One of the best real estate markets in the United States is Florida. Therefore, thinking about opening a location to provide Airbnb services in Miami is a good idea (Granheet, n.d.) if you plan to take advantage of the offer of apartments for sale in Miami as an investment to obtain an income in short-term rentals. First a couple of facts:
- Miami was ranked by PwC at number 12 on the list of the best general real estate markets in the United States (Granheet, n.d.).
- In addition, it maintains one of the highest rental averages in the country (Rodríguez, 2019).
But, certainly, even with the previous panorama, perhaps the first question that jumps out is, with the regulation of short-term rentals, is becoming an Airbnb host in Miami legal? Fortunately, the answer is yes.
Hosting Airbnb has several advantages over traditional short-term rental models (Airbnb, 2019):
- Finding tenants is convenient and easy.
- The host is the owner of his own business.
- Rental costs are decided by the host.
- You can operate with limited budgets.
- Payments are secure because they are managed by the platform.
- The host can enjoy the property when it is not in use.
Regulation of short-term rentals and how it affects Airbnb in Miami
It’s important to know the details of short-term rental regulations involving Airbnb locations in Miami. For starters, at the time of booking, guests pay the following tax duties (Khoury, 2019):
- Florida Tourism Development Tax and Transient Rental Tax.
On the investor side, for their protection, they must meet the requirements mentioned below (Khoury, 2019):
- Hosts must request a certificate of use.
- They should be vigilant in handling guest requests.
- It is necessary that they keep a record with names and dates of their guests.
Finally, it is also necessary that all hosts meet these requirements (Khoury, 2019):
- Respect the Miami 21 zoning code, which establishes land uses.
- Respect the rules of construction and housing for houses in Miami.
- Have a business license.
How does Airbnb work in Miami?
The Airbnb model in Miami is more than consolidated. For the sample, a fact: this city has more properties per capita registered on the platform than any other place in the United States (BusinessNow, n.d.). However, registering a location has the following particularities (Airbnb, n.d.):
1.- The municipality and county of Miami consider companies to be those who direct or advertise any type of accommodation, including Airbnb. Therefore, you have to register as a company.
2.- The types of businesses in which a host can register are: sole proprietorship, firm, corporation or limited company.
3.- Creating a company or LLC is the most used way to operate on Airbnb.
4.- The creation of the company or LLC Corporation must be done by an accountant or a lawyer.
5.- You must process a license in the urban planning department of Miami.
6.- The management of short income requires more tax procedures than long-term income.
How to choose the best area for an Airbnb property in Miami?
To successfully run a property for Airbnb services in Miami, it is important to verify that the area where the property is located allows such activity. The Miami 21 zoning code is the guide to follow.
Now, the terms to pay attention to are (Airbnb, n.d.): bed and breakfast, dwelling unit, hotel, inn, lodging, lodging unit, multi-family housing, single-family residence and residential use.
There are many areas that are attractive to acquire apartments in Miami for short rent Airbnb type. A parameter that can be taken into account when choosing is where the investor would like to spend a part of his vacation. It is common for people to acquire a property thinking about enjoying it when they travel to Miami. Finally, if you are planning to make an investment for Airbnb in Miami, it is advisable to consult with a professional. This way, you will be able to choose the best option that suits your interests.