Short Term Rental Property Investment? AirBnB Pre-construction Condo Opportunities in Miami
Mar 12, 2020 March 12, 2020
It’s no secret that there’s money to be made in short-term vacation rental investments, particularly in a year-round sunny location with great beaches, awesome nightlife, and legendary shopping, such as Miami. In fact, Airbnb rental hosts in South Florida (Miami-Dade and Broward counties) welcomed some 1.77 million guests in 2019, earning about $378 million in the process, up from 1.47 million guests and $315 million in earnings in 2018. And business is booming as more and more tourists visit South Florida yearly.
Miami a Top Pick for Airbnb Investment
Ironically, while Miami is an ideal location for Airbnb investment property, Airbnb did not exactly encounter a welcome committee in Miami, and particularly in Miami Beach, where the local hotel industry wields lots of power and influence. In fact, the city of Miami Beach and Airbnb have been in litigation for a couple of years now. Property owners have been fined as much as $20,000 for listing their properties on short-term rental sites such as Airbnb.com, booking.com, and others, however in late 2019, the courts ruled that the City’s fine is in conflict with state law and therefore unenforceable. Miami Beach said it would appeal the ruling.
New Airbnb-approved Condo Projects Have City’s “OK”
Luckily, Miami is known for its brilliant and versatile development solutions. In fact, several new Airbnb-approved condo projects are currently under construction or in pre-sales, providing a Airbnb rental investment strategy for interested buyers looking to buy a piece of this market by purchasing one or more short-term rental investment properties.
Here is a list of Miami’s latest condo projects that are approved for short-term vacation rentals, where you can get a great deal by paying pre-construction prices.
229 SW 9th St, Brickell
Smart Brickell is Miami’s first totally Smart development, featuring three towers, and inspired in a smart living philosophy that integrates technology with contemporary design and versatile usage. Designed for young working professionals, condo units start at 538 square feet and prices start in the low $300,000’s.
Only two blocks from Brickell City Centre, Smart Brickell provides plenty of pedestrian-friendly access to Miami’s top dining and shopping options. Properties are approved for short-term rental, incorporating a new Airbnb platform designed to simplify the rental process for investors, and even include custom furniture. At the time of this post, the developer has announced that the first tower is sold out and the second tower is 80% sold. The project is expected to be complete in 2021.
227 NE 2nd Street, Downtown Miami
Yotelpad is a project well under construction that has taken investors by storm, with 100% of its 231 residential units sold, making it one of the fastest selling projects in Miami history (according to them). The project will also include 222 hotel rooms, and is set to open in 2021.
With easy access to Wynwood, the Downtown Arts District, and Brickell, Yotelpad is optimally located. Buyers will have no restrictions on rental of their units, including short-term rentals on a daily, weekly, and monthly basis, through sites such as Airbnb, booking.com, and others. Unit owners may also rent out their units, which range in size from 417 to 708 square feet, on a short-term basis through the building’s hotel rental program. Unit prices range between $319,000 and $439,000.
190 NE 6th Street, Downtown Miami
Located in the heart of rapidly transforming Downtown, condo-hotel Natiivo was originally partnered with Airbnb on certain design elements. Now no longer partnered, the 51-story condo-hotel will still allow its owners to rent out to more than 50 home-sharing platforms, including Airbnb. The mixed-use tower is coming up in the heart of Downtown with 604 units, of which 400 will be condo residences. There will also be three full floors of amenities dedicated to ‘The Work on 8th’ with co-working spaces and a presentation amphitheater, ‘The Splash on 9th’ with a plush 16,000 sq. ft. resort-style pool deck, ‘The Social on 9th’ with another 24,000 sq. ft. of food, beverage, and event space, plus ‘The Fit on 10th’ with Peloton, Pilates, Yoga, spa, the works! Set for a 2022 completion, unit prices start in the mid $300,000s.
Legacy Hotel and Residences
942 NE 1st Ave, Downtown
Legacy is set to add 278 new condos to the grand mix at the 30-acre Miami Worldcenter, which is being compared to New York’s Hudson Yards. Introducing the concept of MicroLUXE, these micro-sized residences ranging from 373 sq. ft. to 949 sq. ft. will be outfitted for maximum comfort and luxury. Owners of these home-sharing friendly units will be able to rent out to the likes of Airbnb, HomeAway, Booking.com and TripAdvisor as daily rentals, besides being able to participate in the hotel’s rental program.
The 50-story tower also stands out for packing a one-of-its-kind ‘sky pool’ hanging off the edge of its 45th floor, America’s largest rooftop glass atrium with seven stories, a 1-acre ninth-floor pool deck, a 50,000 sq. ft. wellness facility with “herbal baristas”, and more. Units will be priced between $300,000 and $500,000, with a completion set for fall 2023.
3900 Biscayne Blvd., Design District
Although just completed, this boutique apartment development converted into a condo building and launched sales this March, offering an amazing opportunity to get developer deals. Owners of its 198 art-inspired residences will be allowed daily rentals.
Just a few blocks from Midtown Miami, in the heart of Design District, the 12-story building integrates art throughout, with avant-garde installations gracing its lobby and lounge areas. The landmark building also features a bay-view swimming pool, resort-style patio deck, poolside bar and lounge, expansive club room, electric car charging stations, ground floor retail, self-service dog wash stations and more, besides being built around custom artwork by Art with DNA.
1700 NE 164th St, North Miami Beach
Off the beaten path in North Miami Beach, Oleta House offers 328 Kosher-friendly condominium units and 8 Penthouse units priced between $240,000 and $1,309,000. Located near Aventura, Sunny Isles, and Bal Harbour, and a short drive from South Beach and Downtown Miami, the building houses efficiently designed residential units combining luxury and comfort at an affordable price. Owners may rent out their units through Airbnb, Booking.com, Vrbo, and other sites, and rental terms may be by the day, week, or month.
Miami is a Haven for Short Term Rental Investment
Not only is it a wise investment to purchase a pre-construction condo that can start generating income for you from the moment construction is completed - the additional perk for these Airbnb-approved condos is that you can also save money by using it to host your own vacations as well as renting it short-term to out-of-town guests, which means you’ll get the absolute profitability from your Airbnb or daily rental investment.
This article was updated March 12, 2020.
Interested in purchasing an Airbnb condo rental opportunity? Want to know more? Call us and we’ll be happy to guide you through all of your options.