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Why and Where to Invest in Airbnb Fort Lauderdale?

by Angela MooneyMar 2, 2022January 25, 2024

With a lot of tourists visiting year-round, Airbnb Fort Lauderdale has all the makings of a lucrative Airbnb business.

While the effects of COVID-19 deeply impacted the tourism industry across the country, Florida’s tourism seemed to coast right through 2021 with record-breaking local visitors and tourists. In 2021, the Sunshine State saw a total of 118 million visitors from within the United States alone, generating the highest number of local visitors the state has ever seen.

With the ease of travel restriction and better management of COVID-19, one can expect this year to continue bringing crowds to Florida, boosting its tourism industry and other tourist-dependent sectors, which include short-term rental real estate and Airbnbs.

Poised to reap the benefits of Florida’s tourist season is the city of Fort Lauderdale. Located near the southeastern coast of Florida, Fort Lauderdale showcases all the beaches, bars, shopping, and nightlife that draw tourists to the state in the first place.

This is why any real estate investor looking to invest in the area would benefit from looking into homes, apartments, and other investment properties with the intent of listing them as short-term rentals.

Keep reading to find out why and where you should invest in a Fort Lauderdale Airbnb investment property.

Why Invest in Airbnb Fort Lauderdale

With the city located right at the coast of Florida, Fort Lauderdale is a prime vacation spot throughout the country. Whether you invest in Fort Lauderdale apartments or entire vacation homes, there will most likely be a group of tourists wanting to rent out your property.

Aside from its prime location, there are many other reasons to invest in Airbnb in Fort Lauderdale. Here are the top reasons as to why Airbnb Fort Lauderdale is worth considering as your next real estate investment:

1. High Demand and Occupancy Rates

As stated earlier, Airbnb in Fort Lauderdale has the benefit of being in a highly visited area of Florida. This means that tourists come almost year-round looking for a place to stay during their vacation. With a large amount of visitors, Airbnb Fort Lauderdale Florida is bound to have high demand for short term rentals.

As an Airbnb investor, this is a critical factor in your investment’s success. Having high demand in an area ensures that there will be traffic to your property and it will be occupied more often than not. In Airbnb, the higher your occupancy rate, the better, as this is the time when your investment is actively generating income.

2. Range in Property Types Available

When you think of investing in the city, you may only be seeing Airbnb Fort Lauderdale beach houses or vacation homes, but there are actually different types of investment properties available to you. During your search for the right property, try using Mashvisor’s Property Finder to see the different options available to you and how they may perform in the area.

While beach homes are seemingly the most popular options, investing in other types of properties has its benefits as well and will still be in high demand. From a duplex for sale to multiple apartments in Fort Lauderdale, Mashvisor’s Property Finder can help you distinguish which property type is right for your real estate investment goals.

To learn more about how Mashvisor can help you find profitable investment properties, schedule a demo.

3. Cheaper Than Other Tourist Hot Spots in Florida

While most Fort Lauderdale homes for sale are slightly more expensive than the median price of Florida, it still has one of the cheaper real estate markets when compared to other tourist hot spots in the area. Take Miami for example. While Miami is arguably the most visited area in Florida for its beaches and nightlife, it is also one of the most expensive real estate markets, surpassing Los Angeles just last year.

Fort Lauderdale property market on the other hand is estimated to be 4.8% cheaper than Miami. This makes Airbnb Fort Lauderdale a more affordable purchase while still offering the same benefits such as high tourism rates and occupancy rates as Miami and other hot spots of Florida.

How to Invest in Airbnb Fort Lauderdale

Before you can invest in Airbnb Fort Lauderdale, you will need to know a few things about its real estate market and its specific rules and regulations regarding short-term rentals in the area. To know this, you must first ask the question “what county is Fort Lauderdale in”, as this will be your guide to Airbnb laws.

As Fort Lauderdale is found in Broward county, you will need to familiarize yourself with its laws on short term rentals as well as Airbnb Fort Lauderdale rules and regulations. Here are just some of the rules you should know when considering Airbnb Fort Lauderdale Florida as an investment:

1. Registration Fees

Hosts are not allowed to run an Airbnb Fort Lauderdale without a registration form the city government. For short term rental homes and apartments in Fort Lauderdale, registrations cost up to $350 depending on the type of property.

Additionally, renewal fees will differ if the property is listed as your primary residence or a secondary home. Primary residences being used on Airbnb Fort Lauderdale will be charged an $80 renewal fee, while secondary homes will be charged double that.

2. Business License

In addition to registrations, Broward County and Fort Lauderdale require Airbnb owners to have business license for their rental property. While some cities may allow short term rentals to operate as a non-business venture, with the high demand and thriving tourism sector in the city, all short term rentals and Airbnbs are considered businesses in Fort Lauderdale. A business license can cost anywhere from $80 to $240.

3. Inspection Fee and Taxes

As Airbnb Fort Lauderdale is considered a business, you will need to go through an inspection to ensure that it adheres to city guidelines. The first couple inspections will be covered by your registration fees. However, if you fail both inspections, you will have to pay $75 for the following ones out of pocket. You will also have to pay the county’s tourism development tax and Florida Transient tax for operating your Airbnb rental.

For potential short-term rental investors and owners in Florida, Airbnb Fort Lauderdale properties need to go through an inspection and pay the required registration fees and tourism development taxes.

Where to Invest in Fort Lauderdale

When you are starting out and considering how to invest in real estate, the primary concern you should have is location. Where you invest in Fort Lauderdale could make or break your bottom line and return on investment. That is why it is important to do a thorough Airbnb analysis before buying any property.

