Understanding the different types of real estate leases serves as a strategic advantage for Florida investors. Consequently, you seek to boost the profitability of your properties located in the southern part of the state.
In this article, you will learn about the various residential and commercial rental modalities available here. Furthermore, we will review the legal requirements for vacation rentals and the specific rules for subleasing. We will also explore how real estate leasing benefits Latin American citizens looking for opportunities.
What types of real estate leases exist in the United States?
The types of real estate leases in the Miami market divide mainly by duration and specific usage. This category responds directly to specific demands from local tenants and international visitors seeking accommodation.
Generally, the United States real estate market classifies assets according to their primary function in sectors. Regarding the residential area, options vary from modern apartments to spacious single-family homes in exclusive communities. Similarly, commercial properties include high-end offices and premises located in the most important financial centers worldwide.
Types of real estate leases for short stays
Types of real estate leases for short stays are an attractive option in South Florida currently. Global tourism flows, world-class events, and the dynamism of the corporate sector drive this specific demand.
Below, we detail the fundamental steps to establish a successful vacation rental business in these regions:
- Verification of zoning and local regulations: consulting urban planning codes in Miami-Dade or Broward is convenient.
- Process the lodging license before the Florida Department of Business and Professional Regulation (DBPR) promptly.
- Registration for the payment of tourist taxes and sales taxes before the corresponding fiscal entities.
- Review of the homeowners association statutes to avoid sanctions or strict legal restrictions on the property.
- Hiring a cleaning and maintenance service specialized in high hospitality standards for your guests’ comfort.
- Implementation of digital reservation systems that optimize occupancy during all seasons of the year efficiently.
Types of real estate leases for long terms
Types of real estate leases with twelve-month contracts provide financial stability, highly valued by serious investors. Unlike short rentals, this model reduces turnover costs and frequent cleaning commissions for the owner. Moreover, the key lies in:
- Selecting tenants with a solid credit history and verifiable references from their country of origin.
- This type of rent allows for simpler planning of monthly cash flow for your payments.
- The residential owner in Florida must maintain the habitability of the property per state health laws.
Differences between the types of real estate leases
When analyzing the types of real estate leases, a clear distinction arises between housing and commercial sectors. Thus, the specific differences include:
- Duration of the contracts.
- Responsibility for maintenance.
- Profile of the lessee.
- Frequency of rent adjustment.
- Insurance requirements.
- Level of space customization.
Commercial leases
These usually have a much more extensive duration, reaching periods of up to ten continuous years. For this reason, they represent an investment option for larger capitals seeking to consolidate in US markets.
Indeed, many companies prefer to invest in office spaces due to the appreciation generated in Miami. Additionally, commercial contractual terms are more flexible than residential ones, allowing for personalized agreements between parties.
Residential sector
Conversely, the residential sector is subject to stricter legal protections to safeguard family tenant well-being. Despite that, it offers faster liquidity in case you decide to sell the property in the future.
While the commercial tenant is usually a legal entity, the residential one is a physical person. Therefore, your choice must rely on the risk level you are willing to assume and capital.
Subleasing and types of real estate leases
Subleasing is a legal figure that allows a tenant to rent part or all their space. Within the types of real estate leases, this practice is valid in Miami if the contract permits.
Next, we present the golden rules for managing subleasing successfully in your properties:
- Explicit and written authorization in the main rental contract to avoid future legal misunderstandings effectively.
- Mandatory review of the financial and legal background of every subtenant who enters the property.
- Limitation on the number of people or companies that can occupy the property under this scheme.
- Maintenance of the liability insurance policy to cover all occupants present in the leased space.
- Establishment of strict access control to protect the common areas of the rented real estate property.
- Periodic inspections scheduled to verify the proper use of the property and facility conditions.
The role of the manager
Having expert property management is essential when you allow subleasing in your Florida real estate assets:
- A local manager can mediate between the main tenant and subtenants to verify regulatory compliance. In this way, you free yourself from managing minor conflicts and help ensure payments occur on time.
- Furthermore, professional surveillance reduces the wear of the property and allows community rules to be respected.
- The administrator handles verifying that the subtenant does not perform activities violating local zoning laws. In other words, their presence on the ground is your best ally to maintain your patrimony integrity.
For these reasons, foreign investors prefer to delegate these functions into the hands of certified specialists. Ultimately, the peace of mind knowing experts supervise your property has no comparison in the market.
How does real estate leasing work in Florida for investors?
Real estate leasing is a strategic option within the types of real estate leases for Latin Americans. Basically, this specific model consists of:
- A rental contract that includes a purchase option at the end of a determined time period.
- It allows the investor to control the property and generate income while consolidating their bank financing.
- Many investors utilize this time to strengthen their credit history within the North American financial system.
