Are you looking for an Orlando vacation home? A second home? Or perhaps an income producing property? With over 50 million visitors each year, Orlando should be your number one choice for vacation homes.
Owning your own vacation home in Orlando can be a great way to earn some extra income and build equity as a long term investment, whilst providing you with the flexibility to enjoy your home at your convenience throughout the year.
On average vacation homes here in Orlando will rent out between $1,000 and $1,500 per week - depending on the ammenities provided, size of the home and it's proximity to the major Orlando theme parks such as Disney World, SeaWorld and Universal Studios (just to name a few). A potential gross income of $6,000 per month doesn't sound bad when you consider you can pick up two year old, five bedroom home with a pool in a gated community for around the 200k mark in today's market. In monthly terms, you're looking at around $1,319.34 (that's principle and interest on at 30 year fixed at 6.25% interest).
Okay, so now that you've decided you want to purchase a vacation home, let me provide you with a few suggestions and go over some frequently and some not so frequently asked questions:
What areas in Orlando are the best for vacation homes?
Davenport and Kissimmee are the best parts of Orlando. Why? Because of their close proximity to the theme parks, restaurants and airport. That and the fact that it's easy to find a home that is zoned for short term rentals.
How hard/easy is it to rent out my vacation home?
It's not too difficult to keep your home booked year round (you have roughly 50 million visitors to choose from). Though you have to remember that owning a short term rental property or vacation home is like owning a business. If you don't market your home properly to a few of these 50 million visitors, then they won't know how to find your home. What percentage of your income you spend on advertising is up to you, but I think you'll find that like most businesses you will need to spend between 10 to 20 percent of your gross projected income to keep your home booked. Naturally, after a couple of years you will build up a repeat clientelle and will have the luxury of reducing your marketing budget and enjoying greater profits.
What are the costs involved with owning a short term rental property in Orlando?
As an overview, here are some (not the definitive list, but a good start) of the items you'll need to consider:
- Principle payments;
- Interest payments;
- Maintenance and repairs;
- Pest control services;
- Cleaning services;
- Landscaping/Lawncare services;
- Pool cleaning services;
- Hazard insurance;
- Accounting services;
- Property taxes;
- Marketing and advertising of your property;
- And Federal income taxes.
Do you recommend utilizing a property management company?
Absolutely. A good vacation home management company will handle all the above mentioned services for you and keep your home booked for you throughout the year. A good property management company has staff capable of handling any issues that arise and will visit your property on a weekly basis to ensure the property is safe, secure and being taken care of. Going it on your own, does not necessarily mean putting more money in your pocket - but it does mean putting up with more headaches. Does this mean that you shouldn't do some advertising on your own to keep your home booked? Absolutely not. It's always recommended that you do some of your own advertising to ensure that your property is booked to maximum capacity. Some property managment companies will be working with many properties and may only be able to book your home 26 weeks out of the year. Not a bad start, however, if you have more ambitious plans for your vacation home - then by all means, do some promotion and advertising to compliment the property managment companies efforts.