3 most valuable tips for owning an STR in and around Orlando.
Investor · AZ · Member since 2017 · 21 posts · 9 votes
3 most valuable tips for owning an STR in and around Orlando.
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Property Manager · Kissimmee, FL · Member since 2019 · 446 posts · 266 votes
2yQuote from @Ryan Marble:
I'm just starting in the STR market in the Orlando and Tampa areas and was wondering what all of you experienced vacation rental investors would say are the 3 most important tips or advice to running a successful/profitable vacation rental in these areas? Thanks in advance!
Good morning @Ryan Marble!
Orlando and Tampa are very different markets, so here are my top 3 tips for Orlando. As property managers, we see up close on a daily basis which properties perform best and are the most popular with guests…as well as the ongoing challenges.
1. AS with any RE investment identify the top locations. Our tourists prefer gated communities with great amenities, not too far from Disney - Windsor Island, Solara, Windsor at Westside to name a few. Also remember to consider the positioning within the resort - does it have a lake or forest view? Near the clubhouse? Etc.
2. Great theming. Check Airbnb listings to see what’s booking - you’ll notice lavish game rooms, bunk beds with slides, murals, etc. Make sure the home has quality furniture and items that don’t fall apart in a few years. We can help you find the right decorator if needed.
3. 6-8 Bedroom house with pool and spa. Others may tell you to go larger, but we find the most consistent bookings for this size. A pool is a must, pools with spas book better.
Many will tell you Orlando is saturated, which it is. It is also the top tourist destination in the US, and it is a year-round market with fairly consistent performance year after year. If you have the right type of home, it will book well.
22 Replies
- 2yJohn UnderwoodPro MemberInvestor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
From what I have heard, Disney Theming.
I would personally say proximity to the parks.
I just went to Disney. We personally always stay at a Disney resort due to the simplicity of the Disney transportation system and park hoping.
That said there are many people that want to save a buck or stay in a bigger place so that all their family and friends can be with them.
- Property Manager · Kissimmee, FL · Member since 2019 · 446 posts · 266 votes2y
Quote from @Ryan Marble:
I'm just starting in the STR market in the Orlando and Tampa areas and was wondering what all of you experienced vacation rental investors would say are the 3 most important tips or advice to running a successful/profitable vacation rental in these areas? Thanks in advance!
Good morning @Ryan Marble!
Orlando and Tampa are very different markets, so here are my top 3 tips for Orlando. As property managers, we see up close on a daily basis which properties perform best and are the most popular with guests…as well as the ongoing challenges.
1. AS with any RE investment identify the top locations. Our tourists prefer gated communities with great amenities, not too far from Disney - Windsor Island, Solara, Windsor at Westside to name a few. Also remember to consider the positioning within the resort - does it have a lake or forest view? Near the clubhouse? Etc.
2. Great theming. Check Airbnb listings to see what’s booking - you’ll notice lavish game rooms, bunk beds with slides, murals, etc. Make sure the home has quality furniture and items that don’t fall apart in a few years. We can help you find the right decorator if needed.
3. 6-8 Bedroom house with pool and spa. Others may tell you to go larger, but we find the most consistent bookings for this size. A pool is a must, pools with spas book better.
Many will tell you Orlando is saturated, which it is. It is also the top tourist destination in the US, and it is a year-round market with fairly consistent performance year after year. If you have the right type of home, it will book well. - Lender · Member since 2019 · 250 posts · 219 votes2y
Orlando and Tampa are definitely different markets but like most markets, design and amenities tend to be the key players. With that said, the design in Orlando is going to be much more theme park centric while Tampa allows you to be a lot more creative. In either location, if you are not boots on the ground, you absolutely need a realtor who has STR experience and ideally properties themselves. Market metrics are great but you can not be real numbers from their own portfolios or past clients. If you are considering anywhere in the Tampa area, I HIGHLY recommend you connect with @Josh Green.
- Investor · AZ · Member since 2017 · 21 posts · 9 votes2y
Quote from @Alice Horn:
Quote from @Ryan Marble:
I'm just starting in the STR market in the Orlando and Tampa areas and was wondering what all of you experienced vacation rental investors would say are the 3 most important tips or advice to running a successful/profitable vacation rental in these areas? Thanks in advance!
Good morning @Ryan Marble!
