Florida is a popular destination for families, spring-breakers and retired couples alike. As one of the most popular domestic tourism states in America, it’s no surprise that more homeowners have decided to rent their property on short-term rental platforms including Airbnb.
With short-term property rentals in high demand, you might be considering purchasing your own real estate specifically for hosting vacationers to make extra money. However, before you plunge into the duties of a landlord, you should take a moment to make sure it’s really what you want.
Unsettled legislature may shift over time
First, short-term vacation rentals are a relatively new issue, which means that the law hasn’t quite caught up yet. Earlier this year, for example, Fort Lauderdale lowered the fees required for a short-term rental property.
State, city and federal laws continue to change as lawmakers figure out how to best manage this matter. As a result, you might have to carefully monitor legal changes in registration, inspections, fees and your responsibilities as the owner.
Taxes and insurance can impede profit
If you have two houses in Florida, you might have one in which you live and one that you advertise on Airbnb. Even if they are relatively similar in value, you may have very different taxes for each. Your profit from renting can become additional taxable income.
Also, you may need renter’s insurance. This coverage is useful if a vacationer breaks a window, for example. However, most insurance policies have stipulations on the type of damages they cover, so you won’t be able to rely on insurance entirely.
You are responsible for safety
Like a standard landlord, you will have to care for building maintenance and emergency planning. Failure to do so can lead to injured guests, which has legal consequences aside from a lower online rating.
Buying a property for vacation rentals is a big responsibility, but it’s also thrilling. You will have another source of income, and you can give your guests a fantastic experience during their vacation. With the proper precautions and a great property purchase, you can make the most of this opportunity.