Orlando short term rental advice

10 Replies

Greetings all- I’m in the market to purchase a short term rental around Disney world. I will only use it for a week or so for personal use a year. This is my first swing at this and looking for ideas and suggestions from anyone experienced. My budget is around 150k or so but unsure how to figure out balance sheets on occupancy, etc. What are mgmt company’s costs? Booking? Cleaning? Etc Thanks in advance!

I don't know that specific market but I can tell you this: the costs are significantly down-played by most owners of vacation rentals. The investors that claim to be "killing it" with their vacation rentals are usually slaves to the phone, doing all their own cleaning and maintenance, etc. They don't account for the time spent on the property which dramatically reduces the actual return.

@Nathan G. It’s amazing what people will write when it sounds like they have absolutely no idea what they are talking about. You really do others a disservice when you spout out things that you “suppose”. If you have never had an STR why comment? By the way STR stands for short term rental.
@Nathan G. Is right and wrong. I self manage 5 from 8 hours away round trip. Very little time involved but there is a certain stress level concerning the reviews. Depends on your market Orlando seems to be one of 3 that actually make money. I’m in Gatlinburg Pigeon forge.

@Eric A.   I used to own/operate Cody Lodging Company with 70 short-term rentals. You can look it up online. I've also been on BP for many years and have listened to many investors claim to be making big money with their short-term rentals. The claims sound good until you ask them specifics and learn they aren't accounting for their time, the cost of furnishing, taxes (if they are even paying them), or all the codes they're violating. A pro like yourself is probably doing very well but most people on BP are amateurs when it comes to STR and they don't disclose the true costs.

And Eric, instead of insulting me, why not just answer his question? You have 20 years experience with vacation rentals around the country so you should be able to answer his question and counter what I've shared. That's much more effective than a drive-by comment.

@Lucas Carl there are several markets across the country that do extremely well. What I have observed in several instances is that people are really not purchasing an investment or a revenue stream. They are purchasing a property to offset their expenses to “go visit”. They then come on different sites and complain and complain about their experiences. If you choose not to put systems in place to run a “business” then you will become a slave to the property. It happens the same way in the long term rental and flipping business.
@Nathan G. Your comments seem to pertain to those who have one or two “vacation rentals”. Yes, these individuals don’t have business systems in place to handle their issues which require their time. I’m really not going to argue my business or your business but mine is extremely different then seasonal rentals in Wyoming. Very beautiful place by the way! If you want to message me on how I use VA’s and our success in several markets I would love to share. Take care!

@Eric A. I would like to point out that the original poster is planning to buy his first rental, which was the reason for my comment. Seriously, you should answer his question before he's misled by another amateur. 

@Brian Lyons . Management company will charge you 20% of the revenue. The cleaning fees get charged to the renter. Some owner's will waive the fee if the renter stays for a certain amount of days. Top producers have occupancy rates at 75%-80%. You also have to take into consideration these expenses: Monthly management fee, utilities, insurance, repair reserves, taxes, HOA fees, once a year deep cleaning fees etc.

I have 4 places in that that area and am looking to buy more. I've been doing it for almost 4 years and have a lot of systems in place to make my like a lot easier.
I would be happy to share some resources and numbers with you if you like. You can PM me.