Davenport Short-Term Rentals: What You Need to Know

Did you know that certain surrounding areas of Orlando are zoned for short-term rentals? The welcoming city of Davenport, Florida, is one such area, and Davenport’s short-term rental market is booming! Located just off I-4 and only a few exits from Walt Disney World® Resort, Davenport draws thousands of visitors every year.

If you have ever dreamed of owning a second home or a vacation home that you can rent out for some extra income, it is important to know what areas of Orlando allow this versus areas that do NOT. In fact, there are a number of key factors you need to know before investing in a short-term rental in Orlando. Eager to learn more? We’ve got you covered!

What is a Short-Term Rental?

In Florida, a short-term rental is a property that is rented out for less than six months. Anything longer is considered a long-term rental. A short-term vacation rental, on the other hand, is defined by Florida law as a property that is rented for more than three times a year at less than thirty days at a time.

Parts of Davenport allow owners to rent out their properties for one day, three days, one week, or even up to one year. This is great for homeowners who live in Central Florida and want to capitalize on living in a thriving tourist destination! Being so close to places like Walt Disney World, Universal Orlando Resort, International Drive, Legoland, Florida’s renowned beaches, and much more makes Davenport very attractive to prospective visitors. With so many sights to see and so much to do, Davenport is quite a desirable location to own a short-term rental.

What about HOAs?

When purchasing a home with the intent to use it as a vacation rental, be sure to check with the Homeowner’s Association (HOA) in the neighborhood. Not all HOAs allow short-term rentals. Can you imagine going through the buying process and closing on the property just to find out the HOA won’t let you rent it out? Even though you may find a great home for sale in a county zoned for short-term rentals, the community itself may not permit it. Before you buy, it’s important to check and make sure the neighborhood’s bylaws approve short-term rentals.

Don’t take anyone’s verbal word for short-term rental approval, as that could be a very costly mistake! To ensure you avoid this stress, it’s ideal to work with a knowledgeable real estate agent to help you through any real estate purchases. If you are looking for property in Central Florida, the Erica Diaz Team can help you through the whole process! Learn more about our expertise here.

What is the Competition Like?

Being so close to all the area attractions, Davenport is an advantageous location for short-term vacation rentals. Not only does Davenport’s geographic convenience draw visitors, but it is quieter and more relaxed than some of the neighboring cities that also allow short-term rentals. And investors should be interested to learn that the property taxes in Davenport’s county, Polk, are lower than in Orange and Osceola counties where you will find competing short-term rentals in Orlando.

We accessed the data through AirDNA’s comprehensive MarketMinder platform on their site at airdna.co for the current statistics on short-term rentals in Davenport. There are currently 9,440 active rentals listed on Airbnb and VRBO. There has been a seven percent increase in market growth in Davenport over the last quarter, with steady growth since the end of 2020. With an occupancy rate of seventy-two percent, it’s definitely possible to rent successfully in this town!

What Does it Mean to be a Vacation Homeowner Financially?

Buying a vacation home is a big step. With Central Florida real estate in high demand, prices have been on the rise over the past couple of years. They’re starting to level out now, though, with a median home listing price of $415,000. Financially, you’ll need to crunch the numbers and find out how many rentals you need in order to be successful in your vacation home ownership.

You’ll also need to do in-depth research when determining how much your property can be rented for. Hiring a real estate agent who can help you find the right properties, navigate the home buying process, and help manage the new income property for you will be a key to your success. If you don’t know the area or the short-term vacation rental world, it is always best to look to the professionals!

What Do People Look for in a Vacation Home?

In the ever-changing world of today, travelers are looking less towards tiny hotel rooms and more towards vacation properties. From condos to villas and everything in between, the common theme here is more space! Many families include more than four people, and trying to find a hotel room that accommodates them all comfortably can be a challenge. Having to reserve multiple rooms at a hotel simply so your family can fit is very costly. These are some of your prime short-term rental candidates!

A rental home with a pool is also very desirable to vacationers. Finding a rental on the water is even better! When visiting this tropical paradise, people want to escape their “every day.” This means finding a home you can make comfortable and offer an escape to renters.

What Kind of Properties are People Renting?

When you think of vacation homes, most people think of single-family homes. There’s good reason for that. Per AirDNA’s MarketMinder data, ninety-eight percent of Davenport’s short-term rentals are whole-home rentals, making single-family homes the most popular investment.

That said, there really is a market for nearly every type of short-term rental, so you can always start smaller. Not every person traveling to the Orlando area needs a whole house to rent. Villas, condos, and apartments are all viable short-term rental options you could pursue.

With record-setting visitors to the Orlando area each year, the short-term vacation rental market is exploding! If you’ve been thinking of buying an investment property in the area, specifically in Davenport, now is the time. Orlando has one of the strongest markets in Florida vacation rentals, making them a solid investment. When you’re ready to start on the path to vacation rental success, be sure to partner with a knowledgeable real estate agent who can guide you through finding and purchasing your own short-term rental.

The Erica Diaz Team Knows About Short-Term Rentals in Davenport

Living in Central Florida has many perks. Being close to so many tourist attractions and world-famous vacation destinations means millions of visitors venture here throughout the year. One sure way to capitalize on some of the profits brought in by tourism is to own a short-term rental property. Not all areas in Central Florida are zoned for these types of properties, but Davenport is!

If you’re ready to purchase a home in Davenport or a surrounding area, our team would love to help. Contact us today! You can also learn more about buying in the Central Florida area here.