The STR Playbook: Where Short-Term Rentals Actually Work (and Don’t)

 

Thinking about turning a South Florida property into an Airbnb or vacation rental? The opportunity is real—but so are the rules. Between zoning restrictions, condo bylaws, and city licensing hurdles, knowing where short-term rentals (STRs) are legal can mean the difference between steady cash flow and costly fines.

 

This playbook breaks down where STRs actually work in Miami Beach, Fort Lauderdale, Hollywood, and Boca Raton—and where they don’t.

 

 

• Green Zones: Areas specifically zoned for short-term rentals (STR-friendly). Usually in tourist corridors, resort districts, or mixed-use areas.

• Yellow Zones: Legal—but with conditions. These areas might require special licenses, occupancy limits, or neighbor approvals.

• Red Zones: Strictly prohibited. Renting for less than 30 days can result in fines of $500–$20,000 per violation.

Miami Beach: Most neighborhoods outside resort corridors are “red.”

 

Fort Lauderdale: More flexible but requires licensing and inspections.

 

Hollywood & Boca Raton: Patchwork rules—some zones green, some strictly red.

 

 

Even if zoning allows STRs, your condo association or HOA can ban them outright. Always review:

 

• Minimum lease terms (30 days, 90 days, or even 1 year).

• Guest registration requirements.

• Fines for non-compliance (often added to condo dues).

 

Banks and insurers know STR risk. Expect:

 

• Financing challenges: Some lenders won’t touch condos with STR activity.

• Insurance premiums: STR coverage can cost 20–40% more than traditional homeowner’s policies.

• Higher reserves: Many condo buildings with STRs require buyers to have strong cash positions.

 

A glossy Airbnb projection often skips key costs:

 

• Licensing & registration fees.

• Mandatory safety upgrades (smoke detectors, sprinklers, egress).

• Vacancy and seasonality—South Florida STRs perform best Dec–April.

Rule of thumb: Subtract 20–30% from “AirDNA” projections for a realistic cash flow.

 

 

• Confirm zoning (city maps and ordinances).

• Review condo and HOA bylaws.

• Apply for STR license and permit.

• Schedule city inspection (fire and safety).

• Secure STR-specific insurance.

• Track guest stays for tax reporting (state and county tourist tax).

South Florida’s short-term rental game is full of traps, but with the right strategy, it can also be a cash flow powerhouse. Do your homework before buying—or partner with an expert who already has the “green zone” mapped out.