Are you looking to dive into short-term rentals in Miami? Well, you're in luck!
In this article, we'll give you all the info you need about short-term rentals specifically tailored to hosts in the city that never sleeps. Whether you're looking for advice on navigating the market or embracing Miami's unique hospitality scene, we've got you covered.
Let's begin this exciting adventure into the world of Miami hosting!
According to the Greater Miami Convention and Visitors Bureau, Miami, a popular vacation destination in Florida, the United States, attracted 26.5 million visitors in 2022. Overnight visitation increased by 20%, while day-time visits saw a 12% decline. Florida also saw an additional 300,000 visitors from key cities like Orlando, Tampa, and St. Petersburg, and Palm Beach.
Miami's year-round sunshine attracts a diverse range of guests, including celebrities, art enthusiasts, college students, and families. The city offers luxurious hotels, iconic Art Deco structures, extensive shopping, vibrant art festivals, wine extravaganzas, and sports tourism options like deep-sea fishing, sailing, major league games, boat shows, auto racing, golf, and tennis. Miami's nightlife is a melting pot of culture fueled by its famous Cuban coffee.
In straightforward terms, it's a way to rent vacation rentals without actually owning them.
You rent a property and re-rent it to guests for a short time as a vacation rental. The rental arbitrage allows you to host all kinds of spaces without owning any of them, from a house to a tent cabin to a room. It's low-risk and allows you to scale much faster than the traditional route.
Miami is one of the top twenty cities in 2023 for short-term rentals in the US, according to AirDNA, the leading provider of data and analytics for the short-term rental industry.
According to AirDNA data for Miami, the city enjoys an
Average Occupancy Rate of 32% (December 2023) ADR of $182.4 (December 2023) Average annual revenue of $15.7K (December 2023)
Meanwhile, according to AirDNA, in Miami
Effective rent is $2,299 STR premium is 96.4% Average Nights to cover rent 9.7
State of Florida short term rental rules
The state of Florida defines a short term rental as
“any unit or group of units in a condominium or cooperative or any individually or collectively owned single-family, two-family, or four-family house or dwelling unit that is also a transient public lodging establishment but that is not a timeshare project.”
Register with the Florida Department of Revenue to collect, report, and pay sales and surtax.
Once you have registered your rented property as a vacation rental, you are responsible for ensuring the property meets several health and safety requirements to keep your vacation rental license. As the licensed agent, you will be held accountable for all violations cited during an inspection if it occurs while the property is listed under you.
Miami-Dade County defines a short-term rental as a,
“vacation rental”, or “any dwelling unit or group of units in a condominium, cooperative or apartment building that is rented in whole or in part to a transient occupant for a period of less than 30 days”.
Vacation rentals do not include a hotel, motel or bed-and-breakfast.
The County stipulates a maximum overnight occupancy of two persons per bedroom plus two additional persons per property, up to twelve persons, excluding children under three years of age.
Suppose the property listed as a short-term vacation rental is part of a condominium or homeowners association. In that case, the County requires written authorization from the relevant association for the property to be operated as a short-term vacation rental.
Business owners are required to obtain a Certificate of Use to ensure their operations are legal, safe, and in accordance with the vision set forth by the City.
Determine if your property aligns with short-term rental regulations through the City of Miami Zoning Application and the guidelines of the City of Miami Beach.
Hosts are obligated to maintain a register, including guest names and stay dates, which is accessible for inspection by Miami-Dade County in compliance with zoning requirements.
Short-term Vacation rentals with swimming pools must have at least one safety feature (pool safety barrier, pool safety cover, pool alarm or door latch/alarm) if they allow children under the age of six. This does not apply if it is a community swimming pool.
Property managers are also required to obtain confirmation of a nationwide search from the County Police Department or other law enforcement agency that prospective occupants are not registered sexual offenders or sexual predators as a result of a conviction of a sexual offence as defined in Section 21-280.
The city of Miami considers a short term rental as lodging use for less than 30 days.
Lodging is allowed in specific zones with certain conditions:
The City of Miami requires short term vacation rental operators to obtain a Certificate of Use.
Obtain a Business Tax Receipt (BTR) from the city where your property is located, whether it's in Miami or Miami Beach, to comply with local taxation regulations.
The city of Miami also permits Apartment Hotels and Condo Hotels, which are defined differently to lodging and residential use and are permitted only in specific transect zones. Both require a Certificate of Use and a Business Tax Receipt.
If a building or unit is found to be operating a short-term rental illegally, the tenants/visitors will be evicted and fines assessed against the owner.
Aside from that, strict adherence to local, state, and federal laws is essential.
You can run a profitable short-term vacation rental business with minimal risk by engaging in rental arbitrage. In addition to being a popular holiday destination, Miami is a great spot for rental arbitrage, offering lots of investment opportunities.
Updated Dec 20, 2023