Investing in Florida real estate to earn income from vacation rentals is now one of the best real estate investments in the world. According to Forbes Magazine, the city of Orlando was considered the best destination for investments in real estate in 2018. In 2019, Orlando also topped the list of the best cities to buy a second home. Miami is not behind! In the past few years the Magic City started to offer really interesting Airbnb options as well. Most of the new developments in Miami towards short term rental are located in Downtown and some of them guarantee the return for the first two years. If you are interested investing in a Airbnb property, Florida is the perfect location. But how to manage the business?
Many investors do not have the time to attract clients, manage the collection and still maintain the property. There is also all the bureaucracy of check-in and check-out of guests. The ideal is to hire a company specialized in Airbnb to do all this management. In this post we explain how our real estate service (AMG Realty) works for customers who have already purchased with us and want to earn income from seasonal rentals.
Complete property & rental management
When hiring property management and rental management services with AMG Realty, the customer does not even need to have contact with the tenant. All the work to attract the client, from the assembly of the advertisement (with the production of photos and texts) to the collection of values, is done by our professionals. Even the inspection, cleaning and preparation of the property for the next customer is done by us.
We create your ad on Airbnb
Our professionals prepare the photos of the property and also the texts and descriptions in an efficient way to register on the Airbnb website. The ad is registered under the AMG Realty account on the platform, not the owner. In this way, all inquiries and orders arrive at our service area, which will do the commercial work of capturing the customer. By having the ad under the AMG Realty profile, the owner still benefits from the SUPER HOST status of our account (see next topic).
Take advantage of our “SUPER HOST” status
Another great advantage of having your listing registered in the AMG Realty profile on the Airbnb website, is to take advantage of our SUPER HOST status. To obtain this rating on the platform, the owner must have made several rentals and have many positive reviews. Most of our clients have no history on the platform, since they bought properties in Miami or Orlando for the first time. In this way, taking advantage of the positive status that already exists in our real estate will make renting more efficient, faster and profitable.
Home Staging (Rent faster and with a higher price)
Apart from the administration service, AMG Realty also offers the Home Staging service, if requested by the owner. The concept of Home Staging is already well established in the American real estate market and is related to preparing the property for sale or rent. It is not just about creating a more attractive decoration, but acting within a considerably broader strategy, from readjusting the space to small renovations and repairs. The idea is not to carry out major renovations or extremely complex decorations. The strategy is, in fact, to prepare the property, within a justifiable budget, to rent it faster and at better prices. Find out more about Home Staging in the article: Home Staging: 7 benefits of having a home staged by a professional.
Where the money is deposited
The amount received for rent on Airbnb is deposited directly into the owner’s account, net of Airbnb fees and real estate management fees. The owner’s bank account is registered in the property’s profile on the Airbnb platform.
The owner must designate an account in the United States. Opening an account in the United States is simple and quick. Simply present your passport and make a minimum deposit (most often between $ 100 and $ 200). There is no problem with having an account in the United States, as long as it is stated in the IR Declaration in Brazil.
What are the fees charged by Airbnb and the real estate company?
Airbnb usually charges a fee of 3% to 4% of the rent. This percentage can vary depending on some factors, such as the contracted period, for example.
AMG Realty charges a fee of 10% of the rental amount to provide the service of capturing, managing, maintaining the property and collecting the amounts. Thus, the net value received by the customer will be about 86% of the total rent.
It is important to note that, in most management contracts, real estate agents charge between 15% and 20% of the rent. Our rate, at the moment, is only 10%.
Interested in buying an Airbnb property in Florida?
AMG International Realty is a full-service brokerage firm in Florida. If you are interested in buying or selling Airbnb properties in Florida, please give us a call today: + 1 (305) 318 6968 (Heloisa Arazi).