Trying to choose between a condo or a townhome for rental income in Sandestin can feel like comparing sunshine to more sunshine. Both options can work, but they perform differently once you factor in HOA rules, insurance, seasonality, and management. If you want steady returns with fewer surprises, the right fit matters more than the label on the door. In this guide, you’ll learn how each option earns, what it costs to operate, and the specific due diligence that protects your cash flow in Sandestin and Miramar Beach. Let’s dive in.
The Sandestin rental landscape
Sandestin Golf and Beach Resort and the surrounding Miramar Beach area sit in South Walton, a vacation market with strong short-term rental demand. Peak season typically runs late spring through summer and major holidays, with shoulder-season interest in fall and early spring. There is also a smaller long-term and extended-stay market, including winter “snowbird” stays.
Vacationers come for beach access, pools, golf, dining, and family-friendly entertainment like The Village at Baytowne Wharf. Proximity to Destin, regional airports, and a robust tourism infrastructure supports premium nightly rates for well-located units, especially those with resort amenities or direct beach access.
Rental rules that decide feasibility
Before comparing floor plans, start with the rules. In Sandestin and Miramar Beach, county and HOA regulations often determine whether a property is viable as a rental.
County taxes and registration basics
- Short-term rentals typically must collect and remit Florida sales tax and local tourist development taxes. You or your manager usually register and file with the state and county.
- Some operators need a local business tax receipt or registration. Check current Walton County requirements.
- Short-term rentals may be subject to safety and building standards. Confirm smoke/CO detectors and egress requirements.
HOA and condominium restrictions
Association rules vary widely and matter most to your pro forma. Common features include:
- Minimum stay requirements such as 7 or 30 nights.
- Rental caps or limits on the percentage of units that may be rented at one time.
- Required participation in an on-site rental program or use of an approved manager.
- Guest screening, owner-use blackout dates, or reservation priority rules.
- Fees tied to transient use, plus parking, occupancy, and house rule standards.
If the property is within a resort-managed area, you may need to follow the resort’s rental program rules and fee structures.
Enforcement and practical impact
Violations can lead to fines or loss of amenities, so verify how rules are enforced and whether any policy changes are being considered. Ask for recent HOA meeting minutes and speak directly with the management company before you write an offer.
Condo vs townhome: How they earn
Revenue profile
- Condos: Many are located near the beach or in resort hubs with pools, beach access, and concierge-style amenities. That “resort” positioning often supports attractive nightly rates per bedroom and can help stabilize occupancy in shoulder seasons. Most condos are 1–3 bedrooms, which limits total headcount but fits the core vacation renter profile.
- Townhomes: These typically offer more square footage, multiple levels, private entrances, and sometimes garages or small yards. The extra space appeals to families and groups, which can translate into higher total weekly or seasonal rates for larger 3+ bedroom units. Average daily rate per bedroom may be similar to premium condos, but total stays can be larger during peak demand.
Expenses and ongoing costs
- Association dues: Condo fees tend to be higher because they often cover exterior maintenance, landscaping, amenities, building insurance under a master policy, and reserves. Townhome HOA dues can be lower if there are fewer shared amenities, though resort communities may be similar to condos.
- Insurance: Condo owners generally rely on a master policy for the building structure and carry an HO-6 policy for interior contents and liability. Townhome owners typically insure the structure and contents under an HO-3 or HO-5 style policy, which can be more expensive. Coastal wind and flood risk materially affect premiums in Walton County.
- Maintenance: With condos, you usually handle interior maintenance while the association maintains common and exterior elements. This can reduce your direct maintenance load but adds exposure to special assessments. Townhome owners cover more exterior components, which increases capital planning and can make expenses less predictable.
- Operations: Cleaning, turnover, utilities, and platform fees scale with size and frequency of stays. Larger townhomes can require more housekeeping time and supplies per turnover. Parking and access logistics also influence guest satisfaction and manager efficiency.
Seasonality and occupancy
Expect pronounced seasonality in Sandestin and Miramar Beach. Summer months and holidays bring peak occupancy and premium pricing. Shoulder seasons can still perform well, especially for resort-positioned condos close to amenities. Townhomes that serve families and groups tend to shine in peak periods, and they can capture longer winter stays when marketed for extended occupancy.
Financing and resale differences
- Financing: Lenders often treat condos as a project, so underwriting may include a review of the association’s budget, reserves, rental policies, and any litigation. High delinquency or inadequate reserves can complicate loans. Townhomes may be underwritten more like single-family homes, though HOA factors still matter.
- Resale: Resort-area condos can be highly liquid in tourist markets, but shifts in HOA rules, special assessments, or management quality can influence pricing and time on market. Townhomes can appeal to a wider pool of buyers, including longer-term tenants and primary residents, which may support stable demand.
Risk and insurance in Walton County
Walton County properties carry windstorm and flood exposure. Flood zones and elevation determine requirements and premiums. Review the association’s master policy for what is covered and any hurricane or wind deductibles, then price your owner policy accordingly. For townhomes, plan for full structure coverage and ask about coastal surcharges and private flood options.
