UNDERSTANDING THE WEST PALM BEACH REAL ESTATE MARKET

- What Does This Mean For Short-Term Rental Investors?

WHAT ARE THE RULES FOR INVESTING IN WEST PALM SPRINGS, FL? 

- Risks and Rewards of Investing in a Short-Term Rental Property

West Palm Beach, Florida is a colorful, lively and popular hub for work and play on the southern east coast of the United States – and how you feel about it might depend on your reasons for visiting. A high school or college student might hear “West Palm Beach” and envision a spring break destination. A working artist might hear “West Palm Beach” and see a vibrant community of up-and-coming artisans. For those who have a desire to invest in homes for sale, however, “West Palm Beach” should be a name that stands out in a special way.

Between an innovative workforce and a demand for tourist housing that lasts all year long, West Palm Beach is becoming a very competitive, attractive place for investors. Palm Beach County has always been a hotspot for guests, but in recent years, the number of visitors has skyrocketed. So has the demand for short-term housing.

As a potential investor, location matters. It’s important to feel secure in the city that you choose to enter as a homeowner. West Palm Beach is a fantastic fit for many first-time renters. Keep reading to see if it might be a good fit for you.


West Palm Beach is located on the southeastern tip of Florida, about an hour north of Fort Lauderdale and three hours southeast of Orlando. It’s a town with “waterfront appeal” – many of the town’s hotels and apartments are built within walking distance of its famous beaches.

, there are 117,500 people living in West Palm Beach, Florida in 2023. Since the city covers about 58 miles, that gives it a population density of 2,184 people per square mile. It’s less densely populated than New York, but just as big of a draw for many people looking to have a good time.

 lists the median family income in Palm Beach County as $68,874, which is almost $30,000 higher than the national average.

Florida is full of stereotypes, and West Palm Beach is no exception. Between crazy “Florida Man” headlines, jokes about snowbirds moving south, and the spring break antics of high school and college students, this city is often dismissed as a place where the extremes go to play golf, retire, or party.

However, that is not the full picture. West Palm Beach is home to luxurious tourist locations, historic points of interest, a growing space for working artists, and even long-term residential neighborhoods. The city is also home to beautifully-preserved old mansions, some right on the waterfront, that have been carefully preserved.

Certain regions, such as the northwestern district of West Palm Beach, are higher in crime and are not ideal for investors to choose. However, some of the city’s most appealing areas are neighborhoods that give guests access to the beaches, downtown, and parts of the city’s rich history.

Here are a few of the most popular neighborhoods in West Palm Beach:

Flamingo Park. This neighborhood is known for beautiful architecture and its great location. Residents of Flamingo Park are a short drive away from downtown West Palm Beach (a hotspot for shopping, eating out, and nightlife) and the beaches.

El Cid. A highly affluent area, homes in the El Cid community often sell in the millions. This district is known for great schools, comfortable family life, impressive architecture, and its proximity to Flamingo Park.

Southend. This neighborhood, also nicknamed SOSO, is a versatile spot for homeowners. It boasts everything from modestly priced single family homes to opulent waterfront mansions.

Prospect Park. This is one of the most historic neighborhoods in West Palm Beach, Florida. Properties are not only beautiful, but often include larger plots of land than other parts of West Palm Beach County. It is less densely populated, which means houses often sell at higher prices.

Lands of the President. For avid golfers moving to West Palm Beach, this neighborhood provides privacy and great access to some of the region’s finest golf courses. It is a gated community with a great reputation. It also boasts a variety of housing options, including high rises, single family homes, and condos.

Northwood. This neighborhood is a hybrid of history, urban progress, nightlife, and quiet areas. It is about 100 years old and has similar “bones” to Flamingo Park and El Cid, but it offers an array of house types for buyers in the $400,000 to $3,000,000 zones.

Grandview Heights. For buyers looking for low-price areas with high return, Grandview Heights might be the most appealing neighborhood on this list. In 1999, Grandview Heights was admitted to the National Register of Historic Places. It is close to Downtown West Palm Beach and the waterfront, and homes begin in the $300,000s. Price factors can include sqft and distance to amenities.

