Orlando Real Estate - Investing in Short Term Rentals

Short term rentals are homes, condos, townhouses, and villas that are offered to vacationing tourists to stay on a short term basis. They are distinguished from typical rental properties in that short term rentals are not intended to be rented out to long term tenants. They are purely for families on holiday in that location, and are therefore typically found near major tourist attractions (like Disney Orlando).

Short term rentals can typically demand a much higher rent than long term rentals, because the period of rental is for a shorter time-frame. One cannot expect full occupancy, however, unless the rental is in a prime location within a stone's throw of the major attraction.

There are some clear benefits to investing in rental property that is zoned for STR, particularly for overseas buyers who have the benefit of a favorable currency exchange rate. In the case of buyers purchasing Orlando real estate with the British pound, by the time the currency is exchanged for dollars, buyers get an effective 37.5% discount at the time of this writing (1.60 USD = 1.00 GBP). This fact alone has led to increased buying activity from many European nations.

The most frequently cited benefit of owning STR property in Orlando is the fact that Disney World is a year-round attraction drawing holiday-goers from around the world. They all need a place to stay while visiting. If a buyer purchases an STR condo, for example, they can stay in the property for their own visit, then establish a steady source of income for the rest of the year. The cash flow, if managed properly, can easily pay the mortgage on the home and all maintenance expenses.

In many tourist areas centered around a popular attraction like Walt Disney World in Orlando, there are zoning laws governing which homes can be used for short term rentals and which cannot. This adds a layer of complexity to your search, because if you are searching for Disney short term rentals, you can't just pick any home in any neighborhood. it is important to only look at homes that are zoned for this use so you don't get into trouble by renting the home out against local regulations. This is why it's important to have an agent who is familiar with the subdivisions that are zoned properly for short term use.