US: Short-term rental operator Domio is set to expand its operations into South Florida, according to South Florida-based real estate news website The Real Deal.
Speaking to the website, co-founder and CEO, Jay Roberts, said the New York-based startup had paid around $1.45 million to lease 45 units at the beachfront Monte Carlo at 6551 Collins Avenue in Miami Beach.
He said that Domio was also signing deals at Miami Worldcenter in Wynwood and in South Beach, to add to its expansion in Fort Lauderdale, Palm Beach, Tampa and Orlando.
Roberts added: “Home-sharing in larger Airbnb properties is usually illegal in Miami Beach. Domio is opening the legal supply.”
The firm now has around 2,000 rooms in its portfolio, with many of them located in Chicago and New Orleans. Last year, it completed its acquisition of Chicago-based Reserve Rentals for a reported $1.4 million.
The 20-storey Monte Carlo, built in 2014, will have a five-year lease, with Samuel Raccah of the Red Group arranging the deal.
In the meantime, Domio will use its in-house design and creative team to update the 136 apartment units at the property location.
The city of Miami Beach has made repeated recent efforts to impose strict fines on illegal rentals, making legal properties increasingly attractive to real estate investors.
The rental operator is seeking to build and scale up a travel hospitality brand across the United States and worldwide, following the opening of its first apart-hotel in New Orleans earlier this year.
Raccah, whose Red Group manages short-term rentals in Miami, envisages more firms in the space expanding in South Florida, like Stay Alfred which already has two locations in the area.
He told The Real Deal: “Multifamily developers, real estate owners and lenders are getting more familiar with master-leasing multifamily buildings to short-term rental operators. It ensures that your building stays occupied throughout the year.”
“The four big rental operators are looking at Miami as an opportunity, particularly because Miami will be hosting the Super Bowl. All want to have a lot of inventory ready for 2020,” he added.
For more information, visit the Domio website here.