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Florida offers some of the most promising destinations for those looking to start a business with Airbnb and get dollar income from rentals. The cities of Miami and Orlando are the main markets, but there are also regions around these two equally interesting centers.
Investing in real estate to earn income with seasonal rentals can be an extremely profitable business, especially in regions with high tourist traffic, such as Florida.
The good news is that you don’t need to be a great experienced hotel or administration to start an Airbnb business in Florida.
In this article we created a Practical Guide on how to start and operationalize a lucrative business focused on income with rentals in Florida.
What you will find in this article:
- Legislation: Know the laws and rules of each city or region
- Where to buy in Florida? Which cities or regions are more promising
- What is the Expected Return (ROI) and how to calculate it?
- Which type of property is better to rent? 1, 2, 3 or more bedrooms?
- The importance of hiring a Property Manager (Administrator)
- How to leverage the business
Legislation: Know the laws and rules of each city or region
Not all cities or regions in Florida allow the practice of Airbnb or, when they do, often bring different rules from each other.
The city of Orlando, for example, offers specific zoning where it is possible to rent per season. They are usually regions located in the so-called “Greater Orlando” in cities such as Kissimmee, Clermont and Davenport.
These areas in Orlando concentrate most of the holiday home condominiums (Vacation Homes), which are closed communities, with resort infrastructure, where it is possible to rent large houses to spend seasons. We will explain more about Holiday Homes in Orlando later in this article.
The city of Miami, also much desired by tourists and professionals on the road, works differently!
In Miami there is no specific zoning that allows the practice of Airbnb. Each building or condominium has its own rules, always respecting municipal legislation.
Most buildings in Miami do not allow rent for seasons, that is, it is only possible to rent contracts for long periods (one year or more). However, the central region of the city, in recent years, has received several new companies with authorization to practice Airbnb.
It is also worth noting that, even if the building in Miami allows the practice, it is necessary to pay a lot of attention to the rules of each condominium.
Some buildings in Miami offer total flexibility in the periods, that is, you can rent for a day, a week, a month or the whole year. Others establish minimum periods of 30 days, or 3 months, for example.
Where is it best to buy in Florida?
The two main markets in Florida, which concentrate the largest tourist traffic, are the metropolitan regions of Miami and Orlando.
These two regions also offer high expected returns and are ideal for those looking to earn dollar income with Airbnb in Florida.
Where to buy in Miami?
The best neighborhoods to start an Airbnb business in Miami are located in the central region of the city. They are: Brickell, Downtown, Midtown, Wynwood, Design District and Edgewater.
Of course, there are also opportunities in other regions of Miami, but the options are already more limited and it is essential to have the guidance of an experienced broker in the city to find an interesting property.
As mentioned in the previous topic, each building or condominium in Miami brings specific rules on rentals, so that only a broker with great experience in Miami knows which are the best condominiums to invest in Airbnb in each neighborhood.
Click here to see the list of the main condominiums in Miami that allow Airbnb
Where to buy in Orlando?
In Orlando the most interesting opportunities are in the neighborhoods of Kissimmee, Clermont and Davenport. These are the main neighborhoods within zoning that allow the practice of seasonal rental.
In these neighborhoods you will find the so-called holiday condominiums, or Vacation Homes condominiums, which are closed communities with holiday homes and total infrastructure for owners and guests. Some examples of condominiums are: Storey Lake, Champions Gate, Windsor Island, among others.
What is the expected return (ROI) and how to calculate it?
ROI, or Return on Investment, is an indicator that evaluates the performance of an investment in relation to the amount invested.
With regard to real estate in Florida, the return varies considerably depending on the region, location, size of the property and other characteristics.
To know the expected return of a property it is important to understand the calculation of this indicator.
What rents better? 1, 2 or more bedrooms?
The number of rooms is an indicator that has a strong impact on the expected return of a property facing Airbnb.
Depending on the region, larger properties (with more rooms) rent better. That’s the case of Orlando!
Orlando is a region that receives more than 75 million people a year. Much of this audience is made up of families or groups of friends looking for houses for rent near the parks or the main attractions of the city. It is an audience that seeks, therefore, large houses with several rooms, so that everyone can settle comfortably and with greater freedom.
In the city of Miami, the public is different. They are usually smaller groups and even professionals in business trips. Smaller properties (up to 2 bedrooms) tend to offer better exit for rent. In this article we show the type of property by neighborhood in Miami that rents best.
It is essential to understand the behavior of the public and what people seek in each region.
The importance of hiring a Property Manager (Administrator)
Property Manager in Florida is a property manager who provides the service of total property management, including rental management.
For foreigners it is practically impossible to take care of all the details of the property from a distance, even more so the management of the rent.
Property Managers do all this work, including the promotion of the property. They create the ad and register on all the main online rental platforms (Airbnb, Booking, Vrbo, Home Away, etc.). The owner just needs to assign a bank account to receive the amounts.
Learn all about total rental management
How to leverage the business?
Now that you know the first steps of how to start and operationalize an Airbnb-oriented business in Florida, know that you can also leverage this business.
In fact, this is the great strategy used by large global investors in Florida.
Real estate leverage works when you multiply your real estate operation through third-party resources, in this case, money from banks.
Abroad it is possible to finance the purchase of a property in Florida at low American interest rates. Just disburse the amount of the down payment (about 30% of the value of the property) and the rest can be financed by banks in Florida in up to 30 years. Learn all about real estate financing in Florida
With the income obtained from the seasonal rental, it is possible to face the loan installments. In many cases, the rent with the rent takes away not only the portion of the bank, but also all the expenses of the property and also generates profit in the operation.
About AMG International Realty
AMG International Realty is a global real estate company specialized in Florida and aimed at the foreign public. If you want to know more about real estate opportunities in South Florida and the Orlando region, contact me right now and talk to me by WhatsApp: +1 305 761 2655 (Heloisa Arazi).
