If you are a real estate investor seeking to expand your investments in the new year, consider investing in the Florida housing market. There are many good reasons as to why you should invest in the Florida real estate market. The prices of homes have been and are continuing to rise in the past few years, and will continue to rise this year.
Even though the real estate market is rising investors should still be careful when they are considering purchasing investment proprieties. You want to ensure you are making a smart investment that will have a high return on investment. If you are considering purchasing an Airbnb income property, look at Hollywood Florida.
This article will explore the reasons why you should look into the Hollywood real estate market for your real estate investing.
Why Should You Invest in Hollywood, Florida?
Before you can determine if an Airbnb in Hollywood FL is a good place for you to invest, you should see what the area is like and the attractions around that would make it a good location for an investment property. You should also look at the investment data for the area to determine if it is a location you are interested in for an investment property.
Here is the predicted Airbnb Hollywood FL data:
- Airbnb Rental Income: $2,433.78
- Airbnb Cash on Cash Return: .37%
- Airbnb Daily Rate: $398
- Airbnb Occupancy Rate: 50.28%
- Median Property Price: $647,600
- Average Price per Square Foot: $466.22
- Days on Market: 126
This data should be a good indicator to determine if you are interested in the Hollywood, Florida real estate market.
If you are interested in finding more information and reliable data on the Florida real estate market, look to Mashvisor’s Airbnb Property Calculator Tool, also known as the Investment Property Calculator tool. This tool is a great way for investors to see the potential cash flow and profits on any income property. It lets investors use their own properties and locations to determine their investment data.
This creates the most accurate data for your investment properties. The Airbnb Property Calculator uses the most up-to-date data and trends for its analysis which provides investors with the most accurate data regarding their return on investment and positive cash flow.
Additionally, the Airbnb Property Calculator tool gives investors a short term rental strategy. This essentially means that investors will be able to see the comparison between how an investment property will perform as an Airbnb property vs. as a traditional property.
This helps investors determine if it will be a successful investment property based on the Airbnb rental income, the cash on cash return, cash flow, cap rate, and Airbnb occupancy rate. Mashvisor’s Airbnb calculator is the best tool for investors to see reliable Airbnb data on their investment property, and help them ensure they are making money in real estate.
Is it Legal to Operate an Airbnb Property in Hollywood FL?
In short, yes it is legal to operate an Airbnb Hollywood FL, though the laws have recently changed regarding short term rental properties. As an investor, it is essential you keep up to date on any real estate laws in your area to ensure you are complying with the law and show you have good property management skills.
In Hollywood, FL, these are some of the short term rental laws that have recently changed:
- Hosts of any Airbnb property must install a noise level detection device at the property.
- Hosts of any Airbnb property must submit proof of short term rental liability insurance.
- All short term rental properties are subject to limitations on parking, as well as certain trash container requirements.
Of these three new Airbnb laws, the most important for hosts and investors to follow is submitting proof of their short term rental liability insurance. This is so important for investors to follow because other or older insurances that were allowed for short term rentals may not provide the correct liability coverage needed anymore.
As all of these changing laws around Airbnb can be quite confusing, you should discuss them with someone who may know exactly what you need in that area, such as an insurance company, someone from the government, or even a local real estate agent or broker.
What Licenses Do I Need for an Airbnb Hollywood FL?
If you are looking for an investment property in the Hollywood, Florida real estate market, you will need to obtain 3 licenses to be able to list that property as a short term rental property once it is purchased. These three licenses are:
- Vacation Rental License Certificate
- Business Tax Receipt
- Certificate of Use Application
All three of these licenses are needed to be following Hollywood FL regulations and guidelines for short term rental properties. Understanding the local laws is an essential part of real estate investing.
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Vacation Rental License Certificate
The Vacation Rental License Certificate is one of the first licenses you need to obtain for an Airbnb Hollywood FL. The application for the Vacation Rental License Certificate will require documentation from the state and county agencies. Anyone looking to obtain this license should also fill out and notarize the owner certification form. This form can be uploaded with this application as well.
To submit this application, visit the Hollywood FL vacation rental licenses webpage and submit your application there. Note that each separate unit or property will need its own vacation rental license certificate and that all applications must be submitted online, as the department is no longer accepting paper copies of this application.
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Business Tax Receipt
Any investor or short term rental property owner will need to obtain a business tax recipe. This is authorized by the city of Hollywood, FL for any permanent business owner.
