Buying in Florida Workshop - Day 1: Short Term Rentals
The following excerpt is the first installment of our free, week-long workshop we will be conducting here on our blog. Be sure to check the archives often for new updates and topics!
In theory, the advantages or disadvantages financially of short-term rentals against long-term rentals are very clear - they are decided on whether or not a property will accumulate more income at a lower cost over a year as a long term rental than with holiday-making families renting for one or two weeks at a time throughout most of the year.
In Florida, zoning laws can be the deciding factor as to which option you will choose. These laws determine whether there is a minimum time a property can be rented out for - it may be 12 times a year - 3 times a year - monthly, fortnightly or no time limits or restrictions.
These zoning limits and restrictions will of course vary between counties, some may have fewer restrictions and allow short-term rentals while others will not allow rentals for less than a month at a time. To complicate matters even further, individual developments may have their own regulations which can sometimes be even harsher than the counties. So, be very aware that just because a county has not restrictions or limits, it doesn't necessarily mean that short-term rentals are allowed.
Here are a few examples of properties that are zoned for short-term rental:
Although you can use a management company to take care of everything including bookings, the best way to generate income is to advertise the property yourself. Short-term rentals can be a good choice if you wish to make use of the property yourself during the year and also want some rental income to cover costs. Money generated this way is free of commission. Also, don’t buy in an area solely because it allows short-term rentals. One day you may choose to sell the property and therefore the desirability of the area for resale is a highly critical factor.
In theory, the advantages or disadvantages financially of short-term rentals against long-term rentals are very clear - they are decided on whether or not a property will accumulate more income at a lower cost over a year as a long term rental than with holiday-making families renting for one or two weeks at a time throughout most of the year.
In Florida, zoning laws can be the deciding factor as to which option you will choose. These laws determine whether there is a minimum time a property can be rented out for - it may be 12 times a year - 3 times a year - monthly, fortnightly or no time limits or restrictions.
These zoning limits and restrictions will of course vary between counties, some may have fewer restrictions and allow short-term rentals while others will not allow rentals for less than a month at a time. To complicate matters even further, individual developments may have their own regulations which can sometimes be even harsher than the counties. So, be very aware that just because a county has not restrictions or limits, it doesn't necessarily mean that short-term rentals are allowed.
Here are a few examples of properties that are zoned for short-term rental:
Although you can use a management company to take care of everything including bookings, the best way to generate income is to advertise the property yourself. Short-term rentals can be a good choice if you wish to make use of the property yourself during the year and also want some rental income to cover costs. Money generated this way is free of commission. Also, don’t buy in an area solely because it allows short-term rentals. One day you may choose to sell the property and therefore the desirability of the area for resale is a highly critical factor.
posted by Totally Florida Staff at
11:33 AM
<< Home