Since tourists visit Palm Beach County for many reasons, the most successful type of investment property in 

West Palm Beach neighborhood is a short-term rental. The city has “peak seasons” for guests who want to visit the beach, but it also boasts many tourist attractions that draw visitors all year long.

For instance, the beaches tend to attract tourists in the spring and summer (April through September). However, downtown West Palm Beach is home to nationally-ranked art museums, zoos, Palm Beach gardens, concert venues, and nightclubs – so there are lots of reasons for people of all ages to visit in the “off seasons” as well.

Real estate in West Palm Beach ranges from reasonably-priced to high society, meaning that investors with many different budgets can be successful there. And short-term rentals in a neighborhood with a heavy tourist component give the homeowner unique control over their calendar, rental rates, and relationships with their tenants.

Many of the guests who need short-term rentals are in Florida for vacations, but not every guest wants the 

of vacation that we stereotypically associate with southeast Florida. Because of that rental properties can find great success in almost any part of West Palm Beach.


On average, a home in West Palm Beach costs about $400,000. Again, since the city has everything from modest condos and single-family homes to elaborate historic mansions, the median tends to settle a little higher than the U.S. average.

The cost of living in West Palm Beach is also high – almost 90 percent higher than living in the rest of the state. For that reason, it is a very popular place to visit, but not often a place where people choose to live long-term. That makes short-term rentals a very strong presence in the West Palm Beach housing market.

Housing is also a hot commodity in West Palm Beach at the moment – and that does not seem to be changing any time soon. A February 2023 article stated that 

Palm Beach County homes went up by almost 25 percent in value this year

, and that trend looks like it will continue. West Palm Beach in particular saw a rise in prices and decline in the number of houses sold. 

Palm Beach real estate is expensive because it’s an attractive place to live and vacation, but doesn’t have enough housing to meet demand. The island is full of activity, but it’s quite small. That means that many people want to stay, but there are very few places to put them. This, in turn, hikes up the cost of purchasing a house.

According to an article published in February 2023, long-term home sales in Palm Beach County 

. The number of homes sold in January 2023 dropped  over 30 percent, compared to sales in January 2022. In that same window of time, the average cost of a house in Palm Beach County 

The current metrics suggest that the average cost of real estate in Palm Beach County will not decline any time soon. The West Palm Beach region is experiencing many of the same pains that we see in the nation-wide housing market.

What Does This Mean For Short-Term Rental Investors?

The last year in West Palm Beach has not been easy for many homeowners looking to sell. However, for someone looking to enter the short-term rental arena, the current climate is actually a great situation. Palm Beach 

 – a record breaking year for the area. In other words, the long-term housing market has suffered, but more people than ever before are coming to West Palm Beach for short-term vacation stays.

The short-term investor has a strong upper hand in the West Palm Beach real estate market. Purchasing a home for short-term rental is not only a strong business move, but a fairly low-risk move. As West Palm Beach becomes a more and more attractive tourist destination, the need for short-term housing will only grow. Short-term rentals not only provide security for the investor, but they meet an ongoing need for the city’s tourist community – a population that literally keeps the rest of the city in business.

Where Should I Purchase My Short-Term Rental Property?

The list earlier in this article is not exhaustive, but it does target seven West Palm Beach hotspots that seem to draw visitors all year long. Investors should consider location first. If your plan is to target beach-bound families, a short-term rental right on the island is probably a smart place to land. If you are seeking to attract young adults with an interest in nightlife, something closer to Flamingo Park or Grandview Heights might be wise – both of these areas are short driving distances from Downtown West Palm Beach and the waterfront.

Here are a few other factors to consider when choosing the location of your investment property:

The northwest district of West Palm Beach has the highest crime rate. Consider looking for an investment property closer to Downtown West Palm Beach or the beaches on its east coast. You might also want to think about the driving distance to other popular South Florida spots, like Riviera Beach, Lake Park, Wellington, Miami, Boynton Beach, Royal Palm Beach or Fort Lauderdale.

