When considering an investment in Key West real estate, understanding the distinction between transient and non-transient rentals is crucial. These classifications determine how you can rent out your property and the potential return on your investment. Here's what you need to know:

What Are Transient and Non-Transient Rentals?
Transient Rentals: Properties with a transient license can be rented nightly, similar to hotel accommodations.
Non-Transient Rentals: These properties require a minimum lease period of 28–30 days.
Transient Rentals

What You Need to Know
A transient rental license allows properties to be rented more frequently, often leading to higher revenue potential. Properties with transient licenses have consistently delivered a return on investment (ROI) of 8-10% on the gross purchase price.
The City of Key West no longer issues new transient licenses. However, existing licenses have been grandfathered, making these properties highly sought after. Think of them as the Key West equivalent of NYC taxi medallions—scarce and in high demand.
As a result, transient-licensed properties often sell at a premium, sometimes exceeding the asking price. Their exclusivity and income potential make them ideal for investors looking to maximize returns.
Investment Tip
DYK: Our Chief Shine Officer, Krystal Thomas, has a degree in Finance AND Real Estate? The perfect skill set to guide you in your investment search. Contact Krystal or one of our ShineGroup agents for an investment consultation and investment analysis.
Non-Transient Rentals
Why Consider Them?

Non-transient rentals, while limited to longer leases, still represent a viable investment. These properties typically generate 4-5% ROI on the gross purchase price but come with lower upfront costs compared to transient properties.
You might wonder if there's demand for month-long rentals in Key West. The answer is a resounding yes! Many visitors prefer extended stays, particularly during the winter months when snowbirds flock to the Florida Keys.
Market Insight
It's no secret that the "secret"about transient vacation rentals and the passive income they provide is out. Many buyers are looking for a diamond in the rough but in this real estate market you need a seasoned agent to guide you through the occupancy rate factors, expected and unexpected costs, and of course, location & management.
Choosing the Right Property for Your Needs
Deciding between transient and non-transient rentals depends on your goals:
Are you seeking maximum rental income? A transient property may be your best bet.
Looking for a seasonal home or lower upfront costs? Consider a non-transient property.

As an experienced real estate professional specializing in Key West properties, Broker Associate, Krystal Thomas and The ShineGroup Team can help you navigate the market and find the ideal investment to meet your unique needs.
Contact us today to discuss your Key West real estate goals and start your journey toward owning a slice of paradise!
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