Additionally, rent with option to buy offers unique flexibility for those still deciding their residence. While you inhabit or rent the property, you can evaluate the zone benefits and real profitability. On the other hand, in these types of real estate leases you can use that cash flow for other businesses.
Which types of real estate leases to choose?
Choosing the right rental model is not just a financial decision, but a reflection of lifestyle. Each investor possesses different expectations regarding risk, return on investment, and the time of dedication required. Below, we delve into the advantages of each modality so that you make an informed decision.
Long-term residential lease: stable cash Flow
This profile values stability and the preservation of assets over immediate explosive yields or high risks. If you seek tranquility and predictable cash flow, the annual contract is your best ally. By minimizing turnover, you protect your property from accelerated wear and reduce administrative management costs significantly.
Advantages:
- You receive a fixed monthly rent that facilitates the payment of mortgages and expenses.
- By having only one tenant per year, maintenance calls reduce drastically for the owner.
- You avoid the frequent expenses of deep cleaning and replacement of hotel inventory.
- The moderate increase of 2.5% annually allows fair adjustments without losing occupancy (Florida Realtors, 2025).
Vacation and short-term rent: higher financial return
This profile is designed for more active management in exchange for potentially superior financial returns. It is ideal for Miami tourist zones where global demand is inexhaustible and constant. Although rental inventory increased by 15.8%, quality differentiation allows capturing high daily rates (Florida Realtors, 2025).
Advantages:
- Rates per night usually double or triple the prorated value of a traditional rent.
- You have the freedom to block dates for your family vacations without contractual conflicts.
- Constant professional cleaning allows the property to remain always in exhibition conditions for visitors.
- You can capitalize on events, holidays, and high seasons by raising rates immediately.
Commercial lease
Ideal for consolidating large capitals with a very long-term vision and minimum intervention required. Types of real estate leases for commercial use are perfect for those viewing property as financial instruments. Here, the relationship is B2B (business to business), which generally implies a more professional deal.
Advantages:
- Low turnover allows for a continuous flow of income without vacancy for years.
- Commercial tenants usually invest in physical improvements to the premises that increase their value.
- The use of the property is restricted to business hours, reducing the risk of nocturnal damages.
Option to buy
This profile frequently corresponds to foreigners who plan to move to Florida or diversify their portfolios. Leasing functions as a bridge between renting and full ownership of the asset in Florida. It is a powerful tool to build credit history in the United States while occupying it. Basically, you “test” the investment before committing the total capital of the final purchase.
Advantages:
- You fix the purchase value, protecting yourself from future market appreciation during the contract.
- Part of your monthly rent may be credited to the down payment of the future purchase.
- You gain valuable months to qualify for better mortgage rates as a resident or foreign investor.
- At the end of the period, you have the option, but not always the obligation, to buy.
Controlled subleasing
This profile seeks to optimize every available square meter, usually in commercial spaces or shared housing. This model adapts well to modern offices or properties in high-demand university zones nearby.
Advantages:
- If a subtenant leaves, the others continue generating income, protecting the total cash flow.
- It allows accessing more expensive and better-located properties by dividing operational expenses effectively.
- You do not depend on a single payer to cover the monthly obligations of the property.
A 360 solution: your strategic ally in Miami with PFS Realty Group
Navigating the environment of interest rate cuts in Miami demands a partner with experience and global vision. At PFS Realty Group, our mission is to facilitate your dream of building a solid real estate patrimony. We offer a 360° service that assists you in every stage of your international investment process.
Our integral structure allows the types of real estate leases to be managed with efficiency. We guide you from asset selection to daily administration of your properties in South Florida. With us, you have the necessary backing to make informed decisions in any financial context. Boost your profitability and consolidate your future with the support of our certified specialists in the market.
Through our affiliates and allies, we cover every specific need of your property purchase, sale, and rent:
- We guide you from selection to management at PFS Realty Group..
- Mortgage financing for foreigners. We process your credit with expert allies like Avanti Lending.
- Residential property management. We care for your investment and rental level through Avanti Management.
- Vacation property management. We maximize your income from tourist assets with Avanti Stay.
- Specialized property insurance. We protect your asset by connecting you with our affiliate Mobile Assurance.
- Accounting and legal services. We provide the necessary support for a solid investment at PFS Realty Group..
Investing in Miami is your great strategic move and deserves the integral backing PFS Realty Group offers. Take the next step right now and learn about our property management service. Contact our team to identify the service you need for your growth.
Referencias
- Conceptos Jurídicos. (2025). Arrendamiento en Estados Unidos.
- Florida Realtors. (2025). Reportes de mercado de vivienda en Florida.
- Miami Realtors. (2025). South Florida market stats.