Gainesville STR Market

[Anthony Simeone]

Hello Gainesville Investors!

I’ve noticed that there hasn’t been much recent discussion or activity specific to the Gainesville, FL market, so I wanted to start a conversation!

I recently launched a short-term rental (STR) business in Gainesville, and I'd love to hear from other investors in the area. Whether you're managing properties, operating STRs or long-term rentals (LTRs), or just have an opinion on the state of the market, I'm eager to hear your thoughts and any new developments you've noticed.

Here are a few things I’ve observed:

1. Increased Supply of Rentals
   I’ve lived in Gainesville for a while now, and I remember a time when it was tough to find a rental. I’m wondering if the influx of newer apartment complexes near campus has shifted the supply and demand balance. Perhaps it could be a result of the post-COVID market adjustments.
2. More STRs on the Market
   Initially, I didn't feel the competition because my Airbnb is a studio, but since I've started working with other Airbnb hosts, I've noticed there's definitely more competition than I thought. My data shows around 300 new STR listings on Airbnb since 2022. I also wonder if some hosts only list during football season and then transition to mid-term rentals (MTRs) the rest of the year.
3. New Tax Changes Coming in January 2025
   Starting January 2025, Airbnb will automatically collect and remit the 5% tourist tax for Gainesville. This will be helpful for hosts who have already set up their payments with Alachua County.

Despite the oversupply, I still feel there are plenty of opportunities in Gainesville, both for STRs and LTRs.

If you’re a current or aspiring real estate investor in Gainesville, feel free to share your thoughts, opinions, and stories. I’d love to get to know you all and hear how things are going on your end!

[John Underwood]

You didn't mention the higher Florida insurance costs.  Maybe not as bad if not in a beach town?

[Nick Velez]

Hey Anthony,

I have a few STR's in Gainesville and have lived here for about 7 years now and know several people with STR's as well. Saturation is definitely upon us but quality product continues to get booked just like other markets. I see people purchasing new STR's here and others dumping their properties or converting into LTR's.

We have a niche market due to the hospital and university which has pros and cons but my properties have continued to perform well for me. 

[Anthony Simeone]

Quote from @John Underwood:

You didn't mention the higher Florida insurance costs.  Maybe not as bad if not in a beach town?

 I haven't personally dealt with any crazy insurance premiums such as the ones people have been advertising in like Tampa, FL. I have however feel victim to some pretty steep bills for property taxes.  

[Anthony Simeone]

Quote from @Nick Velez:

Hey Anthony,

I have a few STR's in Gainesville and have lived here for about 7 years now and know several people with STR's as well. Saturation is definitely upon us but quality product continues to get booked just like other markets. I see people purchasing new STR's here and others dumping their properties or converting into LTR's.

We have a niche market due to the hospital and university which has pros and cons but my properties have continued to perform well for me. 

 Hey Nick, 

It is funny you responded to this thread. I believe you know my good friend Keiton Stender at the Mills Group. He actually gave me your number to reach out to you, but I have yet to do so. 

I am always looking to learn from successful STR operators such as yourself. If you are available this upcoming week we should grab some coffee.

[Ryan Moyer]

Quote from @Nick Velez:

Hey Anthony,

I have a few STR's in Gainesville and have lived here for about 7 years now and know several people with STR's as well. Saturation is definitely upon us but quality product continues to get booked just like other markets. I see people purchasing new STR's here and others dumping their properties or converting into LTR's.

We have a niche market due to the hospital and university which has pros and cons but my properties have continued to perform well for me. 

 Which kind of properties perform best there (size, amenities, etc)?  I have a bit of a soft spot for the area as a UF grad, and I still come back to the area every year or two.

[Anthony Simeone]

@Ryan Moyer

Your Airbnbs look awesome. I have someone who is having trouble STRing a house in Kissimmee. If you're interested perhaps we can connect. 

[Nick Velez]

Quote from @Ryan Moyer:

Quote from @Nick Velez:

Hey Anthony,

I have a few STR's in Gainesville and have lived here for about 7 years now and know several people with STR's as well. Saturation is definitely upon us but quality product continues to get booked just like other markets. I see people purchasing new STR's here and others dumping their properties or converting into LTR's.

We have a niche market due to the hospital and university which has pros and cons but my properties have continued to perform well for me. 

 Which kind of properties perform best there (size, amenities, etc)?  I have a bit of a soft spot for the area as a UF grad, and I still come back to the area every year or two.

 Feel free to shoot me a text and we can hop on a call.