0 Miami Beach Vacation Rental Regulations for COVID-19

Posted on August 1, 2020 by Sean Greco

Are Vacation Rentals Currently Permitted in Miami Beach?

As the situation continues to evolve in the United States with COVID-19, Florida’s regulations around short-term vacation rentals continue to evolve as well.

June 16th Miami Beach Short Term Rental Update:

According to Miami Beach’s Phase 2 Reopening Order and Emergency Measures, short-term rentals and vacation rentals were prohibited as of July 16, 2020:

Commencing on July 16, 2020 at 12:01 a.m., short-term rentals and vacation rentals must be CLOSED, and are hereby expressly PROHIBITED. Short-term and vacation rentals shall cancel all existing reservations, and shall refrain from accepting new guests or making new reservations, until such time as this Order expires or is otherwise amended.

June 4th Miami Beach Short Term Rental Update:

As of June 4th, the State of Florida authorized Miami-Dade County to allow the operation of vacation rentals once again.

The Florida Department of Business & Professional Regulation (DBPR) approved the County’s plan for vacation rentals, which includes the following mandatory regulations:

Health and Safety of Guests

Guests and homeowners/property managers must follow Miami‐Dade County guidelines regarding social distancing and facial coverings and are restricted to gatherings of no more than 10 individuals.
Remote check‐in/out should be made available when possible to cut down on face‐to‐face interactions.
CDC resources must be provided to any guest while staying on property. These resources are available in multiple languages at the CDC website.
CDC guidance must be provided to guests traveling with pets and service/assistance animals if the property is pet friendly.
All properties must provide local COVID‐19 guidance for guests. Miami‐Dade County has a dedicated webpage that includes local information.
Homeowners/property managers will add cleaning procedures to their amenities list and property description.

Cleanliness of the Property

All DBPR sanitation guidelines must be followed: 61C‐3.001 Sanitation and Safety Requirements of the transient lodging statutes.
CDC-related guidelines that are for public spaces, businesses, schools and homes and which expand upon the State of Florida and DBPR requirements for safety and sanitation for all lodging, must be followed.
Two days must be allowed for enhanced cleaning procedures to take place between stays based upon the use of CDC cleaning and sanitization procedures.
Housecleaning will conform to the “Enhanced Industry‐Wide Hotel Cleaning Standards in response to COVID‐19” adopted by the American Hotel & Lodging Association (AHLA).
All cleaning will be completed prior to guest check in, so as to avoid any physical contact between cleaning staff and guests.
Shared pools and elevators, as well as common areas, will be subject to the Enhanced Industry‐Wide Hotel Cleaning Standards (AHLA).
Spare blankets and pillows will be removed, unless cleaned between each guest stay.
To inform guests, signage will be placed at each property highlighting the cleaning protocols between stays.

All vacation rentals must follow guidelines for Hotels and Accommodations included in The New Normal Guidebook.

For additional information and guidance related to vacation rentals or other businesses regulated by the DBPR during the ongoing “Safe. Smart. Step-by-Step. Plan for Florida’s Recovery,” visit www.myfloridalicense.com/emergency.

For other County news and updates on COVID-19, see miamidade.gov/coronavirus.

0 Miami Beach Short Term Rental Law

Posted on February 15, 2017 by Sean Greco

Miami Beach short term rental law includes a series of requirements for any property in Miami Beach to be considered eligible for legal short term renting. It is estimated that 95% of buildings in Miami Beach do not allow for rentals for periods shorter than 6 months.

Miami Beach Short Term Rental Law:

miami beach short term rental zoning map

Zoning –

Short term rentals are only allowed in certain areas in Miami Beach. Many of the areas that are authorized to conduct short term rentals are commercial areas, with only a few residential area exceptions. This map shows the Miami Beach short term rental zoning requirements.

