AIREIT is real estate working for you.
Buy, manage and finance vacation properties
Income produced through real estate investment
We provide you access to you very own 'Investor Space', where you can see all of your properties information. You can even upload your history, tax info...and any documents related to your investment for easier access, no matter where you are.
We provide an expert market analysis for each property we managed to maximize your return on investment
We provide the best experience to our guests. We have a solid reputation rated 5 stars on each of the criteria evaluated by our guests.
Our short-term rental Manager will optimize your Income
Let's build a multi-property portfolio
Our solution to get a higher value out of it.
The Capital of Latin America
Airbnb’s CF is projected to reach $3.5 bn
You can use the property whenever you want and receive an income when you are away!
Our company is a next generation vacation rental management company. Maximizing profitability and offering consulting services to clients who are looking to identify additional investment properties in Miami.
Our full range of services help take the stress out of vacation home property management! We are passionate about providing the best vacation rental experience for both our guests as well as our property owners. Just need vacation rental cleaning services or maintenance work? No problem! With our à la carte services, you can customize the perfect offerings for your vacation rental needs! We strive to make your experience and your guests’ experience one of comfort, convenience and professionalism.
Unique investment opportunities.
Real estate has long been recognized as a valuable addition to the traditional stock and bond portfolio model. Yet most investors struggle to efficiently access the asset class, where finding quality investment opportunities requires relationships and local expertise. That’s where we come in
Invest hassle-free in a highly curated set of Vacation properties across Miami and Miami Beach, backed by transparent reporting and extensive experience to oversee your investment.
Invest $10,000 minimum per deal, with a commitment for 5 deals or more, a Guaranteed allocation : we build and diversify your portfolio
List your property with us and keep on renting it short-term
When you want to sell, the appraisal is king. We set up a program to increase the value of your property. We ll show to buyers the best return on investment they can make out of your property.
If your condo needs a little investment to bring it up to the next level, you do not have to disburse a penny. We will advance the money needed and recover it from future rentals or sale, charging you no interest or hidden fees. This proves we are confident in what we do and the value we offer.
AIREIT-owned real estate, located in Florida state, is an important part of the country economy and local communities. Through the properties it owns, finances and operates, AIREIT is real estate working for you.
AIREIT, a real estate investment trust ('REIT') is a company that owns, operates or finances income-producing real estate. AIREIT provides all investors the chance to own valuable real estate, presents the opportunity to access dividend-based income and total returns. AIREIT allows anyone to invest in portfolios of real estate assets the same way they invest in other industries – through the purchase of individual company stock. The stockholders of AIREIT earn a share of the income produced through real estate investment – without actually having to go out and buy, manage or finance property. Approximately 87 millions Americans invest in REIT stocks through their 401(k) and other investment funds.
Short-term rental properties management in Florida.
AIREIT operates along a straightforward and easily understandable business model: By Short-term leasing space and collecting rent on its real estate, the company generates income which is then paid out to shareholders in the form of dividends. By law, AIREIT must pay out at least 90 % of its taxable income to shareholders and most of the time pays out 100%. In turn, shareholders pay the income taxes on those dividends.
Working with specialists
Direct real estate investing may be a better choice if you want cash flow, tax breaks to offset that income, and great potential for appreciation. It's also good if you want more control over your investments and like a boots-on-the-ground approach. AIREIT makes sense for investors who don't want to operate and manage real estate, as well as for those who don't have the money or can't get the financing to buy real estate. AIREIT is also a good way for beginner real estate investors to gain some experience with the ST rentals income.
Working with specialists
Airbnb began operating in 2008 and has quickly grown to become a major force in the hospitality industry. The company’s revenues reportedly grew more than 80% last year and. Airbnb’s cash flow is projected to reach $3.5 billion by 2020, which would make it a stronger cash flow generator than two-thirds of Fortune 500 companies.
Airbnb's success demonstrates the strength of the short-term rental market, and the enormous investment opportunity Airbnb rental properties represent.
Here is our comprehensive Miami real estate market report 2019 with everything you need to know before investing in AIREIT
Miami is a true cosmopolitan city and one of the best places to invest in real estate in the US.