To understand your flood zone and elevation, use the FEMA Flood Map Service Center. You can search property locations on the official tool at the FEMA Flood Map Service Center.
Which fits your rental strategy?
Use these profiles to match your goals and capacity for management.
- Choose a condo if you value lower hands-on maintenance, resort amenities that drive bookings, and potentially more stable shoulder-season occupancy. Budget for higher association dues, follow strict rental rules, and watch for special assessments.
- Choose a townhome if you want more space and privacy for family groups, the option to attract extended stays, and flexibility outside a resort rental program. Budget for higher maintenance responsibility, full-structure insurance, and possible differences in amenity appeal versus beachfront condo complexes.
In both cases, the biggest swing factors are HOA rules, insurance costs, and exact location within the resort or Miramar Beach area. The best choice is the property that aligns with your rental plan and passes a thorough due-diligence test.
Your due-diligence checklist
A smart pre-offer process protects your expected returns. Work through each category before you commit.
A. Regulatory and HOA
- Get the full association package: declaration, bylaws, rules, amendments, budgets, reserve study, master insurance, and litigation disclosures.
- Confirm rental rules in writing: minimum stay, rental caps, required managers, registration process, and approved platforms.
- Ask management about special assessments, reserve health, delinquency rates, and any pending policy changes related to short-term rentals.
B. Financial performance
- Gather rental comps for the same complex or neighborhood and unit size from local managers and short-term rental analytics platforms.
- Build a conservative pro forma: seasonal ADRs times projected occupancy, plus management fees, cleaning, utilities, HOA dues, insurance, property taxes, repairs, supplies, and platform fees.
- Pull recent comparable sales and days on market from the local MLS to understand acquisition pricing and liquidity.
C. Physical condition and insurance
- Verify the flood zone and check for an Elevation Certificate if available.
- For townhomes, ask about exterior components: roof age, siding, windows, and decks. For condos, understand which elements the master policy covers and where owner responsibility begins.
- Get insurance quotes for wind and flood, and review the master policy deductible structure, especially hurricane deductibles.
D. Operations and guest experience
- Confirm parking availability and guest rules. Clarify maximum occupancy standards per bedroom or unit.
- Ask about linens and turnover workflows. Determine whether owner-provided or management-provided supplies are required.
- Verify access systems: keypad, keyless entry, or staffed desk. Consider late check-ins and guest support procedures.
- If in a resort area, ask whether on-site programs affect your direct bookings or pricing.
E. Legal and tax
- Confirm registration and remittance for state sales tax and any local tourist taxes.
- Ask whether a local business tax receipt is required.
- Consult a CPA on reporting, depreciation, mortgage interest, and whether you will self-manage or hire a manager.
Practical scenarios
- You plan to self-manage a 2-bedroom near the beach and want consistent shoulder-season bookings. A resort-positioned condo with strong amenities and clear 7-night minimum rules can streamline marketing and operations.
- You plan to host multigenerational families with cars, gear, and longer stays. A 3–4 bedroom townhome with a garage and private entrance can command higher totals in peak season and serve extended winter tenants.
- You want lowest possible maintenance and insurance complexity. A condo with a robust master policy and healthy reserves can reduce hands-on tasks, but you must price in HOA dues and the risk of assessments.
How to move forward with confidence
Your best protection is an evidence-based plan. Start with HOA rules, then price insurance and build a conservative pro forma using local comps and seasonal analytics. Finally, align the unit type with your preferred guest profile and operations model. If a property checks those boxes, you are positioned for durable performance in Sandestin and Miramar Beach.
Ready to compare specific buildings, HOAs, and income scenarios side by side? Schedule a Private Consultation with Kristen Wilson for bespoke guidance tailored to your goals.
FAQs
What earns more in Sandestin: a condo or a townhome?
- It depends on HOA rules, location, and size; condos can deliver strong ADRs near resort amenities, while larger townhomes often achieve higher total stays in peak season.
What HOA restrictions affect rental viability most?
- Minimum stay rules, rental caps, required managers or programs, and transient-use fees have the biggest impact on occupancy, pricing, and net income.
How do taxes work for short-term rentals in Walton County?
- You typically register to collect and remit Florida sales tax and local tourist development taxes, then file on the required schedule or through your manager.
How does flood and hurricane risk affect the numbers?
- Wind and flood exposure can increase insurance premiums and deductibles, and storms can cause revenue interruptions; check flood zones and get real quotes before you buy.
Is condo financing harder than townhome financing?
- Often yes; condo loans may require project approval and a review of association reserves, rules, and litigation, while townhomes are more often underwritten like single-family homes.
What should I ask a Sandestin HOA before making an offer?
- Confirm minimum stays, rental caps, special assessments, reserve strength, master insurance coverage, and whether any rental policy changes are under discussion.
