Do Not Buy Short Term Rentals before reading this.
Things to consider before buying Short Term Rentals in Miami Area?
People from outside the US may be inclined to buy apartments and thinking about renting them through AirBnb. It may be a good idea but there are several things you need to consider before buying a place to offer at AirBNB or Homeaway. If you overlook the following items you may be on the hook for significant fines from the cities or the state along with lawsuits or penalties and relocation costs from major websites for cancelling bookings already confirmed.
- Is there a homeowner’s association regulating Short term rentals? Most of the buildings in the Miami and Fort Lauderdale area are condominiums, and they are pretty restrictive regarding allowing AirBNB style offerings. Ask for the person responsible for the condo association and get the condo documents.
- Check city Zoning Restrictions: More every day, cities are trying to make money on the increasing vacation rentals offerings. They may require a license or not allowing short term rentals at all in certain areas deemed to be residential. Many of the cities require you to be present onsite within an hour if there is an emergency and a police officer contacts you.
- Are you available for property repairs: It is nice to collect rent from vacationers but things can get pretty nasty if the air conditioner stops working in August with more than 110 degrees outside and 90% humidity. Another troubling but unfortunately common incident is flooding. Leaky toilets from upper units or overflowing air conditioner drains.