Introduction
Sarasota, Florida, known for its stunning beaches, cultural attractions, and vibrant community, has become a sought-after destination for travelers seeking a memorable vacation experience. With the rise of the sharing economy, short-term rentals have become a popular choice for both tourists and property owners looking to capitalize on the city’s allure.
In this guide, we will delve into the current state of the short-term (Airbnb) rental market in Sarasota, exploring key data points, regulations, and opportunities for potential investors.
Market Overview
To understand the dynamics of the short-term rental market in Sarasota, let’s delve into some key statistics and figures.
Supply
AS of October 2024, the most popular homes are 2-bedroom homes, comprising 26.36% of inventory. This is followed by 3 and 1-bedroom homes at 20.60% and 20.32% of the total inventory, respectively.
Homes Appreciation
As of October 2024, according to Zillow, homes in Sarasota experienced an depreciation of -1.93. This data indicates a significant decrease in property values.
Median Home Value
As of October of 2024, Homes in Sarasota have depreciated by -1.93%. The median home value in Sarasota is $453,779 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
As of October 2024, Sarasota boasts a significant Airbnb rental market, with approximately 3,330 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $263. The Average Daily Rate is the highest for 5-bedroom homes $539, followed by 4-bedrooms and 3 bedrooms at $462 and $361 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 51.62% for Airbnb rentals in Sarasota. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Sarasota ?
As of October 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 9.22% in Sarasota. This figure suggests that short-term rentals in the city offer a favorable return on investment. Sarasota is ranked #61 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Pigeon Forge earn an average of $30,318 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Top Places for Airbnb in Sarasota
Sarasota’s top submarkets for Airbnb investments include areas like ZIP code 34237, which has the highest gross yield at 9% and an annual revenue of $28,067. In contrast, ZIP code 34231 offers more extensive opportunities with 1,155 full-time listings, but a lower gross yield of 8%.
Home values also vary significantly, with properties ranging from $298.6K in 92139 to $409.4K in 34231, making each submarket unique in terms of investment potential and entry cost.
Hosts
The market is dominated by property management firms. The largest host is And AMI Accomodations with 4.73% of the total inventory and an average review of 4.77⭐️s .
Property Tax
According to SmartAsset, the average property tax in Sarasota is 0.84%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
Guests
The majority of the guests in Sarasota come from Florida and are within driving distance. 2.85% of all guests are from Orlando followed by Miami with 2.10%.
Regulations
Sarasota’s short-term rental regulations are somewhat investor-friendly, with different zoning regulations and limitations in place. Understanding these regulations is crucial for potential investors to ensure compliance and a smooth operation.
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Additional Information
To provide a more holistic view of Sarasota and its short-term (Airbnb) rental market, let’s address some additional questions:
Median Household Income
The median household income in Sarasota, FL is approximately $51,946, according to the latest available data. This information helps provide insights into the target market and the financial capabilities of potential renters.
Climate
Sarasota benefits from a warm and inviting climate, typical of the Gulf Coast region of Florida. The city experiences mild winters with average temperatures ranging from the low 60s to mid-70s Fahrenheit. Summers tend to be hot and humid, with temperatures often reaching the 90s. The favorable climate contributes to the city’s popularity as a tourist destination throughout the year.
Population Size
As of the latest estimates, Sarasota, FL has a population size of around 60,000 residents. The city is relatively small in terms of population, but it attracts a substantial number of tourists due to its cultural offerings, beautiful beaches, and recreational activities.
Sports Teams
Sarasota is home to the Baltimore Orioles, an MLB team that conducts spring training in the city. Baseball enthusiasts can enjoy watching games and supporting their favorite team during the preseason.
Colleges
Sarasota is fortunate to have several esteemed educational institutions within its boundaries. New College of Florida, a public liberal arts college, and Ringling College of Art and Design, a private art school, are two notable institutions that contribute to the city’s vibrant academic community.
Crime Rate
Understanding the safety of a destination is crucial for both tourists and potential investors. According to recent reports, Sarasota’s crime rate is slightly higher than the national average. However, it’s essential to note that crime rates can vary across different neighborhoods, and taking necessary precautions can help ensure a safe experience for residents and visitors alike.
Visitors and Tourist Attractions
Sarasota attracts visitors from various parts of the world who are drawn to its natural beauty, cultural heritage, and recreational activities. The city’s stunning beaches, including Siesta Key Beach and Lido Key Beach, are among its biggest attractions. The Ringling Museum of Art, which showcases a remarkable collection of artwork, and the Mote Marine Laboratory & Aquarium, known for its marine research and exhibits, are also popular tourist destinations.
Peak Season
Sarasota experiences a peak tourist season during the winter months, typically from December to April. This period coincides with the city’s mild climate, attracting tourists seeking respite from colder regions. The influx of visitors during this time presents an excellent opportunity for Airbnb rental owners to maximize their occupancy rates and rental income.
Conclusion
Sarasota, FL presents an enticing opportunity for investors looking to capitalize on the thriving short-term (Airbnb) rental market. With a favorable appreciation rate, attractive median home value, high occupancy rates, and promising revenue potential, the city provides a strong foundation for a successful vacation rental business.
Furthermore, the somewhat investor-friendly short-term rental regulations and anticipated future legislation create a supportive environment for property owners. The city’s pleasant climate, cultural attractions, and beautiful beaches add to its appeal as a sought-after tourist destination.
While considerations such as median household income, population size, crime rate, and visitor demographics contribute to the overall market understanding, the robust short-term rental market in Sarasota continues to flourish, offering a lucrative opportunity for investors seeking a slice of Florida’s vibrant hospitality industry.
Whether you’re a seasoned investor or an aspiring entrepreneur, Sarasota’s short-term rental market beckons with its promise of financial success and the opportunity to contribute to the city’s flourishing tourism sector.