Building requirements –

Miami Beach short term rental laws require properties to meet certain building requirements. This means that properties must abide by all building, fire, and accessibility codes. Wheelchair ramps, sprinkler systems, and impact windows are just a few of the hurdles to making a property a legal short term rental. Inspections are routinely conducted by the State of Florida, Dade County, and by City of Miami Beach. After getting hit with the $20,000 fine for illegal short term rentals three consecutive times at his property on Meridian Avenue, Daniel Sehres has decided to make the necessary upgrades to turn his property into a bed and breakfast. He estimates that this venture will cost him $200,000.

Licenses and taxes –

Miami Beach short term rental law requires properties to acquire the appropriate licenses and pay the associated taxes. The property will need a transient apartment license from both the State of Florida and the City of Miami Beach. If the property is a part of a condo association, the condo doc will also need to be referenced to see if short term rentals are allowed. In addition, the owner of the short term rental will need to pay sales and resort taxes in the amount of 13% of the rental property income. A business tax receipt is also required. Go here to obtain your business tax receipt. Or take a look at the list of businesses that already have their business tax receipts.

Affidavit –

As of December, regulations on short term rentals got even tighter. Commissioners voted to require short term rental property owners to submit an affidavit to the city. This affidavit affirms that the property is in a short term rental zone, that they have obtained a business tax receipt and resort tax account, and that their condo association allows short term rentals. This process currently requires a physical notary and an in-person visit to the city hall. Commissioner Joy Malakoff, a sponsor of the ordinance defends the increased regulation saying “South Florida is the fraud capital of the country, and we just felt it was putting too much trust in every condo owner, saying, ‘Yes they are going to tell the truth. If you get an affidavit and a letter from a condo association, we as the governing body of the city feel much more comfortable that they really are allowed to do short term rentals.”

Downfalls of Miami Beach Short Term Rentals:

Miami Beach started really cracking down on short term rental violations nearly a year ago by increasing the fine to $20,000 per violations. These fines are the highest of their kind in the country, and they make illegal short term renting in Miami Beach an even bigger concern. With the rise in popularity of using short term rental properties in place of hotels for vacation accommodations, short term rentals have been put in the hot seat. This is because, in large volume, short term rental of residential properties can cause problems for many different parties.

Hotels –

The hotel industry is one of the biggest opponents of short term renting in Miami Beach. They see it as unfair competition because the hosts aren’t having to pay the local resort taxes that hotels have to pay. The increase in the popularity of sites like Airbnb has magnified this issue greatly. Airbnb, after getting fined particularly hard, has attempted to compromise with Miami officials on increased regulations for short term rentals. After the ordinance requiring the notarized affidavit was passed, Airbnb spokesman Benjamin Breit wrote in an email “It is disappointing that an opportunity to collaborate with the private sector on protecting quality of life and economically empowering the middle class is instead being used to over-regulate and punish the constituents of Miami Beach. As the commission freely admitted from the dais, the desired intent was ‘punitive’ rather than constructive and that, in our opinion, is not good policy. Unfortunately, the real losers of this measure are visitors and the constituents in Miami Beach.”

Neighbors/Community –

When properties are used as short term rentals, the neighbors and the community can suffer. People who rent out a house for a vacation are not concerned with being good neighbors, and they are not in the midst of their ordinary lives. These individuals are in vacation mode which means they are often rowdy and inconsiderate, throwing noisy parties leading to neighbors calling local police to complain. As Mayor Philip Levine says, “Our community is not in favor of short term rentals.”

Tenants –

Illegal short term rentals can also cause uncomfortable situations for the tenants. No one wants to feel unwelcome on vacation, but communities that are overwhelmed with and sick of the endless parade of vacationers invading their residential districts are not prone to be very welcoming to all short term tenants. Besides some possible tension with the neighbors, tenants risk being evicted during their vacation if the property is found to be in violation of illegally conducting short term rentals.