With a population of more than 470,000 residents, Miami is the 6th most densely populated major city in the US housing market (after New York City, San Francisco, Boston, Chicago, and Philadelphia). The Miami metro area’s population reaches 6.1 million people, which makes it the 2nd largest metropolitan area in Southeastern US and the 7th most populous one nationwide. The city is the economic, financial, and cultural center of South Florida.
Miami has a very diverse population and is the largest city with a Cuban-American plurality. It comes as no surprise that the city is named the Capital of Latin America.
The Miami metropolitan area economy is the most sizeable one in the entire State of Florida and the 12th largest in all of the US. Miami is a regional, national, and international leader in trade, commerce, finance, media, entertainment, arts, and culture. These are also the most important industries in the city together with tourism. Miami is home to numerous major national and international companies and corporations. As a result, the ATKearney 2019 Global Cities Report ranked Miami as the 7th US city and the 31st global city in terms of business activity, culture, human capital, political engagement, and information exchange. Moreover, in 2018 the Globalization and World Cities (GaWC) Research Network ranked Miami as an Alpha level global city together with Chicago and Los Angeles in the US housing market.
Banking and finance is a major economic sector in Miami. The city has one of the highest concentrations of international banks in the US. Another important industry is health. Miami is a hub for hospitals, clinics, and biotechnology and medical research institutions of national importance. The diverse economy with numerous prospering sectors is a positive indicator for real estate investors considering buying traditional rental properties. A well-diversified economy means that a slowdown in any sector would not cause a major hit on rental demand and tenants’ ability to pay rent in full and on time.
According to data from UBS Group AG, Miami is the 3rd richest city globally in terms of purchasing power (after Los Angeles in the US) and the 8th in terms of earning levels (after Los Angeles and New York in the US). This means that out of state and foreign real estate investors need to have access to solid financing options in order to compete with local homebuyers and property investors.
Miami is one of the most popular tourist destinations in all of the US, second only to New York City. In 2018 a total of 23 million visitors came to Miami, including both leisure tourists and business travelers. This included over 16.5 million overnight stays. Miami is among the top 20 cities globally for international visitor spending. Some of the most important tourist destinations in the Miami real estate market include South Beach, Downtown Miami, Lincoln Road, Bayside Marketplace, the Miami Seaquarium, the Miami Zoo, and others. Miami is one of the most famous cities worldwide for beaches, night clubs, and shopping opportunities. PortMiami is the busiest cruise port globally in terms of both passenger traffic and cruise lines. This status gave Miami the nickname the Cruise Capital of the World. All this means that Airbnb Miami is one of the most prosperous short term rental businesses around the globe.
The Miami real estate market is characterized by the 3rd tallest skyline in the US with over 300 skyscrapers, following only New York and Chicago. The city is home to the seven tallest high-rises in the Florida real estate market, with the highest one being Panorama Tower.
Another important feature of the Miami housing market which those who are interested in investing in traditional rental properties should consider is the very high proportion of renters vs. homeowners in the city. As many as 71% of the population rents rather than owns a home, which is one of the highest rates in the entire US real estate market. The 334,000 renters in Miami secure a high rental demand for long term investment properties.
The Miami housing market has been and continues to be one of the best places to invest in real estate, not only in the US but also around the globe. The prestigious PwC’s Emerging Trends in Real Estate: United States and Canada 2020 report ranks Miami as #21 among 79 featured US markets for overall real estate perspectives. According to the publication, the most important characteristics of the local real estate market in 2020 will be the strong investor demand and the major opportunities for real estate development and redevelopment projects.
One of the most important drivers of growth in the Miami commercial and residential real estate market is the above-average population growth. Another defining factor is Miami’s status as the de facto Capital of Latin America. However, tighter immigration policies are expected to affect the population, the labor market, and the real estate market of Miami. A key positive indicator for foreign and domestic real estate investors is Miami’s global connection through the airport and the seaport. Moreover, the city has already established its name and reputation among international investors as a top brand.