The Business Tax Receipt is for any individual who takes a part or conducts any business that is authorized within the cities jurisdiction. This also accounts for home-based businesses. This city Business Tax Receipt is required by Hollywood, FL Chapter 110 “ Hollywood’s Municipal Code of Ordinances.
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Certificate of Use Application
The last certificate all short term rental property owners need to obtain for an Airbnb Hollywood FL is a Certificate of Use Application. No one including tenets, owners, companies, or any individual can use a property without a Certificate of Use Application. The only exception is for single-family houses. Additionally, this application must be approved by the Division of Planning and Urban Design before the property is occupied.
Depending on your specific type of property, some of these applications you may not need. There are only certain cases though where you do not need all three licenses for an Airbnb Hollywood FL. Make sure to discuss these licenses with a local real estate agent who can help you through the application process.
How to Choose the Best Property for You in Hollywood, FL
Follow the steps below when choosing the best property in Hollywood, FL:
Step 1: Determine What Property Type you are Interested In
Before you begin your Airbnb Hollywood FL property search, you need to determine what kind of property you are interested in purchasing. Depending on your specific location, there may be some limitations to what property you can buy.
If you are looking more in a residential or suburban town, single-family houses may be your only property options for your short term rental property. If you are looking in a more commercial area, you may have more property-type options such as apartments, condominiums, and houses. As Hollywood, FL is a city, you should expect to find more variety in property options.
Additionally, you should try to determine who you want exactly renting your Airbnb. If you are looking for a more family-type renter, purchasing a house for your Airbnb property may be better than an apartment. If you are looking to market the property to single travelers or couples, an apartment or condo may be a better fit. Different property types will likely attract different renters.
If you are struggling to decide which property type you want to invest in, consider using Mashvisor’s Neighborhood Analytics tool to help you narrow your search. This tool collects reliable data from sites such as Airbnb to help investors see data on certain properties in their desired neighborhood. It shows the property types, number of bedrooms, and properties that do well in a given location. This is a great tool for investors to zero in on a specific property type.
2. Set a Budget
Creating a budget and sticking to it is essential when you are investing in the real estate market. If you don’t set a budget, it will be much more difficult to have a high return on your investment and a positive cash flow. There are many factors to consider when coming up with your budget, as there are many costly things that go on in real estate investing.
Below are some of the things you account for when determining your budget:
- Selling Price: How much you buy the property itself for.
- Closing Costs: These are all of the expenses involved in the closing sale. Typically is about 2% of the selling price.
- Furnishing: These costs can be completely up to you, but hiring a decorator may be beneficial.
- Repairs and Remodels: This can fluctuate depending on the condition of the property you purchase but can also be reduced based on your budget decisions.
- Property Registrations: These are the fees of all of the licenses and registration you need to obtain.
- Other Costs: You should always set aside some money in your budget for things you do not expect.
Step 3: Search For a Property
Once you have zeroed in on a property type and have set a budget, you can find a property to purchase. There are many different ways you can locate a property in Hollywood, but consider using Mashvisor’s Property Finder tool for the best results. The tool helps investors find any kind of property in any location they are looking for. It lets investors add filters so they can specifically search for properties that fit their needs and wants.
Below are some of the filters the Property Finder tool lets investors search through:
- Location
- Rental Strategy
- Budget
- Property Type
- Number of Bedrooms
- Number of Bathrooms
Step 4: Purchase a Property
After you have located a property that fits all of your wants and needs and is within your budget, it is time to purchase your Airbnb. When purchasing a property, you should always work with a real estate agent. Working with agents and brokers can help investors get the best price for their property, and then generate a higher return on investment in the end.
If you need to locate a real estate agent in your area, consider using Mashvisor’s Real Estate Agent Directory tool. This tool allows investors to read through a variety of agents’ real estate portfolios to help them find an agent in their desired location. This directory holds the information of thousands of different agents that investors can choose from. Always work with an agent when purchasing a property.
Use Mashvisor to Locate the Best Airbnb Hollywood FL
Investing in real estate can get complicated, especially when the Airbnb demand is so high. Mashviosr offers a variety of tools to help investors navigate their short term rental property purchase. These tools give investors reliable and accurate data regarding their investment properties and their searches.
Tools such as the Neighborhood Analytics tool and the Airbnb Calculator show investors how their investment properties will perform. Additionally, the Property Finder tool helps investors locate a property in their desired neighborhood. This tool allows investors to search through any property type. Utilizing these tools is essential to ensure your investment properties will have a high return on investment and a positive cash flow.
To access all of these tools and find your Airbnb Hollywood FL, click here to sign up for Mashvisor.