Short-Term vs. Long-Term Rentals in Miami Luxury Condos (2026)

One of the first questions I hear from buyers who are purchasing a Miami luxury condo as an investment is this: should I rent it short-term or long-term? It sounds simple, but the answer depends on the building you choose, the neighborhood it sits in, your tax situation, and how hands-on you want to be as a landlord. I have worked with investors from Bogota, Buenos Aires, Mexico City, New York, and Los Angeles who all had different goals, and the right rental strategy was different for each of them.

Miami is one of the few cities in the world where both strategies can work extremely well, and where choosing the wrong one for your specific building can cost you tens of thousands of dollars per year. Short-term rentals in a building that bans them can result in fines, forced lease terminations, and even legal action from the condo association. Long-term rentals in a building with a transient license you never use means leaving serious money on the table. The details matter here.

In this post I am going to walk you through both strategies side by side, with real numbers from the Miami market, specific buildings and neighborhoods where each approach works best, and the questions you need to ask before you close on any investment condo. If you want to talk through your specific situation, call me directly at (954) 833-0020. Hablamos Espanol.

What Miami's Rental Rules Actually Say in 2026

Before you compare income potential, you have to understand the legal landscape. Miami-Dade County and the City of Miami both regulate short-term rentals, defined as rentals of fewer than 30 days in most contexts. The state of Florida passed legislation in 2011 that limits local governments from banning short-term rentals outright in most residential zones, but condo associations are a separate matter entirely. A condo building's declaration of condominium can legally prohibit short-term rentals regardless of what the city allows.

In my experience, roughly 60 to 70 percent of luxury condo buildings in Miami restrict rentals to a minimum of six months or one year. Buildings in Brickell, Edgewater, and Midtown tend to have stricter rules aimed at maintaining a residential feel and protecting resale values. On the other hand, buildings in Miami Beach, Sunny Isles Beach, and parts of Bal Harbour are more likely to allow 30-day minimums, and a subset of buildings hold a transient public lodging license from the state of Florida that allows nightly rentals through platforms like Airbnb and VRBO.

Always read the full condo declaration, the rules and regulations, and the most recent board meeting minutes before you purchase with a rental strategy in mind. I pull all of these documents for my buyers during the due diligence period and review them carefully. Buying the wrong building for your strategy is one of the most expensive mistakes I see investors make.

Short-Term Rental Income: The Real Numbers

When short-term rentals work in a Miami luxury building, the income potential is genuinely impressive. A well-furnished one-bedroom condo in a licensed building on Miami Beach, running at 70 percent occupancy, can generate between $4,500 and $7,000 per month in gross rental income. A two-bedroom unit with ocean views in a building like the Setai or 1 Hotel South Beach can push $10,000 to $20,000 per month during peak season, which runs roughly from November through April.

But gross income is not net income. Short-term rental expenses are significant. Property management fees for short-term programs typically run 25 to 40 percent of gross revenue. Add in platform fees of 3 to 5 percent, higher utility costs because you are covering electricity and water for every guest, furnishing costs that can reach $30,000 to $80,000 for a luxury unit, and the wear and tear that comes with high turnover. Consumables like linens, toiletries, and cleaning supplies add up as well.

There is also the seasonal income swings to account for. Miami summers, particularly July and August, are slow for short-term tourism. Occupancy rates in non-peak months can drop to 40 or 50 percent even in well-managed buildings. Sophisticated investors I work with model their annual income conservatively, assuming 55 to 60 percent average annual occupancy rather than the best months only.

Long-Term Rental Income: Stability vs. Ceiling

Long-term rentals, meaning leases of six months or more, offer a completely different income profile. The gross monthly income is lower than peak short-term rates, but it is predictable, consistent, and far less management-intensive. In 2025 and into 2026, luxury long-term rental rates in Miami have remained firm despite a broader cooling in the condo sales market.

Here are some benchmarks I am seeing in the current market. A one-bedroom luxury condo in Brickell rents for $3,200 to $4,500 per month depending on the building and floor. A two-bedroom in Edgewater or Midtown goes for $4,000 to $6,000. In Coconut Grove or Coral Gables, a two-bedroom in a quality building runs $4,500 to $6,500. Waterfront units and those with direct bay or ocean views command premiums of 15 to 25 percent above comparable inland units.

The expense side is also much lighter. With a long-term tenant, they typically pay their own utilities. You are not furnishing the unit, not managing cleaning between stays, and not fielding guest inquiries at midnight. A professional property manager for a long-term rental charges 8 to 12 percent of monthly rent, a fraction of short-term management costs. Net income as a percentage of gross is significantly higher on the long-term side, even if the gross number is lower.

Buildings Where Short-Term Rentals Work Best

Not all buildings with short-term rental permission are equal investment opportunities. The ones I recommend to investors have a few things in common: an established hotel-style management program already in place, strong brand recognition that drives direct bookings, high-quality furnishings and finishes that attract premium guests, and a professional concierge operation that handles guest relations.

In Miami Beach, buildings like the Continuum South, Mondrian South Beach, and the W South Beach have rental programs that take a lot of the operational burden off the owner. In Sunny Isles Beach, the Acqualina Resort and Residences is a standout example of a building where the hotel program has a global marketing reach that individual owners cannot replicate on their own. In Brickell, the EAST Miami has a rental program tied to the Swire Hotels brand.

