Mi Casa, Su Casa

REAL ESTATE MI CASA, SU CASA

With waterfront living and year-round sunshine, athletes, entrepreneurs, and rockstars alike have flocked to South Florida to get a piece of its coveted luxury real estate. But with the rise of popularity in short-term vacation rentals, luxury buyers are looking to bring in a bigger return on their investment.

1241 Cordova Rd, Fort Lauderdale Listed at $1,300,000 Photo Credit: Samantha DeBianchi

Sam DeBianchi, featured agent on Million Dollar Listing Miami and founder of DeBianchi Real Estate, talks South Florida’s vacation home takeover and what you should look for in your first investment property.

How has the rise of short-term vacation rentals transformed the South Florida real estate market? Is it a good time to invest? The rise of short-term vacation rentals truly has transformed the South Florida real estate market. Years ago, people only looked at luxury properties from the perspective of a full-time resident, but now, they see it as a property they can live in when they want to and rent out during the times they don’t—and sometimes even make a nice profit. There’s always an opportunity in real estate, no matter what market, but whether or not something is an “investment” depends on the property itself. My questions when analyzing properties are What am I buying it for? What’s its ability to make rental income? And if I’m buying for a long-term play, where will this property be in the next 5-10 years based on trends?

What are the hottest South Florida neighborhoods to invest in? In the current market, every area seems to be on fire. It’s really coming down to the price point a buyer wants to stay within. I always like to invest close to the beach and downtown. Fort Lauderdale is changing and evolving so rapidly, now is definitely the time to buy close to this radius. This would include areas like Las Olas Isles, Colee Hammock, Victoria Park, and Fort Lauderdale Beach.

1241 Cordova Rd, Fort Lauderdale Listed at $1,300,000 Photo Credit: Samantha DeBianchi What emerging trends do you see for ultra-luxury vacation rental properties?

When selling luxury real estate, I see more and more buyers wanting to know what the areas rent for and what the area demands on a short-term basis, especially with all my New York buyers who are unsure of exactly how much time they’ll be spending here.

Buyers want the ability to have options with the properties they purchase, and I think real estate agents have to be more educated on the topic of short-term and long-term (annual) investing as a whole.

What tips do you have for someone investing in their first short-term rental?

Never trust an advertisement stating a property is a “great investment”. Run your own numbers and make sure it is in fact a “great investment”. Secondly, know all your costs. This includes your water, electricity, and cable, but also your replacement costs of furniture, normal wear and tear, and management fees if you don’t plan on managing the property yourself.

Lastly, property management with short-term rentals isn’t just managing the property, but also the people. If you do decide you’re going to manage your property yourself, take a class on property management and hospitality so you know what you’re really getting yourself into.

How does DeBianchi Real Estate innovate the way luxury investment properties are bought and sold? I don’t think there is necessarily any “innovative” way on how properties are bought and sold, but rather, there seem to be newer trends happening. For example, there are companies that now allow for co-ownerships of homes. I’m also seeing more friends and partners purchase real estate together— some for the sheer desire to share a luxury vacation home together, and others for the money-making aspect.

Sam DeBianchi is a leading luxury real estate in the South Florida market. To view all of Sam’s listings and to learn more about her firm, visit www.debianchi.com.

Photos from listing located at: 1241 Cordova Rd, Fort Lauderdale Listed at $1,300,000 Contact Samantha DeBianchi for more information.