 If your property is on the island with a waterfront view, the renter probably isn’t too concerned about travel. However, many of West Palm Beach’s main draws do require a vehicle to reach. Does your short-term rental come with some form of transportation? If not, is it close to a business that rents bikes or cars? Is there a bus station nearby? You can also consider proximity to amenities like a country club.

Many of the short-term jobs available in West Palm Beach are tourist-driven. Places like hotels, restaurants, and entertainment centers get especially busy in the summer months. Research the job market in your investment property’s area. It will give you many clues about wise places to find tenants.

If you are going to invest in a short-term rental, it is very important to do your homework. Make sure you know the local government’s rules and regulations regarding realty. Realtors can be a huge help on this front!


WHAT ARE THE RULES FOR INVESTING IN WEST PALM SPRINGS, FL?

All short-term rental properties are subject to a local business tax, which starts with a rental license application. More information about the tax and license can be found on 

There are also guidelines for the property’s interior and exterior that must be obeyed for the property to keep its license. Most of these regulations are to protect the health and safety of a short-term tenant. For instance, every window needs to have a window screen, and the property cannot show signs of an insect or rodent problem.

In some cases, occupancy limits and vehicle limits might also apply to homes for sale. Those will vary based on the type of home and the nature of the rental property. Investors also need to be savvy when it comes to local rules, such as HOA agreements, that might impact their property in some way.

Based on West Palm Beach guidelines, there are three main types of residences that can be registered as short-term rentals with licenses.

. This is a single-family home, multi-family home, townhouse or duplex that is shared by the owner and the short-term tenant. This can happen two ways, for FL real estate: the owner can live elsewhere, but claim ownership and residency of the property for some of the year, or the short-term tenant can live on property while the owner is home. For the second situation to work, the owner must prove that the tenant has one full bedroom as private space and at least one shared bathroom.

The second kind of housing that qualifies is a 

. This is a single-family home or townhome that the owner does not live in and has no residential claim on. The short-term tenant has access to the full unit, and there are no other parties present while the short-term tenant is living there.

. This kind of property is typically an apartment or smaller unit in a multi-family building. The owner again does not have residency, and there is never a scenario where the tenant and owner would live there at the same time. The tenant has full access to the entire unit during his or her stay.

Risks and Rewards of Investing in a Short-Term Rental Property

Every investment comes with its challenges and rewards. As a disclaimer, here are the most common 

 that an investor might face when purchasing FL real estate in West Palm Beach:

Market fluctuations and changes in demand. 

The past two years of housing, nationwide, have been volatile. Market trends can change on a dime. What favors the buyer today might favor the seller tomorrow, and vice versa. Crisis can also impact tourism. A great recent example of that is the 2020 pandemic.

The most recent example of this would be the Recession of 2008 – a situation that housing played a key part in. If the economy does poorly, one of the first things to go for many households is vacation. Tourist towns like West Palm Beach tend to suffer when the overall economy suffers.

Every house requires a certain level of upkeep, but short-term rentals often need it more because so many people are coming and going. It’s a space that gets used intensely in short bursts of time. Also, you need to consider the potential for natural disasters in a place like southeastern Florida. If a hurricane blows through, that could result in a costly repair bill for your new construction. 

Applications and renewals often have fees attached to them. If Palm Beach County decides to update its bylaws, that could result in new charges for realty. The township can also make changes that impact a short-term renter’s clientele. For instance, if a law is passed that changes the capacity limit on a single-family home of a certain square feet, that could impact who is interested in your property and how much you charge them to stay.

 experience. Here are a few ways that a short-term rental owner might benefit from deciding to enter the market: 

Potential for Appreciation and High Return. 

Real estate, even in a bad year, is often a good investment. It holds value and appreciates with time. The selling price down the road is almost always higher than what you paid for it.

Again, West Palm Beach is a tourist area. Most short-term renters are prepared to pay a high price for a good experience. If your property is in a strategic location and caters to a vacation mindset, you can more or less name your price and find success. Once you have made your initial purchase, the property is a hard asset.