Importantly for residential real estate investors, Miami is a buyer’s market, unlike the vast majority of the US housing market but similar to the Los Angeles real estate market. The main indicators of this status of the Miami housing market in 2019 are the relatively stable Miami house prices over the past few months and the substantial inventory of Miami, Florida homes for sale. Another indicative measure is the high number of days on market for Miami real estate listings. The fact that the city is a not a hot seller’s market at the moment is good news for beginner real estate investors who should avoid engaging in bidding wars with homebuyers and other more experienced property investors. With 4,697 houses for sale in Miami, real estate investors have many options to choose from in order to find a rental property with high return on investment which matches all their search criteria. As long as they use the must-have real estate investment tools for 2020, even newbies will be able to make profitable real estate investments in the Miami housing market in the coming year.
The Miami, Florida real estate prices is an important factor which investors need to consider before deciding whether to invest in rental properties in Miami or not. According to Miami real estate market analysis, based on big data and predictive analytics, the median property value here exceeds the national level of $231,000 by 235%. This makes Miami significantly less affordable for out of state real estate investors than other top locations for buying investment properties such as Dallas, Philadelphia and even Chicago. However, Miami homes for sale are still listed for a fraction of the median home values of hot markets like New York, San Diego, Boston, Los Angeles, and San Diego. With a Property Finder, investors can locate profitable Miami investment properties within their budget.
Despite some slowdown in recent months, the Miami real estate market has enjoyed outstanding natural appreciation. Miami home values have increased by 177% since the beginning of 2000, which is one of the highest levels of real estate appreciation in the entire US housing market. This makes Miami one of the best locations for investing in buy and hold real estate due to the high long term rate of return. In 2020, nevertheless, Miami, Florida real estate price trends are expected to continue their downward path. From the point of view of investors, this means that affordability will improve as property prices continue going up in other markets.
All in all, investing in Miami rental properties was, is, and will continue to be one of the best real estate investment strategies.
Condos are the dominant property type among Miami houses for sale with a market share of 59%. This sets the Miami real estate market apart from the other best places to invest in real estate in the US, in the majority of which single family homes constitute the most popular type of properties. In Miami this is the 2nd most numerous type of real estate listings currently on the market, with 33% of the inventory. Townhouses and multi family homes for sale in Miami comprise 4% and 3% of listings, respectively.
Single family homes for sale in Miami are potentially the best investment properties in the local housing market. To begin with, they sell for about 4% below the city level median property price. Meanwhile, the Miami Airbnb income which they generate exceeds significantly the city average, and the rental income for long term investment properties is comparable. The return on investment which this property type offers is much higher than the city average for both rental strategies. Actually, single family homes generate the best traditional cap rate among all property types, while the Airbnb cap rate is second after this for townhouses. What real estate investors should keep in mind is that the Miami real estate market for single family homes is currently a seller’s market. In such a large housing market as Miami, it is expected that the markets for different property types face different conditions. Nevertheless, with 1,532 single family homes for sale in Miami, Florida, property investors have numerous listings to choose from.
Condos for sale in Miami are another rental property type which many investors will consider optimal. Miami real estate market analysis shows that one of the most important benefits of investing in a condo is the large number of available Miami homes for sale. There are as many as 2,751 condo listings in the Miami housing market which allow even beginner investors to find a profitable investment property which meets their criteria and expectations for rate of return on a rental property. Actually the condo market in Miami is a buyer’s market. However, real estate investors on a tight budget should know that condos sell for 3% more than an average Miami investment property for sale. They are also the most expensive property type per square foot. This is a usual trend among condos in the majority of real estate markets as they come with more amenities and extras than other property types. If you are considering buying a condo in Miami or any other market, you should check out the HOA rules and regulations as many condo complexes limit the number and type of rentals which can be operated there.
Townhouses for sale in Miami offer a profitable real estate investing opportunity for property buyers with little money. Townhouses in Miami, Florida sell for 30% less than the median home value. The cap rate which they generate as traditional rentals exceeds the city level. As Airbnb Miami rentals, townhouses are the most money-making property type as they offer the highest rate of return. This is the combined effect of a low property price and high Airbnb income. Currently Miami real estate investors have 182 properties for sale to find the one that matches their budget and other search criteria.
