Seasonal vs Annual Rentals in Miami: ROI Guide

Trying to decide whether a seasonal short‑term rental or an annual lease will deliver a better return in Miami’s 33145 and surrounding Miami–Miami Beach–Kendall area? You are not alone. With strong winter tourism, evolving local rules and very real cost differences, it is easy to feel unsure about the right path for your property. In this guide, you will learn how each strategy makes money, what it costs to operate, what local rules to confirm, and a simple model you can use to compare ROI. Let’s dive in.

The two paths at a glance

Short‑term or “seasonal” rentals earn income per night and depend on occupancy. Annual or long‑term rentals earn steady monthly rent from a single tenant. That core difference drives how you plan, price and manage the property.

Your objectives matter. If you want to maximize gross revenue and can manage volatility, seasonal can work. If you prefer predictable cashflow and less time involvement, annual leases often fit better.

What drives ROI in 33145 and Miami

Miami’s seasonal pattern is real. High season typically runs from late fall through early spring, roughly November through April. Off‑peak months can be quieter during summer and hurricane season, although certain events can boost demand.

Long‑term demand follows different drivers. Proximity to employment centers, universities, medical hubs and transit often shapes who rents and for how long. In 33145 and adjacent submarkets, look at comparable units and time‑on‑market to understand likely rent and stability.

Revenue inputs to gather

To compare strategies for your specific property, assemble these local inputs:

• Seasonal rentals: average daily rate by month, occupancy by month, and median length of stay for comparable homes or condos.
• Annual rentals: comparable monthly rent for your unit type and typical time‑on‑market.
• For both: condo or HOA rules that limit stays under 30 days, rental frequency caps or registration requirements.

Expense categories that shift the math

Short‑term rentals carry costs you will not see on an annual lease:

• Furnishings and setup, including linens, kitchenware and smart locks.
• Turnover and cleaning after each stay, plus laundry and restocking.
• Management. STR managers commonly charge a percentage of nightly revenue, often in the 18 to 35 percent range depending on services. Long‑term property managers often charge 8 to 12 percent of monthly rent, sometimes with a leasing fee.
• Utilities. STR owners frequently cover utilities and internet. Annual leases may pass more of these costs to the tenant.
• Marketing and platform fees, supplies, licensing and transient tax collection.
• Insurance and HOA. STRs often need specialized coverage and must fit within condo or HOA bylaws.

Model your returns step by step

A clear apples‑to‑apples model will help you choose with confidence. Use the same property and the same fixed costs, then compare net results.

Core formulas

• Gross revenue, STR: Average Daily Rate (ADR) multiplied by occupancy rate multiplied by 365. You can also sum month by month for better accuracy.
• Gross revenue, annual: Monthly rent multiplied by 12.
• Operating expenses: Property taxes, insurance, HOA fees, utilities, repairs and maintenance, capex reserves, management, cleaning, licensing, marketing and platform fees, plus transient tax remittance if STR.
• Net Operating Income (NOI): Gross revenue minus operating expenses. Do not include mortgage payments here.
• Cap rate: NOI divided by purchase price.
• Cash‑on‑cash return: NOI minus annual debt service, divided by initial cash invested. Include down payment, closing costs and any initial furnishing or improvements.
• RevPAR: ADR multiplied by occupancy rate. Useful to track seasonal performance.
• Break‑even occupancy for STR: The occupancy at which NOI equals zero after fixed expenses. This is a key stress test.

A simple underwriting workflow

1. Confirm legal fit. Note the municipality that governs your address and your building’s rules. If STR is not allowed or severely limited, focus on annual.

2. Build seasonal revenue by month. Enter monthly ADR and occupancy for 12 months, then total. Miami is seasonal, so avoid using a single annual average.

3. Build annual revenue. Enter your comparable monthly rent and any expected vacancy period between tenants.

4. Itemize all operating costs. Include management and cleanings for STR, and realistic repairs and reserves for both.

5. Calculate NOI, cap rate and cash‑on‑cash for each scenario. Then test lower STR occupancy, for example 20 to 40 percent below seasonal averages, to see how durable your returns are.

6. Compare time demands and risk comfort. Even if STR shows higher potential NOI, your time and tolerance for volatility should factor into the final choice.

Regulatory and insurance rules that matter

Rules in Miami‑Dade vary by municipality and by building. Your first step is to map the correct authority for your address.

