MIAMI (STL.News) – Some might remember the days when hotels were the preferred and almost only way of accommodation for travelers all around the world. However, in 2008, an unprecedented novel phenomenon arose to intimidate the hotel sector and change the dynamics of short-term rentals: Airbnb was born. This emergence led to the rise of a whole new industry in which the -now low- entry barriers allowed us to be an active part of the game.
The number one question that comes to mind is how is Airbnb successful? Simple answer… a meaningful gap in the market was found, and the platform started offering better rates and more technical – custom made – benefits. But this article is not about how Airbnb achieved its current success, but rather how Airbnb affected the Miami real estate market. Each day, it’s more and more common to see brand new constructions feature short-term allowed condos, Airbnb-approved constructions, or simply a surge in condo hotels. Condo developers saw an unexploited market and decided to jump in.
This trend has been developing over time, starting from a conventional model of condos – such as the Yacht Club at Portofino, the Flamingo, the Decoplage or the Roney Palace – which allows short-term rentals but have some minimum renting restrictions. For all the previous listed condos there is a 30-day minimum rental policy, meaning that owners can rent on a monthly basis, which creates a great investment opportunity as well as a Pied-a-Terre in Miami… That is the reason why Condoideas Realty Group is happy to announce the recently launched Portofino Yacht Club website. This tool is dedicated to sharing the latest updates of units for sale, rent and condo news in this exclusive ”short term” allowed Yacht Club at Portofino condo.
The Condotels, on the other side, are a more recent movement that follows the hotel – usually luxury- style, but at the same time allows people to own a “full-service” vacationing condo. In this case, most of the owners purchase the condo exclusively as an investment. There is a hotel management office that offers for an extra fee to supervise the daily rentals, so the owner can earn a substantial passive income. This type of development has shown an incredible acceptance from the market, especially in Miami Beach. Condotels like Mondrian, Setai, or the Hilton Bentley are just a few examples of this successful business idea.
The latest trend of interesting condo model that is taking place nowadays in Miami is a combination of these last two models. The Airbnb-approved (no rentals restrictions) condominiums are short term condos that, at the same time, offer residential units and hotel rooms. The incredible sale pace that this type of condos has had is absolutely impressive. For instance, Yotelpad is 90% sold and only until last month they released the first interior renderings. Smart Brickell, Hyde Midtown, Natiivo, and Canvas are some other examples of this successful new business model in Miami.
It is very interesting to underline that condo unit owners, whom traditionally made a profit with long term rentals, are now competing against hotels, but thinking about it, unit owners are only following the market trends and giving people what they are asking for. This trend gives a valuable surplus for buyers looking to accelerate their investment return. However local legislation tightly regulates short term rentals so investors are aware.