Real estate investors enter this field to grow their business and prosper. It is, however, clear that not all of the real estate investors succeed. In order to make money in real estate, you should take numerous variables into consideration. Such are, for instance, the cap rate, cash on cash return, return on investment, potential rental income, Airbnb occupancy rate, etc.
Yet, the most important factor for the growth of your real estate business is the location. Needless to say, each location is suitable for a specific rental strategy. The latter is vital for owning and managing positive cash flow properties.
If you are in the field of real estate, you have probably already heard about the Fort Lauderdale real estate market. Well, if you have not, do not worry! Today, we will explore the topic in detail. Besides giving information about the local housing market in the city, we will reveal whether or not investing in short term rentals in Fort Lauderdale is a good investment opportunity.
If you plan on investing in short term rentals in Fort Lauderdale or you simply want to learn more on the topic, keep on reading!
#1 The Fort Lauderdale Real Estate Market
Before going in-depth and discussing the short term rentals in Fort Lauderdale, we need to review the city and its housing market. This will help us to better understand how real estate investors succeed with Fort Lauderdale investment properties.
So, let’s start from the beginning. Fort Lauderdale is a city in the state of Florida in the United States. The city is famous for its beaches as well as boating canals. There are many other attractions which bring travelers to the city. Such are, for instance, the International Swimming Hall of Fame, the Hugh Taylor Birch State Park and the Florida Everglades.
When looking at the Fort Lauderdale real estate market, it is interesting to observe that the city is one of the most desired places for investments. This leap marked by the city might be explained by the local economic development.
Additional factors, of course, are the population growth as well as the developments in infrastructure. Further, many house investors consider the property prices reasonable for such a place in the country. But what about short term rentals in Fort Lauderdale?
#2 Short Term Rentals in Fort Lauderdale
As you can imagine, short term rentals in Fort Lauderdale are a successful rental strategy. This is due to the climate in the location. Additional benefits are the tourists’ attractions in the city as well as the opportunity for having a relaxing holiday. Here are some statistics regarding Airbnb rentals in the city:
- Median Property Price: $ 553,038
- Airbnb Rental Income: $ 1,779
- Airbnb Occupancy Rate: 48.18%
- Airbnb Cash on Cash Return: 1.54%
- Airbnb Cap Rate: 1.54%
It is important to note that there are other factors to consider when investing in an Airbnb rental property. If you are interested in learning more about the matter, check out “Four Things to Consider Before Purchasing an Airbnb Investment Property.”
#3 Is Airbnb Legal in Fort Lauderdale?
When it comes to short term rentals in Fort Lauderdale, it is important to observe the Airbnb legal requirements in the city. In order to have success and generate positive cash flow with your Fort Lauderdale Airbnb rentals, you need to be consistent with the local rules and regulations. Here are the main Airbnb legal requirements you need to know in order to operate in the business of short term rentals in Fort Lauderdale:
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Inspection of Fort Lauderdale Airbnb Rentals
That is right, Fort Lauderdale Airbnb rentals undergo a home inspection. There is a specific set of rules your short term Fort Lauderdale investment properties should be consistent with. If that is not the case, you are simply not allowed to lease your property on the Airbnb market.
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Real Estate Investors Need a Business License
In order to operate as an Airbnb host in the city of Fort Lauderdale, you need a business license. This is due to the fact that renting short term Fort Lauderdale investment properties is recognized as a business strategy. Therefore, you need to provide income statements and pay taxes as well.
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Short Term Rentals in Fort Lauderdale Are Taxable
There are various taxes that might apply to your specific case. What is important to note, however, is that failing to pay your taxes as an Airbnb host will result in penalties. Needless to say, the more money you spend on such costs, the less the return on investment of your property.
#4 Finding the Best Short Term Rentals in Fort Lauderdale
Despite knowing a good location for your investments, you are certainly wondering how to find the best Airbnb properties for sale. Well, there is a tool which can help you in this task. This is the Airbnb profit calculator.
The Airbnb profit calculator operates similarly to the investment property calculator. However, the first one works specifically for this type of rental strategy. Hence, finding the best Airbnb properties for sale should be a stress-free process with this tool.
Mashvisor’s Airbnb profit calculator computes various real estate metrics for you. Such are, for example, the return on investment, cash on cash return, cap rate, potential rental income as well as Airbnb occupancy rate.
Are you interested in learning more about finding the greatest Airbnb properties for sale with the use of Mashvisor’s Airbnb property calculator? Make sure to read “The Guide to Using an Airbnb Profit Calculator.”
To start looking for and analyzing the best investment properties in Fort Lauderdale, or your city and neighborhood of choice, click here.