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Florida is a huge market for vacation rental property investors. Florida is a leader in the tourism industry and vacation rentals are rapidly becoming a major economic power.

The rise of shared lodging options has led to a surge of interest in vacation rental properties from investors.

Despite increased economic impact, the vacation rental industry remains a complex and sometimes hostile landscape for investors to navigate. Regulations on vacation rentals vary widely on a state, municipal and association-based level.

Denis Hanks, Senior Director of the Florida Vacation Rental Managers Association (FVRMA), knows just how complex this landscape can be. For over 21 years, FVRMA has been a legislative voice for the vacation rental market industry, in addition to providing property management solutions. Denis brings 20 years experience in state and municipal government to FVRMA’s oversight and efforts.

This episode, Denis discusses some things investors should know for the vacation rental industry in 2017.

Florida Vacation Rental Industry

$31 billion/year economic impact
Captures nearly 50% of tourist dollars
Comprised of condos, single family homes and luxury home resorts
Central FL
- 4,000 new developments dedicated to vacation rentals
- 25% of U.S. vacation rental market

3 Things to Know for 2017

Frequency and Duration
- FL Statute 509 – preemption protects property owner rights; State cannot prohibit frequency and duration for vacation rentals
- Regulations can change from municipality to municipality
- Investors need to do due diligence on local zoning/compliance regulations
- Be aware of condo/homeowner association regulations
Metro Miami/Broward
- Top 2 international buyer markets in FL
- Most hostile regulations
- $20,000 violation charges in Miami; $1,000 per dy fines in Ft. Lauderdale
State Regulations
- Pressure from local officials to remove Statute 509 Preemption

Resources

FVRMA provides a voice for vacation property investors in the state. Members have access to educational resources in addition to legislative lobbying. To find out more about the services offered by FRVMA, visit their website www.fvrma.org or call 407-201-0120

To contact Denis regarding what you can do to learn more about being a vacation rental investor, email him at denis@fvrma.org.

Check out Episode 39 Greg Bugay – Things You Should Know About Growing a Vacation Rental Business in our show archives!

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Real estate markets are entering a new phase. Nationally, investment markets are evolving to suit new demands from consumers. Here in Florida, theses changes are causing ripples of concern for investors and residential developers. What does the generational shift mean for the future of residential real estate and what can investors and and residential developers due to anticipate and adapt to these changes?

Jean Francois Roy, Founder and President of Ocean Land Investments shares with us his story and discusses the importance of flexibility as a residential developer and investor to find success in the market. Beginning his foray into residential real estate in his native Quebec, Canada, Jean Francois focused on developing high-end retirement living spaces. Following the American economic recession in the early 1990s, Jean Francois moved his venture to Florida, focusing on Ft. Lauderdale markets. Jean Francois quickly realized that flexibility and understanding the demands of the market was imperative for the success of any residential developer or investor. Ocean Land Investments continues to be a leading residential real estate firm due to Jean Francois’ drive and flexibility.

Staying Flexible
- Residential Developers: Purchase land during market/economic slumps
- Markets with high populations reduce vacancy risks
- Adapt to market demands
  - In Ft. Lauderdale, high retirement-age demographic good for multi-family residential (apartments, condos)
- Recognize consumer trends
  - “Going green” – buyers and tenants willing to pay premiums for environmentally-geared projects/renovations
  - Shift towards “conservative” structures from “extravagance” of 2000s
- Be amenable to joint ventures and refurbishment projects as opposed to new developments
- Be wary of overambitious or amateur developers straining the market

To contact Jean Francois Roy or to find out more about investment, leasing, or purchasing options with Ocean Land Investments, call the office at (954) 558-3187 or visit their website