In 2016, the Orlando area broke its own record with an unbelievable 68 million visitors – 20.4 million of those visitors attending Magic Kingdom, among the countless other attractions.
But this isn’t just because it is home to Mickey and Minnie. Orlando attracts visitors from around the US – and the world – who come for its multitude of theme parks, extensive shopping, world-renowned golf courses, and everything fun under the sun.
With so many places to visit, attractions to explore, and events to see, it comes as no surprise that Central Florida is huge for tourism and the vacation rental industry.
We wanted to take a look at what all of this travel meant for vacation rentals, so we created an Orlando Area Vacation Rental Performance Report to analyze and understand the market. If you’re an existing vacation homeowner or prospective buyer, this report will show you the rental income, nightly rates, and occupancy rates you can expect from a vacation rental in the Orlando area.
The data in the Vacation Rental Performance Report will give you key insights into:
- The ever-growing vacation rental market in Central Florida
- Which types of properties generate the highest income
- What to expect for average daily rates and occupancy
The perfect time to enter the market
While the competition is tough, investors can breathe easy knowing that demand is at an all time high for vacation rentals in Orlando and surrounding cities such as Kissimmee and Davenport. Taking a trip to Disney is expensive – resorts cost more than ever, and for the large family demographic that tends to visit the parks, it’s getting harder and harder to take these vacations at an affordable price.
That’s one of the primary reasons why vacation rentals in the Orlando area have grown in popularity. At a much lower cost than staying at a hotel, families can enjoy the luxury of a vacation with the comforts of a fully-stocked kitchen and a home to call their own for the week.
In fact, Orlando, FL was voted the fifth best U.S. destination in TripAdvisor’s 2018 Traveler’s Choice Awards! This market shows no signs of slowing down as a top tourist destination – and at such low costs, it could be the perfect place to start (or continue) your vacation rental ventures.
Why Orlando is a Great Place To Invest in a Vacation Rental
Costs are relatively affordable for a location that boasts bookings year-round. In fact, one of the most popular places for a vacation rental, Central Florida’s Davenport, reports that you can purchase an average 4-bedroom home at just under $200,000.
But it’s more than just the affordable price of an investment that contributes to the success of Orlando-area vacation rentals. According to our data, in both high and low-seasons, guests book rentals for at least one week on average. This is great for vacation rentals, because when guests book longer stays, you need fewer total bookings to reach your income goals. And when you have fewer bookings throughout the year, your house is exposed to less wear and tear with fewer guests coming through your rental.
In addition, unlike a beach condo, the cost of running your rental is lower because Disney-area rentals are often used mainly as a place to sleep after a long day exploring the parks and attractions. Electricity costs are lower, replacing lost or ruined items is more rare, and damage is less likely.
The Key to Vacation Rental Success in Orlando is Standing Out
Having a successful rental in the central Florida area has as much to do with investing in upgrades and renovations as it does with having a good marketing strategy. Per our report, a 6+ bedroom in the 50th percentile can expect around $42,700 a year, while a 6+ bedroom in the 75th percentile earns almost $60,000.
The two rentals may be exactly the same size, located on the same street, featuring the same basic amenities – but the difference in rental income potential lies in owners going the extra mile to stand out.
You have to invest in things that you know guests are looking for when they’re coming to the area like additional sleeping spaces, kid-friendly extras, or two master bedrooms for families traveling together. Supply bunk beds in extra bedrooms and add some playful Disney themes for your younger guests. Convert your garage into a game room and install a pool or hot tub. Make sure you have a fully-functional kitchen and consider purchasing an outdoor grill for barbecues.
There is a lot of competition in the Orlando-area market already, so you need to provide exceptional experiences at the most competitive costs – in order to find the most success.
If you’re considering making an investment and purchasing a vacation rental property in the Orlando area, or already have one and are trying to equip yourself with tools for success, download our Vacation Rental Performance Report to see what you can expect.
In the free report, you’ll find:
- Rental income potential by property size
- Average occupancy by property size
- Average daily rate by property size
- Average length of stay
- Property inventory by size
- Occupancy rate by month
The Orlando Area
Vacation Rental Performance Report
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