Property Owner –

The property owner takes on the largest risk in the case of both legal and illegal short term rentals. Even if the property meets the Miami Beach short term rental law requirements, this is not always in the best interest of the property as guests using it as a vacation party home may treat it poorly leading to quicker depreciation and more frequent repairs. If a property in Miami Beach is being used for short term renting without all of the requirements listed above, then the owner is responsible for the standard fine of $20,000 per occurrence. If an unsuspecting property owner is renting to someone who in turn rents the property out on a short term basis, the owner is still ultimately responsible for the fine, as are the legal fees associated with the eviction of their tenant. One of the reasons to hire a property manager is to have insurance against this short term rental trap. Property managers can catch tenants violating Miami Beach short term rental law and immediately evict them before they have the opportunity to cost owners tens of thousands of dollars.

0 Miami Real Estate Trends

Posted on January 2, 2017 by Sean Greco

Amidst current political and economic changes, many people are wondering what Miami real estate trends we will see in 2017. With moderately rising interest rates, low risk of a housing market crash, population growth, and a rising trend in deregulation, the outlook for Miami real estate is strong in 2017.

Realtor.com predicted that South Florida will see sales volume increase 4.17% and price increase 3.98% in 2017. Look for increases in investment from the northeastern United States, as well as an increase in the number of Millennials in the marketplace as potential driving factors. Foreign investment and luxury home sales could fluctuate, but no major changes are predicted from these sectors in 2017.

Foreign Investment in Miami

A little more than half of Miami-Dade County residents are foreign born. The region is a melting pot, with residents and investors from all around the globe. Foreign investment plays a huge role in the Miami real estate game. It saw a dip in 2016 in part due to the strengthening of the U.S. dollar. If the dollar is to appreciate more compared to other international currencies, it could encourage a decrease in foreign purchases and incentivize foreign investors to sell these now appreciated investments. However, the U.S. market is strong in relation to other global markets, making it a safe place for international investments. With or without currency appreciation, investment in U.S. real estate is still beneficial and desirable to international parties.

There was much uncertainty surrounding the future of the housing market as we approached the 2016 presidential election. Some people were concerned about what the election of President Trump would mean for foreign real estate investment. Thus far, the politics are not affecting the housing market as much as expected. Much of the uncertainty has dissipated and the fundamentals that make Miami an attractive investment opportunity for foreign investors remain.

Trump’s stand on immigration does not appear like it will have a large impact on Miami real estate trends either. The typical South American investor is sophisticated and not normally adversely affected by immigration policies. For those that may want to migrate to Miami, investment visas are available as an option. Congress is to extend the EB-5 investment visa program which grants permanent residency to foreign investors who back developments that create jobs. Two other things that Trump may bring to the table are lower capital gains and income taxes. If achieved, this could actually encourage more South Americans to move to the United States.

U.S. Investment in Miami

While the fluctuation of foreign investment in 2017 may be uncertain, U.S. investment in Miami, particularly from the Northeast, is expected to increase. The strength of the U.S. dollar has affected Miami real estate trends for luxury and foreign sales over the past year, but Miami holds strong investment potential within the United States. Capitalization rates and interest rates currently have a pretty wide spread. This is sending more high net worth investors from across the U.S. to Miami. Aaron Kurlansky, principal of FM Capital says, “we are seeing a lot of guys exiting properties in New York to double down and plant roots here. These people are longer term investors who want to manage their wealth. They are seeing that they can own 200 units here for the same price of 100 units there.”

Millennial Home Sales on the Rise Nationwide

As Millennials are entering their main home purchasing years, the U.S. is expecting to see increases in Millenial home sales. These increases may be more modest in South Florida where young buyers represent a smaller portion of the housing market. According to Jonathan Smoke, chief economist at Realtor.com, in 2016 buyers under age 35 accounted for 29% of home purchases in South Florida versus 38% nationally. This can be mostly attributed to the large amount of investment purchases and retirement communities in South Florida.

Nevertheless, buying is 43% cheaper than renting a home in Miami-Dade County, which is attractive for first time home buyers who are facing high rents in the Miami area. This may bring more first-time home buyers to the South Florida market than in previous years. Similar real estate trends are being seen in other large cities, leading to potential increases in first-time home buyers nationwide. Renting will also continue to be an attractive offer for Miami Millennials. As renter-focused development projects make their way down the pipeline, it may even become a little more affordable.

