Is Hollywood, Florida Good for Airbnb Investment?

To start an Airbnb in Hollywood, Florida, begin by researching local regulations as the city requires short-term rental operators to obtain a business tax receipt and comply with zoning restrictions that typically limit rentals to properties in commercial or mixed-use areas rather than single-family residential zones. Contact Hollywood's Planning and Development Services Department at 954-921-3471 to verify your property's eligibility and obtain necessary permits including a Certificate of Use, which costs approximately $150-300. Find a suitable property by searching areas like Hollywood Beach, Downtown Hollywood, or near the Broadwalk where short-term rentals are more commonly permitted, with average property prices ranging from $300,000-800,000 depending on proximity to the beach. Furnish your property with coastal-themed decor, essential amenities like high-speed internet, air conditioning, beach equipment, and safety features including smoke detectors and first aid kits, budgeting $15,000-25,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photography highlighting the beach location and proximity to attractions like the Hollywood Beach Broadwalk and Aventura Mall, setting competitive rates of $100-300 per night based on seasonality. Manage your property by establishing cleaning protocols between guests, responding to inquiries within an hour, coordinating check-ins/check-outs, maintaining the property regularly, and ensuring compliance with Florida's 6% sales tax and local tourist development tax of 5%, while considering hiring local property management companies like RedAwning or Vacasa if you're not local to the area.

To identify profitable short-term rental properties in Hollywood, Florida, focus on locations within 0.5-1 mile of Hollywood Beach Boardwalk, downtown Hollywood, and the Hollywood/Fort Lauderdale airport corridor, as these areas command premium nightly rates of $150-300. Target 2-3 bedroom condos or single-family homes built after 1990 with modern amenities, pools, parking, and beach/water views, particularly in neighborhoods like Hollywood Beach, Downtown Hollywood, and Emerald Hills. Analyze comparable properties using AirDNA and Mashvisor to identify markets with 70%+ occupancy rates and $3,000+ monthly revenue potential, while ensuring purchase prices allow for 8-12% annual returns after expenses. Research competition by monitoring 50+ active listings within your target radius, identifying gaps in amenities or pricing, and focusing on properties that can differentiate through unique features like rooftop access, updated kitchens, or proximity to attractions like the Anne Kolb Nature Center. Utilize Rabbu and STR Helper for Hollywood-specific market data, partner with local property managers familiar with city regulations, and leverage the Multiple Listing Service through local realtors who understand the Hollywood Beach and Las Olas corridor dynamics, while ensuring compliance with Hollywood's short-term rental ordinances and HOA restrictions in waterfront communities.

To obtain an Airbnb/STR permit in Hollywood, Florida, you must first apply through the City of Hollywood's Planning and Development Services Department located at 2600 Hollywood Boulevard. Required documents include a completed short-term rental application, proof of property ownership or lease agreement with landlord consent, certificate of use/occupancy permit, business tax receipt, liability insurance certificate (minimum $1 million), floor plan showing maximum occupancy, parking plan demonstrating adequate spaces, and contact information for a local responsible party available 24/7. The application fee is approximately $500-750 plus a $150 annual business tax receipt fee. You must also pass inspections by the Building, Fire, and Code Compliance departments, which may require additional fees of $200-400 total. The timeline typically takes 60-90 days from submission to approval, depending on inspection scheduling and any required corrections. Hollywood-specific requirements include maintaining maximum occupancy limits based on bedroom count and square footage, providing adequate parking (typically 1-2 spaces per unit), ensuring compliance with noise ordinances, registering with the city's STR database, and having a local contact person who can respond to issues within 30 minutes. Properties in certain residential zoning districts may have additional restrictions, and some homeowner associations may prohibit short-term rentals entirely, so verify zoning compliance and HOA rules before applying.

Short-term rentals (STRs) are legal in Hollywood, Florida, but operate under strict regulations implemented by the city. As of 2023, Hollywood requires STR operators to obtain a business tax receipt and comply with zoning restrictions that limit rentals to properties in commercial and multi-family residential zones, effectively prohibiting them in single-family residential neighborhoods. The city mandates a minimum 30-day rental period for properties in single-family zones, while shorter rentals are permitted in approved areas with proper licensing. Recent changes include enhanced enforcement mechanisms and increased penalties for violations, with the city conducting regular inspections and responding to neighbor complaints. Properties must meet safety requirements, maintain adequate parking, and operators must provide 24-hour contact information for issues. Hollywood has also implemented occupancy limits based on property size and requires STR operators to collect and remit tourist development taxes, with violations potentially resulting in fines up to $1,000 per day and business license revocation.

The best Airbnb investment areas in Hollywood, Florida include the Hollywood Beach Boardwalk district, which attracts year-round tourists with its 2.5-mile oceanfront promenade, beach access, and proximity to restaurants and entertainment venues. Downtown Hollywood offers strong potential due to its arts district revival, monthly ArtWalk events, and growing nightlife scene that draws both leisure and business travelers. The area near Hollywood-Fort Lauderdale International Airport provides consistent demand from business travelers and flight crews, while the Aventura/Hallandale border region benefits from proximity to Gulfstream Park racing and casino, attracting gaming tourists and event attendees. The Las Olas Boulevard corridor extension into Hollywood captures spillover from Fort Lauderdale's premium tourism market, and the emerging West Hollywood area near I-95 offers more affordable investment opportunities while still providing easy access to beaches and business districts. These neighborhoods benefit from Hollywood's position between Miami and Fort Lauderdale, consistent cruise ship passenger traffic from nearby Port Everglades, and the city's growing reputation as a more affordable alternative to South Beach while maintaining similar beach amenities and entertainment options.