Multi family homes for sale in Miami offer investors the opportunity to diversify their real estate investment portfolio with the purchase of a single property. Managing multiple rental units within a multi family home is much easier and more efficient than managing several rental properties in different housing markets. Moreover, hiring a professional property manager makes more financial sense with multi family investing than when investing in a single rental unit. This makes this property type a lucrative passive real estate investment strategy which can be practiced even out of state. Furthermore, financing the purchase of a multi family home to rent out is easier than the purchase of a single family home or a townhouse as having 100% vacancy and zero rental income is less of a risk. Overall, as traditional rentals, multi family homes in Miami are the second most profitable property type after single family homes. While there isn’t enough Airbnb data to calculate the Airbnb cash on cash return and cap rate for this rental property type alone, individual Airbnb Miami multi family properties provide good income and return on investment. Investors in the Miami, FL real estate market have 160 multi family listings to choose from.
Savvy real estate investors should consider buying foreclosed homes for sale in Miami. This is the best source of cheap houses for sale in Miami as Miami foreclosures get listed for 42% less than the rest of homes for sale in the Miami housing market. This low sale price gives investors the opportunity to push up their return on investment from scratch as the traditional and Airbnb rental income which foreclosures generate is comparable to the average city level. Moreover, after some minimum fixes and repairs, most foreclosed homes provide high forced appreciation. At the moment investors can buy one of the 160 Miami, Florida real estate foreclosures for sale to enjoy profitable and affordable rental properties in the Capital of Latin America.
Safety in the Miami Real Estate Market
Miami is safer than 6% of US cities only, with a high overall crime rate of 48 crimes per 1,000 residents.
Access in the Miami Real Estate Market
Miami is the 4th most walkable large city in the US housing market. It has good public transportation and is somewhat bikeable. Generally, Miami is a very walkable city as most errands can be run on foot.
Affordability in the Miami Real Estate Market
The Miami cost of living index excluding rent is 20% below the New York City level. Rent is 44% cheaper than in NYC. Overall, the average cost of living plus rent index is 31% below the New-York index.
Miami Property Taxes
Florida real estate taxes are paid on the assessed value of the property, not the appraised value. The difference between the two is that the assessed value takes into account exemptions such as the Save Our Homes assessment limitation. Nevertheless, a Miami investment property still needs to get an official real estate appraisal which is usually done by the county property appraiser through a mass appraisal. Importantly, the Miami-Dade County offers discounts on Miami, Florida real estate tax payments made early. This gives real estate investors an opportunity to cut down on their recurring expenses and push up the rate of return on a rental property.
Investing in a traditional rental property in the Miami housing market is one of the best ways to make money in real estate in 2019. The Miami rental market for long term investment properties is driven by the high demand. The Capital of Latin America enjoys one of the highest rates of renters (71%) vs. homeowners (29%) nationwide, which means that there are over 334,000 potential tenants here. Moreover, Miami benefits from a strong population growth, which means that the number of renters is set to increase in the coming years. Combined with the landlord friendly Florida real estate environment, this is a key positive indicator for local and out of state real estate investors in search of lucrative long term rental properties in the US housing market.
Another factor which future Miami landlords should consider is the price to rent ratio as an alternative measure of traditional rental demand. The high price to rent ratio in the Miami real estate market (20) means that residents are better off renting than buying a home, from a purely financial point of view. This is proven by the high proportion of renters.
Real estate investors, especially beginners, should always consider the median property prices before deciding whether they should invest in a rental property in a certain location or not. First of all, the sale price of an investment property determines the optimal financing method and whether the buyer can actually afford this property. Second, the current market value – or the purchase price – is one of the main factors in calculating return on investment in real estate. The cheaper the rental property, the higher the rate of return in terms of both cap rate and cash on cash return, all else equal. While a median Miami real estate property costs more than double a median US property, the Miami housing market is still significantly cheaper than other best places to invest in real estate. With 4,697 Miami, Florida real estate listings, investors can find a lucrative rental property which fits their budget and other criteria.
Most importantly, the average traditional capitalization rate in the Miami real estate market amounts to 1.0%. As experienced real estate investors know, this is much below the recommended good cap rate level of 8-12%. However, when deciding whether buying rental properties in Miami is the right choice for you, you should keep in mind that this is only the city-level average cap rate. The best Miami neighborhoods for real estate investing as well as individual Miami real estate properties for sale offer significantly higher return on investment. A heatmap analysis of the Miami housing market can point investors to the most affordable areas for investing in rental properties in Miami.