Orlando and Tampa are very different markets, so here are my top 3 tips for Orlando. As property managers, we see up close on a daily basis which properties perform best and are the most popular with guests…as well as the ongoing challenges.
1. AS with any RE investment identify the top locations. Our tourists prefer gated communities with great amenities, not too far from Disney - Windsor Island, Solara, Windsor at Westside to name a few. Also remember to consider the positioning within the resort - does it have a lake or forest view? Near the clubhouse? Etc.
2. Great theming. Check Airbnb listings to see what’s booking - you’ll notice lavish game rooms, bunk beds with slides, murals, etc. Make sure the home has quality furniture and items that don’t fall apart in a few years. We can help you find the right decorator if needed.
3. 6-8 Bedroom house with pool and spa. Others may tell you to go larger, but we find the most consistent bookings for this size. A pool is a must, pools with spas book better.
Many will tell you Orlando is saturated, which it is. It is also the top tourist destination in the US, and it is a year-round market with fairly consistent performance year after year. If you have the right type of home, it will book well.You say 6-8 bedroom house with a pool and spa? I wanted to start small with 3-4 bedroom condo? Is that a bad idea?
- 2yShawn McCormickPro MemberRealtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 894 votes
@Ryan Marble I can't speak too much on Tampa, but have a lot of experience with Orlando and the resort communities that you should be looking at. As others have mentioned, theming is very important. There are literally hundreds of units for sale by investors that thought it was easy and passive. Orlando is very competitive, therefore you have to provide an extremely clean, themed out home with close proximity to the parks in a community that also offers great resort amenities.
So, size, location and theming to answer your question. Obviously, as a buyer, price is top of mind for you. I typically advise to buy as big of a home as you can. There is much more competition for the smaller homes as hotels, condotels, condos, townhomes and small single family are all competing for the same guests. Larger homes provide more opportunity to make the home unique and capture larger families/groups to share the expenses of one home vs renting 2-3. Starting smaller is fine, but the unit has to be spa like or you will likely fall victim to pricing wars or get lost in the booking sites algorithms.
I'm happy to dive a little deeper to give more advice on what you may need specifically. Reach out if I can help.
Best of luck!
- Property Manager · Kissimmee, FL · Member since 2019 · 446 posts · 266 votes2y
You say 6-8 bedroom house with a pool and spa? I wanted to start small with 3-4 bedroom condo? Is that a bad idea?
@Ryan Marble yes, condos are a bad idea for the most part. Orlando is extremely competitive with other condos and even hotel rooms. That means you will have a tough time getting good rates. You could consider a townhome with a pool, those typically perform better than condos especially if decorated well. I am happy to review actual performance for any listing that catches your eye. Let me know!
- 2yJosh GreenBusiness MemberRealtor · Tampa/St Pete/Clearwater/Bradenton · Member since 2020 · 397 posts · 353 votes
Quote from @Ryan Marble:
Quote from @Alice Horn:
Quote from @Ryan Marble:
I'm just starting in the STR market in the Orlando and Tampa areas and was wondering what all of you experienced vacation rental investors would say are the 3 most important tips or advice to running a successful/profitable vacation rental in these areas? Thanks in advance!
Good morning @Ryan Marble!
Orlando and Tampa are very different markets, so here are my top 3 tips for Orlando. As property managers, we see up close on a daily basis which properties perform best and are the most popular with guests…as well as the ongoing challenges.
1. AS with any RE investment identify the top locations. Our tourists prefer gated communities with great amenities, not too far from Disney - Windsor Island, Solara, Windsor at Westside to name a few. Also remember to consider the positioning within the resort - does it have a lake or forest view? Near the clubhouse? Etc.
2. Great theming. Check Airbnb listings to see what’s booking - you’ll notice lavish game rooms, bunk beds with slides, murals, etc. Make sure the home has quality furniture and items that don’t fall apart in a few years. We can help you find the right decorator if needed.
3. 6-8 Bedroom house with pool and spa. Others may tell you to go larger, but we find the most consistent bookings for this size. A pool is a must, pools with spas book better.
Many will tell you Orlando is saturated, which it is. It is also the top tourist destination in the US, and it is a year-round market with fairly consistent performance year after year. If you have the right type of home, it will book well.You say 6-8 bedroom house with a pool and spa? I wanted to start small with 3-4 bedroom condo? Is that a bad idea?