Diversification of Investment Portfolio. 

Real estate is an attractive asset to have in your corner. Again, there will always be some risk involved, but there is also a pleasantly high change that it will be of economic benefit to you.

Ability to Enjoy the Area’s Lifestyle and Amenities. 

Remember, it’s your property first – even if you choose to rent it out for most of the year! You now own an attractive home in a prime location. For short-term rental property owners in West Palm Beach, that means you get to enjoy the beaches, shopping, nightlife and culture without doing what your clients do: paying to stay. In fact, the rental business funds your own visits to West Palm Beach!

For many investors, the first step is to find a trustworthy real estate agent or brokerage. There may be Palm Beach homes for sale that you don’t know how to find. Get someone in your corner who knows the area, understands what properties are worth, knows where to find current real estate listings, and will walk you through the process with honesty and support. 

has great resources available to help Florida investors get started.

Make sure you understand your financing options. Make sure you understand the difference between conventional, private, hard money and government-backed loans. Realtors will be able to walk you through the differences if you don’t know already.

Lastly, you need to find someone who can help you strategize. Consider attending open houses in the area or taking a virtual tour of new listings in the neighborhood that interests you. Be sure to consider the pros and cons of buying a new construction versus an older property, and who knows the ins and outs of consumer protection. Rove Travel

 has a history of helping investors navigate short-term rental ownership in Florida

. Get someone in your corner who can help you network, research, and make smart professional decisions in the Palm Beach county Region.

West Palm Beach is an exciting area with strong appeal. It’s also a great fit for investors who want to join the ever-growing ranks of short-term property rentals. If you’re ready to take your first steps towards owning a short term rental in West Palm Beach, 

 is here to help. Check us out to get started today.

Discover the opportunities in West Palm Beach real estate market. Learn about the cost of investing, rental potential, and rules for short-term rentals in this comprehensive guide.

Exploring West Palm Beach Real Estate: A Guide for Investors

Exploring the Opportunities in West Palm Beach Real Estate: A Guide for Potential Investors

 domestic visitors took a Florida vacation in Q3 of 2022 alone, making it the 

 and a rich market for short term rentals (STR). However, the rules and regulations surrounding short term rentals vary from city to city, making it complicated and cumbersome to many second homeowners.

Whether you’re a first time vacation home owner or looking to make a little extra income on your beach house, it is possible to navigate the 

. It just takes some guidance on registration, regulations, and taxes on three levels: State, County, and Municipality.

The definition of a short term rental varies from state to state. In Florida, a short term rental is defined as ‘any individual lease agreement that is less than six months in duration.’ That’s a long duration compared to other popular tourist states like New York (30 days) or California (also 30 days), allowing for monthly rentals and making Florida even more appealing to vacation rental ownership.

 defines a vacation rental as “any group of units in a condominium, cooperative, or time share plan or any individually or collectively owned single-family, two-family, or four-family house or dwelling unit that is also a transient public lodging establishment” and then separates them into two property types: dwelling and condo.


Florida State Laws Governing Short Term Rentals

No matter which Florida destination your short term rental is in, in order to be legally operating a vacation home as a 

short term rental in the state of Florida

, property managers or hosts must first acquire a license through the Department of Business and Professional Regulation (DBPR) based on their categorization as a dwelling or a condo, and then as a Single, Group or Collective registration within their category. These are indicative of the number of properties the host represents - 

 for multiple units in one building, and 

 applying to someone who is a host for multiple units in multiple locations.

Once you acquire the license, you can register with the Florida Department of Revenue. As the owner of the property, you’re responsible for collecting lodging taxes from guests and filing lodging tax returns with the state. As of January 2023, the state sales tax in Florida is 6% for short term rentals. So any time a guest makes a booking that is less than the legal six months total, a tax is applied and collected by the state.

Many hosting sites, like Airbnb, integrate the state taxes into the reservation experience. Airbnb collects the Florida Transient Rental Tax (6%), Florida Discretionary Sales Surtax (0.5-1.5%), and the County Tourist Development Tax (2-5%) for 24 counties in Florida as a part of their reservation. Hosts are however still responsible for collecting and remitting other taxes that are specific to their county and city.


