Researching FL rental markets?

Question

I'm seeking a second beach home in FL that I would rent, but also use when not rented on a weekly/monthly basis. I've traveled for many years to FL and am very familiar with the east coast (Space coast) between Cocoa Beach and Vero Beach. I'm really trying to find a beach area where I could plan on renters, regardless of the economy. Are there any good sources for researching which towns are best suited for this scenario?

Wendy Vaidic · Answer

Hi Curtis.

Vacation rental restrictions in Brevard County are different for each city.

For Melbourne Beach and Indian Harbor Beach, and Cocoa Beach they are allowed because they did not have rules on the books prohibiting them prior to June 1st, 2011.  Each city has different rules about registration, inspections, etc.

They are not allowed in most areas of Satellite Beach, Indialantic (only in the tourist district on the East side of A1A), or unincorporated Brevard County.

Satellite Beach and Indialantic actively crackdown on illegal rentals.

As far as I know, unincorporated Brevard only shuts you down if there's a complaint.  They are, however, currently working to re-write the zoning so it is more STR friendly, so this may open up more possible areas in the future.

The state of Florida has tried to eliminate the exemption for cities that had STR rules on the books prior to June 1st, 2011 but so far they have been unsuccessful in passing it.

You do need to register with the state and pay tourist taxes on the income.

As far as insurance, live a block from the beach and I pay $2776  a year.

Your taxes will be higher than a resident's because you won't have the homestead exemption.

If you have any other questions feel free to reach out.

Patricia Steiner · Answer

A few things to consider:

1.  Not all beach communities allow short-term rentals.  The hotel industry has a stronghold here and, as a result, locations where it is permitted are limited.

2.  Flood Insurance is a big expense.  If the property is not elevated and built to hurricane code, plan on this being on the vulgar level.

3.  The beach communities surrounding Tampa Bay are always in high rental demand. Most beach communities have limited or restricted short-time rentals.

4. Being close to the beach is often times a better alternative. Snowbirds come here for our endless summer and love the beaches - but they also like to be close to grocery stores, shopping, more.  There are communities 10 minutes away that allow for short-time rentals and the property cost is a lot less.

Since the pandemic started, a lot of "hot spotters" have come here and bought a lot of beach/near beach properties for cash and above-market value to have that "staycation" in anticipation of the second wave of Covid shutdowns.

There is not one source for the information you're seeking; I recommend choosing the location that you would like to visit and then researching opportunities there.

Hope this helps.

Karen Alexandre Ph.D · Answer

Hi Curtis, I can speak to Vero Beach since I live here and own several SFH rental properties. Vero is still relatively affordable compared to some of the other areas you mentioned. Whether Boca/Palm/Jupiter will be preferred to Vero (Indian River County) or Cocoa/Melbourne/Satellite (Brevard County) depends on a number of variables and trade-offs. Patricia was on point about towns/municipalities having their own limitations and  on short-term rentals, which will affect your ability to use your property when not rented. I would recommend narrowing based on location, price, and rental market potential, then by restrictions/ordinances.

For example, Indian River Shores (beachside in Vero Beach) requires that residents who rent out their homes through websites such as Airbnb and HomeAway to have a town license; meet fire and safety codes; pass a building inspection; and conform to town regulations for parking and noise. Anyone who rents their home at least three times in a calendar year is subject to the new rules. Homeowners also must pay a $150 registration fee; obtain a local business license from Indian River Shores; obtain a state license from the Department of Business and Professional Regulation; and set-up a local tourist-tax account with the Clerk of the Circuit Court.

Feel free to reach out if you have any questions about Vero Beach.

Thanks,

Karen

Brett Nissen · Answer

I am an agent in Jacksonville Beach and would agree with everything Patricia Steiner stated! In my area, Jacksonville Beach is less restrictive on rentals, than Neptune Beach or Atlantic Beach. Flood insurance often kills the deals at the beach though. For this reason I live at the beach, but invest in rentals in other parts of the Jacksonville market.

Kerry Baird · Answer

@Wendy Vaidic, Great job summarizing Brevard in terms of short term rentals. Spot on! Can I ask who you use for insurance? That pricing is better than any of mine. :D

Joy Smith · Answer

Hey Curtis, Its Joy. I live in West Palm Beach. With not knowing your budget I can say that there are certain areas that still have beachfronts available and are in up and coming destination spots but not over saturated with tourist as yet. Great time to get in.

Sebastian

Port Salerno

Ft Pierce

Hope this helps

Curtis Porter · Answer

I've spent a little time in the northwestern area of the state (Pensacola/Fort Walton). However, it wasn't nearly as appealing as the east coast areas. I'm mainly just looking for stability in beach rentals on the east coast and wondering what towns are best suited for this. Thanks!

Kevin Maher · Answer

Why not the fastest growing county in the state.  6th fastest growing county in US.  Newest construction with a regional development plan for the next villages in FL.   It is located in the other florida called Northwest Florida.  They typically leave this part of the state off the map.  Short term rental demand has continued to grow.  It is a drive able vacation from anywhere in the south.  Brand new international airport.  St Joe development with a 50 year growth plan.   Walton County Florida.

Dimitri Paspalaris · Answer

I would possibly look into the st augustine area and possibly daytona/ormond beach. Heard the airbnb game is real good their.

Wendy Vaidic · Answer

Hi @Kerry Baird!  I hope you're doing well.  I use Federated National.  My house is just under 1700 sq. ft though, so that's probably some of the difference.

Researching FL rental markets?

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