even a salary that is below average. This is due to the low cost of living there, the great jobs market, and the attractive median home price.
All of these features make Venice FL, not only a great place to live but a great place to invest as well.
It also opens up the market of vacation rentals that you can also rent out on Airbnb by leveraging beach-side properties and properties in vacation-worthy areas – all while adhering to the city’s rules of 7-days minimum stay.
Top Neighborhoods in Venice FL
Venice FL isn’t a big city, which means not to expect an incredibly high walk score or amount of convenience when living there.
With only around 20,700 residents, Venice has an average Walk Score of 31. The city has minimal public transportation and is somewhat bikeable.
If you’re looking to buy an Airbnb in Venice FL 2022, these are the most walkable neighborhoods based on Walkscore:
- Walk Score: 51
- Transit Score: 16
- Bike Score: 67
- Population: 3,104
#2 Venice Edgewood
- Walk Score: 51
- Transit Score: 26
- Bike Score: 59
- Population: 867
#3 East Gate
- Walk Score: 41
- Transit Score: 18
- Bike Score: 58
- Population: 513
#4 Bird Bay Gold Course
- Walk Score: 28
- Transit Score: 26
- Bike Score: 52
- Population: 854
#5 Golden Beach
- Walk Score: 27
- Transit Score: 0
- Bike Score: 59
- Population: 880
How to Find the Best Airbnb in Venice FL 2022?
Now that you know how good of an opportunity it is to invest in an Airbnb property in Venice FL, let’s go through the steps needed to finding the best short-term rental property.
Of course, to make things easy for you, we highly recommend using a real estate investment tool like Mashvisor to help you throughout your journey:
Mashvisor – A Real Estate Investor’s Platform
Mashvisor is an online platform that includes a number of great tools designed to help any real estate investor find their most suitable property to invest their money in.
The first tool that I want to talk about which you will be using is Mashvisor’s Property Finder tool.
The Property Finder is a search tool that Mashvisor offers, which comes with its own set of gadgets and features to help you find the best location and property to invest in.
Using an interactive map and a smart search bar, you can simply enter the name of any city, neighborhood, or street address that you’re interested in to see properties in that area on the map.
You can then use the filters and the heatmap feature to display additional information about the location and the properties that are in it based on the following data:
- Traditional Cash on Cash Return
- Airbnb Cash on Cash Return
- Traditional Rental Income
- Airbnb Rental Income
- Listing Price
- Airbnb Occupancy Rate
So, in this case, since we’re interested in Airbnb in Venice FL 2022, you can simply enter the name of the city in the search bar, then use the heatmap feature and set it to Airbnb CoC, and you’ll easily be able to see where the most profitable Airbnb rentals are concentrated on the map.
You can narrow down your search further by filtering out properties based on their:
- Cash on Cash Return
- Cap Rate
- Property Price Range
- Number of Rooms
- Property Age
- Traditional or Airbnb Rental Income
- Property Type
- Status (for sale, foreclosure, pending or sold)
This will help you pinpoint properties that match your search criteria in order to analyze them more and compare them to identify the one that is more profitable for you.
This brings us to the second Mashvisor tool I want to talk about when trying to find an Airbnb rental in Venice FL in 2022:
Investment Property Calculator
Once you have identified a few Airbnb properties that you like in Venice, Florida, it is time to analyze each property to find the most profitable one using Mashvisor’s Investment Property Calculator.
By clicking on any property on the map or from the sidebar list, you will go to that property’s analysis page where you can find its basic information, such as the property’s price, size, and description.
More importantly, you will have access to an Airbnb profit calculator that will give you a detailed breakdown of the property’s investment analysis as well as comparable properties around it.
This data comes from a number of sources, including directly from Airbnb’s database and other short-term rental platforms and analysis.
This investment property calculator will give you estimates related to the property using metrics such as:
- Traditional & Airbnb Rental Income
- Traditional & Airbnb Cash Flow
- Traditional & Airbnb Cash on Cash Return
- 10-year investment payback
All of these values, as well as the property’s occupancy rate and expenses, are customizable to help you get the most accurate results.
Finally, this tool also comes with its own mortgage calculator that allows you to include your mortgage type, interest rate, and duration and see what your financial future will look like based on all of these values.
Investing in an Airbnb in Venice FL in 2022 can be a risky investment decision, but it is likely to pay off in the long-term as regulations regarding short-term and vacation rentals are expected to improve in favor of landlords and investors.
Due to its attractive nature, the city is growing at a fast pace, and the real estate market is growing with it. While the cost of living is still low, property prices are on the rise – making it a perfect time to purchase a second home or an investment property there.
If the worst happens and short-term rentals receive harsher regulations in the coming years, you will always have a fallback plan with traditional rentals as their market is steady and profitable in Venice FL, and is expected to remain that way for the foreseen future.
And of course, don’t forget to use Mashvisor as your real estate investment tool as it will help you tremendously on your journey and throughout all steps of your investment.