With the easing of restrictions and lockdowns brought about by the pandemic, is 2022 the best year to invest in a Destin Florida Airbnb property?
The Florida real estate market is one of the best markets for real estate investments in 2022. However, with tight inventories and high demand, it is expected that Florida real estate will remain a strong seller’s market this year. If you’re looking to invest here, consider investing in short-term rentals.
Vacation rentals are one of the best investments in Florida, especially since the Sunshine State is considered a vacation capital. Florida is also home to established vacation destinations that are ideal for both local and international tourists. To ensure that you’ll be investing in a profitable vacation rental, it’s important to choose the right location where there is a demand for short-term rentals.
Destin Florida is one of the most desirable vacation destinations—it is a place that offers fine weather conditions all year round. Generally, Destin is best for tourists who love water activities and attractions that are close to nature. With the COVID-19 restrictions and lockdowns being lifted this year, we can expect a boost in Destin’s tourism. This means that there will be a high demand for vacation rentals, so investing in Destin Florida Airbnb rentals will be a good idea.
Is Airbnb Destin FL a Profitable Location?
To determine whether or not a certain area can be a profitable location for short term rentals, it’s important to know the nearby tourist attractions and how often in a year visitors frequent this location.
When it comes to tourism in Florida, Destin is one of the top and most preferred locations. The city is home to some of the most beautiful beaches in the world—with sugary white sandy shores and emerald green waters. This is the reason why there is a high demand for Destin Beach rentals.
Aside from beaches, Destin is also known for its great restaurants that offer a wide variety of dining options. One of the best experiences Destin FL offers is waterfront dining, where you can enjoy your meals with a view of the beautiful sunset. Most of these restaurants serve freshly caught local seafood that’s cooked to perfection.
Destin’s beaches and restaurants are just two of the many reasons why Destin, Florida attracts visitors all year long, providing excellent opportunities for Destin Florida Airbnb owners. There is a wide selection of tourist attractions that keep tourism in Destin Florida strong, including water activities like fishing, jet skiing, parasailing, dolphin cruises, pirate ships, kiteboarding, water skiing, paddleboarding, kayaking, skimboarding, and tubing.
Things to Do in Destin FL
Most visitors come to Destin for its beaches. However, the beach is not the only attraction that makes Destin FL a perfect tourist destination. There are many other reasons why visitors love to come back to Destin, boosting the demand for short-term Destin Florida rentals. As a real estate investor, you must familiarize yourself with the various tourist destinations in Destin especially if you are planning to invest in Destin Florida Airbnb rentals.
Aside from basking in its gorgeous white sand beaches, here are six of the most popular destinations visitors often go to when visiting Destin, Florida:
- Crab Island
Crab Island is an underwater sandbar surrounded by crystal clear water. It attracts boaters and ocean lovers who flock to this tourist location known for its party atmosphere. Crab Island is also a fun destination for families who want to have an adventure with inflatable waterslides and other water toys.
- Gulfarium Marine Adventure Park
Going to Gulfarium Marine Adventure Park is one of the most fun things to do in Destin, Florida for those who are traveling with family. Visitors can interact with and observe all kinds of aquatic wonders, including dolphins, stingrays, turtles, and alligators. They can touch, feed, play, and give behavior signals to the animals, and even snorkel with the stingrays. You may want to consider investing in Destin Florida Airbnb near this area.
- Destin Harbor Boardwalk
Taking a leisurely walk around Destin Harbor is one of the best free things tourists can do in Destin, Florida. The Harbor Boardwalk offers a great view of the pristine harbor. Some visitors also come here for great entertainment and other amazing activities like renting a boat for fishing and parasailing. This place is especially busy during special events like the Destin Seafood Festival.
- Destin Shopping
Destin’s shopping complexes like the Destin Commons, HarborWalk Village, and Downtown Fort Walton Beach are tourists’ go-to places when they want to indulge in a shopping spree. Some investors buy Destin Florida condos near these shopping locations to rent out on Airbnb. Visitors get to enjoy shopping at charming boutiques, outlet malls, and open-air arcades with a large number of shops and restaurants to choose from.
- Destin Golf Courses
Destin has some of the best golf courses in Florida, such as the Golf Garden of Destin, Regatta Bay, Sandestin, and Kelly Plantation Golf Club. As many local tourists come down for a golf weekend, buying a Destin Florida Airbnb rental near or within these golf course areas can be a good idea.
- Destin Fishing
Destin is known as the “world’s luckiest fishing village”—which is one of the reasons why you should invest in Airbnb in Destin Florida. Tourists who want to try fishing often go to one of the city’s jetties, beaches, seven piers, or the Destin Bridge to catch pompano, channel bass, bluefish, king mackerel, or flounder. You can expect an increase in vacation rental demand during events such as the Destin Fishing Rodeo and Destin Seafood Festival.
Why Should You Invest in Airbnb Destin Florida?
Destin, Florida offers a wide selection of tourist destinations and activities that visitors will enjoy all year round. This is one of the important reasons why you should consider investing in Destin Florida Airbnb. However, it’s equally important to take a look at the Destin real estate market data to determine whether this place can be a profitable location for short-term rentals. Some of the important information that you need to consider are average rental income, cap rate, occupancy rate, Airbnb daily rate, and walk score.
