Good things to know before investing!
Short-term vacation rentals (STR’s), while once exclusive to the beach neighborhoods of Florida, are now thriving in many tourists’ coveted cities throughout the state. Successful marketing & user-friendly platforms such as Airbnb & VRBO and increased property management companies are the biggest reasons for the STR boom. Many landlords are converting their existing annual rental properties to STR’s and often quintupling their returns.
With the spike in STR’s, have come the growing pains, many Florida communities are pushing back against the revolving door & party lifestyle of vacationers next door. STR’s have also impacted affordable housing and continues to drive up annual home rental prices. These issues, have city’s scrambling to adjust zoning codes to prohibit STR use in many single-family neighborhoods. Hotel lobbyists have also joined the fight at the government level to slow growth of STR’s.
However, Florida’s tourism industry cannot be forgotten, local vendors & restaurateurs have enjoyed the added business STR’s can bring. Contingencies of upset homeowners who benefit from STR’s are showing up to local commission meeting pushing for extended STR rights. Is there a happy medium? While some cities have yet to address the issue, the answer for most local governments seems to be the establishment of STR “green zones”. These tend to be in & around the more urban environments of a city but, not completely exclusive to those areas.
Making a Good Investment
To ensure a successful STR investment, first make sure the property’s zoning allows for a short-term rental use. This is typically found within the city or counties online municode. If property is in a neighborhood, verify if there are any deed restrictions for short term vacation rental use. Many realtors are now equipped with this info and will tend to market propriety as potential “STR investment property”. Still, you should always verify with the city and/or county planning & development department before purchasing. Second, location matters, make sure you’ve selected a property with a desirable location. Such as, proximity to amenities such as beaches, parks, shopping, or restaurants. You also want to create an experience at the property itself, pools, outdoor games, firepits and grills are all things your customers will be looking for in your listing. Lastly, find a good property manager, if self-managing, you still need good cleaners and a reliable handyman.
It is a great time to consider investing in a short-term vacation rental. As demand increases, municipalities continue to reduce the supply creating great return opportunities. Just make sure your protected; changes to zoning codes with potential STR restrictions will continue to be agenda items with local commissions as areas grow.
Check out Grove Keeper Collective and how they make staying at their STR the best experience ever.
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