Registration and Taxes at the Local Level

Florida state law allows local governments to pass rules to control negative effects of vacation rentals in their area. While they can’t ban short-term rentals entirely, they have been actively attempting to control the short term rental market in recent years, as the implications of STRs on a neighborhood, hospitality offerings, and local community can’t be ignored.
A key way they’ve attempted regulation is to require additional registration and taxes at the local level. Discretionary sales surtax, local option transient rental tax, local lodging tax and more may need to be collected depending on the county and municipality you are located in.


Navigating Your Florida County as a Short Term Rental

The first step in navigating your local requirements is to identify which county your vacation rental is in. Let’s use a condo unit in Miami Beach as an example.

short term rental rules in Miami-Dade County

 website includes the following regulations:

A short-term vacation rental is for “a period of less than 30 days or one calendar month, whichever is less” 

(This means monthly rentals longer than 30 days would only be subject to the Florida State Sales tax, not the Miami-Dade County local option transient rental tax)

A maximum occupancy of 2 persons per bedroom, plus 2 additional persons per property, up to a maximum of 12 persons, excluding children under the age of three

The responsible party must reside for more than six months per calendar year in the property being offered as a vacation rental if the property falls in Low Density Residential on the 

Compliance with designated legal safety features if a pool is onsite

Compliance with all residential requirements pertaining to solid waste disposal, noise, public nuisance, parking, advertising, pets, and anti-discrimination, disability and fair-housing regulations

In addition to the state registration and taxes, many counties require additional certifications or protocols. Miami-Dade County, for example, requires a Tourist Tax Account for collection of the monthly Convention and Tourist Development tax and annual inspection for and purchase of a Certificate of Use (CU).


Adhering to Additional Municipality Guidelines

With the county regulations and registrations covered, we head to the final layer – the municipality, which in the case of our example is Miami Beach.

At the municipal level, the main restrictions they can enforce surround zoning in specific neighborhoods or areas of their city. Miami Beach 

 (Sec 142-1111) and City Code (Sec 142-905 (b)) outline the zoning restrictions for vacation and short term rentals. As you can see on their 

, the zoning is quite restrictive. This use of zoning to prohibit short-term rentals is common in many dense or residential vacation destinations.

Once confirming your unit isn’t in one of the restricted areas, a Business Tax Receipt and Resort Tax registration certificate can be established.

So, in order to rent a condo unit in Miami Beach, Florida for less than 30 days or one calendar month, there are the following seven steps of registration, licensing and taxes before you can list your property:

Florida Department of Revenue Registration & Lodging Tax - 6%

Annual fee for inspection and certification - $136.17

Miami-Dade County Local Option Transient Rental Tax Rate + Miami Beach Resort Tax - 7%  

To make things more interesting, these laws and taxes are subject to change at the discretion of the governing body, so we recommend checking with the specific county or city government where your property is located to ensure you are adhering to the most up to date regulations.

If that all seems complicated and overwhelming, you’re not alone. Partnering with a property management company that handles all the required legal ins and outs like 

 is an easy way to make the process hassle-free.

 is another great option for people looking to invest in a vacation rental property and interested in a seamless process. Rove’s collection of vacation homes are vetted and ready to buy.


Which Counties in Florida allow for short term rentals?

In 2011, the state of Florida passed legislation restricting counties and municipalities from banning short term rentals outright, but if a local statute was already in place, they were grandfathered in. The only county that does not allow for short term rentals today is Lafayette, though counties like Calhoun and others make it very hard with zoning restrictions.

With the growing popularity of short-term vacation rentals, many counties have implemented local option transient rental taxes to benefit from the traffic in their area. More popular counties like Orange (Orlando), Volusia (Daytona Beach), Pinellus (St. Petersburg), Osceola (Kissimmee) and Broward (Miramar & Pompano Beach) have taxes as high as 6%, compared to less populous counties like Union and Sumter, which don’t have an additional local tax at all.

