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Why Clearwater, FL Looks to Be a Stable Rental Market in 2021 and Beyond

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When buying vacation rental properties, it’s wise to play the long game. Trends (and pandemics!) come and go, but you need to find a location for your next rental that stands the test of time. That way, years of earnings from your renters, and ever-increasing housing prices boost your initial investment. In the words of the Financial Samurai, “the best holding period for real estate is forever.”

Finding a rental market that is both hot in 2021 and sustainable for years to come is easier said than done. There will no doubt be dozens of markets you will want to consider. One that should be high on your list is Clearwater, Florida.

TripAdvisor named Clearwater Beach the #1 best beach in America. The website’s description of the beach demonstrates the many reasons why it is a favorite destination of millions of people. “Beautiful white sand and clear, shallow water,” TripAdvisor notes, “make this beach an ideal playground for families.” 

Last year, Forbes also named Clearwater Beach its #2 best spring break beach. Their report notes that there is a lot more to do on Clearwater Beach than just swim. Vacationers, says Alexandra Talty with Forbes, “can kayak, fish, sail, jet ski, parasail and enjoy dolphin-watching cruises.” A rental in Clearwater appeals to both casual beach-goers and more adventurous vacationers, too. 

These positive reviews mean Clearwater is already on vacationers’ radar. It also means the town receives free advertisements from well-regarded sources in the travel industry regularly. This, in turn, affects the demand for your future rental property

AirDNA gave Clearwater a perfect A+ score in its 2019 report on the best places to buy vacation rentals. They noted that Clearwater has a high revenue growth and an equally high demand for rental properties. The website also believes Clearwater has a low fluctuation in rental demand between high and low tourist season. 

Rented.com also included Clearwater in its 2019 list of places to buy vacation rental property. The estimated rental income for property owners in Clearwater is $65,000, according to Rented.com. That is notably higher than other Florida markets such as Orlando ($34,000), Destin ($53,000), and even Miami Beach ($61,000).

While Rented.com’s 2019 report recognizes that Florida is a growing market for rentals, they also note some challenges Florida faces. They include Florida along with California, Utah, Colorado, and New York as states facing shortages in housing. These shortages, Rented.com says, could affect your success as a property renter. Anyone planning on buying property in Florida, like with many other states, also need to keep in mind the risk of hurricanes and other natural disasters. As always, vacation rental property should be just one part of a diverse financial portfolio.

There are risks, such as hurricane season and state-wide housing issues, to consider before investing in Clearwater, Florida. But the town’s beautiful beaches and other outdoor activities mean Clearwater will continue to be a favorite of travelers and industry tastemakers. It will also make a great getaway for you and your family.

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