Do’s and Don’ts for First-Time Airbnb Owners in Miami
Miami is booming. With over 27 million visitors in 2023 and earning Google’s title of the third most trending travel destination in the world for 2024, the city’s allure shows no signs of slowing. By August 2024, international arrivals at Miami International Airport surged by 9.6% compared to the prior year. Now in 2025, Miami’s thriving tourism scene makes it the ideal spot for residential property owners to launch a successful Airbnb, tapping into a steady stream of high-demand guests.
Owning a luxurious short-term rental in Miami comes with countless benefits, but you’re not going to be the only Airbnb owner on the scene. It’s hard to deny the struggle that many first-time Airbnb owners go through trying to appeal to guests in a competitive short-term rental market. But there is a path to success…
Here, we’ll outline some of the do’s and don’ts of running a vacation rental for new Airbnb owners in Miami. With these helpful tips, you can avoid costly mistakes and put your property on the map. Read on and start enjoying the perks of owning an investment property.
Do Market Research Before Buying
You can’t go into short-term rental investing blind, even in Miami, where there’s a treasure trove of luxury investment options. Doing the proper amount of market research will help you identify a property that can easily appeal to short and mid-term renters. Here are a few of the main aspects of a strong market research plan:
Evaluate Supply and Demand
Supply and demand is a phrase that gets bandied about a lot, but it really is something you must consider when investing in a short-term rental. You want to see how many short-term rentals currently exist in the area versus the number of guests the area sees. More rental properties mean more competition, but it could still be worth it if the area is popular among visitors.
Analyze Pricing and Occupancy Rates
To understand the behavior of the short-term rental market, you need to analyze occupancy rates. By looking at how often other properties are booked, you’ll have a strong sense of whether the area is worth your investment. Miami has a top Airbnb occupancy rate - a median of 67%.
For Miami’s high-end properties, you don’t necessarily need to see a super occupancy rate, however. High occupancy rates can sometimes signal underpricing, which means money is being left on the table. It’s important to take a close look at rental and occupancy rates to get a true sense of a potential investment’s worth.
Look at Seasonal Ups and Downs
Miami isn’t generally subject to the seasonal ups and downs that other major cities are. That being said, your rental valuation should include a thorough analysis of the ebbs and flows in the short-term rental market. Doing so will tell you whether you’ll need to adjust your pricing throughout the year to maximize your occupancy rates.
Estimate Net Income
With all of the above taken into consideration, you can start to paint a clear picture of the ROI of a given short-term rental. Use your estimated occupancy and nightly rates, then subtract the estimated costs associated with property taxes, utilities, and general maintenance. Compare these estimates to find the property that gives you the best chance at success.
Don’t Overlook Regulations
Miami, like all major cities with large-scale tourism, has plenty of rules that regulate short-term rentals. There are a number of steps you must take before you can welcome your first guest.
Zoning: Ensure your property complies with zoning guidelines.
Licensing: Start by applying for a license from the Florida Department of Business and Professional Regulation, choosing between a dwelling or condominium, depending on the type of property you own.
Registration: Next, register the property with the State Department of Revenue.
Certificate of Use (CU): Obtain the CU, which attests that you’ve got the proper licensing, registration, and insurance.
Failing to follow due process will result in harsh penalties and fines. Operating an illegal Airbnb in Miami Beach comes with mounting fines for repeat offenders.
Do Prepare Your Property
Knowing what type of guests you’re trying to attract is an important step. With that information in hand, do everything possible to prepare your Miami Airbnb so that you can effortlessly appeal to them. You want your property to appear stylish, luxurious, and comfortable, especially when it’s an Airbnb in Miami.
Unless you’ve found a turnkey property that checks all of the Airbnb boxes, you’ll need to make a few upgrades. Whether it’s something as benign as a fresh coat of paint or more intensive work, like new flooring and updated appliances, these upgrades will help your property stand out.
Another thing to consider is home staging, which is a proven commodity in boosting short-term rental bookings, as well as real estate transactions. By arranging furniture to create more space, using neutral colors, and adding art, flowers, and other tasteful decor, you can create a welcoming space that makes guests want to jump at the opportunity to book.
Don’t Price Your Properly Incorrectly
Pricing is one of the main keys to success for your Airbnb in Miami, but getting it right is like walking a tightrope. The right rental rates will promise you high occupancy and returns. Countless first-time Airbnb owners go a bit too high or a bit too low, failing to optimize their investments.
