If you own an investment property in Miami-Dade, Broward, or Palm Beach, one question drives your return more than almost any other: should you rent it short-term (nightly or weekly, vacation-style) or lock in an annual lease? The honest answer is that it depends on your building, your neighborhood's rules, and how much work you want to take on. Here is how the numbers actually compare.
Short-term rentals almost always win on gross revenue. A well-located, furnished South Florida condo that might lease for $3,500–$5,000 a month annually can often gross the equivalent of 1.3x to 2x that as a short-term rental during a strong season. But gross is not profit. Short-term operating costs are dramatically higher, and they erase a large slice of that premium.
Annual rentals trade upside for stability: one tenant, one lease, predictable cash flow, and far lower operating overhead. For many owners, the after-expense gap between the two strategies is much narrower than the gross figures suggest.
Before comparing income, subtract these recurring short-term expenses, which annual leases mostly avoid:
Add it up and 25%–45% of short-term gross can disappear into operating costs before your mortgage is even paid.
Miami's peak runs roughly November through April, when demand and nightly rates climb. Summer softens. A short-term unit rarely books 365 nights a year; realistic annual occupancy often lands in the 50%–75% range depending on location and quality. An annual lease, by contrast, is effectively 100% occupied and collects rent even in the slow months. If your property sits in a strong, walkable, water-adjacent, or destination area, short-term can outperform. In a quieter residential pocket, an annual lease may net more with far less effort.
This is the step that catches owners off guard. In South Florida, short-term rentals are heavily regulated at the city and building level:
Always confirm what your specific building and city allow before you budget for short-term income. A great pro forma is worthless if the rental type isn't permitted.
As a rough rule: high-demand, tourist-friendly, short-term-legal properties tend to produce higher net returns short-term — if you accept the workload and variability. Properties in restrictive buildings, quieter areas, or owned by hands-off investors usually come out ahead with a reliable annual lease. Neither is universally "better"; the right answer is the one that matches your property, your rules, and your appetite for management.
Generic averages only go so far. The Neuman Group runs the actual numbers for your address — comparable annual lease rates, realistic short-term occupancy and pricing, building restrictions, and true operating costs — so you can choose with data, not guesswork. Call 954-228-5001 or request a free consultation to see which strategy earns more on your Miami-area property.
Not necessarily. Short-term rentals usually earn more gross revenue, but higher costs for cleaning, management, furnishing, utilities, insurance, and taxes can shrink the net advantage. In many buildings an annual lease nets nearly as much with far less work and more predictable cash flow.
No. Many condos and HOAs enforce minimum lease terms that ban nightly rentals, and cities like Miami Beach have strict zoning rules, licensing requirements, and fines. Always verify your specific building and municipality's regulations before planning short-term income.
It varies by location and quality, but many short-term units realistically book around 50% to 75% of nights annually, with peak demand from roughly November through April. An annual lease is effectively fully occupied year-round, which offsets some of the short-term rate premium.
Short-term stays are generally subject to Florida state sales tax plus county tourist or resort taxes, which long-term annual leases do not incur. These add to management commissions and platform fees, so factor them into any income estimate.
The right choice depends on your building's rules, neighborhood demand, and how hands-on you want to be. The Neuman Group can run property-specific numbers comparing annual and short-term scenarios. Call 954-228-5001 or request a free consultation for a tailored analysis.