When looking to purchase an Orlando Short-term Vacation rental property, your goals & desires should be clearly defined before pulling the trigger. It's important to know why you're buying this property. Is this a purchase for pleasure or strictly an investment?
Tourism officials recently announced a historic milestone for the U.S. travel industry as Orlando released news of a record-setting 75 million annual visitors in 2018. The increase of 4.2 percent over the prior year once again solidifies Orlando's lead position as America's most-visited destination. This milestone has generated a tremendous demand for vacation rental properties. We're seeing more and more communities being built for this exact purpose.
While owning a vacation rental property has many benefits as an investment, it also comes with many pitfalls. It's essential to understand the Pros & Cons. To start, we'll highlight the benefits of owning a vacation rental property.
The luxuries of owning a vacation rental property.
You'll own a dual-purpose property, so if it's your second home, you can enjoy it with your friends & family and rent it out the rest rent of the year.
You have the potential to generate more income than, say a long term rental property. Very Dependent on location, amenities, property style & furnishings.
The property offers you more flexibility. Popularity with home-sharing tools like Airbnb & VRBO gives you the opportunity to DIY.
If that fits your investment goals, then go for it, there is so much that the Central Florida market has to offer! Just keep in mind the following as well.
Cities and Counties have rules and regulations on short-term vacation rentals. For example, In Orange County, your not allowed to have a vacation rental property. So if your set on a vacation rental investment you'll need to be looking in Osceola County.
You'll also have to furnish the whole property, and your second-hand furnishings won't perform as well. New aesthetically pleasing furnishings are a must for attracting the most amount of guests. Average costs around $10,000 to $30,000.
If you're not DIYing it, your management fees will be much higher. Lodgify has industry-standard between 25 – 30% some can be as high as 50%. This does not include your higher expenses with cleanings, stocking, inventory, marketing, seasonality, logistics coordination, check-ins & outs, and many others.
Ultimately you are in the Hospitality industry. People are there to enjoy their vacation the slightest hiccup at the property puts a damper on their vacation, which can lead to negative reviews and hinder your properties overall performance.
There are no right or wrongs when choosing between vacation rentals and long-term investment properties. Both can be very profitable if managed correctly. Do your research and make sure the numbers add up and you can be successful. To get a better idea, we'd recommend checking out AirDNA when researching data for your vacation rental property.
Here at The Listing Real Estate Management, we specialize in managing long term rental properties where you can see many more advantages!
Benefits of owning a long-term rental property.
Utility Bills Covered By Tenants
No Furnishings Required
Shorter Vacancy Time
Lower management Fee Costs and higher income for your long term asset.
If you have any questions, comments, or would like to learn more, please feel free to reach out to The Listing Real Estate Management, your full-service residential property management company in Orlando Florida specializing in long-term rental management. Thanks!