Pricing too high will scare away some guests, resulting in fewer bookings. If you have long vacant periods, it’ll hurt your bottom line. On the other hand, pricing too low won’t allow you to maximize your earnings. You may have a steady stream of bookings, but as we mentioned above, more bookings don’t always mean more money.
To set the right price, look at other similar properties in your area of Miami. You can glean a lot from your competitor’s rates, but you should also think about what sets your property apart from others in your niche.
Account for the unique amenities that your property has, whether it’s a pool/spa or a fitness room. Look at the local amenities as well, such as restaurants, boutiques, and nightlife. Having amazing attractions a short drive or walk away allows you to boost your prices.
Be attentive to your booking rates and adjust your pricing accordingly. Once you find a price that strikes the right balance between occupancy and income, you’ll maximize your first Miami Airbnb.
Do Optimize Your Rental Listing
Your rental listing needs to stand out against the competition if you’re going to steal bookings away from other properties. When creating a luxury Airbnb listing, your goal should be to describe and showcase your property accurately while highlighting its most impressive aspects.
The description should detail every notable aspect of the property, paying special attention to the best amenities, whether it’s a private spa, rooftop terrace, or outdoor kitchen. Be specific about the type of experience you’re offering your guests. Mention the best nearby attractions or any exclusive services that make your rental special. Perhaps your building has concierge support or you offer special welcome gifts – the more you can bring to the table, the more your property will stand out.
Your description will sell your property to guests, but the first thing potential renters will see, and what they’ll ultimately judge your property by, are the images. Hire a professional real estate photographer/videographer to capture every room and every feature – a video tour can give a clear view of what guests can expect.
With a well-crafted rental listing, you can thrive on whatever short-term rental platform you’re using. It can be helpful to work with a listing expert to ensure you’re optimizing your listing to appeal to the largest number of renters.
Don’t Forget About the Guest Experience
Providing an amazing guest experience is what will establish your Miami Airbnb as one of the city’s best. Your guests want to feel simultaneously comfortable and valued, so it’s important to strike a balance between being helpful and respecting their privacy.
To provide an optimal guest experience, you should take care to provide clear check-in instructions. Make sure the property is spotless before they arrive and all of the amenities are as described and in working order. Adding small touches, like a welcome basket with local delicacies, can make them feel even more at home.
Always ensure you’re promptly responding to messages to address any questions and concerns guests might have during their stay. Some of your guests will have never been to Miami before, so offer local recommendations for restaurants and attractions. Other than that, let them enjoy their space and time in Miami. Taking this balanced approach will always leave guests with a positive impression.
Do Ask for Positive Reviews
When a satisfied guest checks out of your Airbnb in Miami, always give them a positive review and encourage them to do the same. Accumulating positive feedback is going to help immensely when it comes to securing future bookings.
If you look at your main competitors on Airbnb, the top properties will always have a high average rating based on hundreds of reviews. When you’re starting your first Airbnb in Miami, your biggest hurdle is anonymity. It’ll take time to build your reputation, but every review counts, especially in the beginning.
This underscores the importance of providing a positive guest experience that we discussed above. If you’re unable to be the perfect host for your guests, it’s worth considering hiring someone who can, which brings us to our last point...
Don’t Go It Alone
Being an Airbnb owner in Miami is a great way to get instant ROI on your property investment, but maximizing that ROI can be a lot of work. Many short-term rental investments fail within the first year, due in-part to the difficulties of competing with established rentals in a thriving market. You need to have the time to put the work in to make a mark, and if you don’t, there’s a good chance you’ll end up with an empty property that you don’t know what to do with.
Hiring a property management service to handle some or all of the Airbnb management duties can simplify the entire process. That’s exactly what we offer at Cityami.
Since 2015, we’ve been helping property owners understand and thrive in the world of short and mid-term rentals. We offer three different service options depending on how hands-on you want to be with your property.
If you just need help getting things up and running, we offer a Listing Setup that gives you 40-60% higher performance over self-setup. For those who want to manage their own rentals but have trouble securing guests, we have a Marketing Service that gives you maximum visibility and 20% higher returns over traditional marketing.
Finally, our Full Service Care package gives you 25% higher returns over traditional management. When you choose this option, you get full support for your rental property, from listing and marketing to booking management to maintenance and cleaning. Our amazing team ensures you experience all of the perks of Airbnb ownership without any of the hassle.
To discuss your needs and your property’s revenue potential, schedule a no-commitment 15-minute conversation with us and launch your first Airbnb in style.