Central Florida vacation rental

46 Replies

Is a vacation rental in Kissimmee / Davenport a bad idea?

Prices seem to be rising but there is so much inventory. Is it possible to make money on a mortgaged property? I’m thinking 4 bed pool home...

lets just say i will be traveling in the area in a few weeks, and i had no problem finding rooms for 25-30 nightly with no cleaning fee. how do you make money in  that environment?

Originally posted by @Ken Latchers :

lets just say i will be traveling in the area in a few weeks, and i had no problem finding rooms for 25-30 nightly with no cleaning fee. how do you make money in  that environment?

 Maybe they are losing less money than if it sat empty or they were LTR properties.

Originally posted by @Ken Latchers :

lets just say i will be traveling in the area in a few weeks, and i had no problem finding rooms for 25-30 nightly with no cleaning fee. how do you make money in  that environment?

Yikes. Scratching that off my list for STR/Airbnb in the area.

 

So just playing devils advocate. If @Ken Latchers is doing a simple AirBNB room, then that is understandable. I doubt it is a 4 bedroom house with a pool for $25 a night.

I will agree that the area has lots of restrictions as well as a very competitive market.

@Phil Wrigley

Bang for your buck you can get a lot of property. I own a 7bedroom 3600sq ft house in champions gate I purchased at the end of June for 440k. There is a lot of competition but it also is the most visited destination in the us with 80 million travelers and only getting better with the enchantments to Disney. 3rd universal park and speculation of a 5th Disney park at some point. It's all about theming of your property and how well the pictures look. Give Keith Courtney a call if you need a realestate agent.

@R.J. Petrillo If you’re going to give up because one person you’ve never met told you it was a bad idea on the internet you’ll never get stated.

When people tell me it’s a terrible idea I generally take that as a sign that I’m on to something.

I'll check out those recommendations. Thanks guys! The homes themselves are cheap for what they are but judging by listings on Vrbo they seem to stack them high and sell them low for vacationers. 4 bed pool homes can be had for $99 per night (sometimes less) but on the flip side they do seem to be pretty booked out. One of the realtors I was chatting with told me that grossing $38 to $40k a year is not unrealistic but I'm skeptical... Has anyone ever tried this model? I saw some posts from back in 2014 that suggest it's a real Struggle to make it work with a mortgage....

@Phil Wrigley I am a realtor here in Orlando and working with some folks looking at this. You are right there is a ton of inventory for STR in the area. Some of the communities require you to use them as management some don't. Some have huge HOA fees some don't. There are 4K+ people that travel through the Orlando Airport every day. There really isn't a slow season for Disney parks. Over the last few years Orlando has attracted some of the biggest events. Orlando hosts 3 NCAA bowl games every year, the NFL Pro Bowl, recently NCAA final four games, and EDC Orlando (huge electronic music festival). There is a major golf tournament hosted in Orlando every year (Arnold Palmer Invitational). This isn't including special events at Disney or Universal or the expansion that those parks are doing. All of this to say that Orlando is a huge destination and whole home rentals can do well you just need to have a place that has a wow factor either in amenities or in decoration. The photos have to outstanding and should have plenty of bookings.

Originally posted by @Ken Latchers :

lets just say i will be traveling in the area in a few weeks, and i had no problem finding rooms for 25-30 nightly with no cleaning fee. how do you make money in  that environment?

 I have been looking into this as well, Yes there are rooms available for 25-35 a night but they are dingy cheap motels/hotels in the area. I work at various vacation homes in central Florida and i do see a lot of families(international especially) using these homes. Don't be discouraged by the competition. My only worry is the economy having a major effect on the tourism in the Orlando/kissimmee area. 

There is definitely appeal in the amount of tourism the area gets. I just don’t know how exactly I would get an edge over the competition in this market since there is just so much of it.... Some of the villas are poorly done, others have been well presented. Both seem to get at least some booking. I don’t know if there is an exact science behind it. Also, I’m nervous that a lot of people seem be selling their income properties. Why would they if they’re making good money? Just my thoughts! Lol

@Erica Muller is the queen of STR in the Disney market. She's got her finger on the pulse of everything and has been in the game longer than anyone. I don't know a lot about that market specifically but she would be the place to start to get the best information on it!

I will be staying in 4 people's homes and none of them are hotels or motels. They are off Airbnb, and the highest cleaning fee was like $4. That is the part that shocked me.


" I have been looking into this as well, Yes there are rooms available for 25-35 a night but they are dingy cheap motels/hotels in the area. I work at various vacation homes in central Florida and i do see a lot of families(international especially) using these homes. Don't be discouraged by the competition. My only worry is the economy having a major effect on the tourism in the Orlando/kissimmee area. 

 

Funneling  by trying to get traffic off of the internet is practically a Fool's errand.  You cannot out spend booking.com and Airbnb and  Flip key and  VRBO. They dominate the first page which is the only one that matters.

SEO and PPC will not help vacation rental owner.

not sure what your point is, but you should be on all four of them and have your own website. All you have to do is set your prices to account for their commissions or added on as an admin fee which is what I do.

besides, they offer a lot of functionality and I'm not for sure why your  time is so worthless that you try to compete with them. And advertising cost money anyway so you're not saving anything

Originally posted by @Daniel Townsend :

The only real edge is in marketing and advertising. Not just relying on the VRBO site but figuring out how you can funnel people to your properties.

 

@Ken Latchers I guess I was thinking more out of the box marketing. In my area people will have mailers even billboards directing people to their vacation rentals. Take some add space in local theatre programs. Sponsor sporting events, etc... There are always more ways to market than just hoping your rentals will be seen in an ocean of ads.

@Tyler Gibson this is great advice. I worry about visibility in a market with so much inventory. Would you say a gross income of $40k on a 4 bed pool home is realistic if it’s done right? What are the peak times for the Disney market is it realistic to expect year round bookings? Sorry for all the questions!

@Phil Wrigley Someone else said $40k gross a year but I have heard similar numbers. There really is no slow season here in Orlando and at Disney specifically. I think it is realistic to expect bookings year round.