Here’s the Destin Florida Airbnb real estate market data from Mashvisor as of February 2022:
- Number of Airbnb Listings: 520
- Average Monthly Airbnb Rental Income: $3,348
- Airbnb Cash on Cash Return: 13%
- Average Airbnb Daily Rate: $291
- Average Airbnb Occupancy Rate: 52%
- Median Property Price: $1,041,144
- Average Price per Square Foot: $519
- Number of Listings for Sale: 63
- Days on Market: 159
- Walkscore: 52
Using the above data is important before making any investment decision as it can help you determine whether or not investing in Destin Florida Airbnb can be profitable. To learn more about how Mashvisor can help you find profitable investment properties, schedule a demo.
Related: How to Evaluate an Airbnb Investment
What are the Rules and Regulations for Airbnb Destin FL?
Before investing in Airbnb in Destin Florida, it’s crucial to research and understand the laws that govern the short-term rentals in the city. Keep in mind that different rules and regulations for short-term rental properties may apply to different locations. Before you buy a property for a short-term rental, it’s important to find out the rules that apply to your specific chosen location.
Short-term rentals in Destin are defined as single-family residences that are rented out for one day to no more than six months. To legally rent out a vacation property in Destin, you must first register your short-term rental. Before registration, you must also obtain a Tax ID number.
It is required that you or an authorized “responsible party” should live within 30 miles of the proposed rental property and can respond within one hour in case there will be an issue. You or your authorized responsible party should provide a contact number and must be available 24/7.
The City of Destin requires Airbnb owners to post a clear sign on the property with the name and contact information of the responsible party. The size of the signage should be 18″ x 18″ and should indicate the occupancy limits and parking information. You are also required to display the registration decal that you will obtain from the city in the upper left-hand corner of that sign. The sign should be posted within seven days after registration; no guest may stay in the home until the sign is posted.
Destin Florida Airbnb Rental Registration Guide
If you are sure to venture into short-term Destin Florida rentals, you must first register your vacation property and get approval. Here is the step-by-step guide for short-term rental registration in Destin, Florida:
Step 1: Check for Eligibility
According to Article 7 of the City of Destin Land Development Code, Destin Florida Airbnb rentals are only allowed in the following zones:
- Bay Resort Mixed Use (BRMU)
- Crystal Beach Resort (CBR)
- Calhoun Mixed Use (CMU)
- Gulf Resort Mixed Use (GRMU)
- Holiday Isle Mixed Use (HIMU)
- North Harbor Mixed Use (NHMU)
- Residential, Office, Institutional Tourist Development (ROI-TD)
- South Harbor Mixed Use (SHMU)
- Crystal Beach Neighborhood (CBN)
- Low-Density Residential– Holiday Isle (LDR-HI)
- Medium Density Residential– Holiday Isle (MDR-HI)
- High-Density Residential– Holiday Isle (HDR-HI)
Check the Destin zoning map to determine your location and make sure to only invest in properties within these approved zones.
Step 2: Obtain the Current, Valid, and Necessary Documents
Listed below are the documents that you need to obtain before registering:
- A City of Destin Business Tax Receipt
- A Florida Rental Dwelling License
- A Florida Department of Revenue Resale Certificate
- A City of Destin Short Term Rental Affidavit of Bedrooms/Parking Spaces: This is a notarized affidavit stating the number of bedrooms, parking spaces, and occupancy limit.
- A City of Destin Application for Short Term Rental
- A City of Destin Grandfather Certificate of Short Term Rental Occupancy
Step 3: Determine the Maximum Occupancy
As of January 22, 2019, The City of Destin adopted occupancy limits for short-term rentals. The maximum overnight occupancy of a Destin vacation rental shall be limited to the lesser occupancy of these options:
- Two persons for each bedroom, plus four additional persons. For example, a home with 4 bedrooms can have a maximum of 12 occupants.
- A total of 24 persons per short-term rental property. If there is more than one building or dwelling on one plated lot, the maximum occupancy shall be capped at 24 occupants per lot or structure, whichever is less.
You are required to list the approved maximum occupancy and parking on all online advertisements.
Step 4: Register Your Destin Florida Airbnb Rental
You can either visit the City of Destin website and use the online portal to register, mail your registration, or register as a walk-in with a paper application. Keep in mind that registration fees may vary depending on the size of your property.
Step 5: Complete the Registration
After submitting and getting approval for your registration application, you need to come to the City of Destin Annex to claim a City-issued annual decal, which must be displayed on the top right corner of your signage. After inspection of the signage with decal, the registration will be issued. It’s important to note that registrations are non-transferable. If a registered property has a new owner or a new responsible party within the registered year, the property must be registered again with the City of Destin.
Invest in Airbnb in Destin FL With the Help of Mashvisor
Once you have established that Destin, Florida is a great and profitable location for short-term rentals, it’s time to ensure that you choose the best property for an Airbnb rental. First, you need to determine the best neighborhood for your short-term rental.
While it’s good to buy a rental property near a particular tourist spot, it’s wiser to consider investing in a neighborhood that is near several attractions. Consider a location that has a high walk score or a place that’s near various public transport options.
If you are not sure where and how to invest in real estate, Mashvisor can help you decide which areas are best for Airbnb rentals based on our comprehensive real estate market analysis. Mashvisor’s database contains thousands of properties—all you need to do is type in a city or neighborhood of your choice and you will be provided with a list of houses and duplex for sale in that area.
Click on a property that interests you and we’ll provide you with a detailed analysis of the average monthly rental income, Airbnb cap rate, cash flow, average daily rate, occupancy rate, median home value, and more. You can also use our Mashvisor tools to get comparable rental listings, neighborhood analysis, and data insights. You will need these insights and market data to ensure that you are making an informed investment decision.
To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.