Which cities in Florida are most attractive for Short Term Rental Ownership?

As real estate prices skyrocket in cities like Cape Coral, picking a Florida destination for your short-term vacation rental can be guided instead by traveler trends and opportunity in the current short term rental market.

When evaluating based on search volume, the top 5 cities that travelers are seeking short term rentals in are:

The beautiful beaches of Naples draw more than a million visitors a year. With high-end shopping, world-class arts and culture, dining and millions of protected acres nearby, the destination is a popular pick for vacationers. Short term vacation rentals located within the City of Naples are exempt from the Collier County registration requirements, but are still subject to the additional 5% Tourist Development Tax of the county.



Considering owning a short term rental in Naples? 

Rove Travel is well versed in the market and has an existing collection

 in the destination. Homeowners can seamlessly join and enjoy the benefits of both Naples and Rove’s management company.


 Theme parks and water parks abound in this Bay-side city. Tampa sits within Hillsborough County. Their local option transient rental tax is 6%. The City of Tampa also requires a rental certificate, but no additional city taxes for STRs.


The offshore coral reef of Venice Beach attracts over 20 million visitors annually. And with a lower county (Sarasota) tax of 5% and a sales tax of 0%, it’s an attractive city for vacation homeowners.


 Just south of popular Fort Lauderdale, Hollywood is a 27 square mile, beachfront community that is rich with history, culture, and a charming downtown. Located in Broward County, it has a higher local tax at 6%, but the market is missing a luxury hospitality offering, leaving short term rentals a window of opportunity.


 A fishing and vacation mecca, the limited space leaves little occupancy at the hotels in the Florida Keys. And with high occupancy driving up nightly rates, vacationers are eager for the space and price afforded by a short term vacation rental. Monroe County has a local option transient rental tax of 5%, but there is little regulation of short term rentals in the county’s seat, Key West.

Which platform to list your short term rental on?

There are numerous websites for listing, booking, and payment for short term rentals. In Florida, if you’re looking to have at least one tax checked off your list, Airbnb and VRBO automatically collect and remit Florida state-administered lodging taxes when they receive guest payments. However, you would still be responsible for any local and county taxes.

: Airbnb remains the most well-known and fastest growing rental site. It’s often the first place people check, and you can benefit from the trust renters have in the brand. Additionally, listing your site on Airbnb comes with a $1 million dollar insurance policy on your property. However, while they don’t charge you to list your property, they do take a commission fee on bookings.

VRBO is another great option, especially if you have a larger property. They give you the choice of paying per booking or an annual fee of $499. So for premium properties in busy destinations(like many Florida cities), the annual option can be a way to save money on per booking fees.

 and Expedia, where you can leverage the flight and rental car search functions to get in front of potential customers coming to your city. However, that exposure comes with a higher fee. 

 has a 15% fee for all reservations and Expedia ranges from 10-30%.

Another route is to partner directly with a property management company like Vacasa or 

. Not only do they handle the registrations and taxes, bookings, cleanings, and customer service, they have dedicated platforms for booking that instill trust and quality.

Whether you’re a first time vacation short-term rental owner or a seasoned host, 

takes care of your home so you don’t have to. With collections in 

, Rove Travel has a keen understanding of the Floridashort termrental landscape and is here to help you enjoy the benefits of owning a short term rental in the Sunshine State.

The regulations, licensing and taxes you need to know about when owning a short-term rental in Florida.

Short Term Rental Ownership in Florida

Navigating Short Term Rental Ownership in Florida 

What is a Short Term Rental and What to Know as a Potential Property Owner

Short term rentals are quite the buzz these days. There seem to be endless options for overnight accommodation, and the cultural shifts from the pandemic have blurred the lines between traveling and living.

Month-long stays in remote destinations, the emergence of “digital nomads,” and more frequent midweek trips are redefining what a “short term rental” is and who they appeal to. Short term apartments have become more sought after, more competitive, and more lucrative. As travel and tourism pick up pace, it seems like the perfect time to list your second home on a platform like AirBnb or buy an investment property.

