Investing in Fort Lauderdale: Condo vs. Single-Family Rentals

Is a Fort Lauderdale condo or a single-family rental the smarter play for your portfolio? With steady in-migration, year-round renter demand, and strong lifestyle appeal, Broward County offers compelling opportunities. The right choice depends on your budget, target tenant, risk tolerance, and how you plan to manage costs like HOA fees and insurance. In this guide, you’ll compare both paths, learn what to watch in local rules and insurance, and get a practical checklist you can use before you make an offer. Let’s dive in.

How Fort Lauderdale rental demand works

Fort Lauderdale benefits from several demand drivers. Population growth from out-of-state movers, retirees, and remote workers supports a deep tenant pool. Major sectors like tourism and hospitality, healthcare, professional services, and marine and port operations create a mix of renters at different price points.

Seasonal patterns matter. Snowbirds and vacationers boost demand for furnished and short-term stays in specific neighborhoods, while long-term rentals remain in demand across the city. Rent growth has moderated from 2020 to 2022 highs, yet desirable areas still see competitive leasing and lower vacancy.

Be mindful of cost headwinds. Rising insurance premiums for wind and flood coverage can impact cash flow. In condos, special assessments for building repairs can also change the math. Conservative underwriting helps you avoid surprises.

Condos vs. single-family: quick snapshot

When a Fort Lauderdale condo makes sense

You want a lower entry price, minimal exterior maintenance, and access to downtown, transit, or beachfront amenities. Well-located 1 to 2 bedroom units can attract professionals and seasonal tenants and can earn strong rent per square foot.

What to watch:

• HOA budget and reserves. Fees can be a large fixed expense. Special assessments for deferred maintenance can change your returns.
• Warrantability. If a project fails conventional underwriting due to low reserves, litigation, or low owner occupancy, financing can be more expensive.
• Rental rules. Many associations set minimum lease terms, cap total rental units, and require tenant approval. Request documents early.
• Master insurance. Understand coverage type and hurricane deductible sharing. Deductibles can lead to owner assessments after a storm.
• Short-term rentals. Verify city and HOA rules before you underwrite any seasonal income.

Neighborhoods where condos often perform

• Downtown, Flagler Village, and Las Olas. Walkable corridors with high amenity access and strong renter interest. Consider parking rules, HOA fees, and possible seasonality.
• Beachfront and near-beach areas like Lauderdale-by-the-Sea, Las Olas Isles, and Harbor Beach. Premium rents are possible, but purchase prices, insurance, and potential oceanfront assessments are higher.
• Pompano Beach. Ongoing redevelopment near the beach and pier has diversified options and can offer yield opportunities, with tenant mix varying by pocket.
• Wilton Manors. A distinct submarket with stable rental demand for both smaller SFRs and condos.

When a single-family rental stands out

You prefer longer leases, a broader buyer pool on exit, and the potential for steady appreciation. Single-family homes in established neighborhoods often draw tenants who value private outdoor space and parking.

What to watch:

• Maintenance and capex. Roofs, HVAC systems, landscaping, and exterior repairs are your responsibility, and costs can be larger per incident.
• Insurance and flood risk. Obtain quotes for property, wind, and flood coverage. Properties in certain flood zones may require flood insurance.
• HOA rules. Some subdivisions have HOAs with modest fees and basic standards. Review any rental limitations and exterior requirements.
• Leasing timelines. Outer suburban pockets can see longer time-to-lease than core areas, so budget vacancy conservatively.

Neighborhoods where SFRs often fit

• Victoria Park, Rio Vista, Coral Ridge. A mix of single-family homes and low-rise condos. SFRs in these areas often appeal to long-term tenants who value proximity to amenities.
• Suburban pockets north and west of downtown and in nearby Broward communities. Inventory and yields vary by block. Compare rent comps carefully.
• Pompano Beach. A mix of housing types with potential for value relative to prime beachfront, with performance dependent on submarket.

Rules and risks that move the numbers

Financing. Investor loans for SFRs are generally straightforward. Condo financing can be more complex if the building is not warrantable. Confirm project financials, owner-occupancy levels, and any litigation before you assume conventional rates.

Local rental rules. Fort Lauderdale and Broward County regulate short-term rentals, including registration, safety standards, and taxes. If you plan to pursue seasonal or short-term income, verify city code and county rules first. Long-term leasing is less affected by STR regulations but still requires adherence to local processes.

Landlord-tenant framework. Florida statutes govern leases, deposits, and eviction procedures. Timelines can vary based on court conditions, so factor potential delays into your risk planning.

Insurance and flood. Fort Lauderdale is coastal, and storm, surge, and flood exposure must be part of your underwriting. In condos, master policies cover common elements, but hurricane deductibles and building repairs can result in owner assessments. In SFRs, you carry property, wind, and flood policies directly. Obtain real quotes rather than relying on averages.

