Is Key Biscayne, Florida Good for Airbnb Investment?

To start an Airbnb in Key Biscayne, Florida, begin by researching local regulations as the Village of Key Biscayne requires short-term rental properties to obtain a business tax receipt and comply with zoning ordinances that typically allow vacation rentals in residential areas with specific restrictions on rental duration (usually minimum 7-day stays). Obtain necessary permits including a Miami-Dade County resort tax certificate, Florida sales tax permit, and register with the village clerk's office for a local business license, which costs approximately $50-150 annually. Find a suitable property by purchasing or securing a long-term lease agreement (ensure your lease permits short-term rentals), focusing on condominiums or single-family homes near Key Biscayne Beach or Crandon Park, with properties typically ranging from $400,000-$2 million. Furnish the space with coastal-themed, durable furniture including quality mattresses, linens, kitchen essentials, beach equipment, and safety items like smoke detectors and first aid kits, budgeting $15,000-30,000 for a complete setup. List your property on Airbnb, VRBO, and Booking.com with professional photography highlighting ocean views, beach access, and proximity to attractions like the Ritz-Carlton Key Biscayne, setting competitive rates between $150-500 per night depending on size and location. Manage the property by establishing cleaning protocols between guests, coordinating key exchanges or installing smart locks, maintaining responsive communication with guests, collecting and remitting the 6% Miami-Dade resort tax plus 6% Florida sales tax, and ensuring compliance with noise ordinances and parking restrictions that are strictly enforced in this upscale island community.

To identify profitable short-term rental properties in Key Biscayne, Florida, focus on waterfront or water-view locations within walking distance to Crandon Park Beach, Bill Baggs Cape Florida State Park, or the Key Biscayne Golf Course, as these areas command premium nightly rates of $300-600 during peak season (December-April). Target 2-4 bedroom condominiums or single-family homes built after 1990 with modern amenities like updated kitchens, pools, parking, and hurricane-impact windows, particularly in buildings like Ocean Club, Towers of Key Biscayne, or newer developments along Crandon Boulevard. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, noting that Key Biscayne typically achieves 65-75% occupancy rates with average daily rates 20-30% higher than mainland Miami due to its exclusive island location. Research competition by studying listings within a 1-mile radius, focusing on properties near the Ritz-Carlton Key Biscayne area and Village Green, while using tools like Rabbu, AllTheRooms, and local MLS data through partnerships with Key Biscayne realtors like Coldwell Banker or Douglas Elliman who understand the island's unique zoning restrictions and HOA regulations that may limit short-term rentals in certain buildings.

To obtain an Airbnb/STR permit in Key Biscayne, Florida, you must first apply through the Village of Key Biscayne's Building and Zoning Department located at 88 W McIntyre Street, submitting a completed Short-Term Rental Registration Application along with required documents including proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, contact information for a local representative available 24/7, and a signed affidavit acknowledging compliance with all village ordinances. The application fee is approximately $500 annually, with additional inspection fees of around $150. Required documents also include a business tax receipt from Miami-Dade County, fire safety inspection certificate, and proof that the property complies with parking requirements (minimum two spaces per unit). Key Biscayne has specific requirements including a maximum occupancy of two guests per bedroom plus two additional guests, prohibition of rentals for less than 30 days in certain residential zones, mandatory registration with the state of Florida, and compliance with noise ordinances and waste management protocols. The approval timeline typically takes 4-6 weeks after submission of complete application materials, and properties must pass both fire and building code inspections before permits are issued, with annual renewals required and random compliance inspections conducted throughout the year.

Short-term rentals (STRs) are currently prohibited in Key Biscayne, Florida, as the village has maintained a ban on vacation rentals and short-term accommodations for residential properties. The Village of Key Biscayne's zoning code restricts residential properties to long-term rentals of 30 days or more, effectively prohibiting platforms like Airbnb and VRBO from operating legally within the village limits. This prohibition applies to all residential zones throughout Key Biscayne, including single-family homes, condominiums, and townhomes, with the village citing concerns about maintaining the residential character of the community, parking issues, and noise complaints from transient occupancy. The ban has been consistently enforced since approximately 2018-2019, with the village issuing fines and cease-and-desist orders to property owners who attempt to operate illegal short-term rentals. Unlike Miami-Dade County's broader regulations that allow STRs in certain areas with proper licensing, Key Biscayne has opted for a complete prohibition, making it one of the more restrictive municipalities in South Florida regarding vacation rental policies.

The most attractive areas for Airbnb investment in Key Biscayne, Florida include the Village Green area near the town center, which offers proximity to restaurants, shops, and the community center while maintaining easy beach access, making it ideal for families and leisure travelers. The Crandon Park vicinity is highly desirable due to its location near the renowned Crandon Park Beach and golf course, attracting tourists seeking premium beach experiences and golf enthusiasts year-round. Properties near Bill Baggs Cape Florida State Park command premium rates due to the park's lighthouse, pristine beaches, and nature trails, appealing to eco-tourists and photography enthusiasts. The Harbor Drive and Ocean Lane East areas are prime for luxury vacation rentals, offering waterfront views and proximity to the Key Biscayne Yacht Club, attracting affluent travelers and boating enthusiasts. The residential areas around Key Biscayne Community School are attractive for longer-term stays from relocating families and business travelers, while properties near the Ritz-Carlton Key Biscayne benefit from overflow demand during peak seasons and corporate events, with guests seeking more affordable alternatives to hotel stays while maintaining proximity to luxury amenities and Miami's business district.

