Why US Rental Properties Different for Canadian Investors

More and more canadian investors are buying rental properties in South Florida. And it’s not hard to see why.

Ryan Poole, a realtor with over 25 years of experience in the West Palm Beach area, explains what makes Florida real estate so attractive compared to Canadian markets.

The Numbers That Matter

Florida rental properties are generating returns that Canadian investors can only dream about. Ryan shared three real examples:

A four-unit property in Lake Worth Beach purchased for $830,000 brings in $105,000 in annual rent. That’s an 11% cash-on-cash return.

A condo in downtown West Palm Beach bought for $450,000 generates an 8% cash-on-cash return through 30-day rentals. Add in the potential 5% annual Appreciation, and you’re looking at a 13% total return.

A single-family home in Northwood purchased for $395,000 produces an 11.67% cash-on-cash return as a short-term rental.

These are based on actual properties available at the time of writing. Individual results may vary.

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Past performance does not guarantee future results. Always consult qualified professionals before making investment decisions.

Book Your Strategy Call

No Rent Control Changes Everything

Here’s the biggest difference between Canadian and Florida rentals: rent control.

In Canada, you’re usually stuck with 3% annual rent increases. That’s it. Even when your property taxes jump or your insurance doubles, you can’t adjust.

Florida has no rent control. When a lease expires, you can raise rent to match current market rates. If market rent increases 10%, you can increase your rent 10%. This flexibility keeps your investment profitable even as expenses rise.

Evictions Take Weeks, Not Months

Canadian landlords know the pain of the eviction process. You’re looking at eight to nine months through the tribunal system.

In Florida, the maximum time from start to finish is two months. The system moves fast, and the laws protect property owners.

But here’s the interesting part: evictions rarely happen. The rental market is so tight that tenants work hard to keep their housing. Nobody wants to end up searching for a place when vacancy rates are near zero.

1,000 New Residents Every Day

Florida’s population is exploding. About 1,000 people move to the state every single day.

This creates constant demand for housing. Short-term rentals see occupancy rates around 85%. Long-term rentals fill up immediately.

Ryan notes that South Florida has some of the highest occupancy rates in the entire country. You’re not going to struggle to find tenants.

The Weather Isn’t Just Nice, It’s Profitable

From November through May, South Florida has what Ryan calls “magical” weather. Temperatures between 65 and 80 degrees with no humidity.

This isn’t just about lifestyle. It’s about rental income. Snowbirds from Canada and the northern United States flood the area during winter months, paying premium rates for short-term rentals.

Year-round outdoor activities mean the tourism season never really ends. The beaches, fishing, diving, and boating keep rental demand strong.

No State Income Tax

Florida has zero state income tax. None.

That means no state taxes on your rental income. No state taxes on your capital gains when you sell. The only taxes you pay are federal.

For Canadian investors, this also creates a currency play. You’re putting money into US dollars while building equity in an appreciating asset.

What About Flooding?

This is the first question most people ask about Florida real estate.

West Palm Beach sits on a ridge with coral bedrock. Parts of the area are 20, 30, even 40 feet above sea level. The natural drainage is excellent.

The area hasn’t had a major hurricane since the 1920s. There have been some Category 2 and low Category 3 storms, but nothing causing major flooding in West Palm Beach proper.

Ryan’s been selling real estate in the area for 20 years. He’s never once had a client unable to get flood and wind insurance. Insurance companies wouldn’t cover properties if the risk was too high.

The RealTrade Platform

Ryan built a platform called RealTrade that makes researching Florida properties much easier for Canadian investors.

The platform pulls directly from the MLS, so you’re seeing the most current listings. You can filter by size, type, price, and days on market.

But the real value is the integrated network. Through RealTrade, you connect with mortgage lenders, property managers, contractors, insurance agents, and inspectors. Everything you need to invest from Canada is in one place.

The platform is free for buyers and sellers. You can save properties, track listings, and chat directly with agents through the app.

Different Property Types, Different Strategies

South Florida offers several investment strategies:

Multifamily Properties (2-4 Units)

These are Ryan’s favorites. The four-unit example shows why. Strong Cash Flow, multiple income streams, and solid appreciation potential. The “1% rule” works here – monthly rent equals about 1% of the purchase price.

Condos with Short-Term Rental Rights

Most condos require year-long or six-month leases. But some allow 30-day minimum rentals. This sweet spot gives you higher rental income without the intensive management of nightly Airbnb rentals.

