This is a question we are frequently asked. We recommend that before making the final decision, you evaluate the pros and cons of the two main types of rental investment that you can buy in Orlando. You need to analyze first your personal and financial goals to choose your best option.
Buying a property for long-term rental
This is our first recommendation as local experts, considering the existing market conditions with the high demand for rental housing. This involves buying a property and renting it, typically for a period of one year, which can be renew.
This type of income gives you a steady monthly payment guaranteed for the period of the lease, which is why some investors prefer it. Among the benefits are lower expenses, because you only need to pay for property taxes, homeowner association fees, insurance and mortgage, if any. Your tenant is responsible for the payment of utilities, and repairs for things that deteriorate with day-to-day use.
These properties are usually in residential communities. This means that property tax payments are usually lower, as do homeowners association fees, because many of these communities do not have the resort-style amenities found in vacation home communities.
However, keep in mind that you will not be able to enjoy your property at that time.
This type of investment could generate a return of 5 to 10% and the communities are countless in Central Florida. In addition to Orlando, there are beautiful cities such as Windermere, Davenport, Clermont, Winter Garden and Lake Mary, among others, all with nearby attractions and excellent access routes.
Buying a vacation rental property
It is a trend that interests many buyers from all over the world. The idea is to buy a property to enjoy vacations in your own home and when you are not using it that can be rented in the short term, for days or weeks, to tourists who come to Orlando. That way you can receive income to cover part of the expenses of the property.
These properties are usually located in communities very close to the theme parks, it’s easy to keep the vacation homes occupied for most of the year, but you as the owner, must be prepared to cover certain monthly expenses, considering the income obtained just as a supplementary help to these expenses.
When you buy a vacation rental home as an investment, that property should be considered a business in the state of Florida and the county issue hotel and business licenses for it.
It is a business that you should always have operating and ready for the next guest. Having it operating means that you are responsible for payment of basic services (energy, water, cable, internet, etc.), repairs and maintenance of the same, payment of the owners association, risk insurance, property taxes, and mortgage if there is. And of course payment from the company that manages your property.
Although you can have a lot of cash flow, if you have a lot of short term rentals in your vacation property, keep in mind that the expenses are present each month regardless of whether you rent the property or not. We have high seasons where your house may rent the 4 weeks but there are also low seasons and in them it is difficult to generate the necessary income to cover all your expenses. In that case, the owner has to assume it.
If a vacation rental home is a scenario which you feel comfortable, because your main objective is to enjoy your home in Orlando, we encourage you to take this important step in your life. But, if your plan is to invest in an Orlando property to generate secure rental income and get the most financial return for your money, a vacation rental home may not be your best option.
Share with us your goals, the options that you want to consider and the amount to invest and we will be happy to present you with options and help you in all steps of the purchase.
We help you with the management of your property when the rent is long term. Leave everything in our hands and we will work for you to help you obtain the desired financial results.
Keep in mind that real estate in the United States is always an excellent investment!
If you are ready to invest, contact me at email@example.com – 407.922.4620