According to Miami real estate data, the most profitable property type for traditional rentals here is single family homes. This is good news for all those considering buying an investment property in Miami as single family homes sell for less than the median Miami property price while generating above-average rate of return in terms of both cap rate and cash on cash return. Moreover, generally speaking, single family home rentals attract young professionals and small families who are good tenants. They usually pay rent on time, stay for long, and cause only minimal wear and tear. The optimal number of bedrooms for investing in a long term rental in Miami is 4. Those investors who’d like to boost their return right away should have a look at the Miami, Florida foreclosures for sale as buying cheap real estate is one of the best ways to generate additional profit.
One of the best Miami real estate news for investors favoring traditional rentals is the fact that the Florida real estate market is landlord friendly. Landlord-tenant relations in Miami are regulated by the Florida Landlord-Tenant Laws.
Most importantly, in the Florida housing market there are no laws on rent control. Moreover, there are no limitations on security deposits which have to be returned within 15 days after a tenant moves out of the rental property. Landlords can deduct the required amount from the security deposit to fix and repair any damage to their investment property which goes beyond normal wear and tear.
Miami, Florida landlords are also protected against tenants not paying rent as the Florida real estate law does not impose restrictions on late fees. If things go really bad with your renter and you need to resort to an eviction, your rights are well protected as a landlord and a real estate investor. Once your tenant has been late in paying rent, you can hand him/her a notice to pay within 3 days or leave the property. If, on the other hand, tenants have caused intentional damage to your rental or have repeatedly violated the lease agreement, you can give them an Unconditional Quit Notice to leave the rental property within 7 days.
These Florida real estate laws and rules, combined with the below-average real estate taxes in Florida, make both the Sunshine State in general and Miami in particular one of the best places to invest in long term rentals in 2019 and beyond.
Neighborhood analysis of the Miami real estate market shows that Upper Eastside is the last of the six best areas to invest in a traditional rental. The Upper Eastside neighborhood features a mix of urban and suburban opportunities which makes it one of the best places to live in Miami. The area is home to a diverse community comprised of many young professionals. It is good for families and has above-average public schools. However, real estate investors should keep in mind that property prices here exceed the average Miami house prices, so they should figure out financing options before starting searching for Miami homes for sale in Upper Eastside. Nevertheless, if you have the right real estate investment tools to look for affordable investment properties for sale with high expected return, investing in an Upper Eastside rental property can help you make lots of money in the Miami housing market.
This annual show displays more than 3,000 boats including yachts, power boats, sailboats, racing boats, catamarans, and other sea vessels and 2,000 exhibitors. The event has been named the greatest boat show in the world and is definitely one of the major annual festivals and shows in Miami in specific and Southeast Florida in general.
This is one of the most significant arts events which take place annually and attract thousands of visitors. The family-friendly festival features painting, photography, sculpture, jewelry, mixed media, and other art forms, transforming a mile of Biscayne Bay’s coastline into an arts village.
Founded in 1984, this annual film festival runs for 10 consecutive days across a number of movie theaters in the greater Miami area. The festival hosts more than 400 professionals from the film industry and over 70,000 visitors each and every year.
Started as Calle Ocho Music Festival, Carnaval Miami has turned into the largest and most important annual celebration in South Florida. This party spreads over 23 blocks in Little Havana and attracts more than a million visitors. Carnaval Miami has over 30 stages with Cuban music and other art forms and features the best Cuban food.
Miami Open is one of the premier tennis events with global importance, and each year it features the best tennis players from around the world. This two-week-long event which has been running for 35 years attracts over 350,000 attendees.
Unlike the traditional Carnival celebrated in Brazil and Trinidad immediately before Lent, Miami Broward Carnival begins the week before Columbus Day. This family event celebrates Caribbean culture and features costumes, concerts, art displays, cooking competitions, and more.
Art Basel at Miami Beach is the largest contemporary art event in the US, featuring galleries and artists from around the globe. The event has been running for over 120 years and features exhibitions, parties, and fairs. Similar Art Basel events happen also in Basel and Hong Kong.
As could be expected, the Airbnb Miami rental business is one of the most successful short term rentals businesses not only in the US but also worldwide. In 2018, the Miami-Dade County hosted a total of 954,000 Airbnb guests, generating a revenue of $204 million. This marked a growth in the Airbnb income of 52% from the previous year. With Miami being the second most popular tourist destination in the US after New York City, this comes as no surprise.
