Brickell Short-Term vs Annual Leases: Rules, Risk & ROI

Thinking about renting out a Brickell condo and not sure whether a short-term setup or a one-year lease will serve you best? With layered rules, evolving demand, and building-by-building restrictions, the right answer depends on your goals and risk tolerance. In this guide, you’ll learn how Brickell’s regulations work, what drives ROI for each strategy, and how to build a clean, apples-to-apples comparison before you commit. Let’s dive in.

Brickell rules at a glance

Brickell sits within the City of Miami in Miami-Dade County, so your rental plan is shaped by several layers of authority. You need to confirm city ordinances, county tax requirements, state rules, and your building’s condo documents. In many cases, condo rules are the decisive factor on whether short stays are allowed at all.

Here is what to verify before you advertise or sign a lease:

• City of Miami registration and licensing. Confirm whether a business tax receipt or permit is required before you market stays under a set number of nights.
• County and state taxes. Transient occupancy taxes and state sales tax usually apply to short-term rentals. Registration and regular filings may be required.
• Minimum rental periods and zoning. The city may set minimum consecutive nights for legal short-term use and limit it by zoning. Confirm current rules for your address.
• Condo or HOA restrictions. Many Brickell towers set minimum lease terms, require guest registration, or prohibit stays under a specified length.
• Safety, insurance, and inspections. Some licensing regimes require safety devices, inspections, and proof of liability coverage.
• Enforcement and penalties. Noncompliance can lead to fines and loss of license, and condo boards may act quickly to enforce building rules.

Short-term rentals: revenue and risk

Short-term rentals can yield higher gross income, especially in peak season. Brickell’s draw includes finance-sector travel, conventions nearby, leisure visitors, international travelers, and easy access to Brickell City Centre, restaurants, and transit. You can benefit from strong winter demand in Miami, with softer summers that require careful pricing.

That upside comes with variability and operating intensity. Your margins depend on occupancy, average daily rate, and clean execution across guest experience and compliance. Expect to invest in professional furnishings and to respond quickly to reviews, messaging, and maintenance.

Key cost and risk drivers for short-term rentals:

• Operating costs. Cleaning and turnover, linens and supplies, owner-paid utilities, internet and TV, platform fees, and regular maintenance.
• Management. Full-service STR management typically ranges from 15 to 35 percent of gross revenue, depending on service level.
• Insurance. Many standard policies exclude short-term use. You may need specialized STR or landlord coverage with sufficient liability limits.
• Platform dependency. Revenue can shift with policy changes or delistings, so reputation management and diversification matter.
• HOA exposure. If your building tightens rules or enforces a minimum stay, you may need to pivot your strategy quickly.

Annual leases: stability and simplicity

A one-year lease often produces steadier, more predictable cash flow with less operational effort. In many Brickell buildings, long-term leasing aligns more easily with condo policies and reduces exposure to rapid enforcement actions.

You still need strong tenant screening and clear lease terms that comply with Florida landlord-tenant law. Turnover is less frequent, and tenants often pay most utilities, which lowers your monthly expenses.

Key cost and risk drivers for annual leases:

• Management. Long-term property management often ranges from about 6 to 12 percent of monthly rent, depending on services.
• Lower turnover. Fewer cleanings, fewer furnishings to maintain, and reduced supply costs compared with STRs.
• Rent levels and vacancy. Your model should include occasional vacancy between tenants and market-driven rent adjustments.
• Legal process. Eviction processes follow state law and may require legal support if issues arise.

How to model ROI correctly

To compare strategies, build two simple pro formas using consistent assumptions and then run sensitivity tests. Your goal is to understand where each strategy wins, where it breaks, and what levers matter most.

Start with revenue:

• Short-term rentals: Annual gross income = Average Daily Rate × Occupied nights per year. Model monthly seasonality for Brickell’s winter highs and summer lows.
• Annual leases: Annual gross income = Monthly rent × 12.

Include all expenses:

• Fixed expenses: Property taxes, insurance, condo fees, and a reserve for special assessments.
• Variable expenses: For STRs, cleaning per stay, supplies, platform fees, owner-paid utilities, and wear-and-tear reserves. For annual leases, lower variable costs but include occasional repairs and turnover costs.
• Management fees: Use realistic percentages for each strategy.
• Taxes and compliance: For STRs, include transient and sales tax obligations as a pass-through or cost item in your cash flow plan, plus CPA or filing support if applicable.

Compute key metrics using the same structure for both strategies:

• Net Operating Income (NOI) = Gross Rental Income − Operating Expenses.
• Cap Rate = NOI ÷ Purchase Price.
• Cash-on-Cash Return = (NOI − Annual Debt Service) ÷ Total Cash Invested.
• Break-even occupancy for STRs = (Fixed annual costs + desired profit) ÷ (ADR − variable cost per occupied night).

Run three scenarios for each strategy:

• Base case. Conservative ADR, realistic occupancy by season, current HOA fees, and typical management costs.
• Optimistic case. Strong winter performance, slightly higher ADR, and low vacancy.
• Pessimistic case. Lower ADR and occupancy, increased HOA fees, and an unexpected special assessment.

Market forces to factor in

Brickell’s rental market reflects both strong demand and high-rise supply. New condo inventory and branded residences increase competition for tenants and short-stay guests. Hotels and serviced apartments compete with STRs for business and international travelers.