As an investment, the property size and scope of the project are definitely higher in Orlando. 6-8 bed homes with fully decked out outdoor amenities and interior design is a must. In the Tampa Bay Area, you still want to do a great interior design and have outdoor amenities such as a pool. Would not recommend HOA communities or condos/townhouses. You can do well here with a purchase price in the $500k+ range and a furnishing budget of no less than $35k is my recommendation for a DIYer. Anyone that tells you differently, you're probably going to end up disappointed in your ROI
Impact Realty Tampa Bay.4.962 Reviews
Suncoast Vacation Homes4.959 Reviews - 2yAndrew SteffensBusiness MemberTampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
Echoing most of what's above. Orlando is really tough to make any money as every level of the market is saturated.
Tampa is better but the bigger more decked out do better.
On the lower end you can still do well but the key is location, amenities, and design. You do not need to reinvent the wheel but you cannot cut any corners and expect a good result.
Vacation Rentals of Florida53 Reviews - 2yMichael BaumPro MemberOlympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
My 2 top guys in these areas already chimed in @Ryan Marble so I can't add anything!
Other than get with @Shawn McCormick for Orlando/Kissimmee and @Andrew Steffens for Tampa and the surrounding areas. They can help you out!
- Investor · Member since 2022 · 1k+ posts · 754 votes2y
1. Gotta read the BP book on STR - Short Term Rental, Long Term Wealth by Avery Carl. It is truly a guide to all things STR
2. If you are in Disney, go all out!! Go visit Disney Springs, walk the resort properties, go to Magic Kingdom and Hollywood if you can. Pay attention to all the details and just the Disney culture in general. Give people that experience
3. This is not a passive investment. Everyone thinks they buy a STR, put it on Airbnb, and then just rake in cash. STR's take work and they are worth it. Quote from @Alice Horn:
You say 6-8 bedroom house with a pool and spa? I wanted to start small with 3-4 bedroom condo? Is that a bad idea?
@Ryan Marble yes, condos are a bad idea for the most part. Orlando is extremely competitive with other condos and even hotel rooms. That means you will have a tough time getting good rates. You could consider a townhome with a pool, those typically perform better than condos especially if decorated well. I am happy to review actual performance for any listing that catches your eye. Let me know!
@Ryan Marble Resort communities like Windsor Hills have 3 bed townhouses that have the potential to do very well.
- Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes2y
My top 3 tips for the Orlando area:
1. Pick another area;
2. Pick another area;
3. Pick another area.
The "everybody" niche - 2-5 bedroom, 2-3 bath - has so many people you can still find places going for under $100/night with a pool. It's just insane. The only hope of making any money here is either be on the tiny end that you can turn into a showcase for not that much money, or the high end 6-10 bedroom homes that can hold 2 families or 1 really big family. There's not as much competition on either side. I have a 4/3 3k square feet and it is a constant battle with bottom feeders for bookings, and I have a great place and all 5-star reviews. But lots of people are just looking for a place to crash and don't care about that, at least until they get there and find out the place is a dump.
Skyline Properties - Rental Property Investor · California, CA · Member since 2015 · 41 posts · 28 votes2y
Quote from @Ryan Marble:
I'm just starting in the STR market in the Orlando and Tampa areas and was wondering what all of you experienced vacation rental investors would say are the 3 most important tips or advice to running a successful/profitable vacation rental in these areas? Thanks in advance!
Sign up for a trial of Airdna and do some research.
#1 Location As others have stated Orlando and Tampa (Tampa City or Tampa area like Clearwater?) are totally different markets.
Prime location is the most important thing. Orlando you want to be near the theme parks. Tampa you better be on the water.
#2 Find a niche. I would argue that you are better off having a smaller place in Orlando that fits a family under 6 people. There are way too many 5+ bedrooms themed homes. (oversupply). In Tampa or Tampa area the opposite is true as big homes do not have a large market share
#3. Does it pencil out? Can you make money. I would say your best bet is to see if you can purchase a home with an assumable mortgage. - Investor · AZ · Member since 2017 · 21 posts · 9 votes2yJD, where would you suggest I look? I'm looking for somewhere that at the very least, would make a great winter home when I retire in fifteen to twenty years....
