How to Tell If A Miami Condo Allows Short-Term Rentals
Jun 25, 2018 June 25, 2018
Miami is one of America’s top tourist destinations, which makes it a tempting locale for investors interested in buying a condo specifically for it’s value as a short-term vacation rental investment. With the right property, you can adhere to the specific rental tax rules for Miami rental properties, avoid any hidden costs, and make a return on your investment by renting your condo on Airbnb and similar sites.
When looking at the Miami condo market, there are two sides to the situation. On the one hand, because of the well-developed tourism industry, Miami-Dade County has developed specific laws about the types of properties eligible as vacation rentals, which is a boon for looking for a clear outline of the path ahead.
On the other hand, new condo-buyers and investors need to make sure they get the Miami vacation rental market rules right the first time. The surging trend of tourists using vacation rentals rather than traditional hotels is relatively new, and thus there are some fast-changing areas of the laws. That’s why the right knowledge, and a skilled agent, will allow you to easily navigate the red tape and find a condo that perfectly meets your short-term rental investment goals.
Whether you’re buying a second home in Miami and hope to rent it while you’re away, or looking for a great investment property, here’s what you should know about picking the right condo:
Understand Local Rental Restrictions
The passing of tougher local laws regarding short-term rentals started in Miami Beach. In the early days of Airbnb, tourists loved renting a home-like lodging near the ocean. Unfortunately, this practice disrupted the flow of once purely residential areas. Taking a page from nearby Fort Lauderdale, Miami Beach essentially outlawed short-term vacation rentals in residential areas seemingly overnight (There are specific parts of the beach that are zoned for hotels and short-term vacation properties). Renting a residential property that is not in the right zone for less than six months and a day is now subject to a $20,000 fine (as of March 2017). Within mere months the city had already collected $4 million from property owners and companies allowing illicit rentals.
Miami has the highest short-term rental fines in the entire U.S., so you should take seriously your hunt for the perfect condo. Rather than being scared away from owning a condo designed for short-term rentals, instead realize that the laws around the vacation rental industry are clear enough to make them easy to follow. There is a massive potential market in Miami when you get it right—Miami is one of the top five markets in the U.S. for vacation rentals. So you should absolutely look for the right condo building, just pay close attention to the fine print of not only local condo association bylaws, but the rules governing each area of Miami-Dade County.
Deciphering Condo Association Rules for Investment Rentals
While searching for a Miami condo allowing short-term rentals, here are a few of the scenarios you might encounter:
- Most condo buildings forbid rental terms under six months so stay away from those
- Less often you will run into a condo that doesn’t allow an owner to rent their property at all until they have owned the condo for a year or two.
- Depending on the building and the condo association, the ones that do allow owners to rent out short-term rentals, may have rules restricting leases to 90 day minimums, 30 day minimums, and some even allow daily rentals.
- In places where short-term rentals are allowed, many condo associations limit total number of allowable times you can rent per year, to a number of times. For example, 12 times a year, six times a year or even just two or three times a year.
When picking the right building, carefully assess the amount of time you will personally use the property, as well as the amount of time you hope to rent to find short-term renters—it’s this unique and personal combination of numbers that will dictate which condo buildings best fit your needs.
Know the Rules
Maybe all these rules have you feeling chafed. Maybe you are saying to yourself, “it’s my place; I’ll do what I want!” But not so fast: The punishments for breaking your condo management’s rules on short-term leases can be dire. Infractions average about $100 apiece—that would be per night, in other words—and can pile up quickly. Repeating offenders might find themselves at the receiving end of a lawsuit.
That’s the downside, but you’re looking for a way to actually own a Miami condo that can operate as a short-term rental, and that’s possible! Once you’ve found a condo in the right area of town, the is a clear list of clear list of legalities that condo owners in Miami-Dade County must follow to legally issue a short-term leases. These include:
- Hosts must obtain a certificate of use for a property as a rental.
- Hosts are responsible for guests knowing all applicable rules about occupancy, including noise restrictions and rules regarding pets.
