Is Ormond-by-the-Sea, Florida Good for Airbnb Investment?

To start an Airbnb in Ormond-by-the-Sea, Florida, begin by researching Volusia County's short-term rental regulations, which typically require a business tax receipt and compliance with zoning laws that may restrict rentals in certain residential areas to a minimum of 7-30 days depending on the zone. Contact Volusia County's Planning and Development Services to obtain necessary permits, including a vacation rental license (approximately $100-200 annually) and ensure your property meets fire safety and building code requirements. Find a suitable property within allowed zoning districts, focusing on areas near the beach or A1A corridor where tourism demand is highest, with properties typically ranging from $300,000-800,000 for condos and single-family homes. Furnish the space with coastal-themed, durable furniture, essential amenities like high-speed internet, full kitchen appliances, beach equipment, and quality linens, budgeting approximately $15,000-30,000 for a complete setup. Create your Airbnb listing with professional photography highlighting ocean proximity, include detailed descriptions of nearby attractions like Tomoka State Park and Ormond Beach, and set competitive rates based on seasonal demand (higher rates December-April, lower May-November). Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, maintaining the property regularly, and considering hiring a local property management company if you're not local, while ensuring compliance with Volusia County's occupancy limits and noise ordinances to maintain good neighbor relations.

To identify profitable short-term rental properties in Ormond-by-the-Sea, Florida, focus on oceanfront or ocean-view properties within 0.3 miles of the beach, particularly along Atlantic Avenue and A1A, as these command premium rates of $200-400 per night during peak season (March-August). Target 2-4 bedroom condos or single-family homes built after 1990 with modern amenities like updated kitchens, pools, parking, and beach access, as properties with these features typically achieve 70-85% occupancy rates. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against similar properties, noting that beachfront units average $180-220 per night while inland properties fetch $120-160 per night. Research competition through Airbnb, VRBO, and local property management companies like Ormond Beach Vacation Rentals and Coastal Properties, identifying gaps in amenities or pricing strategies. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Flagler County property records to analyze purchase prices, renovation costs, and projected returns, while consulting with local STR management companies such as RedAwning and Vacasa for market insights and regulatory compliance with Volusia County's short-term rental ordinances.

To obtain an Airbnb/STR permit in Ormond-by-the-Sea, Florida, you must first apply through Volusia County since the area falls under county jurisdiction rather than having its own municipal government. Begin by contacting the Volusia County Planning and Development Services Department at 123 W. Indiana Avenue, DeLand, FL 32720, or visit their website to download the Short-Term Rental Registration application. Required documents typically include a completed application form, proof of property ownership or lease agreement, floor plan of the property, site plan showing parking areas, proof of liability insurance (minimum $1 million coverage), contact information for a local responsible party available 24/7, and a business tax receipt from the Florida Department of Revenue. The application fee is approximately $150-200 with an annual renewal fee of around $100. You must also obtain a business tax receipt from Volusia County (approximately $50-75) and register with the Florida Department of Revenue for tourist development tax collection. The property must comply with zoning requirements (typically allowed in residential zones with restrictions), provide adequate parking (usually 2 spaces minimum), maintain occupancy limits based on bedrooms and square footage, and ensure the property meets all building and fire safety codes. The approval timeline is generally 30-45 days after submitting a complete application, though inspections may extend this period. Once approved, you must display the permit number in all advertising and collect the 6% Florida sales tax plus local tourist development taxes, which vary by area within Volusia County.

Short-term rentals (STRs) in Ormond-by-the-Sea, Florida are generally legal but subject to specific regulations under Volusia County's jurisdiction, as this unincorporated community falls under county oversight rather than having its own municipal government. As of 2023, Volusia County allows STRs in residential areas but requires operators to obtain a business tax receipt and comply with occupancy limits, parking requirements, and noise ordinances. Properties must maintain a maximum occupancy of two people per bedroom plus two additional guests, provide adequate parking (typically one space per bedroom), and operators must respond to complaints within one hour if local or two hours if out-of-area. The county prohibits STRs in certain residential zoning districts and requires a 150-foot separation between STR properties in some areas. Recent changes in 2022-2023 included stricter enforcement mechanisms and increased penalties for violations, with the county implementing a complaint-driven system and requiring STR operators to register with a 24/7 contact person. While not completely prohibited in any specific areas of Ormond-by-the-Sea, certain homeowner associations may have additional restrictions, and beachfront properties may face additional coastal zone regulations that could impact STR operations.

The best areas for Airbnb investment in Ormond-by-the-Sea, Florida are the beachfront districts along A1A/Ocean Shore Boulevard, particularly the central beach area near Bicentennial Park and the northern sections closer to Flagler Beach, which attract tourists year-round due to direct beach access, proximity to the Ormond Beach Scenic Loop, and easy access to Daytona International Speedway events. The Granada Boulevard corridor offers strong potential due to its proximity to both the beach and mainland amenities, appealing to families and business travelers visiting nearby companies like Team Volusia Economic Development Corporation partners. Areas near Central Park and the Casements cultural center benefit from cultural tourism and events, while properties within walking distance of local restaurants along A1A capture the dining and nightlife market. The northern residential areas near Bulow Creek State Park attract nature enthusiasts and eco-tourists, particularly during spring and fall migration seasons, while southern areas closer to Ormond Beach proper benefit from overflow tourism from major events like Bike Week, Biketoberfest, and NASCAR races at Daytona International Speedway, creating consistent seasonal demand from 2019-2024.

