Being close to the theme-park capital of the world, we are often asked by potential buyers whether they should buy property for an annual rental investment or a vacation rental investment. The response to that question generally depends on the choice of lifestyle or cash flow expectations of the investor.
If your goal is a modest steady guaranteed cash flow and an almost immediate revenue stream, then the annual or long term rental approach is the better way to go. It provides stable income allowing you to plan ahead and budget. You know that the tenant is taking care of the utilities and hopefully there is minimal maintenance required.
The annual rental landlord is responsible for mortgage payments (if financing is applicable), property taxes, insurance, HOA (Homeowners Association) expenses and any major maintenance costs.
Some tenants stay in properties for years and the landlord never has to worry about vacancies.
Vacation rentals are a completely different proposition. The owner or owner/landlord will always be responsible for utilities. Due to the frequent turnover of guests there are also more maintenance costs associated with vacation rentals.
While the monthly rental income is often greater, the income can be sporadic. In addition, unless you retain the services of a competent management company you will be forever answering inquiries, meeting and greeting guests, answering maintenance calls at all hours and then cleaning the guests’ mess up when they leave. And then it starts all over.
If you want to own your own vacation home in the beautiful Orlando, a vacation rental model can boost your income and subsidize the costs of your investment property. And the great news is that you’ll also be able to use the property whenever you want.
In Orlando, both rental models have a value appreciation element to consider.
Therefore, whichever rental type you opt for, you will likely see an appreciation in the home’s value in the mid- to long term.
Always available if you have questions, Milena@vivaorlando.com