Creating a Profitable Palm Beach Vacation Rental
This Florida-based travel writer transformed an old two-bedroom apartment near the Intracoastal Waterway and the beach into a profitable Palm Beach vacation rental.
Creating passive income streams is increasingly popular for young DINKs (dual income, no kids) like me and my husband. Following the financial success of my freelance travel writing career and his niche social advertising agency, we sought ways to diversify our investment portfolio.
Every finance guru advocates for investing in real estate; therefore, we were eager to explore this avenue. However, it’s important to note that the income may not be entirely passive, especially during the setup phase.
We enlisted the help of Ryan Poole, a member of 1909—a co-working space and creative community co-founded by my husband in West Palm Beach—to aid in our property search. Poole founded RealTrade, an innovative online real estate marketplace connecting agents, buyers, and sellers.
After nearly a year of searching for the ideal property, we finally discovered the One: an (arguably overpriced) “penthouse” apartment in a building in downtown West Palm Beach that permits monthly rentals. (Most buildings have minimum rental periods of three to six months.) I use the term “penthouse” loosely, as each apartment on the top floor of this complex is labeled as such.
The building, constructed in 2001, isn’t as old as most available rentals in our historic city, and I quickly recognized the apartment’s potential. Natural light flooded the space through large windows, all offering views of the sparkling blue pool and gym. Most notably, this complex connects via a private breezeway to The Square, a premier destination for dining, shopping, and entertainment in West Palm Beach. Locals and visitors flock to The Square for enjoyment any day or night of the week; there’s always something happening, making it a pleasant neighborhood for strolling and soaking up the sun.
Upon closing, our first task was to clear out the apartment. The sellers insisted on selling it furnished, probably to avoid the hassle of emptying the mismatched old furniture. We decided to sell or donate most of the furnishings, retaining just one bedroom set while introducing some of our own pieces.
Next, we hired a contractor for upgrades. We painted the entire unit, installed new lighting fixtures and ceiling fans, and replaced old white appliances with modern stainless steel. Additionally, we installed mirrored closet doors and glass shower doors to replace outdated curtains. We also partnered with a father-son duo from Jupiter Cabinet Refacing to replace the doors and hardware of the old, peeling cabinets in the bathrooms and kitchen. This cost-effective change significantly improved the apartment’s cosmetic appeal.
While the apartment itself is now fabulous, as they say, real estate is all about location. The location couldn’t be better. The Square, the Brightline, Clematis Street, and the Intracoastal Waterway are just a few minutes away on foot, while the beach is roughly a mile and a half. Driving to Worth Avenue (and many other hidden gems of Palm Beach) takes around four minutes, and Palm Beach International Airport is a mere six-minute drive. Moreover, the Kravis Center, offering Broadway shows and year-round performances, is practically at our doorstep.
After making vital upgrades, we concentrated on theming, decor, and luxurious amenities to elevate the dated space into a sought-after destination for discerning lifestyle travelers. We prioritized strong Wi-Fi, comfortable workspaces, and a design infused with the tropical charm of West Palm Beach.
I envisioned how to decorate the space (leveraging existing furniture), but I also relied significantly on the expertise of Mackenzie Rifkin, an interior designer associated with Modsy, an online design platform that has, unfortunately, since closed.
The two-bedroom, two-bath apartment features a split floor plan; on one side, there’s a primary bedroom with an en suite bathroom and dual closets, while on the other side, there’s another bedroom with a hallway laundry closet and bathroom. Although the second bathroom isn’t en suite, the entire side of the apartment can be closed off for privacy. To maximize the second bedroom, we furnished it with a trundle bed, standing desk, and meditation cushions—effectively creating a versatile home office that easily converts into a cozy sleeping area.
Emphasizing its “penthouse” designation and the view of palm trees from every window, we transformed the formerly uninspired space into The Palm Penthouse, a fresh, engaging retreat that reflects our style. Each detail tells a story, with decor that subtly nods to the history of Palm Beach while celebrating the modernity of our vibrant city. We filled the bookshelves with locally authored books (including an insider’s guide to the Palm Beaches) as well as beloved novels from my collection; most art pieces are from our travels, and the wallpaper was installed with assistance from the talented local experts at Chelsea Lane & Co.
The Palm Penthouse offers unique amenities such as two work desks with monitors (perfect for a digital nomad couple like us who both work remotely), smart TVs in every room, versatile coffee-making options, and even an Xbox Series X. Recognizing the impact of small conveniences on guests’ experiences during long stays, we ensured our rental includes essential luxuries such as kitchen spices, dish soap, garbage bags, and paper towels. Our personal experiences as guests taught us that these minor costs greatly enhance the overall visitor experience.
The return on investment has already exceeded our expectations; however, the most rewarding aspect has been the glowing five-star reviews from guests who appreciate the welcoming space we have crafted just as much as we do.
Did I mention I accomplished all of this in just 12 days, racing against a tight deadline before embarking on a summer spent showcasing my newly graduated cousin around on her first trip to Europe? Not to brag, but… toot toot.
