Many times, when people are buying properties in Miami Beach, they are buying them as investments. They may offer them as short-term or vacation rentals, for example, and while this can be a good option for many, you do need to make sure you are following the regulations set up in the city for short-term rentals. A short-term rental is any rental that is up to six months and one day.
Fines Going Up
There have been quite a few problems faced by the city in this matter. The code will allow for vacation rentals and short-term rentals only in certain zoning areas. They are banned in the case of single-family homes as well as several zoning districts. Therefore, if you are buying a piece of property in the area, you will want to know exactly what you can and can’t do with the property.
From March to around the middle of August, there were 106 fines levied against companies and individuals in the area for breaking these rules with an overall sum of $1.59 million. The fines are now starting at $20,000 the first time someone is in violation. This is a massive increase to what they were a years ago. They used to range from $500 to $7,500. For the second violation, the $20,000 doubles to $40,000, and then up to $60,000 for any additional violations.
Naturally, this is causing some rather large problems for those who are renting property in the area, and many have found that it is causing some massive drops in the luxury real estate rental field. There are at least two full-time code enforcement officers assigned to short-term rentals in Miami Beach. They seem to be very eager to do their job based on the number of fines they’ve levied already.
Many of the owners and companies in the area that are offering property for rent are defying these orders and they are continuing to rent. They say that they want to work with the leaders in the community about trying to come up with a fair set of rules for short-term rentals. They don’t want to be in violation, but they also want to make money from their property.
In addition, they say, and rightfully so, that the luxury rental market is huge for the tourism business in Miami Beach and surrounding areas. Families, celebrities, and more come to the area and want to find place to rent. Sometimes, they are not in rent-able areas, and other times, they want to stay on for more than six months. These people are spending money in the local economy, and the businesses that own these rentals are hoping the local government realizes this.
Understand the Rules
While the rules might not change right away, they could change in the future. Regardless, whenever you are buying and then considering renting out a piece of property in Miami Beach, or anywhere else for that matter, make sure you understand the rules and regulations for your area.