Given that it is home to Disney World, oft touted as “the happiest place on earth,” as well as having beautiful sunny weather year-round, Orlando attracts millions of tourists every year – and most of them need a place to stay. While some Central Florida visitors like to take advantage of the “package deals” that are offered by the local hotels, others prefer a more private space that can only be provided by a single family home…and many are willing to pay the added price to do so. With that in mind, does it make sense for real estate investors to own short-term rental property in Orlando?
The answer to that is a resounding “maybe,” as there can be definite pros and cons to either scenario. For instance, some of the primary advantages of owning short-term or vacation rental property can include:
- The potential for higher income
- Less wear and tear (because short-term renters aren’t typically going to put nail holes in the walls for hanging pictures or move bulky furniture in and out of the doorways)
These short-term occupants also won’t likely stop paying their rent, as this type of rental can oftentimes be paid for using a renters’ credit card.
One the other side of the coin, though, there are also a few drawbacks for owners of short-term rentals, such as:
- Less stable income, because “tenants” only stay for a short time
- More frequent cleaning due to the higher turnover
- Added expense, with the property owner having to pay all of the utility bills – including cable, internet / wi-fi – as well as having to fully furnish it
There is also the potential for more damage to occur, because those who rent short-term vacation properties are not necessarily concerned with scuffing the walls or staining the floor with spilled drinks.
Given that, even in an area like Orlando, going the route of longer-term tenants may be the way to go. So, if you own rental real estate in the Orlando and/or surrounding Central Florida locale, but you don’t want to take on the regular tasks of collecting rent and managing tenants, give us a call. We’ll provide you with more information on the benefits of partnering with an experienced Orlando property management team.