- If the condo in question is within 2,500 feet of a school, the onus falls on the owner/host to perform a thorough search of sex offender registries to make sure that no guests who have records stay on the premises.
- Hosts must be available 24/7 to handle issues arising with the police or any other agents of the law.
- As per the Miami Herald: “The maximum overnight occupancy at any short-term rental should not exceed two people per room, plus two per property for a maximum of 12. During the day, capacity is limited to 16 people.”
- Hosts must maintain a registry with the names of all renters, including guests of those renters.
Learn Which Condo Buildings in Miami Allow Short-Term Rentals
While not an exhaustive list, the following condo buildings allow some sort of short-term rental situation and are a good place to begin your research:
|CONDO NAME||NEIGHBORHOOD||PRICE RANGE||RENTAL POLICY|
|The Grand||Arts & Entertainment District||$270,000 - $2,700,000||Daily|
|Brickell House||Brickell||$220,000 - $7,495,000||30 days (12 times)|
|The Club||Brickell||$189,900 - $455,000||Daily|
|Fortune House||Brickell||$190,000 - $374,500||Daily|
|The Mark||Brickell||$295,000 - $730,000||30 days (12 times)|
|Four Seasons||Brickell||$315,000 - $25,000,000||Daily|
|Icon Brickell Tower 3||Brickell||$315,000 - $800,000||No restrictions|
|SLS Brickell||Brickell||$375,000 - $1,890,000||Daily for the Condo-Hotel units|
|The Plaza on Brickell North||Brickell||$259,000 - $1,089,000||30 days (12 times)|
|The Plaza on Brickell South||Brickell||$280,452 - $1,547,452||30 days (12 times)|
|Opera||Edgewater||$205,000 - $1,199,000||Daily|
|Cite||Edgewater||$265,000 - $560,000||30 days|
|The Crimson||Edgewater||$386,000 - $1,539,000||90 days|
|Paramount Bay||Edgewater||$599,000 - $2,149,000||90 days|
|Oceanfront Plaza||Miami Beach||$300,000 - $1,600,000||90 day minimum|
|Shelbourne||Miami Beach||$380,000 - $1,200,000||Daily|
|The Pavilion||Mid Beach||$92,000 - $630,000||30 days (12 times)|
|5600 Collins||Mid Beach||$285,000 - $850,000||30 days|
|Seacoast 5151||Mid Beach||$375,000 - $1,540,000||30 days (12 times)|
|Fontainebleau||Mid Beach||$645,000 - $7,900,000||Daily|
|Hyde||Midtown||$385,000 - $900,000||30 days|
|Midblock||Midtown||$269,900 - $545,000||1 day|
|Akoya||North Beach||$239,000 - $2,100,000||30 days and Weekly|
|The Collins||North Beach||$340,000 - $1,060,000||30 days|
|Carillon||North Beach||$445,000 - $1,785,000||Daily (condo-hotel)|
|Flamingo||South Beach||$199,000 - $1,250,000||30 days|
|Mondrian||South Beach||$269,000 - $7,400,000||Daily (condo-hotel)|
|Decoplage||South Beach||$285,000 - $2,400,000||30 days|
|Roney Palace||South Beach||$355,000 - $3,495,000||30 days|
|Setai||South Beach||$1,600,000 - $4,850,000||Daily|
|Sole||Sunny Isles||$239,000 - $1,100,000||Daily|
|Trump Tower 1||Sunny Isles||$790,000 - $3,700,000||90 day minimum|
|Trump Tower 2||Sunny Isles||$220,000 - $2,980,000||90 day minimum|
|Trump Tower 3||Sunny Isles||$775,000 - $2,625,000||90 day minimum|
Bottom line: If you’re considering buying a Miami condo for short-term rental investment, it’s critical to connect to an experienced real estate agent. There’s nothing but benefit in this for you, as the stakes are high and you need someone who thoroughly understands the Miami condo market. Since the market changes quickly, and it’s not so easy to determine which condo associations allow short-term rentals and what their specific rules are, get in touch to discuss how we can find the right investment condo for your goals.