The answer is definitely yes!!!…Short Term Rental business is one of the most profitable investment in Miami.
What do the experts say about short-term rental investment?
Since the opening of our real estate company, most of the requests from our domestic or international clients, were to look for a “pied a terre” in Miami, with the possibility of being able to use their properties from time to time and also to rent it on remaining time to cover at least monthly charges but especially in order to earn more money and get a better net return on investment (between 5% and 8% depending of the property and area) than a classic long term rental.
It turned out that the financial results of the apartments managed by our management service exceeded all our forecasts in 2017. Moreover, the turnover for the present year is in continual increase.
The rental reports got by our clients this year (also thanks to our know-how) fluctuate between 5% and 8% of net profitability.
What are the advantages of renting a property in short term rental?
- Flexibility: You will not take the risk to have a bad tenant and to be stuck in an annual lease.
- Profitability: will be higher by doing short term rental (vacation rental), instead of doing long term rental (annual rental). It is even possible to optimize the yield in some cases with small tips.
- Enjoyment: You will be able to enjoy your property during your vacation in Florida.
- Maintenance of the property: this is a reality, an apartment or a villa thoroughly cleaned each week, even with changes of tenants continually, will be much better maintained than a property rented in the long term. Decoration and freshness will continue.
- Remember: Miami’s short term rental regulations are extremely monitored and we strongly recommend you to follow all the rules. However, there are still many opportunities on Miami itself, as well as in the surrounding area. It is why it is really important to deal directly with a company specialized in the Short Term rental business. In order to be sure to buy the right property and avoid problem with the condo association and the city.
- Ask us to send you a selection of properties for legal Short Term Rental.
Which are the best areas for short term rental?
The most popular area for the investors is, of course, South Beach. Close to the beach, with its Art Deco style, the trendy shops and restaurants, all the things tourists are looking for. In terms of profitability South Beach is the best area. However, experience has shown us that you have to think outside the box sometimes to get better profitability. The best example is this villa bought by one of our client for $450 000. This property is a 3 bedrooms – 2 bathrooms with a swimming pool. The house has made a revenue of $46,000 meaning a net profitability of 10% (after our commissions paid).
This property is located on the West of Fort Lauderdale, less than 30 minutes from the beaches. This area is very popular for Canadian and American families, who love enjoying this quiet area close to the beaches and Fort Lauderdale, and only 40mn driving distance from Miami Beach. This example shows that Miami, and Florida in general, attracts all types of tourist, and not only the party ones that medias try to show to the public in the magazines and at TV.
We take care of absolutely everything (furnishing, decoration, amenities, cleaning, maintenance etc…). We work in full transparency.
Rentals paid by customers will be paid directly by the tenant to the owner bank account without going through us (therefore there is no risk for the owner of possible mismanagement).
A rental management report is sent each end of the month including the dates, the number of nights, the name of the tenant, the amount, and the comments. The only work for the owner will be to check the monthly report and his bank statement.
For a property in short term rental our commission for management is 25%, The quality of our our work is our success today. Our annual average occupancy rate is 80%.
Another advantage of investing in short term rentals properties is the possibility to get a E2 investor immigration visa with the purchase of vacation rental properties.
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