2017 is looking to be a stable and steady year for Miami real estate trends. When it comes time for you to make a move, make sure you consult with an expert. Our agents at RE/MAX Paradise can help get you where you need to go. Reach out to us today to get started buying, selling or renting in Miami.

0 Top Cities for Economic Growth Ranks Miami

Posted on October 6, 2016 by Sean Greco

The United States is rebuilding from the recession. Now, we see great economic growth, with high consumer confidence, lower unemployment, and more. However inevitably, some parts of the country have better economic growth than others. WalletHub, a personal finance website, studied the top cities for economic growth between 2009 and 2015. The study looked at 14 metrics, including population growth rate, college educated-population growth, growth in regional GDP per capita, and more. The full study can be found on their website here.

RE/MAX Paradise is excited that WalletHub ranked Miami as the second fastest growing city in Florida in their large city category. Five Florida cities made the overall top 30 list: Lehigh Acres (No. 3), Fort Myers (14), Brandon (16), Miramar (17) and Palm Coast (28). Other ranked cities in Florida:

Top 5 Florida cities by key index:

Large cities with the most growth: Miami ranked second
Highest population growth: Lehigh Acres tied for second
Highest job growth: Fort Myers ranked third; Cape Coral ranked fifth
Highest poverty rate decrease: Boca Raton ranked third

“Experts might not agree on the ‘best’ or the ‘right’ recipe for rapid economic growth, but some cities have figured out the key ingredients and how to stir the pot just right to sustain long-term prosperity,” WalletHub said in the study. “Patterns emerge within those cities, allowing us to identify the contributing factors that perpetuate a lasting cycle of growth.”

WalletHub asked several housing experts from across the country key questions about economic growth in cities. For their answers to questions like what challenges quickly growing cities face and more, check out WalletHub’s website.

To be amongst the top cities for economic growth is a great sign for any city. Miami continues to excel as an international hub of business and culture. Check out RE/MAX Paradise’s amazing properties in different areas of the city today!

0 Florida Economy is Outpacing Nation

Posted on June 30, 2016 by Sean Greco

Of course, one large affect on Miami real estate is the Florida economy as a whole. Recently, the economy is the sunshine state has been great thanks to job growth and home construction. According to UCF economist Sean Snaith, director for the Institute for Economic Competitiveness at the UCF College of Business Administration, Florida’s economy will outpace the nation’s as a whole.

“The fundamental underpinnings of the housing market in Florida continue to strengthen. Job growth in Florida is forecasted to continue outperforming the U.S. labor market and more baby boomers continue to reach the end of their working lives,” wrote Snaith in the second-quarter Florida & Metro Forecast. “This bodes well for continued population growth via the in-migration of workers and retirees.”

Measured by Real Gross State Product, the Florida economy is expected to grow at an average annual rate of 2.9 percent through 2019. According to Florida Metro & Forecast, the $1 trillion mark will break in 2018, and is expected to climb to $1.074 trillion in 2019. This would make Florida the 16th largest economy in the world, according to the World Bank.

An economy growing so much will draw in home buyers. They are expected to come from both within and out of state. Job opportunities will also continue to increase, allowing more people to buy homes. However, single family houses are in shorter supply right now. High demand and low supply is pushing prices up.

“While this looks like another housing bubble, it’s really just an old-fashioned shortage in the single-family market,” Snaith said. “It is expected to correct itself as new housing starts ramp up over the next few years.”

Median existing home prices in Florida are $213,000 compared to $122,200 during the housing crisis, according to Florida Realtors.

A booming economy is just another reason to live in Florida, and better yet, Miami. Check out the amazing properties at RE/MAX Paradise.

0 Effects of the Brexit on Miami Real Estate

Posted on June 29, 2016 by Sean Greco

Recently, the United Kingdom voted to leave the European Union. All over the media, this decision has been made known as the “brexit.” It will come with many global implications. Some of those will be economic. According ABC Local 10, experts say the effects of the brexit on Miami real estate will be positive.

