Buying a beach condo from hundreds of miles away can feel exciting and nerve‑wracking at the same time. You want a place that guests love, numbers that pencil out, and an ownership setup you can manage from afar. In this guide, you’ll learn how Perdido Key’s condo market works, what short‑term rental rules and taxes to expect, what HOA rules matter most, and how to budget for management and upkeep. Let’s dive in.
Why Perdido Key works for investors
Perdido Key is a small barrier‑island community in Escambia County on Florida’s Gulf Coast. Public listings often show an active condo market with many units priced in the mid six figures, and recent snapshots have placed median condo listings around the mid‑$500k range. Because market conditions shift quickly, you should check current MLS data before you make an offer.
What makes Perdido Key appealing is the mix of true beachfront towers, resort communities with bundled amenities, and Intracoastal or canal buildings. That variety lets you choose an income strategy that fits your budget, preferred guest profile, and comfort with HOA rules.
Property types you’ll see
Gulf‑front condos
Beachfront towers and mid‑rises offer direct Gulf views, beach access, elevators, pools, and covered parking. These buildings are the most common short‑stay rentals and can command higher average daily rates. Expect higher HOA dues, more detailed association rules, and potentially higher insurance costs due to wind and flood exposure.
Resort and gated communities
Resort settings pair amenities with structure. A prime example is the gated Lost Key Golf & Beach Club, which includes a private beach club, on‑site golf, and a marina alongside villas, townhomes, and towers. Review the community details on the Lost Key Golf & Beach Club overview. These associations often have higher dues, but the amenity package can drive steady demand.
Canal and Old River buildings
Not every condo sits directly on the Gulf. Canal, Old River, or Intracoastal buildings attract boaters and guests planning longer, quieter stays. Fees can be lower than Gulf‑front towers, but peak nightly rates may also be lower during the highest‑demand summer weeks.
Short‑term rental rules and taxes
State licensing basics
Florida classifies short‑term rentals that are rented more than three times per year for periods under 30 days as “transient public lodging establishments.” These are subject to state licensing and standards through the Department of Business and Professional Regulation (DBPR). See the statute definition in Florida Statutes Chapter 509.013.
Local registration and TDT
Escambia County administers a Tourist Development Tax (TDT) on rentals of six months or less. The county increased its TDT rate to 5% effective April 1, 2021. Owners and managers must register for a TDT account and remit tax to the Clerk’s Treasury. Review registration and filing steps on the Escambia County Clerk TDT page.
Sales tax and surtax
Short‑stay bookings typically incur Florida’s 6% state sales tax, plus Escambia County’s discretionary sales surtax. The Florida Department of Revenue’s surtax table currently lists Escambia County at 1.5%. You can verify the current county surtax in the Florida DOR surtax rates table and see the base state tax in Florida Statutes 212.06.
Putting these pieces together, a short stay in Escambia County may see approximately 6% state sales tax + 1.5% county surtax + 5% TDT, or roughly 12.5% in taxes on the rent amount. Always confirm the current rates before publishing listings or pricing.
Who collects the taxes
Some booking platforms may collect and remit certain taxes, but as the owner you remain responsible for proper registration and filing. The Clerk’s guidance explains account setup, filing schedules, and remittance. Start with the Escambia Clerk’s TDT resources and confirm how your manager or platform handles collections.
Association rules to verify first
In Florida, condominium associations operate under Chapter 718 and can set rules that control whether and how you rent your unit. Policies can include minimum stays, caps on the number of rentable units, guest registration steps, parking limits, and required insurance. Review an overview of Florida’s condo law in this Chapter 718 resource.
Recent legislative updates (HB 913, effective July 1, 2025) refined governance, disclosure, and structural‑integrity reserve study requirements. Ask whether the building has completed required structural integrity reserve studies (SIRS) or milestone inspections and whether any special assessments are planned. You can review timelines and guidance via the DBPR condo timeline.
Rental and HOA due‑diligence checklist
Use this list before you go under contract:
- Is there a clear short‑term rental policy? Confirm minimum stay, any rental caps, blackout dates, and owner‑use rules.
- Board minutes and assessments: Request 12 months of minutes, current budget, financials, and any special‑assessment notices. Ask about SIRS or milestone inspections and related projects.
- Reserves and replacements: Review reserve studies and funding for roofs, elevators, balconies, waterproofing, and structural repairs.
- Insurance: Get the master policy certificate, coverage limits, deductibles, wind/hurricane and flood details, and ask about recent premium changes.
- Rental administration: Check for rental registration steps, per‑booking fees, on‑site check‑in requirements, cleaning standards, and any local contact rules.
