The short-term rental market in the Tampa area has always been intriguing to investors because of the warm, tropical climate and our close proximity to some of the best beaches you’ll find anywhere in the country. But thanks to the growing popularity of Airbnb, and the sharing economy in general, short-term rental investing has definitely become a little more mainstream throughout Florida and other major cities around the globe, even as regulations become a little trickier to navigate.
As you’ve probably already found in whatever research you’ve done to this point, there is definitely money to be made in the Airbnb market. But it’s also important that investors fully understand both the pros and cons of buying an Airbnb rental, and specifically, one in the Tampa area.
The Pros of Airbnb Investing in Tampa
Airbnb rentals thrive in places people want to visit. And with Tampa offering easy access to Florida’s best Golf Coast beaches, it’s the ideal market for short-term rentals. Along with that, several Major League Baseball teams also have spring training facilities in or around Tampa, making it an especially popular destination in February and March.
High Income Potential
If the location is right and you have a high-quality listing with desirable finishes and features, there’s no doubt Airbnb provides higher income potential than renting the space out on a monthly or yearly lease. But also keep in mind short-term rentals require more work and upkeep, as well as the stress of making sure you have a steady stream of guests lined up, even during slower travel seasons. But if you manage your listing right and always keep the space clean and comfortable, chances are you’ll see a stronger return.
The Cons of Airbnb Investing in Tampa
Getting Started Isn't Easy
Buying a home, prepping it, and listing it on Airbnb all sounds so simple, right? WRONG. Every city is different in terms of rules, regulations, and permits, and ever certain locations within a city have limitations on what you can and can’t do when it comes to renting your property on a short-term basis. Right now, the state of Florida requires all vacation rentals to be licensed through the Florida Department of Business and Professional Regulation (DBPR) and it’s also important to check with city and county officials to get the most up-to-date regulations as well.
The Strong Competition
The entire point of this blog is to highlight the popularity of Airbnb investing, which by default means competition is strong in just about every single vacation market around the world. According to their website, Airbnb has listings in 65,000 cities
Expenses Can Pile Up
As many home owners already know, maintaining a home can be pricey, especially if it has features like a swimming pool or hot tub. Airbnb investors will also need to factor in regular cleaning expenses, the 3% Airbnb service fee, and other unexpected costs like theft or damage to the property as well.
Posted by Mike & Michelle Grizzell
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