Orlando occupancy rates for vacation homes
This is one of the first questions asked by clients looking to invest in a vacation home in Orlando and one which has several answers.
It all depends on how you are going to use the property. If you plan to enjoy your vacation home during every possible school holiday then you are going to miss out. These are prime rental periods when demand for quality rentals is high.
Should you decide to only use the property during ‘non-peak weeks’ then you can benefit by getting the best possible rental prices.
The gross rental income before taxes and expenses depends on not only how you use your property but also the location and property type. A vacation home will typically be able to charge a higher rental amount than a town home or a condo. The onsite amenities within the community plus the driving time to the theme parks can also have an effect on your income.
An oversized, high end property in a luxury resort community may return a much higher rental price on a daily or weekly basis but will probably suffer from lower occupancy rates. Owning a vacation home with up to 14 bedrooms may appeal to families who intend to use the property several times throughout the year. They will only be able to place it on the rental market for a few weeks during the peak seasons.
Many of our current owners are achieving between 36 and 42 weeks occupancy each year depending on how they personally utilize the property.
We expect a typical 4-7 bedroom vacation home to achieve an absolute minimum of 30-35 weeks occupancy each year. That is, if priced correctly AND the owners only used the property out of the peak weeks. You should market the property in your home country and treat it as a business. This is especially important if you need a rental income to assist with mortgage payments.
But what about family and friends who you do not wish to charge the full market price?
By giving family and friends a discount on the rent or even waiving it altogether, it creates a huge impact on your yearly income. Keep this in mind when you make the decision to buy a vacation home in Orlando.
We work with a selection of management companies due to the the large geographical locations of the short term rental zones. Wherever you find a vacation home that is right for you, we will be able to recommend a local management company. They will be more than capable of taking care of your property when you are away.
Having sold vacation homes in Orlando for more than 30 years we have learnt that every owner and each property is different. Because of this we prefer not to try and second guess things which we cannot control. We suggest that you make plans for the worst case financial scenario of having to pay for the vacation home and its running costs with your own money. Then hope for the best on the rental returns. This way you will never be disappointed!