The HOA fees cover insurance and maintenance, which is perfect for out-of-country investors who can’t handle repairs themselves.

Single-Family Homes for Nightly Rentals

Properties near high-value areas like Palm Beach Island can work as weekly or nightly rentals. Management is more intensive (15% fees versus 10%), but the cash-on-cash returns hit 11-12%.

Management Made Simple

You don’t need to fly to Florida every time something breaks.

For annual leases, property management costs are low. Turnover is minimal, so managers just collect rent and coordinate occasional repairs.

For 30-day rentals, expect to pay around 10% for management. For weekly or nightly rentals, fees run 15-18%.

At 18%, you get completely hands-off service. The manager handles everything from listing creation to guest communication to cleaning coordination. You just watch the deposits hit your account.

Getting Started

Ryan recommends Canadian investors start by creating a free account on RealTrade.io. Browse properties, save the ones you like, and filter for new listings weekly.

Connect with mortgage lenders who work with Canadian buyers. LendCity specializes in helping Canadians finance US investment properties.

Focus on West Palm Beach and surrounding areas like Lake Worth Beach and Northwood. These neighborhoods offer the best combination of cash flow and appreciation.

The direct flights from Toronto to Palm Beach International Airport make it easy to visit properties before buying.

The Bottom Line

South Florida real estate offers something Canadian markets can’t: strong cash flow combined with solid appreciation.

No rent control means your investment stays profitable. Fast eviction processes protect your rights. Zero state income tax maximizes your returns.

The population growth isn’t slowing down. The rental demand isn’t softening. And with recent restrictions on Chinese buyers, Canadian investors have less competition for prime properties.

Ryan’s seen the Florida market explode over his 25-year career, exactly as his mentor predicted. For Canadian investors looking to build wealth through real estate, South Florida checks every box.

Book Your Strategy Call

Frequently Asked Questions

Can Canadians get mortgages for Florida investment properties?

Yes, Canadians can get financing for Florida investment properties. Specialized lenders work with Canadian buyers and typically require 20-30% down payment. LendCity specializes in helping Canadian investors finance US rental properties.

What returns can I expect from a Florida rental property?

Cash-on-cash returns typically range from 8-12% for Florida rental properties. When you add in the 5% annual appreciation that South Florida has averaged historically, total returns often reach 13-17%. These numbers are significantly higher than most Canadian markets.

Is flooding a major risk in West Palm Beach?

West Palm Beach sits on elevated coral bedrock with excellent natural drainage, making it much less prone to flooding than other Florida areas. The area hasn't experienced a major hurricane since the 1920s. Flood and wind insurance is readily available for properties in the area.

How much does property management cost in Florida?

Property management fees depend on rental type. Annual leases require minimal management. Monthly rentals (30-day minimum) cost around 10% in management fees. Weekly or nightly short-term rentals run 15-18% for full-service management including listing creation, guest communication, and cleaning coordination.

Does Florida have rent control like Canada?

No, Florida has no rent control. When a lease expires, you can raise rent to match current market rates. This flexibility lets you adjust to market conditions and keep your investment profitable as expenses increase, unlike Canadian markets where you're typically limited to 3% annual increases.

What's the eviction process like in Florida?

Florida evictions take a maximum of two months from start to finish, compared to eight to nine months in Canadian tribunals. However, evictions are rare because the tight rental market incentivizes tenants to maintain their housing and avoid the difficulty of finding new accommodation.

Should I buy a condo or single-family home in Florida?

Both work well but serve different strategies. Condos with short-term rental rights offer lower maintenance (HOA handles exterior) and work great for investors who want passive income. Single-family homes offer more control and appreciation potential, especially near high-value areas like Palm Beach Island.

What is the RealTrade platform?

RealTrade is a free marketplace platform that connects buyers with Florida properties and service providers. It pulls current listings from the MLS and integrates access to mortgage lenders, property managers, contractors, insurance agents, and inspectors all in one place, making it easier for Canadian investors to research and purchase properties.

Disclaimer: LendCity Mortgages is a licensed mortgage brokerage, and our team includes experienced real estate investors. While we are qualified to provide mortgage-related guidance, the broader financial, tax, and legal information in this article is provided for educational purposes only and does not constitute financial planning, tax, or legal advice. For matters outside mortgage financing, we recommend consulting a Chartered Professional Accountant (CPA), licensed financial planner, or qualified legal advisor.

Written by

LendCity

Published

December 22, 2025