Miami highrises/short term rentals

[Dan Mumm]

Hi everyone! I'm new to BP. I'm a full time RE agent in Las Vegas doing a good amount of business. I always have enjoyed south Florida and as such am interested in buying a second (vacation) home there. Particularly, I've always enjoyed highrise condos downtown. However, being familiar with the industry, I know SFRs are generally safer and more profitable due to condos astronomical HOA fees and legal issues. Does anyone have advice on buying a highrise unit I could enjoy but also making the best investment possible? Particularly, my question is about hotel rental pools. Does anyone know how much the charge is for hotel property management as a BALLPARK percentage of gross income? I'm familiar with the 50% rule of thumb for net to gross rental income... What would this percentage be using a hotel rental pool instead of a normal PM? I'm assuming it would be a lot higher due to the extra costs associated with renting it daily and also govt hotel tax. I've tried to get specific numbers from hotels with no success. Short term hotel/Airbnb rentals would be my first choice so that I could stay whenever I wanted, but I know this cuts into profitability significantly. Is this a pipe dream? Or do I really just have to do 6-12mo leases.

[David O.]

The key to finding a good vacation rental property is location, location, location. Also differentiate yourself from all the other vacation rental houses by offering great amenities such as a Jacuzzi for example, proximity the beach, etc.

There are lots of regulations and rules depending on where you are looking for vacation rentals in South Florida. In a lot of areas in Miami and Miami Beach, it is highly specific with regards to zoning, and vary from HOA to HOA. Most associations do not allow short term rentals (daily, weekly, etc) unless it is a condo-hotel program. Some condo hotel programs let you self-manage your proerties, others stipulate a certain number of days that it must be placed in the condo hotel's management program while taking a heft amount of the gross rentals (as much as 50%). Also HOA fees are very high for condo/hotel buildings.

I have had my best success and results with several vacation rental properties (single family homes) I own in Ft. Lauderdale Beach. Great tenants, great properties, and the city is really embracing it as far as regulation.