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Understanding the Furnished Rental Market

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Florida's rental market offers three main categories of furnished rentals:

• Short-Term Rentals (STR): Typically, Daily or Weekly – less than 6 months
• Mid-Term Rentals (MTR): 30 days to 6 months plus
• Long-Term Rentals (LTR): 1 year or more

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Each rental type has different requirements, customer expectations, and revenue strategies. Understanding these is critical for setting up a successful business.

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Short-Term Rentals (STR)

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Definition

Short-term rentals are furnished properties rented for less than 6 months, typically ranging from 3–4 days up to several weeks. These are most commonly vacation stays.

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Booking Platforms

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Airbnb and VRBO dominate the STR market. While convenient and high-traffic, they charge:

• 15% administrative fees
• Required cleaning fees
• Florida-specific tourist taxes (State: 7%, County: 5–6%) for stays under 6 months

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Advantages

• High income potential during peak seasons
• Owner flexibility to use the property personally
• Tax deductions for business-related expenses

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Challenges

• Seasonality affects occupancy and pricing
• Requires frequent cleaning, maintenance, and guest coordination
• Local regulations and HOA restrictions vary

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Local Regulations

• Florida definition of STR: Rentals under 181 days
• Sarasota County: 30-day minimum, with some exceptions in tourist zones (e.g., Siesta Key)
• Charlotte County: More lenient; some areas like Rotonda West have no STR restrictions
• HOAs: Rules vary greatly—always review rental terms before purchasing

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Mid-Term Rentals (MTR)

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Definition

MTRs are fully furnished rentals leased from 30 days to 6 months plus. They bridge the gap between short vacation stays and year-long leases.

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Ideal Tenants

• Snowbirds (seasonal residents)
• Travel nurses and corporate professionals
• Families relocating to Florida
• Investors with part-time residence plans

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What Tenants Look For

1. Fully Furnished Spaces: Include kitchen essentials, linens, Wi-Fi, Smart TV, and laundry facilities
2. Safety: Well-lit entryways, secure locks, safe neighborhoods
3. Proximity to Work: Most prefer a commute under 20 minutes and access to public transportation
4. Pet-Friendly Options: Allows for a larger tenant pool; use pet deposits or monthly fees
5. Utilities Included: Streamlines the rental process for tenants
6. Budget Consideration: Especially important for travel nurses and displaced families on stipends
7. Professional Photos & Reviews: High-quality images and positive guest experiences drive bookings

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Investment Note

Furnishing a property typically costs $4,000–$5,000 per bedroom but allows you to charge a premium rate and attract consistent tenants.

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Marketing Tip

Sell not just the property—but the location. Highlight attractions, safety, climate, and lifestyle benefits of your city.

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Long-Term Rentals (LTR)

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Definition

Annual leases or longer, often preferred by tenants who bring their own furniture.

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Target Tenants

• Families or professionals seeking permanent housing
• Investors seeking consistent, passive income

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Benefits

• Reliable rental income with reduced vacancy
• Minimal operational effort compared to STRs
• Tenants pay for utilities and perform basic maintenance

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Considerations

• Lower nightly income potential than STRs
• Less flexibility for owner use of the property

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Key Success Factors for Furnished Rental Businesses

1. Know Local Laws & HOA Rules - Research zoning laws, local STR/MTR regulations, and HOA covenants before purchasing.
2. Furnish Thoughtfully - Neutral, modern decor appeals to the widest audience. Include essentials and thoughtful extras.
3. Prioritize Cleanliness - A clean home earns better reviews and keeps your calendar full.
4. Set Clear Policies - Pet rules, check-in/check-out times, cleaning expectations, and utilities should be clearly outlined.
5. Use Professional Marketing - Quality photos and compelling descriptions are essential. Highlight amenities, local attractions, and conveniences.
6. Automate Where Possible - Use property management tools and services for cleaning, messaging, and dynamic pricing.
7. Collect & Leverage Reviews – Encourage reviews and respond professionally. Positive Reviews drives future bookings.
8. Work with a Broker and Property Management Company - That understands the Short Term and Mid Term rental markets. Surprisingly, the average Realtor has very little knowledge or experience in the complexities of managing your investment property as well as maximizing the guest experience.