All Forum Posts by: Calvin Pringles

Hello fellow BiggerPockets members,

I wanted to share important information and statistics about STR restrictions in incorporated St. Petersburg, FL, for those considering investing in this market.

St. Petersburg currently allows a maximum of four leases under 30 days within a calendar year for properties in incorporated areas. Despite these restrictions, many investors still operate traditional STRs, like Airbnb or VRBO, and find them profitable. However, it's crucial to note that by doing so, they are not complying with city regulations.

- According to Furnished Finder, the average rent for a one-bedroom furnished rental in St. Petersburg is $2,210 per month. 

- AirDNA data shows an occupancy rate of around 60% for STRs, with an average daily rate (ADR) of $137.

Given the limitations on STRs, you might want to explore MTR opportunities (30 days or more) as an alternative investment strategy. This approach can offer a balance between flexibility and stability, catering to the huge growing demand for temporary housing in St. Petersburg.

Always consult with a real estate professional ( That's me :)! ), attorney, or local expert to ensure compliance with guidelines and make the best investment decisions. Let's help each other navigate the ever-changing world of real estate investing!

Quote from @Blake Novotney:

What sort of restrictions does St Pete have for STR? I left in the beginning of 2021, but have been looking for another place there to use as a STR when I am not using it.

St. Pete has implemented some restrictions on short-term rentals (STRs). Currently, the city allows a maximum of 4 leases under 30 days within a calendar year for properties in incorporated St. Pete. This regulation can significantly impact the profitability of using your property as a traditional short-term rental.

Given these restrictions, I would recommend considering the mid-term rental strategy to maximize profits. By focusing on rentals with a duration of 30 days or more, you can bypass the STR restrictions and still cater to tenants who require temporary housing solutions.

As always, it's essential to stay up-to-date with local regulations.  I hope this information helps, and I wish you the best of luck in your real estate investing journey in St. Pete! Please DM if you would like to ask any further questions and I would be happy to assist.

Quote from @Josh Green:

@Calvin Pringles

Mid-Term rentals definitely are an untapped market basically all over Pinellas county and even Hillsborough county. There's definitely a cost/benefit reason to this when comparing to a short term rental. For example, the gap in revenue produced is much smaller the smaller the subject unit is. A studio, 1bd, and 2bd unit for example could present a strong case to do a mid term rental rather than a short term.

On the other hand, a house typically will make more as a STR. In both cases, furnishing and utilities paid by owner are expected and if you're hiring a PM, it makes more sense to maximize revenue.

Now, some of my clients may be house hacking or self managing. This is when it could be worth a mid term route vs short term route for the time savings. I personally have a house hack that I've been doing this in and I do mixed occupancy of short and mid term to maximize the revenue + occupancy.

I think this is why there aren't a ton of midterm rentals out there compared to short term because in many cases the short term benefits outweigh the mid term.

You make some excellent points about the mid-term rental market in Pinellas and Hillsborough counties. I agree that there can be a strong case for choosing mid-term rentals over short-term rentals, especially for smaller units like studios, 1-bedroom, and 2-bedroom homes. The relatively smaller revenue gap, combined with the potential for more stable occupancy, can make it an attractive option.

Your observation about houses typically generating more revenue as STR is also spot-on. For investors or property managers who are focused on maximizing revenue, STR often provide a higher return on investment. However, as you mentioned, the MTR strategy can be particularly beneficial for house hackers or self-managers who value time savings and a more predictable income stream and is also more in compliance with many of the local city guidelines.

The mixed occupancy approach you've implemented in your house hack is the same thing that I do with my MTR to fill vacancies, in between tenants.

Thanks for sharing your insights and experiences with the community. It's always helpful to hear different perspectives and learn from others' successes.

Quote from @Emmanuel Orange:

Calvin, would love to connect with you. i've been trying to expand out in the St pete  area.

Thanks for commenting! I'm glad to hear that you're looking to expand in the St. Pete area. Feel free to send me a private message and we can set up a time to chat.

In the meantime, if you have any specific questions or topics you'd like to discuss, feel free to leave a comment here or send me a message. I look forward to connecting with you and talking with you about St. Pete!

Hey BiggerPockets community!

I've been diving into the mid-term rental market in St. Petersburg, FL, and wanted to share some insights on the benefits of this strategy. For those unfamiliar, mid-term rentals typically involve leases ranging from one to six months, bridging the gap between short-term vacation rentals and traditional long-term rentals.

Benefits of Mid-Term Rentals in St. Petersburg, FL:

1. Higher Rental Income: Mid-term rentals often generate higher income compared to traditional long-term rentals. According to data from Airdna.co, the average monthly rent for a mid-term rental in St. Petersburg is $2,400, whereas traditional long-term rentals average at $1,500.
2. Lower Vacancy Rates: St. Petersburg has a growing population of remote workers, students, and seasonal visitors who seek flexible housing options. With a diverse tenant pool, mid-term rentals experience lower vacancy rates, which means more consistent cash flow.
3. Less Wear and Tear: Unlike short-term rentals, mid-term tenants typically stay for longer periods, resulting in less frequent turnovers and reduced wear and tear on the property. This can lead to lower maintenance costs over time.
4. Favorable Local Regulations: St. Petersburg has implemented strict regulations on short-term rentals, but mid-term rentals remain relatively unrestricted. This allows property owners to take advantage of the benefits without facing the same regulatory hurdles.
5. Diversified Investment Portfolio: Incorporating mid-term rentals into your investment strategy can help diversify your real estate portfolio, reducing risks associated with market fluctuations or changes in local regulations.

Data to Support Mid-Term Rental Strategy:

• According to the St. Petersburg Area Economic Development Corporation, the city has experienced a 20% increase in remote workers since 2020, creating a demand for flexible housing options.
• Visit St. Petersburg/Clearwater reports a 35% increase in visitors during peak season compared to the previous year, further driving demand for mid-term rentals.
• A study by Florida Realtors Research Department indicates a 5.6% increase in rental rates for mid-term rentals compared to the same period last year.

If you're considering a mid-term rental strategy in St. Petersburg, FL, these benefits and data-backed insights should help you make an informed decision. I'd love to hear your thoughts and experiences with mid-term rentals in this market or any other insights you may have. Let's discuss!

Happy investing!

Also interested to know if this meetup is still meeting!