Here are the ins and outs of short term rentals to help you decide if it’s the right time for you to join the STR landscape.


A short term rental is a “furnished property that is rented out for a short period of time.” Most people consider a short term rental to be a stay of fewer than 30 days, but with the rise of remote work, and longer-stay uses like corporate housing and extended stay beginning to take advantage of short term rental properties, the understanding of an STR is evolving.

Whether a residential property, an accessory dwelling unit (like a garage apartment or carriage house), a single-family home, or a townhome, short term rentals are a great way to earn extra income for second homeowners or people who are frequently away from their primary residence. Many traditional landlords are even opting to list their apartments for rent as short term rental properties because of their income potential and popularity compared to traditional long-term rentals.

What are the Different Types of Short Term Rentals?

 These are single-family homes or apartments that are rented out by the owner for short periods of time. Private homes can range from small, cozy apartments to large, luxurious houses, and can be a good option for families or groups who want more space and privacy than a hotel room can offer.

 A villa is a large, privately-owned property that is often set in a scenic location, such as near the beach or in the countryside. Villas can be rented out to tourists and often include amenities such as pools and outdoor recreation areas.

 Cabins are small, rustic vacation homes that are often located in wooded or natural areas. They can be a good option for travelers who want to experience a more secluded or outdoor-oriented vacation.

 A condo is a type of vacation rental that is located in a larger building or complex, such as a beachfront high-rise or a ski resort. Condos are often fully furnished and can offer a range of amenities, such as fitness centers and pools.

 A beach house is a type of vacation rental that is located near the beach and is often designed with a beach-themed decor. Beach houses can be a good option for travelers who want to be close to the sand and sea.

Why short term rentals generate more revenue vs. long term rentals?

Higher rental income: Short-term rentals tend to have higher rental rates compared to long-term rentals, especially in popular tourist destinations. This can lead to higher rental income for the owner.

Greater flexibility: With short-term rentals, you have the flexibility to choose when to rent out your property and for how long. This can allow you to maximize your rental income by adjusting your pricing and availability based on demand.

More control: As the owner of a short-term rental, you have more control over the property and the rental process. This can allow you to customize your property and the guest experience to meet the needs of your target market.

Tax benefits: There may be tax benefits to owning a short-term rental, such as the ability to claim deductions for expenses related to the property.

Appreciation potential: Depending on the location of the property and market conditions, vacation rentals may have the potential to appreciate in value over time.

However, it's important to keep in mind that owning and managing a short-term rental can also be more time-consuming and require a greater level of customer service compared to long-term rentals. It's important to carefully consider the pros and cons before making the decision to invest in a short-term rental property. There also is required level of attention to detail and analysis to ensure the property is priced correctly to get a good balance of revenue and occupancy.

What are the different types of short term rental ownership and management ?

For the hands-on, marketing-savvy owners, sites like AirBnb and VRBO offer easy-to-use platforms where owners can list, manage, and market their own properties. This option is appealing to homeowners that want to have frequent access to their property and total control over the booking schedule, but requires a high level of commitment and availability. They are responsible for all aspects of the property, including marketing, booking, cleaning, and maintenance.


Individually Owned, Property Management Company Operated

This approach is a great option for homeowners that don’t have the time or interest in navigating regulations, cleaning, bookings, and customer service. For a fee, property management companies like 

 make it easy for owners to benefit financially from a vacation rental while remaining hands off. Perfect for someone that would like to sit back, relax, and enjoy the benefits of short term rental income without doing anything. They handle all aspects of the rental process, including marketing, booking, cleaning, and maintenance.


As the short term rental market gained traction, companies like Sonder, Mint House, and Kasa deployed large sums of capital to buy apartment buildings and convert them to short term rental units in markets that were popular for corporate housing and tourism. While this isn’t an option that would apply to an individual homeowner, this type of short term rental is popular for extended-stay business travel and digital nomads, so good to be aware of when choosing your city and target guest.