Seasonality is a core driver for short-term rentals. Winter months often support higher occupancy and rates, while summer softens. Balance your model with dynamic pricing and realistic summer assumptions.

For annual leases, urban professionals, corporate transferees, and longer-term visitors anchor demand. Proximity to offices, transit, and lifestyle amenities sustains interest, but broader economic cycles and new supply can pressure rent growth.

Building rules to verify first

In Brickell, your condo’s governing documents can make or break your plan. Obtain and review the following before you buy or convert a unit to a rental:

• Recorded declaration, bylaws, and leasing amendments.
• Minimum lease terms and any prohibition on stays under a set number of days.
• Tenant and guest registration procedures, fees, and access control policies.
• Rental caps or a maximum percentage of units that may be leased.
• Insurance requirements, including any supplemental STR liability coverage.
• Recent board meeting minutes and resolutions on leasing or enforcement.
• History of special assessments and any planned capital projects.

If rules limit short stays, you may still operate profitably with annual leasing or corporate housing arrangements that comply with the minimum term. Always confirm what is allowed in writing with the association manager.

Operations and costs you should expect

Short-term rentals typically require a hospitality-level setup and rapid response. Annual leases demand thorough front-end screening and consistent maintenance.

Short-term rental checklist:

• Furnishings and setup: Furniture, linens, kitchenware, electronics, and décor.
• Guest experience: Professional cleaning, prompt communication, and clear house rules.
• Owner-paid utilities: Electricity, water, internet, and TV packages.
• Marketing and platforms: Professional photography and listing optimization; platform fees apply.
• Compliance: Licenses, tax registrations, safety devices, and insurance that covers STR use.

Annual lease checklist:

• Screening and documentation: Applications, credit and background checks, and compliant lease forms.
• Turnover timing: Marketing lead time and pre-move-in maintenance.
• Utilities and services: Often tenant-paid, but confirm metering and building policies.
• Ongoing management: Rent collection, repairs, renewals, and legal notices when required.

Due diligence checklist for Brickell

Before you proceed, work through this list to reduce surprises and improve your ROI clarity:

Regulatory and legal:

• Confirm the property is within the City of Miami and review current short-term rental ordinances and licensing steps.
• Identify Miami-Dade County transient or tourist tax obligations and registration requirements.
• Review Florida state tax rules for transient rentals and sales tax collection.
• Confirm zoning and any local use restrictions that affect the address.

Condo documentation:

• Obtain the recorded declaration, bylaws, leasing amendments, and any board resolutions on rentals.
• Request the building’s leasing history and the current percentage of rented units if capped.
• Review recent meeting minutes for pending policy changes, litigation, or large assessments.

Financial and market comps:

• Gather MLS-based rent comps by unit type and building amenities.
• Source short-term performance data for Brickell from STR analytics providers for ADR, occupancy, and RevPAR.
• Verify HOA fees, escalation history, and any planned capital projects.

Insurance, lending, and operations:

• Confirm insurance coverage for your intended use and obtain quotes.
• If financing, check lender policy on rental income and short-term use.
• Validate management fees, utility responsibilities, guest registration, parking, and access control.

Accounting and tax:

• Set up required tax accounts for sales and transient taxes if operating STRs.
• Consult a CPA on income tax reporting, depreciation, and passive activity considerations.

Which strategy fits you

Choose short-term rentals if you value higher potential gross income and you are ready to manage hospitality-level operations, seasonality, and stricter compliance. This strategy can perform well in peak months when allowed by your building and local rules.

Choose an annual lease if you prefer steady income, lower effort, and less regulatory exposure. In buildings that restrict short stays, a well-priced one-year lease with strong tenant selection can deliver reliable returns and fewer surprises.

If you want optionality, target buildings with flexible leasing policies and run models for both paths. Your best choice often emerges from side-by-side NOI and cash-on-cash comparisons under realistic assumptions.

Ready to map your strategy to the right building and tenant profile? For concierge guidance, curated inventory, and end-to-end management across Brickell and Greater Downtown Miami, connect with the team at Miami Rental Queen with Leni Giraldo.

FAQs

What are the short-term rental rules in Brickell?

• Brickell is within the City of Miami, so you need to confirm city licensing, county and state tax obligations, zoning, and your condo’s leasing restrictions before operating.

Can my condo allow short stays if the city does?

• Yes, if your condo’s governing documents permit them, but many Brickell buildings set minimum lease terms or limit STRs regardless of city rules; always verify with the association.

How do taxes affect STR revenue in Brickell?

• Short-term rentals often require collecting and remitting transient occupancy taxes and state sales tax; build these into your cash flow plan and registration calendar.

What management fees should I budget?

• Short-term rental managers commonly charge about 15 to 35 percent of gross revenue, while long-term managers are often around 6 to 12 percent, depending on services.

How does seasonality impact STR cash flow?

• Miami demand is typically stronger from roughly November through April and softer in summer, so model monthly occupancy and ADR to smooth cash flow expectations.

What data should I use for Brickell comps?

• For annual leases, rely on MLS and local broker comps by unit type and amenity set; for STRs, use neighborhood-level analytics for ADR, occupancy, and RevPAR trends.

What if my building enforces new leasing rules?

• Incorporate a contingency plan in your model, including the ability to pivot to an annual lease and a reserve for potential vacancy during policy changes.