DOLBY PROPERTIES INC. Orlando Area Real Estate
Investment Properties, Second Homes and Vacation Homes
Disney area, Orlando, Kissimmee, Davenport, Clermont
Should I buy a short term rental vacation home
or a long term rental investment property?
Short term rental properties:
People always ask us if Orlando is still a good place to own a vacation home or second home. Even with all the ups and downs in the world economy, we can still say a definite "yes"! Tourism is still the main focus in the Orlando area and millions of visitors flock here every year from everywhere in the world, making this one of the top tourist destinations in the world. The major theme parks, Disney, Universal and SeaWorld are continually spending millions of dollars on expansion. Our roads, as well as our commercial and retail areas are constantly being expanded and improved. VisitOrlando announced that Orlando had over 74 million visitors in 2022 and is the number 1 most visited destination in the USA.
What makes our area so popular? Orlando's sunny weather, two international airports, the world's largest theme parks, our great night time entertainment, close proximity to superb beaches on both coasts, our spectacular golf courses and record size shopping malls. More and more companies are moving into Orlando, which is fast becoming known for high tech business. All of these factors make the Central Florida area a great place to own a property.
There is no real tourist "off season" here in Orlando, so we often have problems showing Disney area short term rental properties to potential buyers, especially during one of the many peak seasons, such as March Spring Break, Easter, summer school break, Thanksgiving, Christmas and New Year. During this time, most of the short term rental properties that are listed for sale have tourists in them and we are rarely allowed to show properties when they are booked. While this is bad for us Realtors, it is good news for anyone who owns a vacation home for short term rentals, because it shows that the tourist business in Orlando is still thriving.
Compared to other countries and to other cities in the USA, we still get more property for the money here. In addition, the lifestyle is very easy and enjoyable. Since Orlando is the tourism capital of the world, no matter where you are from, you'll feel at home here. You can find many available, inexpensive flights to Orlando. For those from Europe, although the flight is much longer than say, popping over to Spain, once you are relaxing here, the jet lag is soon forgotten!
A vacation rental home is economical too . . . Let's say there are four to eight people traveling in your party. A four bedroom, private pool vacation home would be the ideal way you can spend quality time together and still have the comfort and privacy of your own rooms. More people? There are bigger houses available here. It's simple, you cannot get the same feeling of peaceful enjoyment, togetherness, spaciousness, functionality or value for money in any hotel room! Let's look at price - to accommodate 8 people in a four bedroom rental home with private pool would cost an average of $250 per night. To accommodate these same 8 people in 4 medium priced hotel rooms would cost an average of $500 per night. If you or your family members plan to spend any personal vacation time in Orlando, there is nothing like coming to your own home. Renting it out the rest of the year is a great way to offset most of your operating costs.
Our professional expertise will guide you in making the decision on the right type of vacation or second home for you. Most times we like to encourage you to think of a vacation home as a business investment and will carefully guide you through the selection and purchase process. Be aware that there are pitfalls and false dreams that can lead you to failure! Rarely does owning a vacation home bring you a great income, but with some "hands-on" effort and treating your short term rental as a little business, you can expect to have rental income cover your expenses and mortgage payments. Even if full involvement is not for you, at least you can still receive some rental income to offset your expenses. In addition, you will have the pleasure of personal use of your home. In the end, it is the anticipated property value increase which will give you your return on investment.
What if you prefer not to rent out your vacation home? Of course, you may have no intention of renting out your vacation home and that's actually the ideal situation, because then you have a much larger choice of property type and location. In other words, you are not restricted to an area which is properly zoned for short term rentals. More and more people these days are looking to escape to their own place away from home, whether for a short weekend break, or for several months. You may even have plans to buy a home now, ready for retirement in a few years. Deciding to invest in a second home allows you to customize your surroundings to your own taste and comfort, with no worries about dealing with renters, booking schedules, extra wear and tear on the property, etc.
Dolby Properties is your vacation home expert . . . The business of vacation home sales is a very specialized one that requires a lot of experience and knowledge, so you need a company like Dolby Properties Inc. that is not obligated to any seller or builder and will work only in your interest to guide you into a sound investment! This may be the vacation capital of the world, but it is also OUR HOMETOWN and we know it well! Our Broker, Lesley Dolby, holds the Resort & Second-Home Property Specialist (RSPS) designation. She and her partner also hold the prestigious Certified International Property Specialist (CIPS) designation, so who better to help you buy your next vacation or second home than Dolby Properties?
Long term rental properties:
Unlike owning a short term rental property, where tourists take lots of showers and keep the A/C running longer, operating costs are much lower with a long term rental because the tenant pays their own electricity, water, phone, internet, TV and sometimes landscaping. Monthly rental income is constant and fixed for the term of the lease (usually twelve months, with many tenants renewing the lease at the end of the term).
Also, unlike tourists, who always need a pool, many residents are not that concerned about having one, so many long term rentals don't have pools. If you do have one, we always recommend that you pay for a pool service, rather than expecting the tenant to handle this on their own, because many tenants will not be as diligent as they should be when taking care of a pool, which can lead to unnecessarily high expenses in the long run for future repairs. Most tenants expect to pay more rent for a house with a pool, so your pool service fees should be covered by that. Also, most tenants prefer unfurnished homes, so there are no furniture replacement costs and generally less repairs.
Consider location before you buy.
If you are sure you never want to rent your property short term to tourists, then the entire area is open to you (although there are a few neighborhoods which do in fact restrict the percentage of rentals). If you do want a short term rental property, or you think you may want to in the future, you need to be sure your property is located in one of the many properly zoned short term rental neighborhoods in the Disney area. The benefit of buying in one of those neighborhoods anyway, regardless of the type of property you are considering, is that a short term rental zone is also good for long term rentals. That way, if you start off renting short term and decide you want to convert to long term rentals, that is easily done. However, you cannot convert from a long term rental to a short term rental unless you are in a proper zone.
Dolby Properties has specialized since 2000 in selling both vacation rentals and long term rentals, so we know the rules and regulations of various areas. We also know which neighborhoods are popular with tourists and which residential neighborhoods are best for long term rental tenants. You need proper guidance with this, so make sure you don't make a costly mistake by going it alone or using an agent without the proper experience!
E-mail us at firstname.lastname@example.org
to get started on finding your dream vacation home or investment property.