What I always tell buyers considering these buildings is to ask the management company for actual historical income statements from units similar to the one you are buying. Any reputable building management program can provide these. If they cannot or will not, that is a significant warning sign. The numbers in a well-run program will tell you more than any broker's projection.

Buildings and Neighborhoods Best Suited to Long-Term Rentals

For long-term rental investors, the calculus is different. You want buildings with high owner-occupancy ratios, strong associations with healthy reserve funds, low turnover, and neighborhoods with consistent tenant demand from professionals and corporate relocatees. In my experience, these tend to be buildings that attract residents rather than vacationers.

Brickell is one of the strongest long-term rental markets in Miami for this reason. The neighborhood is home to hundreds of financial and legal firms, and executives relocating from New York, Chicago, or internationally need quality furnished or unfurnished rentals immediately. Buildings like Reach and Rise at Brickell City Centre, SLS Lux Brickell, and 1010 Brickell consistently lease quickly with low vacancy between tenants. Edgewater and Wynwood are also producing strong long-term rental demand driven by the creative and tech sectors that have grown significantly in recent years.

Coral Gables is worth a separate mention. The rental market here is driven by University of Miami medical and academic professionals, Latin American executives with children in private schools, and corporate tenants placed by relocation companies. Units in the Gables that are well-maintained and priced appropriately typically lease within two to three weeks of listing. I have placed long-term tenants in the Gables regularly and the vacancy periods are among the shortest I see anywhere in Miami-Dade.

Tax Implications You Need to Understand

The tax treatment of short-term versus long-term rentals is meaningfully different, and it affects your net return in ways that are not always obvious at first glance. I always tell my clients to consult with a CPA who specializes in real estate, but here are the basics as I understand them from working alongside tax professionals over the years.

Short-term rentals, defined by the IRS as average guest stays of seven days or fewer, are treated as active business income rather than passive rental income. This means different rules apply for deducting losses. If you actively participate in management and the property qualifies as a short-term rental business, losses may be deductible against your ordinary income, which can be a significant advantage for high-income investors. However, you are also subject to Florida's transient rental tax of 6 percent, Miami-Dade's tourist development tax of 7 percent, and any applicable city taxes, which together can add 13 to 15 percent to your tax obligations on gross revenue.

Long-term rentals are treated as traditional passive income under most circumstances. Depreciation deductions are still available and are a powerful tool for offsetting rental income. Miami-Dade property taxes on a luxury condo purchased at $1.5 million run approximately $18,000 to $22,000 per year depending on the exact assessed value, and these are fully deductible as a rental expense. For foreign investors, FIRPTA withholding rules apply to the eventual sale regardless of rental strategy, so planning ahead on exit is important.

Key Questions to Ask Before You Buy a Rental Investment Condo

After working with dozens of condo investors over the years, I have developed a checklist of questions that every buyer should have answered before they close. These are the items that prevent expensive surprises after the purchase.

Whether you are targeting short-term or long-term, these questions apply to any investment condo purchase in Miami:

Before closing on an investment condo in Miami, get clear answers to all of the following:

• What is the minimum lease term allowed in the building's declaration of condominium, and has it been amended in the past five years?
• Does the building hold a Florida transient public lodging license, and is that license current and in good standing?
• What percentage of units are currently rented versus owner-occupied, and how does the building define and enforce its owner-occupancy ratio?
• What are the current monthly HOA fees, and what is the building's reserve fund status? Underfunded reserves are a red flag for future special assessments.
• Are there any pending or recently passed special assessments, and what is the estimated cost per unit?
• Has the building completed its 40-year or 50-year recertification inspection, and were any structural or electrical issues identified?
• What is the average time to lease a comparable unit in this building based on MLS data from the past 12 months?
• Are pets allowed, and if so, are there size or breed restrictions that could limit your tenant pool?

Which Strategy Is Right for You in 2026?

There is no universal right answer between short-term and long-term rentals. The right strategy depends on your goals, your risk tolerance, how involved you want to be in management, and the specific building and neighborhood you are considering. What I can tell you is that the investors I work with who are happiest with their Miami condo investments are the ones who chose their rental strategy before they chose their building, not the other way around.

If your goal is maximum income potential and you are comfortable with higher variability, more active management, and the additional tax complexity, a short-term rental in a licensed hotel-program building on Miami Beach or Sunny Isles can be an excellent vehicle. If your priority is steady, predictable cash flow with minimal day-to-day involvement and a cleaner exit strategy when you sell, a long-term rental in Brickell, Edgewater, or Coral Gables is likely a better fit.

I also work with a number of investors who do a hybrid approach: they occupy the unit themselves for part of the year and rent it when they are away. For Latin American clients who spend extended time in Miami but are not full-time Florida residents, this can be a particularly effective structure. The building's rules and your tax situation both need to support it, but when it works, it is a genuinely efficient use of a luxury asset.

If you are ready to start comparing specific buildings and running actual income projections for your budget, I am happy to walk you through it. Call me at (954) 833-0020 or reach out through the contact page. Hablamos Espanol, and I work with buyers and investors from across Latin America and beyond every day.