“London was amongst the world’s most lucrative real estate markets, however, last week’s U.K. vote is already causing property prices to plunge, which means that Florida real estate will likely move up the list of busiest global investment destinations,” Daniel Kodsi, CEO of Paramount Miami Worldcenter, said.

Kodsi is a developer of 24 Florida communities, so he has insight into the market here. More foreign buyers are now expected to flock to South Florida.

“Florida real estate is one of the most valuable properties in the world, yet is less expensive per square foot than Paris, New York and other global cities, but its valuations are consistently greater,” Kodsi said. “Brexit adds a new dimension to the global real estate investment landscape, which will take time to fully understand but may, with near immediacy, trigger a surge in additional foreign investment in Florida.”

These foreign investors will not only bring wealth to Miami, they will bring knowledge, new companies, new stores, and more. Kodsi predicts that about 20,000 will move downtown. These effects of the brexit on Miami could be very exciting for the city!

At RE/MAX Paradise, we are happy that Miami continues to be a popular and busy city. Its real estate continues to be sought after by foreigners, and the brexit will draw in more. If you are looking to make a real estate investment in Miami, check out our commercial and residential properties. Also contact one of our agents for all kinds of expert advice.

0 Colombian Real Estate Buyers Search Miami

Posted on June 21, 2016 by Sean Greco

Each month, the Miami Association of Realtors looks at who has been searching www.Miamire.com. Their data from April showed that Colombians were the top international searchers. Colombian real estate buyers have now held that top spot for five months in a row. According to realtor.com, Miami is also the top U.S. market for all international consumers.

“South Florida is known around the world for embracing all cultures,” said Mark Sadek, the 2016 MIAMI Chairman of the Board. “Foreign-born residents love Miami. Their passion is visible in our monthly property searches and in Realtor.com global searches, which continue to show South Florida as the most-searched U.S. market by international consumers.”

The full list of countries with the top searches on www.Miamire.com is here:

1. Colombia
2. Venezuela
3. Argentina
4. Israel
5. Brazil
6. India
7. Canada
8. Philippines
9. Spain
10. Peru

As far as that top spot goes, the Association says most Colombian real estate buyers in Miami are upper-middle class. In 2015, they paid an average of $516,000 per real estate deal. This tied with Argentina and was only behind Brazilian’s average price paid, which was $766,000. According to the 2015 Profile of International Home Buyers in Miami Association of Realtors Business Area, Colombia and Argentina tied for for buying the third-most Miami real estate among foreign buyers. Colombia accounted for 10 percent of all South Florida transactions, according to the same survey.

Whether you are an international buyer or from the United States, Miami is clearly an amazing city to live in. There are plenty of great reasons (weather, business, and more) that draw in many international buyers. They bring diversity and even more culture to the city, enhancing life for everyone in Miami.

Check out the beautiful properties in all different neighborhoods of Miami to see all the city has to offer. Contact one of our agents today with any questions!

0 Miami Luxury Real Estate is 7th Best

Posted on May 17, 2016 by Sean Greco

There is no denying that Miami has some amazing luxury real estate. Amazing views, spacious areas, and desirable amenities give these homes the luxurious, sought after feel. Recently, Christie’s International Real Estate gave a list of the world’s top luxury real estate market. After 2015, Miami received its highest ranking yet. According to Christie’s, the Miami luxury real estate market is the seventh best in the world, in front of both Paris and San Francisco.

According to the Miami New Times, Christie’s uses a “luxury index” to make their list. The factors contributing include average luxury price per square foot, the total number of real estate sales made over $1 million, the percentage of total listings over $1 million, the average home price, the percentage of international and non-local buyers, recent market record sale price, and percentage of secondary homes.

Miami clearly does well in many of those categories. However recently, one single giant sale really helped Miami rank higher. The purchase was the 13th most expensive residential real estate purchase in the world last year.

“Miami achieved a local record sale ($55 million for a new-build penthouse), which offset declines in overseas and cash buyers, ensuring a solid performance in the Luxury Index,” reports Christies according to the Miami New Times article.

While Miami luxury real estate will always be top-notch, the city’s ranking might go down next year.