What to Know Before you Turn your Vacation Home into a Short Term Rental

Short Term Rental Restrictions and Regulations

The legal definition of a short term rental varies by state, and often even by city. For instance, New York City defines short-term rentals as “the renting of dwellings for less than 30 consecutive days,” while Florida considers you a “transient rental accommodation” for rental periods of six months or less.

The accompanying zoning, regulations, tax implications, and code enforcement also vary state-by-state. In addition to the statewide rules, most city councils and towns have their own short term rental laws and city code to preserve the local housing market and community needs. This is especially important in destinations with limited housing for permanent residents like Aspen and Steamboat, Colorado or coastal Oregon.

In Florida, a transient rental accommodation is legally required to register with the Florida Department of Revenue, collect lodging taxes, and file lodging tax returns with the state. If you’re in Collier County, your only additional requirement is to register all properties with the county. However, if you’re in Miami Beach, short term rentals are only permitted in a few designated zones and banned from all residential neighborhoods.

In New York, the New York State Dwelling Law prohibits all “Class A” multiple dwellings from offering short term rentals. This means statewide any multifamily building resident is ineligible to rent out their unit for less than 30 days. The only way to have guests in your “Class A” dwelling unit is to be present while the guests are there and have less than 2 occupancy.

New York City regulations are even more complicated, and subject to more frequent changes. For example, a new 

Short Term Rental Registration Law will go into effect in January 2023 in NYC

 requiring vacation rental hosts to register with the City. If the registration information on rental platforms like AirBnb doesn’t match the City database, they will block transactions.

No matter what city your rental property is in, you can check your local and state regulations to confirm that your property is eligible to rent, the rental lengths legally permitted, and that you’ve accounted for all registration requirements, occupancy taxes, and any additional rules you’ll need to follow.

 can help owners navigate the constantly shifting compliance nuances. Rove Travel has a team dedicated to regulations that can help you pick the best destination that aligns with your budget, rental parameters, and goals. Once you’ve identified the right market, Rove Travel can handle the due diligence required to set your property up with all legally required registrations, down to the specific city permits needed to ensure a smooth rental ownership experience.

How to Start a Short Term Rental Business

Once you’ve identified the property and acquired all legal registrations and permits, there are a number of things to do before you can accept your first booking.

What to put in your residential property.

The amenities and design of your property can determine your nightly rate and make or break your ratings with guests. The bare essentials (a comfortable bed, free WiFi, a refrigerator, etc.) will be expected. It’s the premium amenities, the stylish furnishings, and the extra touch that will set you up for success.

Consider your guest when deciding what amenities to add. Are you in an urban destination where your guest is looking for a place to remote work for a month or longer? You’ll want to make sure you have a great workspace and even greater WiFi. Are you in a place that attracts families? A room with bunk beds will boost your bookings. Are you near a ski resort or beach? An on-site washer and dryer will ensure their ski pants are warm and beach towels are dry.

Tailoring your space to your guest needs is a great way to stand out in your city and drive reviews and bookings.

If you’ve perused AirBnb or VRBO you’ve seen the selection options titled, “Type of place.” When renting out your home or condo, you have the choice to rent it as “Entire place,” “Private room,” or “Shared room.”

Entire place gives the renter the full home, grounds, and all associated amenities. Many owners will keep a locked closet or garage to store personal items, but are not present during the rental period.

Private room functions like a bed and breakfast, where the renter has their own room, but shares common spaces.

Shared room is the most social option, offering renters a place to sleep with the expectation that they will share most other areas, including bathrooms, kitchens, common areas, etc.

Other things to identify when deciding how to rent your property include the terms of your rental, such as pet-friendly, number of occupants, check-in and out times, etc.

An often underestimated factor of owning a short term rental is managing the cleaning between bookings. Especially with the heightened cleanliness standards following COVID-19, renters want to arrive to a pristine residence. From allowing time for the rental to sit unoccupied before and after the cleaning, to the hours it takes to property clean a rental and set the stage for the new guests, the turn over process takes time and practice.

Picking your pricing strategy is a delicate balance between what the guest and market will accept and making a profit.

Understand what a short term rental is, the different types, and how to get started with our guide on becoming a short term rental owner. 

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