Annual vs Vacation Rental in Boynton Beach: Which Earns More in 2026?
Written by Jon C. Schmitt, Licensed Florida Real Estate Broker (BK645858) and Owner, True Patriot Property Management. Updated October 2026.
Every Boynton Beach owner with a condo or house near the Intracoastal eventually asks the same question: would this earn more as a vacation rental? The nightly rates look big, and the idea of a $250 night feels better than a $2,500 month. But the answer depends on what you keep after management, cleaning, taxes, and empty weeks, not on what you gross.
Quick answer: which one wins in Boynton Beach
For most Boynton Beach owners, the annual lease wins on net income and on stress. In the example below, a vacation rental has to gross about 59% more than the annual lease rent just to tie, before you buy a single piece of furniture. A vacation rental can still make sense for a unit in the right building, with the right owner-use plans, but it has to clear that bar.
The math on an example 2-bedroom
These numbers are an illustration, not a quote or a market average. The annual rent uses the middle of the 2-bedroom range ($2,300 to $2,700) in our Boynton Beach average rent guide. The vacation-side costs use the same assumptions as our Naples annual vs vacation rental comparison. Swap in your own figures.
Scenario A: annual lease
| Item | Amount |
|---|---|
| Rent ($2,500 a month) | $30,000 |
| Management fee (10%, the top of the typical 8 to 10% range) | -$3,000 |
| Leasing fee (half of one month’s rent) | -$1,250 |
| Maintenance and turnover reserve (5%) | -$1,500 |
| Vacancy reserve (one month every two years) | -$1,250 |
| Net to owner | $23,000 |
Scenario B: what a vacation rental has to gross to match it
| Item | Amount |
|---|---|
| Gross booking revenue needed | $47,700 |
| Vacation management fee (25%) | -$11,925 |
| Listing platform fees (4%) | -$1,908 |
| Furnishing and linen replacement (5%) | -$2,385 |
| Utilities | -$3,600 |
| Internet and streaming | -$1,200 |
| Lawn, pest, and pool service | -$1,800 |
| Linens, supplies, and consumables | -$1,500 |
| State license and registration | -$400 |
| Net to owner | about $23,000 |
Sales tax and tourist tax are left out of that table because they are normally added to the guest’s bill and remitted by you or your manager. If you price them into the nightly rate instead, they come out of your take.
Gross income of $47,700 sounds reasonable until you divide it by the calendar. Here is the average nightly rate you would need to hit at different occupancy levels:
| Occupancy | Nights booked | Average nightly rate to break even |
|---|---|---|
| 75% | 274 | about $174 |
| 65% | 237 | about $201 |
| 55% | 201 | about $238 |
| 45% | 164 | about $291 |
And that is only the tie. The vacation scenario also needs furniture up front, usually in the tens of thousands of dollars, and an insurance policy that actually covers nightly guests. Ask your agent, because a standard landlord policy may not.
Florida taxes and licensing for a vacation rental
This is where owners get surprised. A vacation rental is a regulated business in Florida, not just a rental with a shorter lease. Here is what the statutes and the Palm Beach County Tax Collector say:
- State sales tax: Florida charges 6% on transient rentals under Section 212.03, Florida Statutes. A person with a bona fide written agreement for continuous residence for longer than 6 months is not subject to it.
- Palm Beach County tourist development tax: the County charges 6% on the revenue from rentals of 6 months or less. Anyone offering short-term accommodations has to register a tourist development tax account with the Tax Collector, and vacation rentals also need a short-term rental local business tax receipt.
- State license: a unit rented to guests more than three times in a calendar year for stays under 30 days, or advertised as regularly rented for those stays, is a transient public lodging establishment under Section 509.013. Section 509.241 requires these establishments to obtain a license from the state’s Division of Hotels and Restaurants.
- City rules: cities can add their own business tax receipt and registration requirements, so confirm with the City of Boynton Beach before you list.
What about your HOA or condo association?