Airbnb properties in Ormond-by-the-Sea, Florida are subject to multiple lodging taxes including the Florida state sales tax of 6%, the Volusia County tourist development tax of 5%, and potentially local municipal taxes that can range from 1-3%. The state sales tax is collected by Airbnb directly from guests and remitted to the Florida Department of Revenue on behalf of hosts for stays under 30 days, while the county tourist development tax must typically be collected by the host and remitted quarterly to the Volusia County Tax Collector's office using form DR-15TDT. Hosts must register for a Florida sales tax permit and may need to register separately with Volusia County for the TDT collection, with remittance due by the 20th of the month following the end of each quarter. Exemptions generally apply to stays of 30 days or longer which are considered long-term rentals rather than transient accommodations, and some exemptions may exist for certain government or charitable organization bookings, though hosts should verify current rates and procedures as these can change and local municipalities may have additional requirements or taxes that vary by specific location within Ormond-by-the-Sea.

To start an Airbnb in Ormond-by-the-Sea, Florida, expect total costs around $420,000-$480,000. Property purchase represents the largest expense at $350,000-$400,000 based on median home prices in this coastal area near Daytona Beach. Furnishing costs typically range $15,000-$25,000 for a complete vacation rental setup including beds, linens, kitchen essentials, outdoor furniture, and coastal decor. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations run $3,000-$5,000. Permits and fees vary but budget $500-$1,500 for business licenses, vacation rental permits, and inspection fees required by Volusia County. Insurance costs approximately $2,000-$3,000 annually for short-term rental coverage. Utility deposits and connections total around $500-$800 for electricity, water, internet, and cable services. First six months operating costs including utilities ($1,800), cleaning services ($2,400), maintenance ($1,000), property management software ($300), marketing ($500), and miscellaneous supplies ($1,000) add roughly $7,000. Additional considerations include potential HOA fees ($1,200-$3,600 annually) and property taxes ($3,500-$4,500 annually) which affect ongoing profitability in this popular beach destination market.

Airbnb properties in Ormond-by-the-Sea, Florida typically generate annual revenues between $35,000-$65,000 for oceanfront units and $20,000-$40,000 for properties within 2-3 blocks of the beach, based on average daily rates of $150-$280 during peak season (December-April) and $80-$150 during off-season. Operating expenses generally run 40-50% of gross revenue, including property management fees (20-25%), cleaning costs ($75-$125 per turnover), utilities ($200-$350 monthly), insurance ($2,500-$4,000 annually), and maintenance reserves. Net profit margins typically range from 15-25% for well-managed properties, with successful operators like those managing beachfront condos in the Ormond Towers achieving higher margins through premium pricing and extended booking windows. Key success factors include proximity to the beach (properties within 200 yards command 30-40% higher rates), professional photography showcasing ocean views, responsive guest communication, and strategic pricing during events like Daytona 500 week when rates can exceed $400 nightly. Properties with pools, updated kitchens, and direct beach access consistently outperform the market, with some oceanfront 3-bedroom units generating over $80,000 annually while maintaining occupancy rates above 70%.

Airbnb investments in Ormond-by-the-Sea, Florida typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% based on current market conditions. Properties within 0.5 miles of the beach command premium rates of $150-250 per night during peak season (December-April) and $80-140 during off-season, with average occupancy rates of 65-75% annually. Initial investment for a 2-3 bedroom oceanside property ranges from $400,000-650,000, with investors typically reaching profitability within 18-24 months after accounting for renovation costs, furnishing, and initial marketing expenses. The market benefits from year-round tourism due to Daytona's proximity, NASCAR events, and consistent snowbird population, with successful properties generating $45,000-75,000 in gross annual revenue. Cash-on-cash returns are optimized when leveraging 75-80% financing, and properties with pools, updated kitchens, and beach access typically achieve the higher end of ROI projections within the 24-36 month timeframe.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Ormond-by-the-Sea, Florida. Local real estate agents serving this market include Realty Pros Assured with agents like Jennifer Walsh and Michael Torres who focus on investment properties, Coldwell Banker Premier Properties with vacation rental specialists, and RE/MAX Signature with agents experienced in beachfront investment opportunities. National services include AirDNA for market analysis and property identification, Mashvisor for investment property analytics, BiggerPockets for investor networking and deal sourcing, and Awning for short-term rental investment guidance. Local property management companies that also help with acquisitions include Vacasa, RedAwning, and Coastal Vacation Rentals of Ormond Beach. Additional services include STR Helper for market research, Rabbu for rental arbitrage opportunities, and local investment groups like Volusia County Real Estate Investors Association that provide networking and deal flow opportunities for Airbnb property investments in the Ormond-by-the-Sea area.