“New luxury stock and slowing buyer demand evidenced in late 2015 and early 2016 however, is likely to move it down in next year’s rankings,” finds the report.

However, the quality of Miami real estate will never dwindle. At RE/MAX Paradise, we can help you find your dream home in many luxury buildings in the city. For example, 1000 Museum, will be incredibly stunning and unique.

Of course, Miami is an amazing place for all types of residential homes, whether they be luxury or not, and we have a variety of diverse, beautiful homes.

0 Up and Coming Downtown Miami

Posted on May 16, 2016 by Sean Greco

Last month, realtor.com named Downtown Miami a “boom town”: one of the fastest growing neighborhoods in the United States. They looked at job creation, household formation and new construction to identify which neighborhoods in the country are growing the most quickly. The up and coming Downtown Miami was named fourth.

“The markets we chose are the areas that are experiencing the most balanced growth. They are seeing the job creation that leads to the country’s greatest growth in households,” says Jonathan Smoke, realtor.com’s chief economist, who led the analysis. “But they are also seeing more new construction, which is needed to enable the forecasted growth.”

This is the full list:

Power Ranch, Gilbert, Arizona
Historic Cultural Center of Los Angeles, California
Downtown Dallas, Texas
Downtown Miami, Florida
Mountain’s Edge, Las Vegas, Nevada
Belltown, Seattle, Washington
Village Rolesville, North Carolina
Williamsburg, Brooklyn, New York
The Loop, Chicago, Illinois
Atlantic Station, Atlanta, Georgia

Miami is expected to see a five-year household growth of 14.9 percent.

“Sure, Miami is hot: Hot weather, hot nightlife, hot housing. But compared with South Beach and its legendary party scene, Miami’s downtown, midtown, and port areas used to be far less exciting at night—or just about at any time, really. But in recent years, urban development with projects such as Miami World Center have brought tens of thousands of new residents to the area. Millennial professionals are attracted to the nightlife, restaurants, and shopping, as well as the ability to walk to work,” wrote realtor.com

Clearly, downtown Miami is a great place to be, with new residential buildings to accompany a wonderful cultural area of fun, great eating, and shopping. The ability to walk to work is also a huge plus. RE/MAX Paradise is excited to offer beautiful homes for sale in the up and coming Downtown Miami! We have amazing condos with beautiful views and top of the line features.

0 Cultural Exchange Speaker Series: Miami RE

Posted on May 3, 2016 by Sean Greco

Recently, the Ocean Drive magazine sat down with founder Seth Browarnik of World Red Eye, a lifestyle website, and real estate developer Avra Jain and discussed World Red Eye’s Cultural Exchange Speaker Series. The mission of this series is “to inform, encourage, and inspire Miamians on topics including nightlife, real estate, art, and fashion.” Launced by Browarnik who is also a celebrity photographer, the next part of the speaker series is called “The Next Genesis of Miami Real Estate” on Thursday.

“Real estate is one of the most, if not the most, important industries in Miami. We have the biggest power players and we found the niche—the generational hand over of power where it’s kind of this continuation of a legacy,” said Browarnik to Ocean Drive. about his decision to highlight real estate in the speaker series.

Jain gave some insight into Miami neighborhoods, saying that the city’s unique cities are representative of the different cultures and people throughout the city.

“I think that they’re all going to do well for different reasons. And I think that it’s good that Miami has this sense of neighborhood—and what’s happening now is that every neighborhood has their own little downtown with their own culture. They look and feel different. And I think this speaks to the diversity of Miami—which I think is one of its strongest characters,” she said.

In the interview, Browarnik and Jain said that attendees to the Cultural Exchange Speaker Series on Thursday can expect to hear about how fashion and culture in Miami intertwine with real estate, and Jain is looking forward to hearing from younger people of the up and coming generation.

Miami is a city filled with amazing events such as the Cultural Exchange Speaker Series, which highlight even more of its best aspects. At RE/MAX Paradise, we are excited to offer you the best real estate in one of the best cities in America, so check out our beautiful properties today!