As a result of the demand for Miami vacation rentals, the city enjoys a high Airbnb occupancy rate. Moreover, the Airbnb rental income is enough to compensate for the relatively high property prices in the Miami real estate market. The combined effect is a good cap rate at the city level, while the best neighborhoods in Miami for Airbnb rentals enjoy significantly higher return on investment.
An important difference between the Miami housing market and other top tourist locations in the US is the fact that both owner-occupied and non-owner occupied short term rentals are legal in Miami. Nevertheless, real estate investors and Airbnb hosts have to consider the zoning regulations carefully as different rules apply to different residential areas.
If you are thinking of investing in rental properties to list on Airbnb or another short term rental platform, you should know what the most profitable property type is townhouses. According to the data analysis for this Miami real estate market report, townhouses and single family homes provide the highest rate of return on Miami vacation rentals. Moreover, short term rentals with 4 and 3 bedrooms are the most profitable ones.
The rapid expansion of the short term rentals industry in the past decade has caused a surge of restrictive and even prohibitive Airbnb rules and laws in many major US cities as well as globally. The State of Florida, the Miami-Dade County, and the City of Miami have also imposed strict regulations on vacation rentals in the area. While Miami vacation rentals are legal, they are subject to numerous requirements and regulations in order to be legal. Following is a list of the main rules which an Airbnb Miami host should know:
In conclusion, owning and operating a Miami short term rental property requires obtaining a number of licenses and certificates in addition to paying various taxes to the State of Florida, the Miami-Dade County, and the City of Miami. However, the high Airbnb occupancy rate (due to the constant influx of tourists and business travelers) and the excellent nightly rates make Airbnb Miami one of the best real estate investment strategies in 2019 and beyond.
Despite these Miami Airbnb laws and requirements, the Miami real estate market remains much more conducive to both owner-occupied and non-owner occupied short term rentals than many other major US cities. Airbnb Miami hosts face much less restrictions and prohibitions than those in Airbnb New York, Airbnb Los Angeles, Airbnb Chicago,Airbnb San Francisco, Airbnb Las Vegas, and Airbnb Santa Monica, where buying investment properties to operate as vacation homes has become illegal.
The Allapattah neighborhood tops the list of the best neighborhoods in Miami for investing in short term rental properties, as ranked by this Miami real estate market report. This is one of the oldest neighborhoods in the Capital of Latin America. Its proximity to the trendy Design District and Wynwood is inspiring growth in both commercial and residential real estate activities. Allapattah offers relatively affordable prices of Miami homes for sale, while the Airbnb income is high, bringing a good cap rate at the neighborhood level. Investing in vacation rentals in Allapattah is an option which real estate investors should consider in 2019.
Miami real estate market analysis ranks the Overtown neighborhood as the second best area for buying an Airbnb Miami investment property at the moment. The best thing about this neighborhood is that it also heads the list of top Miami neighborhoods for traditional rental properties. This means that investors can keep their options open regarding rental strategy if they buy an income property in Overtown. While home values in this area exceed the city average, so does the Airbnb rental income, which means that Airbnb cash on cash return and cap rate are good. Buying an Airbnb property in Overtown is a smart real estate investment strategy in the Miami housing market 2019.
Coral Gables ranks as #4 among the most profitable locations for Airbnb rentals based on cap rate and cash on cash return within the Miami real estate market. Coral Gables is a suburb of Miami which is named as one of the best places to live in Florida. The area offers a mix of urban and suburban lifestyle which attracts numerous Airbnb Miami visitors. The Coral Gables neighborhood is also one of the most walkable areas in the entire Miami housing market, which is an important factor for Airbnb guests coming out of state. All in all, buying a short term rental property in Coral Gables can be a smart real estate investing decision even for beginner investors.
Shenandoah is the last area on this list of the best neighborhoods in Miami for investing in Airbnb rentals. The Shenandoah neighborhood is one of the safest neighborhoods in Miami and is home to many college students. Home values here are above the average Miami house prices. However, the Airbnb occupancy rate is higher than in many other areas, which results in a good monthly rental income for Miami vacation rentals. Investing in an Airbnb rental in Shenandoah could bring investors lots of money if based on thorough investment property analysis.
