Thinking about a furnished rental in downtown West Palm Beach but not sure where to start? You are not alone. Investors love the lifestyle draw and year-round visitor mix here, yet the rules, taxes, and HOA details can feel complex. In this guide, you will learn how the market performs, how monthly furnished and short-term strategies compare, the key compliance steps, and a clear due-diligence checklist you can use before you buy. Let’s dive in.
Why downtown West Palm Beach
Downtown West Palm Beach attracts both leisure and corporate guests. Seasonal events and tourism drive high-season spikes, which help boost occupancy and rates. Local tourism calendars highlight recurring draws that support this pattern, and you can explore upcoming festivals and cultural events through the county’s official site at The Palm Beaches.
Access also matters. You are close to Brightline rail and Palm Beach International Airport, which makes downtown appealing for quick business trips and corporate stays. The Brightline station area and transit convenience help widen your renter pool across short stays and furnished monthlies.
What performance looks like
Recent short-term rental dashboards for West Palm Beach show a mid-market average daily rate in the low to mid $200s, with average occupancy in the mid 60 percent range. These are market-level numbers and vary by micro-location and building. Tools like Airbtics’ West Palm Beach overview show seasonality, with February and March often peaking.
For furnished monthly condos downtown, public listing snapshots commonly show smaller or older units around the low $2,000s per month, and renovated 1 to 2 bedroom units in premium buildings in the $4,000 to $5,000 plus range. Luxury 2 bedroom units or larger can list higher. Use these as examples, then confirm true comps and your building’s lease rules.
Choose your strategy
There are two primary furnished approaches downtown. Each serves a different renter profile and expense structure.
Nightly short-term rentals (STR)
- Best when your building allows short stays and you can capture peak season demand.
- Higher gross potential, but you will have more variable costs like cleaning, guest services, and occupancy taxes on stays under six months.
- Expect pronounced seasonality. The high winter months can carry your annual numbers if you price well and control costs.
Furnished monthly or seasonal
- Focus on 30 to 90 day stays, corporate relocations, and winter seasonal visitors.
- Often steadier occupancy with fewer turnovers. Lower cleaning and platform fees than nightly STR.
- May deliver a lower gross than a strong STR calendar, but simpler operations and fewer taxes if you structure leases over six months.
Illustrative pro forma
These examples use market-level inputs from recent dashboards and listing snapshots. Your actual results will vary by building rules, finishes, view, and operations. Treat this as a starting framework.
| Metric | STR example | Furnished monthly example |
|---|---|---|
| Key inputs | ADR $213, occupancy 67% | Monthly rent $3,500 |
| Gross revenue | About $52,100/yr | About $42,000/yr |
| Management | 20% of gross ≈ $10,420 | 10% of gross ≈ $4,200 |
| Platform/processing | ≈ 3% ≈ $1,563 | Often lower or none if direct |
| Taxes on stays ≤6 months | Approx. 12% state + county | Depends on lease length |
| Cleaning/turnovers | ≈ $7,600/yr (varies) | Lower than STR |
| Insurance, utilities, maintenance | ≈ $9,000/yr (illustrative) | ≈ $7,000/yr (illustrative) |
| HOA dues | Example $10,800/yr | Example $10,800/yr |
| Notes | Higher gross with higher frictional costs | Smoother operations, lower volatility |
Numbers above are rounded and illustrative. Pull your own downtown comps by month using tools like Airbtics to refine ADR, occupancy, and seasonality.
Rules and taxes to know
Before you list or buy, confirm the compliance items below. Getting these right protects your margins and avoids penalties.
- City licensing and inspections. The City of West Palm Beach requires a rental business tax application, zoning review, and inspections for units in city limits. Review the city’s Rental Property Guidelines and factor in time for approvals.
- County tourist tax. Palm Beach County levies a 6 percent Tourist Development Tax on rentals of six months or less. Hosts register, file, and remit directly with the Tax Collector. Learn more on the county’s Tourist Development Tax page.
- State transient tax and DBPR. Florida treats stays of six months or less as taxable transient rentals for state sales tax purposes. Some situations also involve state public lodging registration. Review this high-level overview of Florida short-term rental rules and confirm details for your property.
- Condo and HOA rules. Florida’s Condominium Act allows associations to set leasing rules, such as minimum lease terms, rental caps, first-year hold periods, and guest policies. Always request and read the recorded declaration, bylaws, and recent board minutes. The statute is available here: Florida Condominium Act, Chapter 718.
Key cost drivers to budget
Your underwriting should include these line items at minimum.
- Revenue and calendar. STR: ADR times occupancy times 365. Furnished monthly: rent times months occupied, with realistic off-season gaps.
- Management fees. Long-term or monthly furnished fees often run 8 to 12 percent, while full-service STR management often ranges 15 to 30 percent. See typical ranges in this management fee guide.
- Cleaning and turnovers. STRs incur per-stay cleans. Monthlies typically have lighter turnover costs.