Under Section 509.032, Florida Statutes, local governments cannot prohibit vacation rentals or regulate how long or how often they rent, except for ordinances adopted on or before June 1, 2011. That limits cities. It does not override your association’s documents. Many condo and HOA declarations set minimum lease terms or ban short stays outright, so read yours before you spend a dollar on furniture.
When the annual lease wins
The annual lease usually comes out ahead when you want predictable monthly income, you do not live nearby, your building limits short stays, or you do not want to field guest messages and cleaning schedules. It also wins when your unit is not a standout. A tired condo two miles from the beach rarely commands the nightly rate the break-even table needs. If that is you, a well-priced annual lease in Boynton Beach is hard to beat.
When a vacation rental can win
A vacation rental can make sense when the property is in a building that allows it, sits close to the water or major attractions, and is furnished well enough to hold a strong nightly rate. It also fits owners who want to use the place themselves part of the year and are willing to treat the rest of it as a hospitality business. If you go that route, price it using the break-even table above, not the best week of the winter season.
What to ask a vacation rental property manager in Boynton Beach
If you are shopping for vacation rental property management in Boynton Beach, expect a fee closer to 20 to 30% of gross bookings, compared with roughly 8 to 10% of monthly rent for an annual lease. Ask who handles cleaning and turnover, who files and pays the sales tax and tourist tax, who holds the state license and the business tax receipt, whether there are owner-use blocks, and what happens to your payout in a slow month. For how we price long-term management, see our full-service property management guide, and if you live out of state, read our guide to managing a Florida rental from out of state.
Not sure which model fits your property?
We will look at your address, your building, and your numbers, and tell you what the annual lease would realistically rent for. Serving owners across Palm Beach County, Broward County, and Southwest Florida.
Talk to our teamCall 561-502-3227Frequently asked questions
Is a vacation rental more profitable than an annual lease in Boynton Beach?
Usually not after costs. In our example, a vacation rental has to gross about 59% more than the annual lease rent to match its net income, and it takes on more work, more taxes, and more seasonal swings. A strong location and a well-furnished unit can change that, so run your own numbers.
Do I need a license to run a vacation rental in Boynton Beach?
Most likely yes. Florida treats a unit rented more than three times a year for stays under 30 days, or advertised for those stays, as a transient public lodging establishment, and Section 509.241 requires a license from the state. In Palm Beach County you also register for the tourist development tax and get a short-term rental local business tax receipt. Check with the City of Boynton Beach for any city requirements.
What taxes apply to short-term rentals in Palm Beach County?
Florida charges 6% sales tax on transient rentals, and Palm Beach County charges a 6% tourist development tax on rentals of 6 months or less. Written agreements for continuous residence longer than 6 months fall outside the state transient rental tax. Ask your tax professional how these apply to your situation.
Can my HOA or condo association ban short-term rentals?
Yes, an association can restrict rentals through its governing documents, even though state law limits what cities can do. Florida preempts most local limits on the duration and frequency of vacation rentals, except for ordinances adopted on or before June 1, 2011. Read your declaration and rules before you plan on nightly stays.
How much does vacation rental management cost compared to annual management?
Vacation rental managers commonly charge about 20 to 30% of gross bookings, while annual lease management typically runs about 8 to 10% of monthly rent plus a leasing fee. The vacation figure usually does not include cleaning, supplies, or taxes.
The bottom line
Compare what you keep, not what you gross. For most Boynton Beach owners, a well-priced annual lease delivers steadier income with far less work, and a vacation rental has to clear a high break-even bar to beat it. If you want a second opinion on your own property, reach out to our team or schedule a free market evaluation and we will walk you through what it could rent for.
This article summarizes Sections 212.03, 509.013, 509.032, and 509.241, Florida Statutes, and Palm Beach County Tax Collector guidance, and is general information, not legal or tax advice. The financial example is an illustration, not a quote. For your specific situation, consult a Florida attorney or tax professional.
Considering a 1 to 6 month furnished lease instead? See our guide to mid-term rentals in Florida for the tax, license and HOA rules.