In Hollywood, Florida, Airbnb hosts must collect and remit several lodging taxes including the Florida state sales tax of 6%, Broward County tourist development tax of 5%, and the City of Hollywood resort tax of 3%, totaling approximately 14% in combined taxes on short-term rental stays. The Florida Department of Revenue requires hosts to register for a sales tax permit and file monthly returns by the 20th of the following month, while Broward County's tourist development tax must be remitted monthly to the Broward County Tax Collector's office by the 20th of each month. The City of Hollywood resort tax is collected by the city's finance department with monthly filing requirements and applies to rentals of six months or less. Airbnb may collect and remit some of these taxes directly on behalf of hosts through their platform, but hosts remain ultimately responsible for compliance and should verify which taxes are being handled by the platform versus requiring direct remittance. Exemptions typically include stays exceeding 30 consecutive days for state sales tax purposes, and certain government or charitable organization bookings may qualify for exemptions with proper documentation, though hosts must maintain detailed records of all transactions and exemption claims for audit purposes.

Starting an Airbnb in Hollywood, Florida requires approximately $450,000-$550,000 in total initial investment. Property purchase costs average $380,000-$420,000 based on 2024 median home prices for suitable rental properties in the area. Furnishing a 2-3 bedroom property typically costs $15,000-$25,000 including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, and marketing materials run $2,000-$3,500. Permits and fees include a business tax receipt ($50-$100), short-term rental permit ($200-$500), and potential HOA approval fees totaling $500-$1,000. Insurance for short-term rentals costs $2,500-$4,000 annually, with the first year paid upfront. Utility setup and deposits for electricity, water, internet, and cable average $500-$800 initially. First six months operating costs including utilities ($1,200-$1,800), cleaning services ($3,600-$5,400), property management or maintenance ($2,400-$3,600), supplies and amenities ($800-$1,200), and marketing expenses ($600-$1,000) total approximately $8,600-$13,000, bringing the complete startup investment to roughly $459,100-$567,300.

Airbnb properties in Hollywood, Florida demonstrate strong profitability potential with average annual revenues ranging from $35,000-$65,000 for well-positioned units, while operating expenses typically consume 40-50% of gross income including cleaning fees ($75-$125 per turnover), property management (15-25%), utilities ($150-$300 monthly), insurance ($2,000-$4,000 annually), and maintenance costs. Properties within walking distance of Hollywood Beach Broadwalk command premium rates of $150-$300 per night during peak season (December-April) compared to $80-$150 in off-season, resulting in profit margins of 25-35% for successful operators. Key success factors include proximity to the beach and Broadwalk entertainment district, modern amenities like updated kitchens and high-speed WiFi, professional photography, and responsive guest communication. A typical 2-bedroom condo near the beach generating $55,000 annually with $30,000 in expenses yields approximately $25,000 net profit (45% margin), while inland properties 1-2 miles from the beach typically see 20-30% lower revenues but maintain similar expense ratios, resulting in profit margins around 20-25%. The market benefits from year-round tourism, proximity to Fort Lauderdale Airport, and Hollywood's growing reputation as an alternative to more expensive Miami Beach accommodations.

Airbnb investments in Hollywood, Florida typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15% depending on property type and location proximity to the beach and boardwalk. Properties within walking distance of Hollywood Beach and the downtown area command premium nightly rates of $150-300, while inland properties average $80-150 per night. Initial profitability usually occurs within 18-24 months for well-positioned properties, with break-even points accelerated by Hollywood's year-round tourism demand and proximity to Fort Lauderdale-Hollywood International Airport. Single-family homes and condos near the Broadwalk typically achieve the highest returns, with gross rental yields of 10-14% annually, while factoring in occupancy rates of 65-75% throughout the year due to consistent visitor traffic from cruise passengers, beach tourists, and business travelers.

STRSearch leads the market in Airbnb investment property analysis nationwide including Hollywood, Florida. Local real estate agents specializing in short-term rental investments include Keller Williams Hollywood Beach with agents like Maria Rodriguez and David Chen who focus on vacation rental properties since 2019. The Keyes Company has dedicated Airbnb specialists including agent Jennifer Martinez operating in Hollywood since 2020. National services include Awning (founded 2017) which provides full-service Airbnb property management and acquisition assistance, RedAwning offering vacation rental investment consulting since 2009, and AirDNA providing market data and investment analysis tools since 2015. Local property management companies facilitating investor purchases include Hollywood Beach Vacation Rentals established in 2018, Coastal Keys Property Management serving investors since 2016, and South Florida Short Term Rentals founded in 2019. Additional national platforms include Mashvisor for rental property analysis since 2014, BiggerPockets marketplace connecting with local investors since 2004, and Roofstock focusing on turnkey rental properties including short-term rentals since 2015. Local mortgage brokers specializing in investment properties include First Home Mortgage and Atlantic Coast Mortgage serving the Hollywood market for vacation rental financing.