Is this legal in South Florida?

Question

An investor here on BP messaged me about his business model and it piqued my interest about the legalities.

He's renting places and then turning them into Airbnb to cover the monthly rent and then pocketing the profits leftover.

So essentially he's getting cash flow without owning the properties/units.  Is this legal to do in South Florida?

I don't like the strategy personally as you lose out on the equity, appreciation and tax benefits of REI but I'm just curious.

John Thedford · Answer

I too have had other BP members approach me about renting my properties and then subletting them for Airbnb which I am personally not interested in.

Brian Garrett · Answer

Good to know thanks Jeff!

Jeff Lezark · Answer

Have had several investors look at this but passed. Reason why is zoning. The property will essentially become a 'hotel' and if it isn't located in the proper zone for this the owner will be fined and forced to cease the operation. Most recently happened in a residential neighborhood in Delray Beach when neighbors complained to the city about the number of overnight 'guests' of the owner.

Brian Garrett · Answer

That's what I figured. Thanks Wayne.

Brian Garrett · Answer

Yeah the lease is more of what I was referring to. I didn't think it was typically allowed.

Kyle J. · Answer

It's essentially just subletting, which the law doesn't typically prohibit but a lease might (and often does).  So the first place you'd need to check to determine if it's allowed or not is the lease agreement with the property owner.