For many cities, rentals are the accommodation solution of choice for a majority of residents. Rentals are often priced similarly to mortgaged homes, but they come with a plethora of undeniable benefits that make them a far superior option in the eyes of many. As one wise individual put it, “your rent payment is the most you’ll spend on accommodation in a month; a mortgage payment is the least!”
Chicago, New York, Los Angeles and many other cities fall into this category, with home prices that astronomically exceed the amount a normal person can afford to save up in a lifetime. In these cities, the fact that most residents are renters is perfectly understandable. There are cities, however, where the proliferation of rentals is attributable to other factors.
The focus of today’s article is just one such city: Orlando FL! In recent years, this city has become saturated with vacation rentals, which differ substantially from the types of rentals common in other cities. These rental homes and apartments are pricey compared to more conventional offerings, but they still offer unparalleled value for vactionergoers.
Keeping these factors in mind, the focus of today’s article is going to be on these vacation homes, and how you can find, rent and even buy one or more of this type of home in order to turn a profit. We’ll be taking you through the basics of what the market looks like and how you can be a part of it too. Let’s begin!
A saturated yet profitable market
At this point, the more business savvy among you may be wondering something. If Orlando’s vacation rental market is already so well established (that is to say, saturated), is it a good idea to invest now? The answer, somewhat counterintuitively, is a resounding yes! Allow us to explain how we’ve arrived at this conclusion.
Exceptionally high demand
The biggest factor leading to our conclusion is the high demand present in Orlando’s vacation rental market. While there is plenty of supply present, during peak vacation season, rentals increase sharply in price, amply demonstrating the fact there is no shortage of demand for this type of rental in Orlando.
If you’re interested in getting in on this market, you may be surprised to learn that the median home price in this city is quite low, sitting comfortably at slightly above-average. This makes it quite easy to break into the market with your first home, according to real estate agents in Orlando FL. We’re inclined to believe them!
Large landlord community
Another reason Orlando is such a great place to own and manage a vacation rental is the large community of landlords doing exactly the same thing. While you might be inclined to view these landlords as nothing more than competition, their presence can actually be quite welcome for those with less knowledge and experience.
Prospective landlords will find that these earlier arrivals are often more than happy to help out in any way that they can. From finding leads to helping you grow your business, the community of vacation rental landlords is overwhelmingly helpful, especially for new arrivals. This makes it even easier to set up shop in the vacation rental business!
Steady customer base
Finally, Orlando is a great place to operate a vacation rental or three for another simple reason: the tourists aren’t going anywhere any time soon! With the vast majority of Orlando’s GDP originating from tourism, the city is virtually built on the people whom you’ll rely on for business. Until the city manages to pivot away from this less-than-diverse revenue stream, your vacation rental is likely to stay occupied almost constantly.
What’s more, the companies that draw in tourists most reliably are so well established that the prospect of their failure is virtually impossible. These corporations have built entertainment empires that will likely outlast the United States itself, making them the perfect allies in your pursuit of increased profit margins!
Getting set up in the vacation rental business
Now that you know a bit more about why you should consider dipping your toes into the Orlando vacation rental market, allow us to give you some tips on how to go about this task. Here in Orlando, you’ve got all the necessary ingredients to make a scrumptious little side hustle for yourself, but you’re going to need direction as well. Grab a paper towel or two, because we’re about to spill the beans!
Do your research
The first step you should take towards having your own vacation rental businesses is doing your research. Yes, this may sound a bit boring and time consuming, but trust us: if you do it right, this can mean the difference between making unimaginable profits or losing painfully large sums of money.
In order to ensure success, research everything. Find out who is looking for a place to stay, where they want to stay, how much they’re willing to pay to stay there. Cross reference this with real estate prices, neighborhood crime rates and proximity to the most popular attractions, and you’ll be ready for the next step!
Find a suitable property
Once you’re done hitting the books and have a half-decent idea of the area and type of property most likely to be successful, it’s time to go to market. Throw on your real estate-buying cap and a nice pair of slacks and start browsing classifieds and real estate monthlies for the perfect property. It might take a while, but in time you’ll find something that’s suitable for you.
If you don’t have the capital to buy one or more properties outright, you might be able to secure a homebuyers loan from one of Orlando’s many local banks. They’re always eager to stimulate the local economy, so obtaining this kind of funding shouldn’t be overly difficult. Just do a quick credit check beforehand to make sure your credit score is high enough!
Get your property listed
Now that you’ve got the deed or deeds in hand, it’s time to fill those listings up! If you’ve done your research thoroughly, you should have a workable pricing model that can be adjusted according to the season, so all that’s left to do is start advertising the property to prospective vacation renters.
There are a wide variety of different platforms where you can list vacation rentals; Booking.com, AirBnB and Craigslist all offer slightly different approaches to the business of renting out vacation properties, but all are relatively effective in their goal. If you do everything right, you’ll soon be raking in the profits!
Well, that’s about all we have to say about this unique rental market. While it may not exactly be familiar turf for seasoned landlords, there’s a good chance that anyone with the drive and determination to turn a profit can expect to do exactly that. There’s limitless potential here; you just need to figure out how to tap into it!