Airbnb properties in Key Biscayne, Florida are subject to multiple lodging taxes including the Florida state sales tax of 6%, the Miami-Dade County tourist development tax of 7%, and potentially additional municipal taxes that can range from 1-3%. The total effective tax rate typically ranges from 14-16% of the rental amount. These taxes are generally collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began implementation around 2016-2017 for most Florida jurisdictions. Airbnb remits these collected taxes directly to the appropriate state and local tax authorities on behalf of hosts, typically on a monthly basis. The Florida Department of Revenue oversees state sales tax collection, while Miami-Dade County manages the tourist development tax through their tax collector's office. Properties rented for less than 30 days are generally subject to these transient rental taxes, while longer-term rentals exceeding 30 days may be exempt from tourist development taxes but still subject to sales tax. Hosts should register with the Florida Department of Revenue and obtain a sales tax permit, though when Airbnb collects and remits taxes automatically, individual host compliance requirements may be reduced but hosts remain ultimately responsible for ensuring proper tax compliance.

Starting an Airbnb in Key Biscayne, Florida requires significant upfront investment due to the area's premium real estate market. Property purchase costs average $850,000 for a median 2-bedroom condo suitable for short-term rentals, while furnishing a vacation rental property typically runs $25,000-$35,000 including furniture, appliances, linens, and décor to create an attractive guest experience. Initial setup costs including professional photography, listing creation, and marketing materials total approximately $3,000-$5,000. Permits and fees in Miami-Dade County include business tax receipts, short-term rental permits, and potential HOA approval fees totaling $1,500-$3,000 annually. Insurance for short-term rentals costs $3,000-$5,000 per year, significantly higher than standard homeowner's insurance. Monthly utilities including electricity, water, internet, cable, and cleaning services average $400-$600 per month. First six months of operating costs including utilities ($3,000), cleaning between guests ($2,400), maintenance and supplies ($1,500), platform fees to Airbnb and VRBO ($3,600 based on estimated revenue), and property management if outsourced ($4,500) total approximately $15,000. The complete startup investment ranges from $897,000 to $911,000, making Key Biscayne one of the more expensive markets for Airbnb investment in Florida.

Airbnb properties in Key Biscayne, Florida demonstrate strong profitability potential with average daily rates ranging from $200-400 for standard units and $500-800 for luxury waterfront properties, generating annual revenues of $60,000-120,000 for well-managed properties with 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including property management fees (15-25%), cleaning costs ($75-150 per turnover), utilities ($200-400 monthly), insurance ($3,000-6,000 annually), and maintenance reserves (5-10% of revenue), resulting in net profit margins of 25-35% for successful operators. Success factors include proximity to beaches and downtown Miami (15-minute drive), professional photography showcasing ocean views, responsive guest communication, and premium amenities like pools, parking, and high-speed internet. Properties within walking distance of Key Biscayne Beach and Crandon Park command premium rates, with some luxury condos in Ocean Club and Towers of Key Biscayne achieving $300+ average nightly rates year-round. The market benefits from consistent demand from Miami business travelers, international tourists, and families seeking upscale beach accommodations, though competition has intensified since 2020 with increased supply, making property differentiation and exceptional guest experiences critical for maintaining above-average profitability in this high-end island community market.

Airbnb investments in Key Biscayne, Florida typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the area's premium beachfront location and consistent tourist demand. Properties in Key Biscayne command average daily rates of $200-400 depending on proximity to beaches and amenities, with occupancy rates averaging 65-75% annually due to year-round appeal from both domestic and international visitors. Initial profitability is generally achieved within 18-24 months, with investors seeing positive cash flow after accounting for property management fees (typically 20-25%), maintenance, insurance, and HOA fees which can be substantial in this upscale market. The luxury condo market in Key Biscayne, with properties averaging $800K-$2M, benefits from Miami's strong tourism sector and the island's exclusivity, though investors should factor in higher operating costs and seasonal fluctuations that can impact monthly returns by 20-30% between peak winter months and slower summer periods.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors, offering comprehensive market analysis and property recommendations for Key Biscayne, Florida. Local real estate agents in the area include Douglas Elliman Real Estate with agents like Jill Hertzberg and Jill Eber who have extensive experience in luxury Key Biscayne properties since the early 2000s, Coldwell Banker's Key Biscayne office with agents specializing in investment properties, and The Keyes Company which has been serving the Miami-Dade area since 1926. National services include Mashvisor, which provides Airbnb analytics and investment property search tools, BiggerPockets for networking and deal finding, Roofstock for turnkey rental properties, and AirDNA for short-term rental market data analysis. Additional local specialists include Compass Real Estate agents focusing on Key Biscayne's luxury market, RE/MAX agents with vacation rental expertise, and boutique firms like Cervera Real Estate which has been operating in South Florida since 2005. Property management companies that also help with acquisitions include RedAwning, Vacasa, and local firms like Miami Vacation Rentals and Elite Host, all of which can provide insights into profitable Airbnb opportunities in Key Biscayne's high-end vacation rental market.