Quote from @JD Martin:
My top 3 tips for the Orlando area:
1. Pick another area;
2. Pick another area;
3. Pick another area.
The "everybody" niche - 2-5 bedroom, 2-3 bath - has so many people you can still find places going for under $100/night with a pool. It's just insane. The only hope of making any money here is either be on the tiny end that you can turn into a showcase for not that much money, or the high end 6-10 bedroom homes that can hold 2 families or 1 really big family. There's not as much competition on either side. I have a 4/3 3k square feet and it is a constant battle with bottom feeders for bookings, and I have a great place and all 5-star reviews. But lots of people are just looking for a place to crash and don't care about that, at least until they get there and find out the place is a dump.
- Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes2y
Quote from @Ryan Marble:
JD, where would you suggest I look? I'm looking for somewhere that at the very least, would make a great winter home when I retire in fifteen to twenty years....Quote from @JD Martin:
My top 3 tips for the Orlando area:
1. Pick another area;
2. Pick another area;
3. Pick another area.
The "everybody" niche - 2-5 bedroom, 2-3 bath - has so many people you can still find places going for under $100/night with a pool. It's just insane. The only hope of making any money here is either be on the tiny end that you can turn into a showcase for not that much money, or the high end 6-10 bedroom homes that can hold 2 families or 1 really big family. There's not as much competition on either side. I have a 4/3 3k square feet and it is a constant battle with bottom feeders for bookings, and I have a great place and all 5-star reviews. But lots of people are just looking for a place to crash and don't care about that, at least until they get there and find out the place is a dump.
You're going to have to pick your poison. Figure out where *you* want to live when you retire, then work backwards from there. I picked where I am because it's 10 minutes from my father, who is about to be 80. I had hoped that the natural draw of Disney etc would work in my favor but there's just too much inventory. If you pick a different area, you may have less demand. Or the housing costs may just be too high to cover your expenses. You can still get decent buys for the price in my area but you can't make the expenses unless you are in a very small niche and drop a lot of money on themes and the like.
What I tell people is that if it won't work as a long term rentals don't do it at all. You need to at least have several exit plans.
Skyline Properties - Investor · AZ · Member since 2017 · 21 posts · 9 votes2yWhat other areas in Florida would you recommend for a winter/retirement home as well as for STR's in the mean time or during the summer? I am heavily looking into the Tampa area as well as the Cocoa Beach area. But I'm not dead set on anything accept that I would like to be in Florida.
Quote from @JD Martin:
Quote from @Ryan Marble:
JD, where would you suggest I look? I'm looking for somewhere that at the very least, would make a great winter home when I retire in fifteen to twenty years....Quote from @JD Martin:
My top 3 tips for the Orlando area:
1. Pick another area;
2. Pick another area;
3. Pick another area.
The "everybody" niche - 2-5 bedroom, 2-3 bath - has so many people you can still find places going for under $100/night with a pool. It's just insane. The only hope of making any money here is either be on the tiny end that you can turn into a showcase for not that much money, or the high end 6-10 bedroom homes that can hold 2 families or 1 really big family. There's not as much competition on either side. I have a 4/3 3k square feet and it is a constant battle with bottom feeders for bookings, and I have a great place and all 5-star reviews. But lots of people are just looking for a place to crash and don't care about that, at least until they get there and find out the place is a dump.
You're going to have to pick your poison. Figure out where *you* want to live when you retire, then work backwards from there. I picked where I am because it's 10 minutes from my father, who is about to be 80. I had hoped that the natural draw of Disney etc would work in my favor but there's just too much inventory. If you pick a different area, you may have less demand. Or the housing costs may just be too high to cover your expenses. You can still get decent buys for the price in my area but you can't make the expenses unless you are in a very small niche and drop a lot of money on themes and the like.
What I tell people is that if it won't work as a long term rentals don't do it at all. You need to at least have several exit plans.
- Investor · AZ · Member since 2017 · 21 posts · 9 votes2y
Quote from @Pete Slaga:
Quote from @Ryan Marble:
I'm just starting in the STR market in the Orlando and Tampa areas and was wondering what all of you experienced vacation rental investors would say are the 3 most important tips or advice to running a successful/profitable vacation rental in these areas? Thanks in advance!