- Local compliance: Verify DBPR license status and Escambia TDT registration for the property. Start with DBPR licensing resources and the county’s TDT page.
Costs, management, and seasonality
One‑time setup costs
Budget for inspections, closing costs, and furnishings. Furnishing a 2–3 bedroom vacation condo typically ranges from about $15,000 to $40,000 depending on quality and whether you hire a turnkey service. Build a cushion for initial linens, kitchenware, and smart‑home locks.
Ongoing carrying costs
HOA dues vary widely by building and amenity level. Gulf‑front towers and resort complexes tend to sit at the higher end, while inland or waterway buildings may be lower. Factor utilities not covered by dues, internet/streaming, and periodic refreshes of linens and small appliances.
Property management fees for full‑service short‑term rentals commonly range from about 20% to 35% of gross rent, while some lower‑cost alternatives exist and long‑term leasing managers usually charge less. See industry discussions of fee structures in this management fee overview. Cleaning and turnover costs are per‑stay and vary by size; a working range of $100 to $300+ per turnover is common.
Coastal insurance and exposure deserve extra attention. Associations may carry wind and flood coverage, but owners often need their own HO‑6 or landlord policy. High master deductibles can trigger owner assessments after major storms. For context on local coastal conditions and restoration planning, see this Perdido Key beach restoration feasibility study.
Revenue patterns and seasonality
Perdido Key follows Gulf‑coast rhythms: summer and spring break draw peak demand, shoulder seasons often perform well, and winter can favor monthly snowbird stays at lower nightly rates. Public market overviews for the broader Pensacola area show mid‑$100s ADR and occupancy in the 60–70% range in some periods, which you can use as a proxy for early modeling. For a snapshot, review this Pensacola market overview from Awning and ask managers for building‑specific calendars and paid STR reports before you set revenue targets.
Underwriting documents to request
Collect these items before you commit:
- MLS listing details, legal description, deeded parking/storage, and any leaseback or rental covenants.
- Full recorded declaration, amendments, bylaws, and current rules and regulations. Start with the Florida condo law overview.
- Last 12 months of board minutes, current budget, reserve schedule, insurance policies, loans, and notices of special assessments. See milestones and SIRS context on the DBPR timeline.
- Association certificate of insurance with coverage limits and deductibles; owner policy requirements.
- Evidence of completed SIRS or milestone inspections and any project timelines or contractor bids.
- HOA rental registry rules and any historical citations tied to short‑term rentals.
- DBPR license status for the property or operator and Escambia TDT account status. Reference DBPR’s services requiring a license and the county’s TDT registration.
Questions to ask a manager
- Do you collect and remit Escambia TDT and Florida sales tax for owners, and how do you document remittances? Ask for sample reports. See the Escambia TDT page.
- What is your management fee and what services are included? Ask for a line‑item scope and a sample P&L for a comparable unit. For fee context, see this fee breakdown article.
- What are typical ADR and occupancy by month for units in this building? If needed, request a marketplace export or a paid STR report. This Pensacola market overview can serve as a proxy.
- Who handles damage claims, security deposits, and enforcement of association rules when guests violate them? Confirm the on‑island contact and response times.
Next steps with a local partner
Buying from out of state is easier when you have a team that understands both the numbers and the neighborhood rhythms. As coastal specialists active across the Alabama‑Florida line, we help you target the right buildings, pressure‑test rental assumptions, and navigate HOA rules and licensing so you can buy with confidence. If you’re ready to talk through options, schedule a conversation with CoateConnection.
FAQs
What price range should I expect for Perdido Key condos?
- Public listing snapshots often show median condo listings in the mid‑$500k range, but you should verify current pricing and inventory in the MLS before making offers.
How do HOA rules affect short‑term renting in Perdido Key?
- Condo declarations and rules often set minimum stays, rental caps, guest registration, and fees, so your ability to rent depends on the building’s documents and enforcement history.
Which taxes apply to short‑term rentals in Escambia County?
- Short stays typically incur 6% Florida sales tax, Escambia’s 1.5% surtax, and a 5% Tourist Development Tax; confirm current rates via the Florida DOR table and the Escambia Clerk’s site.
Do I need a Florida license to rent my condo for short stays?
- If you rent more than three times a year for periods under 30 days, state law classifies your unit as a transient public lodging establishment, which triggers DBPR licensing.
What do short‑term rental managers typically charge?
- Full‑service STR managers often charge about 20–35% of gross rent, while long‑term managers usually charge less; confirm the exact scope and reporting before you sign.
What is the rental seasonality in Perdido Key?
- Summer and spring break are peak; shoulder seasons are solid; winter can favor monthly stays at lower nightly rates, so model ADR and occupancy by month for your target building.