Choosing one of the best places to invest in real estate is just a part of the process of making profitable real estate investments. Another crucially important factor is selecting the best rental strategy for the location of your choice. Analysis of the Miami housing market 2019 shows that both long term and short term rentals can help investors make money in real estate.
The success of the traditional rental strategy is supported by the strong population growth, the expanding economy, the high percentage of renters, and the high price to rent ratio. The profitability of the Airbnb Miami business is determined by the fact that Miami is the second top tourist destination in the US housing market which attracts millions of visitors throughout the year.
Nevertheless, Miami real estate data analysis shows that short term rentals are the most profitable investment property type in the Capital of Latin America. The city level return on investment generated by Miami vacation rentals is 3.5 times higher than the rate of return on traditional Miami rental properties.
One of the reasons for this trend is the fact that the State of Florida and the City of Miami have decided to impose moderate regulations on Airbnb Miami properties. In this way, they have managed to protect the safety and security of Miami residents without depriving real estate investors of this lucrative rental strategy.
There are many reasons why you might want to buy an investment property in the Miami real estate market in 2019, 2020, and beyond. The first and foremost one is the high return on investment on rental properties in the Capital of Latin America. While experienced real estate investors might argue that the traditional and Airbnb cap rate presented in this Miami real estate market are too low, they should have in mind that these are just city average cap rates. Individual neighborhoods and investment properties for sale provide significantly better rate of return.
The high rental demand for both types of investment properties is another positive factor which real estate investors should consider. Traditional rental properties benefit from one of the highest proportions of renters in the Miami housing market nationwide. Meanwhile, Miami vacation rentals experience a high Airbnb occupancy rate due to the status of Miami as a tourist center.
Speaking of Airbnb Miami, it is important to highlight the possibility to buy investment properties in Miami for the sole purpose of renting them out on Airbnb. This is not legal in many used-to-be top locations for short term rentals in the US. Nevertheless, Miami Airbnb hosts have to follow certain requirements and regulations to make sure that they operate their short term rental business legally.
Currently Miami is a buyer’s market which is not the case with many of the other top locations for real estate investing in the US. While finding positive cash flow properties in a seller’s market is feasible, it is much easier to make profitable real estate investments in a buyer’s market. Most importantly, there is no need to engage in bidding wars with other more experienced real estate investors or highly motivated homebuyers, which is a relief for beginner property investors with little or no experience in real estate transactions.
The positive Miami, Florida real estate market outlook for 2020 and beyond should also encourage investors. Things are looking good for Miami real estate investment perspectives. The high rental income for both traditional and Airbnb Miami rental properties will continue providing good short term return on investment. Meanwhile, appreciation will suffice to secure long term rate of return without risking a housing bubble. The Miami, Florida real estate forecast shows that property investors can proceed with confidence, regardless of which rental strategy they favor.
Investing in rental properties in the Miami housing market is associated with many benefits, the most important one of which is the numerous profitable opportunities. However, real estate investors should keep a few things in mind before buying an income property in the Capital of Latin America.
First, average Miami real estate prices are more than double the median home value in the US housing market. This means that investors should put efforts into finding good financing options for investing in rental properties. At the same time though, they should remember that the property prices in the Miami real estate market are much lower than those in other top locations for buying income properties.
Another thing which those interested in Miami vacation rentals should consider is the strict regulations in this regard. While Airbnb Miami rentals are legal, the state and city authorities have imposed some rules to secure the best interests of Miami residents. This means that real estate investors should familiarize themselves with the license and certification requirements in the residential area where they want to buy an Airbnb property. Moreover, they need to pay all relevant taxes to avoid problems with the local authorities.
The positive Miami, Florida real estate market trends are expected to continue in 2020. Miami has been and will remain one of the absolutely best places to invest in real estate. The Capital of Latin America is forecast to stay a buyer’s market with moderate natural appreciation in the coming period, which means that beginner real estate investors will be able to find profitable investments here. In 2020 Airbnb Miami rentals will remain the optimal rental strategy, providing higher return on investment. No further restrictions on Miami vacation rentals are expected. This means that Airbnb hosts will benefit from the ever-growing number of domestic and international tourists who will provide a high Airbnb occupancy rate and rate of return.