Miami is one of the largest short-term rental markets in the US, and Airbnb Miami Beach can be the perfect place to invest!
One popular way of making money in real estate investing is through renting out on Airbnb. However, to have a successful and profitable Airbnb rental, Airbnb hosts have to consider the location of their investment property. Thus, many property investors are wondering what the best places to invest in short-term Airbnb rentals are.
There are several factors to consider when answering this question including occupancy rate, Airbnb cash on cash return, Airbnb cap rate, Airbnb rental income, and of course, Airbnb laws and regulations. These factors play a role in determining the optimal rental strategy in a certain real estate market (traditional vs. Airbnb).
Related: Airbnb Investment or Traditional Investment: How to Determine The Optimal Strategy
If you’re thinking of investing in the Airbnb Miami Beach real estate market this year, then you’re on the right track to becoming a successful real estate investor because this is one of the best locations to buy an investment property! Let’s have a look at why property investors should consider the Miami Beach short-term rental market and where to find the best Airbnb Miami Beach investment properties according to data analytics from Mashvisor’s investment property calculator.
Why Invest in Airbnb Miami Beach 2018?
Short answer: demand! A savvy real estate investor knows that location plays a major role in having a successful investment property, and the best locations to keep an eye on are those with increasing demand for real estate investing. This is what Airbnb Miami Beach is experiencing right now.
Generally, the entire state of Florida consistently remains the most common and well-known destination for tourists. Miami Beach, specifically, attracts people not only from the United States but also from all over the globe. In fact, it’s the most popular place for visitors staying in the Greater Miami area, hosting 35% of the 10 million tourists who visit Greater Miami. For this reason, the Airbnb Miami Beach real estate market has a booming occupancy rate.
To both resident and tourists, Miami Beach is paradise – it is sun on your face and sand at your feet. An island surrounded by the Atlantic Ocean and Biscayne Bay, Airbnb guests can enjoy a relaxing beach vacation as well as an array of activities. One can bicycle along the bayside or oceanfront paths, swim in the cool waters of the Atlantic Ocean, go sailing along the Bay, and enjoy Miami Beach’s golf courses and nightlife experiences. Miami Beach also offers luxurious restaurants, various spa centers, and is a top destination for business tourism. All of these factors highlight Airbnb Miami Beach as a top real estate market.
Moreover, based on numbers provided by Mashvisor’s investment property calculator (see more below), property investors renting out Airbnb Miami Beach investment properties can expect to receive a high rental income and, consequently, a pretty good return on investment regarding Airbnb cash on cash return and Airbnb cap rate!
Related: Why an Investment Property Calculator Tells You More than Just Numbers
Miami Beach Airbnb Legal Issues
Before deciding to become an Airbnb host in any real estate market, it’s crucial for property investors to ensure that Airbnb laws and regulation in that location are favorable and do not get in the way of making money in real estate investing. While Airbnb Miami Beach is one of the top real estate markets in the US, there are some legal issues in the region.
The first thing to remember is that Miami Beach requires all owners or Airbnb hosts to have a business license. Moreover, property investors owning Airbnb Miami Beach investment properties are obliged to pay a tourist taxation for any rental property leased for a period shorter than six months. Other regulations include Land Development Regulations and Building and Housing Standards which may apply to you depending on the specific zone of your choice and property type. For more details regarding laws and regulations of Airbnb Miami Beach, click here!
Regardless of these laws and regulations, a real estate investor can enjoy profitable real estate investing in Airbnb Miami Beach if he/she remains consistent with them.
Airbnb Miami Beach Real Estate Market
At Mashvisor, we deliver informative real estate analytics to help property investors find the best locations for real estate investing in addition to the best investment properties in these locations (both traditional and Airbnb). To learn more about how we will help you make faster and smarter real estate investment decisions, click here.
If you’re planning on investing in short-term rentals in Miami Beach, here’s a short summary of the Airbnb Miami Beach real estate market in 2018:
- Median Property Price: $784,526
- Airbnb Rental Income: $3,005
- Cash on Cash Return: 1.17%
- Cap Rate: 1.17%
Where to Invest in Airbnb Miami Beach 2018
Airbnb Miami Beach – Flamingo Lummus
- Median Property Price: $423,920
- Airbnb Rental Income: $2,765
- Cash on Cash Return: 2.45%
- Cap Rate: 2.45%
- Airbnb Occupancy Rate: 62%
Airbnb Miami Beach – Isle of Normandy
- Median Property Price: $905,549
- Airbnb Rental Income: $2,600
- Cash on Cash Return: 2.1%
- Cap Rate: 2.1%
- Airbnb Occupancy Rate: 61%
Airbnb Miami Beach – Oceanfront
- Median Property Price: $941,100
- Airbnb Rental Income: $3,892
- Cash on Cash Return: 1.87%
- Cap Rate: 1.87%
- Airbnb Occupancy Rate: 53%
Airbnb Miami Beach – Nautilus
- Median Property Price: $1,691,615
- Airbnb Rental Income: $4,668
- Cash on Cash Return: 1.65%
- Cap Rate: 1.65%
- Airbnb Occupancy Rate: 56%
Airbnb Miami Beach – La Gorce
- Median Property Price: $677,383
- Airbnb Rental Income: $3,590
- Cash on Cash Return: 1.5%
- Cap Rate: 1.5%
- Airbnb Occupancy Rate: 53%
Airbnb Miami Beach – Belle Isle
- Median Property Price: $635,704
- Airbnb Rental Income: $3,041
- Cash on Cash Return: 1.33%
- Cap Rate: 1.33%
- Airbnb Occupancy Rate: 61%
Airbnb Miami Beach – Biscayne Point
- Median Property Price: $1,089,069
- Airbnb Rental Income: $1,414
- Cash on Cash Return: 1.15%
- Cap Rate: 1.15%
- Airbnb Occupancy Rate: 59%
Click here to find and analyze the best investment properties in any neighborhood of Miami Beach right now!
Start Your Search for an Airbnb Miami Beach Investment Property
Searching for an investment property can be a lengthy and time-consuming process for a real estate investor. This is not the case if you’re conducting your property search using Mashvisor! With the real estate investing tools that we provide, property investors are able to find the best investment properties in just 15 minutes using traditional and Airbnb analytics.
To find the best Airbnb Miami Beach investment property, make use of our:
- Investment Property Calculator: A versatile tool that allows you to calculate the different values related to an investment property, including the cash on cash return, cap rate, cash flow, and occupancy rate (for both traditional and Airbnb investment).
- Investment Property Search Tool: A powerful and heavily customizable search tool that allows you to search for rental properties based on specific criteria using different filters, such as finding rental properties of a certain price range, in a certain neighborhood, or with a certain cap rate.
- Heat Map Function: The heat map function for the property search tool allows you to find rental properties much faster using visual cues. For example, you can set the heat map to indicate the areas with the highest Airbnb rental income, and the heat map will highlight which areas are hot or cold for this feature.
Using these real estate investing tools, it becomes easier to compare different neighborhoods and different investment properties to identify those that yield a good return on investment.
Related: Mashvisor: A Real Estate Investing Tool for All Your Investment Needs
Final Words
Over the years, the Airbnb Miami Beach real estate market continued to be one of the top places for short-term real estate investing. The above-mentioned neighborhoods are those where a real estate investor will find the best and most profitable short-term rentals in 2018. Remember to sign up with Mashvisor to start your search for the best rental property in any city and neighborhood across the US housing market!
To get access to our real estate investment tools, sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.
Will you consider renting out on Airbnb Miami Beach? Let us know in the comments!