The South Florida vacation rental market has experienced it’s most profitable year ever in 2021 and it’s only June. Here’s an interesting statistic,Florida tourism is down 14% from January 1st through March 31st compared to the same months in 2020 but South Florida vacation rentals rose 19% during the same period.The number of people that are traveling to Florida is down but the people that are traveling are staying longer so they are renting vacation rentals instead of hotels.Now that Covid is winding down more tourists will return and vacation rentals will soar even more.
1. Enjoy having a Vacation Home
Who doesn’t want to have a South Florida vacation home to go to with their friends and family? The number one scenario that I encounter with clients is how to afford a vacation home. The thought of buying a South Florida vacation home is both exciting and daunting. The idea of having a second home in Florida seems unaffordable but the easiest way to afford it is to Airbnb it when you’re not using it. If you buy your South Florida Vacation rental in a highly sought after area such as Fort Lauderdale or Delray Beach it will not only pay for itself but also be passive income.
2. Passive Income
A common term when referring rental property investing is “mailbox money” A profitable Florida Vacation Rental will not only pay for itself but it will create passive income. This is why we often see people invest in rentals and eventually have multiple vacation rentals because when done correctly it really is easy money
3. The South Florida Real Estate Market is Strong
Investing in any type of real estate is not necessarily a sure thing. There is always some level of risk involved with any investment but doing your homework upfront can dramatically reduce that risk.
One of the key factors that savvy real estate investors take into consideration before they choose where to invest is the strength of the local real estate market and economy. Over 329,000 people moved to Florida from April 2020 to April 2021 which is driving up Florida home values. Investing in a Florida Airbnb is not just a profitable business model but the vacation rentals value will rise while it makes money for you on Airbnb.
So it goes without saying that one of the primary reasons that seasoned investors are targeting South Florida is that the economy supports the short-term rental market.
In fact, the National Association of Home Builders, Mashvisor, and Bigger Pockets are all declaring South Florida one of the most profitable markets for vacation rentals. So rest assured you’re very wise to put your money in South Florida real estate!
4. You Can Write Off The Expenses On Your Taxes
One of the best ways to get the best bang for your buck when you invest in vacation rentals is that you get to enjoy tremendous tax benefits.
Ideally, you would treat your South Florida Airbnb vacation rentals like a business, whether you have one or one hundred of them. If you do, you will be able to deduct a long list of expenses associated with owning the property including:
• The cost of hiring a property management company
• Costs associated with marketing the property
• Repairs and renovations
• Fees associated with listing the property on Airbnb
• Your mortgage interest
• Traveling expenses associated with managing the property
• Cleaning fees
These are some tax benefits of investing in Florida vacation rental properties but definitely consult an accountant to discover all the tax benefits
5. You will eventually have a Retirement Home in Florida
When the income from your Florida Investment property is applied towards your mortgage you will be building equity and eventually have a free and clear retirement home in Florida.
6. Financing is easier than ever!
Many people are surprised to learn that financing a rental property in Florida, financing can actually be easier to get than financing for your personal home. Banks and lenders recognize the profitability of vacation rental investing so they have come up with specific programs for the sole purpose of vacation rental investing. There are also lender partners that we work with that ONLY finance vacation rentals and full time rentals
7. Management companies can make it stress free
Depending on what type of Florida vacation rental you invest in, a good management company can make it a stress free money machine. I can definitely recommend tried and true management vacation rental management companies to suit the needs of your Florida vacation rental. Vacation rental management companies here in South Florida can help to list your vacation rental on platforms such as Florida Airbnb, screen potential renters and be sure that the home is properly cared for and maintained.
8. The Airbnb Platform Eliminates Guesswork
One of the biggest perks about using the Airbnb platform is that eliminates a lot of expensive guesswork and growing pains as an investor and property manager. It is important to their success that they make the process easy on you as a host and keep you happy.
So they are always designing new ways to make it easier than ever for you to list, market, rent, and profit as a Florida vacation rental investor.