• City and county rules. Properties inside the City of Miami may require a business tax receipt, registration and compliance with safety rules for short‑term rentals. Unincorporated Miami‑Dade and other cities can have different requirements. Miami Beach has historically implemented stricter regulations.
• Transient rental taxes. Florida applies state sales tax to transient rentals, and counties or cities may levy local tourist development taxes. Operators must register, collect and remit these taxes. Penalties can apply for noncompliance.
• Condo and HOA bylaws. Many Miami‑Dade condominiums and associations restrict or prohibit rentals under 30 days, limit rental frequency or require minimum lease terms. Violations can trigger fines or legal action.
• Inspections and safety. Some municipalities require inspections, occupancy limits and safety items such as smoke detectors and egress standards.
• Insurance. Standard homeowner or landlord policies often exclude short‑term rental activity. You may need a short‑term rental endorsement or a separate policy.

Verify local municipal rules and HOA or condo bylaws before assuming STR capability.

Seasonal patterns and stress tests

Miami’s high season typically spans November through April. ADRs and occupancy often rise then, while weekdays in summer and peak hurricane months can be softer. Events can create spikes, but you should not rely on them without data.

For a seasonal underwriting, use month‑by‑month ADR and occupancy. Do not depend on a single annual average. Then stress test your numbers with occupancy 20 to 40 percent below those monthly averages to understand downside risk. This will help you plan cash reserves and decide whether a hybrid plan makes sense.

Use month‑by‑month ADR and occupancy to model STR revenue because Miami is highly seasonal.

Which strategy fits your goals

Consider how you define success and how hands‑on you want to be.

• You want to maximize gross income. Seasonal can outperform on gross revenue if ADR and occupancy are strong and costs are managed.
• You want stable net cashflow with fewer surprises. Annual usually provides steadier NOI and simpler management.
• You prefer low management burden. Annual tends to be more passive day to day. STR requires rapid guest responses and frequent turnovers.
• You want to preserve property condition. Annual reduces wear from constant turnovers, although long tenancies also require maintenance planning.

Hybrid options to consider

• High‑season STR, off‑season long‑term or medium‑term. Rent nightly during winter, then offer 30 to 90‑day stays or a longer lease in summer. Confirm that your municipality and building allow this.
• Medium‑term focus. Target 30 to 90‑day stays for snowbirds or relocating professionals if your building requires minimum terms.

Practical decision checklist for 33145 owners

Work through this list before you commit capital.

• Is the property legally permitted for STR under your municipality and HOA or condo rules?
• What are comparable ADRs, occupancies and length of stay by month for your unit type and location? What are comparable annual rents?
• After management, cleaning, utilities, platform fees and transient taxes, what is projected NOI for seasonal versus annual?
• How will financing and underwriting differ, and how does that affect cash‑on‑cash returns?
• What is your tolerance for hands‑on management and income volatility?
• Are there foreseeable regulatory changes or condo board trends that could restrict STR operations?
• What is your exit plan if regulations change or if performance misses your targets?

Include transient rental tax collection and remittance costs in your STR net revenue calculations.

Compare not only gross revenue but NOI, cap rate and cash‑on‑cash returns after financing and realistic operating expenses.

How Realty Jane helps

You deserve advice that blends lifestyle and investment clarity. As a boutique practice within Coldwell Banker Global Luxury, our team pairs polished presentation with rigorous underwriting support. We help you source hyper‑local comps, build side‑by‑side seasonal and annual projections, and craft a marketing plan that reaches both seasonal renters and long‑term tenants.

For condos and communities with nuanced rules, we guide you through the process of confirming building bylaws and municipal requirements so you can invest with confidence. If you are an international owner, we provide bilingual support and clear communication in English and Spanish from valuation to listing to lease execution.

If you are weighing seasonal versus annual for a property in 33145 or nearby Miami enclaves, connect with Jane Morales to map your strategy.

FAQs

What earns more in Miami, seasonal or annual rentals?

• It depends on ADR, occupancy and seasonality for your specific property; short‑term often shows higher gross in high season, while annual can deliver steadier net returns with lower volatility.

How do taxes work for Miami short‑term rentals?

• Short‑term operators must register and collect state sales tax plus any local tourist development taxes, then remit them on time in addition to income tax reporting.

Are condos in 33145 allowed to do short‑term rentals?

• Many Miami‑Dade condos restrict or prohibit rentals under 30 days or limit rental frequency, so you must review the declaration, bylaws and any board resolutions before you buy or operate.

What occupancy should I use to underwrite a Miami short‑term rental?

• Use month‑by‑month ADR and occupancy rather than a single average, then stress test with occupancy 20 to 40 percent below those monthly figures to gauge durability.

Is a hybrid strategy realistic in Miami?

• Yes, many owners combine high‑season short‑term bookings with medium‑term or longer leases off‑season, but only if allowed by your municipality and HOA or condo rules.

Do I need special insurance for a Miami short‑term rental?

• Standard homeowner or landlord policies often exclude short‑term activity, so you should obtain an STR endorsement or specialized coverage that matches your use and risk profile.