What's the deal with Miami beach?

[Paige Feddersohn]

Hello,

I am interested in purchasing a short term rental vacation home. I am looking around at Miami. I am looking at so many beach front properties that are on the market for $400-500k. The HOA is usually around $700 a month which is on the higher side but these properties are sitting on the market for 6 months - 2 years! I don't understand why so many are sitting? Wouldn't they have great short term rental potential? The specific home I am looking at is 6039 Collins Ave APT 615,Miami Beach, FL 33140 but there are many others with the same situation. Thank you for your help!

[Marty True]

Hi @Paige Feddersohn welcome to BP! So... Miami/Miami Beach is sort of a different world in REI. The market here is filled with so much cash, from both locals and foreigners from LATAM and other places. In regards to your specific question of "Wouldn't they have great short term rental potential?" - Miami Beach is very strict on short-term rentals and issues the highest fines in the country ($20,000) if you are caught operating a short-term rental without all the proper licensing, certificates, etc. And only certain areas of Miami Beach can be approved for short-term.

Here's where you can get more info: http://www.miamibeachfl.gov/business/vacation-shor...

Many people are operating short-term rentals in MB and many of them are doing it illegally. Good luck in your search!