Property taxes. Broward County property taxes apply without homestead caps for investor-owned properties. Model tax scenarios based on assessed values and recent history for your subject property.

Underwriting checklist and modeling steps

Before you go under contract, gather documents and quotes so you can model realistic returns. Use the lists below to standardize your due diligence.

For condos

• HOA budget, reserve study, and meeting minutes for the last 12 to 24 months
• Special assessment history and any planned capital projects
• Insurance declarations for the master policy and details on deductibles
• Rental rules, minimum lease terms, caps, and approval process
• Owner-occupancy percentage and any pending litigation disclosures
• Building condition reports and major system upgrades such as roof, elevators, or piping

For single-family homes

• Home inspection focused on roof, HVAC, plumbing, and electrical systems
• Pest and termite history and any treatment warranties
• Any subdivision HOA documents and exterior standards
• Site drainage, past flood or water intrusion history, and a current survey
• Title review for deed restrictions

For both asset types

• Current rent roll and leases if tenant-occupied, plus occupancy and vacancy history
• Utility responsibility by landlord or tenant
• Recent sales comps and rent comps from local listing data
• Insurance quotes for property, wind, and flood
• Property tax history and a projection for your acquisition year
• Zoning checks and short-term rental regulations for the address

Modeling assumptions to use

• Gross rent. Pull current comps and adjust for seasonality if furnished or short-term.
• Vacancy. Use a conservative allowance. A range of 6 to 12 percent can be appropriate depending on submarket volatility and strategy.
• Operating expenses. For condos, budget HOA fees and set aside funds for possible assessments. For SFRs, include landscaping, exterior upkeep, and larger capital items.
• Insurance. Model base quotes and a renewal scenario at higher premiums. Insurance volatility can materially affect net operating income.
• Capex reserves. Consider 5 to 10 percent of gross rent for SFRs, and adjust upward for older properties or higher-risk zones. For condos, estimate reserves based on building age and HOA disclosures.
• Debt. Stress test at your quoted rate plus 200 to 300 basis points. Confirm down payment requirements with your lender.
• Exit. Set exit cap rates using recent local sales of similar assets, and run upside and downside rent growth scenarios.

Investor profiles and neighborhood fit

• Lower entry cost and lower exterior maintenance. A smaller condo near downtown or transit can be a match, provided HOA rules align with your leasing plan.
• Long-term appreciation and tenant stability. A single-family home in an established neighborhood such as Victoria Park or Coral Ridge may align with this goal.
• Seasonal or vacation strategy. Beachfront condos or homes in zones that allow short-term rentals can work, if HOA and municipal rules are compatible and you budget for seasonality and taxes.

How Team Delgado can support your search

You deserve local guidance that protects your time and your capital. Our team is based in Broward County and supports investors who want clear underwriting, on-the-ground insights, and smooth closings. We help you prioritize neighborhoods, obtain key documents early, and connect with trusted local vendors for inspections and insurance quotes.

Whether you are comparing a condo in Flagler Village to a single-family option in Coral Ridge, you will get real-world context on vacancy, turnover, and resale considerations. If you are also planning a future sale, we bring an event-driven marketing approach that has produced multiple-offer outcomes.

Ready to run the numbers on a specific property or neighborhood? Reach out to Team Delgado Home Experts to talk strategy or to Get Your Free Home Valuation.

FAQs

Are condos harder to finance for Fort Lauderdale investors?

• Yes. Condos can be harder to finance if the building is not warrantable due to reserves, litigation, or owner-occupancy levels. Verify project status and documents before you assume conventional rates.

Do Fort Lauderdale condos allow short-term rentals?

• Many condo associations restrict short-term rentals with minimum lease terms or rental caps, and the city and county have registration and tax rules. Review both HOA documents and local code before planning STR income.

Which appreciates more in Broward County, condos or SFRs?

• Single-family homes often have broader buyer demand and historically more consistent appreciation, while condos can appreciate well in amenity-rich downtown or beachfront areas but can be more volatile.

How big is the insurance impact on returns?

• Insurance can materially affect net operating income. Rising wind and flood premiums and condo master policy deductibles or assessments can reduce cash flow, so obtain quotes and model higher renewal scenarios.

What vacancy assumptions should I use in Fort Lauderdale?

• Use conservative assumptions and adjust by submarket and strategy. Smaller condos in seasonal areas may require higher vacancy allowances than single-family homes in established neighborhoods.

What local taxes apply to short-term rentals?

• Short-term rentals are subject to local tourist development taxes and state sales tax, along with city and county registration and safety requirements. Confirm current rules before listing a property for STR use.

Do investors receive Florida homestead tax benefits?

• No. Homestead exemptions and caps apply to owner-occupants, not to investor-owned properties. Model property taxes based on assessed values and recent history for the address you plan to buy.