Condo Hotels Market Overview

Owning a short term rental condo provides the condo owner several benefits including:

Passive Income: Generating passive income that can help offset mortgage payments and other expenses.

Increased Property Value: Owning a shortterm rental condo in a popular tourist destination like Downtown Miami can increase the value of the property.

Flexibility: Flexibility to use the property at any point in time, and rent it out to others when vacant.

On-site Management: Most of the short term rental condo’s provide on site management which relieves the owner of labor intensive work and provides the developer with an additional income stream after sellout.

Tax Benefits: Benefits from deducting the mortgage interest, property taxes and depreciation.

Market Demand

The demand for short-term rental condo developments in Miami has been on the rise in recent years, fueled by the growing popularity of Miami as a tourist destination. Over the last 3 years, Downtown Miami has experienced an influx of short term rental condo developments with almost all developments already being 100% sold within a short few months of launching sales. The demand for short-term rental condos in Miami is likely to remain strong in the coming years, as more visitors flock to the vibrant city.

Short Term Rental Condo Developer Benefits:

Condominiums placed in a hotel/short term rental program creates an additional income stream after unit sales.

Hotel Branding creates a pricing premium.

Short term rental programs appeal to international investors who typically account for over 30% of condo sales. The rental program with on site management makes for a more attractive investment for condominium buyers than traditional condo buildings.

Hotel and condominium buildings share the amenities which creates a more synergized development and community for the residents.

Brand recognition and income streams from the Hotel/short term rental model can result in a lower debt and equity requirement through use of condo pre-sale deposits.

EDGEWATER & ARTS & ENTERTAINMENT