|
Getting your Trinity Audio player ready...
|
Earning passive income through rental properties in Florida is one of the best investment options in the world. On several occasions we have mentioned in this blog the numerous advantages of investing in real estate in Florida, especially those aimed at the practice of short-term rental. The city of Orlando, in this context, is one of the most recommended destinations in the world for this type of application, as it receives more than 75 million people every year, practically guaranteeing enough public to maintain high occupancy rates and promising returns. However, Florida’s rental demand has increased so much in recent years that long-term rental is also attractive as an investment.
In this article, we will look at some of the opportunities that have recently emerged in Florida, and we will also comment on the neighborhoods and communities that are on the rise, both for investment in projects aimed at the short term as well as the long term period.
If you are thinking of investing in Florida for passive rental income, be sure to read this article to the end. I am also available via WhatsApp (you can call me right now): +1 305 318 6968 (Heloisa Arazi).
Short Term Rentals Vs Long Term Rentals! What is the best investment strategy in Florida?
The great demand of investors in Florida has always been for properties aimed at the practice of vacation rentals. The Vacation Homes in the Orlando area, in communities like Kissimmee and Davenport, are the best known to South Americans. They are large houses within gated communities with full infrastructure and a privileged location close to parks or other main attractions in the region. They are enterprises formatted for the practice of renting for short periods and compete with hotels.
Compared to long-term rentals, the practice of vacation rentals has some advantages. Generally, the expected return on vacation home rentals is greater than the long-term return. It is possible to charge higher prices per night during peak seasons. The turnover brings greater exposure to the property and requires constant maintenance, valuing the property. There is also a bureaucratic advantage, which is the ease and practicality that online platforms have brought today (Aibnb, Booking, Homeaway, etc.).
The city of Miami, which traditionally has always been more restricted in terms of the practice of vacation rentals, recently relaxed municipal rules to allow the construction of new developments aimed at this format. The central region of the city, Downtown, is where most of these developments are concentrated. The most recent is The Crosby at the Miami Worldcenter complex. Here is a list of some condos in Miami that allow Airbnb.
However, with the high demand for long-term rentals in Florida, the long-term modality is also gaining ground among investors. Some up-and-coming regions in the state still offer developments with attractive prices and promising returns on long-term rentals.
We’ll talk more about regions in the next topic!
In which neighborhoods and communities are the best opportunities to earn passive income from renting
The main neighborhoods in Orlando, focused on investments in Vacation Homes, are Kissimmee and Davenport. For investments in residential real estate, cities around Orlando are highlighted, such as Windermere, Winter Park and Winter Garden, which we also recommend.
In Miami, the neighborhood of the moment for investment in short-term rental is Downtown (downtown). There are the main projects aimed at the practice of short-term rental: District 225, 501 First Residences, Natiivo, Legacy, E11EVEN, The Crosby, among others.
The Brickell area, one of the most sought after by investors, also offers some developments aimed at short term rentals. It is important to note that Miami, unlike Orlando, does not have a specific zone delimiting areas that allow the practice of seasonal rentals. Generally, the activity is regulated by the condominium statute. In this sense, there are several condominiums in the city, spread out in different neighborhoods, which allow the practice.
Brickell is also a recommended area for anyone looking to invest in Miami for long-term rental income. The neighboring neighborhood, Edgewater, is also worth mentioning.
Cities around Miami are in high demand, such as Weston and Boca Raton.
In particular, we would like to highlight the Homestead region in this article!
Homestead is a town south of Miami, near the Florida Keys. Recently, construction company Lennar Homes launched the Pine Vista project. These are high-end residential houses in an excellent location in the city. The houses already delivered to the condominium have a return on rent between 5 and 6% per year. In addition, Homestead offers one of the highest upside potential in Florida. Little known to investors, it is an area that we recommend.
Ease of rent management encourages passive income investors
Many investors do not have the time available to attract clients, manage the collection and even maintain the property. There is still all the bureaucracy of check-in and check-out for guests. The ideal is to hire an administrator (Property Manager) to do all this management. In this post we explain how the administration service works for customers who have already purchased from us and want to earn income from vacation rentals.
When contracting the services of property administration and rental management with AMG International Realty, the client does not even need to have contact with the tenant. All the customer acquisition work, from the ad montage (with the production of photos and texts) to the collection of values, is done by companies that we have worked in partnership for years in Florida. Even the inspection, cleaning and preparation of the property for the next client is carried out by the administrator. Learn more in this article.
Interested in earning passive income from Florida rentals?
AMG International Realty is a global real estate company specialized in Florida. If you want to know more about investing in properties for rent in Florida, contact me right now and chat with me on WhatsApp: +1 305 318 6968 (Heloisa Arazi) .
