If you’re considering buying a vacation rental property and are unsure of where to start, look no further than Orlando, Florida. With its warm weather, theme parks, and endless attractions, Orlando is a prime location for vacation rentals.
But is it a good place to invest in property? Let’s take a closer look.
Why Orlando?
Orlando is known as the theme park capital of the world and attracts millions of visitors each year. In addition to Walt Disney World and Universal Studios, there are also numerous golf courses, shopping centers, and restaurants. This means that there is no shortage of things for tourists to do during their stay.
Steady Demand
The demand for vacation rentals in Orlando remains steady year-round because of its popularity as a tourist destination. This means that you can expect to have a consistent stream of renters throughout the year.
High Occupancy Rates
Due to the high demand for vacation rentals in Orlando, occupancy rates are typically high. This means that your property will likely be rented out frequently throughout the year.
The Numbers
Let’s take a look at some numbers to see if investing in an Orlando vacation rental property makes financial sense.
Rental Income
The average nightly rate for a vacation rental in Orlando is around $200. If your property is occupied for just 50% of the year (which is on the low end), that equates to over $36,000 in annual rental income.
Expenses
Of course, owning a vacation rental property comes with expenses such as mortgage payments, property taxes, insurance, and maintenance costs. However, these expenses can be offset by rental income and tax deductions.
Return on Investment
Based on current market trends and average rental income in Orlando, it’s possible to achieve a return on investment of around 10%. This means that your property could pay for itself in as little as 10 years.
Conclusion
Overall, Orlando is a great place to invest in vacation rental property. With its steady demand and high occupancy rates, you can expect to have consistent rental income throughout the year.
Additionally, the potential return on investment makes it a financially smart investment. So if you’re considering investing in a vacation rental property, Orlando should definitely be on your list of potential locations.