As a real estate data company, Mashvisor has collected big data from the Airbnb site itself to help you get the full picture of any given neighborhood or city. From cap rate, occupancy rate, median property price, to cash flow as well as other critical metrics, using Mashvisor’s Airbnb calculator could help ease your investment search and process.

According to Mashvisor’s latest data, here are some of the best neighborhoods to invest in Airbnb Fort Lauderdale:

1. Coral Springs

Median Property Price: $460,970
Average Price per Square Foot: $238
Days on Market: 58
Airbnb Rental Income: $4,301
Airbnb Cash on Cash Return: 5.37%
Airbnb Daily Rate: $292
Airbnb Occupancy Rate: 62%
Walk Score: 42

2. Dania Beach

Median Property Price: $480,567
Average Price per Square Foot: $270
Days on Market: 127
Airbnb Rental Income: $3,021
Airbnb Cash on Cash Return: 3.57%
Airbnb Daily Rate: $260
Airbnb Occupancy Rate: 51%
Walk Score: 86

3. Davie

Median Property Price: $513,358
Average Price per Square Foot: $242
Days on Market: 55
Airbnb Rental Income: $5,141
Airbnb Cash on Cash Return: 5.64%
Airbnb Daily Rate: $305
Airbnb Occupancy Rate: 56%
Walk Score: 46

4. Deerfield Beach

Median Property Price: $332,129
Average Price per Square Foot: $264
Days on Market: 44
Airbnb Rental Income: $2,880
Airbnb Cash on Cash Return: 4.73%
Airbnb Daily Rate: $196
Airbnb Occupancy Rate: 59%
Walk Score: 78

5. Lauderhill

Median Property Price: $159,703
Average Price per Square Foot: $137
Days on Market: 90
Airbnb Rental Income: $1,882
Airbnb Cash on Cash Return: 3.78%
Airbnb Daily Rate: $196
Airbnb Occupancy Rate: 56%
Walk Score: 39

6. Lighthouse Point

Median Property Price: $702,579
Average Price per Square Foot: $392
Days on Market: 74
Airbnb Rental Income: $3,128
Airbnb Cash on Cash Return: 3.68%
Airbnb Daily Rate: $393
Airbnb Occupancy Rate: 55%
Walk Score: 56

7. Miramar

Median Property Price: $429,170
Average Price per Square Foot: $252
Days on Market: 46
Airbnb Rental Income: $3,588
Airbnb Cash on Cash Return: 4.24%
Airbnb Daily Rate: $222
Airbnb Occupancy Rate: 50%
Walk Score: 41

8. North Lauderdale

Median Property Price: $285,216
Average Price per Square Foot: $222
Days on Market: 65
Airbnb Rental Income: $2,674
Airbnb Cash on Cash Return: 3.35%
Airbnb Daily Rate: $173
Airbnb Occupancy Rate: 45%
Walk Score: 57

9. Oakland Park

Median Property Price: $500,250
Average Price per Square Foot: $343
Days on Market: 42
Airbnb Rental Income: $4,019
Airbnb Cash on Cash Return: 4.59%
Airbnb Daily Rate: $227
Airbnb Occupancy Rate: 56%
Walk Score: 46

10. Pembroke Pines

Median Property Price: $372,589
Average Price per Square Foot: $214
Days on Market: 67
Airbnb Rental Income: $3,047
Airbnb Cash on Cash Return: 3.53%
Airbnb Daily Rate: $175
Airbnb Occupancy Rate: 53%
Walk Score: 72

11. Plantation

Median Property Price: $418,852
Average Price per Square Foot: $231
Days on Market: 40
Airbnb Rental Income: $3,769
Airbnb Cash on Cash Return: 4.58%
Airbnb Daily Rate: $214
Airbnb Occupancy Rate: 62%
Walk Score: 16

12. Southwest Ranches

Median Property Price: $1,816,475
Average Price per Square Foot: $486
Days on Market: 119
Airbnb Rental Income: $9,638
Airbnb Cash on Cash Return: 3.31%
Airbnb Daily Rate: $287
Airbnb Occupancy Rate: 71%
Walk Score: 20

13. Sunrise

Median Property Price: $347,109
Average Price per Square Foot: $272
Days on Market: 76
Airbnb Rental Income: $2,935
Airbnb Cash on Cash Return: 4.38%
Airbnb Daily Rate: $161
Airbnb Occupancy Rate: 62%
Walk Score: 68

14. Tamarac

Median Property Price: $260,246
Average Price per Square Foot: $188
Days on Market: 59
Airbnb Rental Income: $2,309
Airbnb Cash on Cash Return: 3.29%
Airbnb Daily Rate: $199
Airbnb Occupancy Rate: 52%
Walk Score: 67

15. Cooper City

Median Property Price: $568,091
Average Price per Square Foot: $275
Days on Market: 34
Airbnb Rental Income: $3,978
Airbnb Cash on Cash Return: 3.23%
Airbnb Daily Rate: $303
Airbnb Occupancy Rate: 53%
Walk Score: 34

The Bottom Line

Airbnb Fort Lauderdale is a promising location for any Airbnb investment. With the top 15 neighborhoods already listed, the first step of your Fort Lauderdale investment is already done.

Now, to really make the best real estate decisions, you will have to conduct a full real estate investment analysis that is based on up-to-date and accurate Airbnb data. To make this process no harder than it needs to be, sign up for a 7-day free trial of Mashvisor and get access to all our Airbnb investment data today.

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