We are purchasing a SFH in a NEW resort in the Orlando Disney area. We are looking for a rental management company as we live in NJ and would find it hard to manage ourselves. One company we spoke too seems to specialize in group tours - filling lots of homes in the same complex. What are the pros and cons to this as opposed to renting to families? Any other tips would be helpful too for this rental market. Are the fees negotiable? After commissions and other fees, I see our profits slipping away. Thanks
Flipper/Rehabber · Orlando, FL · Member since 2016 · 311 posts · 150 votes
8y
hey Karen what company did you speak to already and which development are you looking at? Different companies specialize in certain communities.
Short Term rentals are definitely a different element compared to long-term (family) rentals.
With long-term rentals, you are really only responsible for 4 things: Taxes, Insurance, Management, and HOA (if there is one).
With short-term rentals, you are responsible for those things but also things like pool care, lawn care, pest control, electrical, cable, furniture maintenance, dishes/towels/utensils/etc, cleanings, (you see where i'm going with this), essentially you are operating a hotel.
The pro's of short-term rental is being able to rent for $100,200-300/night or more.
Short Term management runs between 20-30% per booking and sometimes a monthly marketing fee of $99-125.
Long term management on average is 10% of rent.
Soooo long story short, if your goal is to use the property a decent amount of time, you will at least break even & cover ownership expenses with short term rentals (possibly make a few bucks).