It’s no secret that Miami is one of the world’s most popular vacation destinations. Every year millions of travellers come to Miami to take in the good weather and enjoy everything the city has to offer. While Florida is arguably the capital of the traditional vacation rental community, the rapid growth of the short term rental market in Miami is a relatively new phenomenon.
Like most major metropolitan cities, Miami has a few neighborhoods that stand out from the rest in terms of the demand for short term rental accommodation. These neighborhoods are where the majority of travellers come to work and play on their trips to Miami. That’s not to say you can’t do very well if you have a place outside of these neighborhoods. It’s not uncommon for a rockstar property in a neighborhood with lower demand and competition to bring better returns than an average property in a top neighborhood. But if you are buying a place with the intention of renting it out short term on a full time or part time basis, focusing your search on these areas definitely gives you a good shot at success.
The list below isn’t in any specific order. All of these areas bring the potential for a great opportunity if a property is positioned well relative to the competition. They also all have advantages and disadvantages which can have important implications for both the optimal property type (e.g. condo vs home, 1 BR vs 2 BR vs 3 BR) and how that property should be set up for profit maximization. This blog post provides a brief high level neighborhood overview, so feel free to contact us to learn more.
Traditionally known as a financial district only, a recent development boom has seen the rise of many upscale residential condo buildings with hotel style amenities. The majority of condos in Brickell do not allow short term rentals, which effectively benefits investors in condos that do. Brickell boasts some of the highest business traveler traffic in all of Miami which is significant as corporate travel continues to be one of the fastest growing, least seasonal segments of the short term rental market. Studios and one bedrooms do particularly well on Booking.com and Expedia as single business travelers look for hotel alternatives. Two bedroom (and bigger) listings with proven reviews can command high rates on Airbnb as business travelers and tourists combine budgets to reserve larger accommodations. We recommend designing your Brickell short term rental with a simple, yet executive feel to attract corporate visitors and a premium tourist guest profile.
The former industrial district has become a center spot for arts, fashion, fine dining, nightlife and fashion. It’s transformation into a local cultural hub combined with low hotel inventory makes it one of the highest demand areas in all of Miami for short term rentals. While demand for accommodation is very strong relative to supply, many Wynwood Airbnb hosts have modern looking spaces and provide a good standard of hospitality. That means a unique look and feel with somewhat of an artistic flair is the best way to stand out among other strong listings. Wynwood also has a shortage of large accommodations, so any host with a two bedroom property or bigger can expect to generate a lot of interest.
When many people think of Miami, they think of Miami Beach. A regular destination for some and a must visit place for others, Miami Beach has an influx of tourist traffic all year round. What makes Miami Beach interesting is that it has some of the harshest short term rental regulation in the entire United States. A good portion of it’s residential neighborhoods are ‘red’ zones when it comes to short term rentals with a complete ban in place and fines of up to $20,000 in place for offenders. So why is South Beach on our list of top neighborhoods? Well there are many zones in the South Beach part of Miami Beach that are short term rental friendly and have regulation favourable to operators. The ‘zone based’ regulatory approach limits the overall supply potential and keeps average daily rates high for most weeks of the year. Because South Beach attracts such a significant number of price insensitive travelers, there’s a strong business case for making a good investment in interior design and quality upfront to position yourself for the premium guest profile.
Upper East Side
Perhaps the area on the list with the most listings resembling the traditional vacation rental (i.e. multi-bedroom houses, pools, etc), Miami’s Upper East Side can be an extremely profitable place to operate a short term rental. The up and coming neighborhood is quickly becoming known for it’s modern homes, trendy sidewalk cafes, art galleries, and good restaurants. The area is an attractive place for many family traveler groups who are looking to be central yet require larger space with multiple bedrooms to accommodate them. Some of Miami’s most successful larger properties on Airbnb, VRBO, and HomeAway are located in the Upper East Side with six figure revenues not out of the question for rockstar listings.
Bordering the Brickell area, downtown Miami’s short term rental market has similar characteristics to its neighbor to the south in terms of demand and home type. High rise condos make up a substantial portion of the inventory on Airbnb and other websites. Being in a city that is a vacation destination and an area with strong business activity, downtown Miami experiences less seasonality than most other short term rental markets. On the other hand, the peak times of the year can be a little less strong than areas like Wynwood and South Beach that are in high demand among tourists. One of the most effective strategies has proven to be setting up properties to attract high end business travelers and turning them into repeat guests.
With it’s proximity to Cuba its no secret that Miami is home to one of the largest Cuban populations outside of the homeland itself. Little Havana is Miami’s version of the Cuban capital and an iconic cultural hub that’s a centre for social and political activity. Little Havana regularly hosts festivals and is the site of many of Miami’s important Latin landmarks. The demand for short term rental accommodation has been growing at a healthy pace over the past two years and it’s likely that trend will continue. While it’s not as high as some other areas on this list, there is much less professional competition (i.e. hosts with multiple listings that offer hotel quality service) leaving a big opportunity open for hosts who set their place up properly, develop strong listings, and generate consistently good reviews.
So there you have it! Miami is a great city for vacation rentals and it’s getting better every day with the emergence of Airbnb increasing the global demand for short term homestyle accommodation. If the neighborhood you host in wasn’t mentioned in this list, that doesn’t mean you can’t do extremely well. Some of the most successful listings in all of Miami are in areas like Buena Vista, Coral Way, and others which didn’t make it on our list. At the end of the day, location is just one or many factors that’s going to determine how well you do.
If you have any questions about short term rentals in Miami or need advice on how to optimize your property, feel free to reach out to us and we’ll be glad to chat!