Sign up for a trial of Airdna and do some research.
#1 Location As others have stated Orlando and Tampa (Tampa City or Tampa area like Clearwater?) are totally different markets.
Prime location is the most important thing. Orlando you want to be near the theme parks. Tampa you better be on the water.
#2 Find a niche. I would argue that you are better off having a smaller place in Orlando that fits a family under 6 people. There are way too many 5+ bedrooms themed homes. (oversupply). In Tampa or Tampa area the opposite is true as big homes do not have a large market share
#3. Does it pencil out? Can you make money. I would say your best bet is to see if you can purchase a home with an assumable mortgage.Pete,
I am on AirDNA and run the numbers constantly. How much can I trust those numbers? I have heard they can lag behind? I also compare with Rabbu numbers and use their STR calculator to run numbers. Do you use any other data sights that might help determining accurate numbers? Also, how hard is the process of assuming a mortgage?
- Rental Property Investor · California, CA · Member since 2015 · 41 posts · 28 votes2y
Quote from @Ryan Marble:
Quote from @Pete Slaga:
Quote from @Ryan Marble:
I'm just starting in the STR market in the Orlando and Tampa areas and was wondering what all of you experienced vacation rental investors would say are the 3 most important tips or advice to running a successful/profitable vacation rental in these areas? Thanks in advance!
Sign up for a trial of Airdna and do some research.
#1 Location As others have stated Orlando and Tampa (Tampa City or Tampa area like Clearwater?) are totally different markets.
Prime location is the most important thing. Orlando you want to be near the theme parks. Tampa you better be on the water.
#2 Find a niche. I would argue that you are better off having a smaller place in Orlando that fits a family under 6 people. There are way too many 5+ bedrooms themed homes. (oversupply). In Tampa or Tampa area the opposite is true as big homes do not have a large market share
#3. Does it pencil out? Can you make money. I would say your best bet is to see if you can purchase a home with an assumable mortgage.Pete,
I am on AirDNA and run the numbers constantly. How much can I trust those numbers? I have heard they can lag behind? I also compare with Rabbu numbers and use their STR calculator to run numbers. Do you use any other data sights that might help determining accurate numbers? Also, how hard is the process of assuming a mortgage?
Keep in mind that Airdna adds into their revenue housekeeping income in addition to Rent. To have a more accurate number, it helps to accurately identify what percentile the STR would fall into and use those numbers. However, be conservative on that. If you are in the top 25% use those numbers as a high end and look at the next tier for a low end. To back out housekeeping income, look at what others are charing for the HK fee and then make an assumption on how many reservations in a year. Not sure, use 50 reservations as a close approximation. subtract the HK fee from the revenue to come up with an idea of rent.
Rabbu is ok, Pricelabs is nice as well. I would suggest reaching out the companies that market assumable mortgages for them to answer how hard or easy it is. Go to perplexity.ai and search for assumable mortgage companies and they will give you a good list. - Realtor · Melbourne, FL · Member since 2021 · 111 posts · 51 votes2y
@Ryan Marble Hey Ryan I have a couple STR's in the Palm Bay/Melbourne area and I just did a deep dive back on our numbers. I compared what airdna projects and what we actually saw over our first year, and wow it was way off! AirDNA projected less than half of what we actually saw our first year. Way low on both occupancy and ADR.
I guess after doing that research I would just say be cautious of Airdna's numbers!
Also, I'd suggest you look into the Space Coast market's man. I'm biased of course bc I love it here and do my business here but if you're open to FL options I would highly consider it.
Let me know if there is anything I can do to help.
@Ryan Marble Some listings on AirDNA are fake, so watch out. AirDNA and Rabbu are both great tools but in this instance a good realtor is your best asset.
- Property Manager · Kissimmee, FL · Member since 2019 · 446 posts · 266 votes2yAs others have said, AirDNA includes cleaning fees and other fees in their revenue numbers, so it's misleading. We use Key Data Dashboard, a superior analytics tool used by property managers, DMO's and similar organizations. It pulls booking revenue only from same-sized homes in the surrounding community. From there, you can make adjustments based on decor, view, pool....etc. If we manage a similar home in the same community, we use actual booking data. The best approach when researching homes is to have a great team already in place with your realtor as well as a trusted local property manager who can provide real numbers and insights based on management experience.
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