- HOA or condo dues. Downtown high-rises often run several hundred dollars per month to well over $1,000, depending on amenities and services included.
- Insurance. Condo HO-6 and liability are standard, and flood may be required. Florida insurance markets have seen volatility and rising costs, so model increases. Industry reporting outlines these trends for Florida property owners, such as this Insurance Journal update.
- Utilities and internet. Owners often cover these for STRs and furnished monthlies.
- Taxes and licenses. Include Florida state sales tax and Palm Beach County tourist tax for stays of six months or less, plus any local business tax receipts and inspection fees.
- Maintenance and reserves. Budget for furniture refreshes, appliance replacement, and hurricane-related repairs.
Due diligence checklist
Work through this list before you commit to a purchase or lease-back plan.
- Confirm zoning and city requirements for the address, and review inspections and licensing steps using the city’s Rental Property Guidelines.
- Request from the HOA or management: recorded declaration and bylaws, current leasing policy, last 12 to 24 months of board minutes, current budget and reserve study, and the master insurance policy. Verify any rental caps or minimum lease terms under Florida Chapter 718.
- Set up tax accounts if you plan stays under six months. Open a Palm Beach County TDT account and any required Business Tax Receipt, and register for state sales tax if applicable using the county’s TDT guidance.
- Pull building-level STR comps. Use a provider like Airbtics to quantify ADR, occupancy, and seasonality by month.
- Get quotes from managers. Compare at least two local STR managers and one long-term manager for scope, pricing, and cleaning schedules. Typical long-term fees are 8 to 12 percent, and STR fees are 15 to 30 percent, as outlined in the management fee guide.
- Stress-test insurance and HOA. Ask about pending assessments and engineering reports, then model 10 to 20 percent increases for HOA and insurance. See Florida cost context in this Insurance Journal report.
- Check practical operations. Confirm guest parking, loading, access controls, amenity rules, and any restrictions on short-stay check-ins.
How to compare outcomes
To decide between monthly furnished and STR, run a few quick sensitivities:
- Break-even occupancy. For STR, what occupancy do you need at your target ADR to cover fixed costs and taxes?
- ADR dips. What happens if off-season ADR falls 10 to 20 percent for three to four months?
- HOA and insurance jumps. If HOA or insurance increases 10 to 20 percent next year, do you still meet your yield target?
- Rent floor vs peak capture. Compare guaranteed six-month seasonal leases vs maximizing peak STR months. Sometimes a hybrid approach wins.
A smart calendar strategy
A hybrid plan can reduce vacancy and preserve upside:
- Lease furnished for multi-month terms from November through April at seasonal rates.
- Fill shoulder months with 30 to 60 day corporate stays where allowed.
- If the building permits short stays, open select peak weekends to nightly STR to capture event-driven demand.
Align the plan with your HOA’s minimum lease terms and any caps on rental frequency.
Common pitfalls to avoid
- Assuming all buildings allow STR. Many downtown condos require 30 day minimums, six month minimums, or limit the number of leases per year.
- Overlooking taxes on short stays. The 6 percent Palm Beach County TDT plus state transient sales tax apply to stays of six months or less and can materially impact margins.
- Underestimating insurance and HOA volatility. Florida coastal condos have seen rising costs, so model conservatively.
- Skipping inspections and licensing. The city has defined steps for rentals. Build in time for review and approvals.
Your next step
If you want a clear plan for a downtown West Palm Beach furnished rental, start with building rules, seasonal comps, and a calendarized budget. From there, you can decide whether steady furnished monthlies or peak-focused STR best fit your goals. When you are ready to compare buildings, review HOAs, and map an income strategy, connect with Julio Nunez for a high-touch consult and a data-backed path forward.
FAQs
What returns can a downtown furnished condo produce?
- Market dashboards show mid-market ADR in the low to mid $200s with average occupancy in the mid 60 percent range for STR, while furnished monthlies commonly range from about $2,000 to $5,000 plus per month depending on building and finishes. Your outcome will depend on calendar, building rules, and operating costs.
Are short-term rentals allowed in all downtown buildings?
- No. Many condos set minimum lease lengths, limit the number of leases per year, or restrict short stays under association rules guided by Florida’s Condominium Act. Always confirm the building’s recorded documents and current policies before you buy.
What taxes apply to stays under six months in Palm Beach County?
- Expect to collect and remit the 6 percent county Tourist Development Tax plus Florida state transient sales tax on rentals of six months or less. Platforms may not remit county TDT for you, so owner oversight is important.
Do I need a city license to rent my unit?
- Yes. The City of West Palm Beach outlines rental business tax applications, zoning review, and inspections for rentals within city limits. Plan for those steps before listing your property.
How should I budget HOA and insurance costs?
- Downtown high-rise HOA dues often range from several hundred dollars to well over $1,000 per month. Insurance costs in Florida have been volatile, so model conservative increases and ask your HOA about reserves and any pending assessments.
