Short-term rentals in Orlando and the surrounding areas are a hot commodity right now. Not only are prospective investors looking into short-term rentals as a source of income, but Central Florida homeowners are suddenly finding themselves in need of short-term rentals as they navigate the unpredictable waters of the real estate market. Homes are selling so fast that some families have to get creative with their living situations between residences. A short-term rental can be a great option!
For the most part, though, the short-term rentals most people think about are short-term vacation rentals. It should therefore come as no surprise to learn that the most popular area of Orlando zoned for short-term rentals is beautiful Kissimmee, Florida. Known as The Vacation Home Capital of the World©, Kissimmee encompasses much of Central Florida’s theme parks, resorts, and attractions, making it incredibly convenient and appealing to out-of-town visitors.
With such high demand for short-term rentals in Orlando and neighboring cities like Kissimmee, you might be considering investing in one. Whether you’re dreaming of owning a second home or you’re interested in a vacation home that you can rent out, it’s important to know what you’re getting into before you make the leap. Our team has guided many happy homeowners through this process, and today we’re passing our knowledge along to you!
Read on to learn more about Kissimmee’s short-term rental market.
In Florida, a short-term rental is a property that is rented out for six months or less. This property might be a condo (single unit or group of units), a single-family home, or a multi-family house or dwelling. Unless specified by local laws, timeshares don’t fall under the same umbrella as short-term rentals.
Each Florida municipality also has its own definition of “short-term rental” and may include specific timeframes a property can be rented to qualify. According to the Osceola County Code of Ordinances under which Kissimmee is governed, “Short term rental shall mean any dwelling unit, or group of dwelling units located within Osceola County within a single development, which are designed for and intended to be used on a non-permanent basis by the owner and intended for transient occupancy. Non-permanent use shall be for a period of use by the same individual or individuals for no more than thirty (30) days within a twelve-month period.”
When researching short-term rentals in Orlando, it’s important to check with the Homeowners’ Association (HOA) in any neighborhood you’re considering. If you’re from a city or state that doesn’t have HOAs, they are essentially self-governing boards within a community that establish and enforce rules that homeowners must agree to follow in order to live in that community. Even though you may be in a county like Osceola which is zoned for short-term rentals, not every community in the county allows it. Before you buy, make sure the HOA’s bylaws allow you to use your property as a short-term rental.
There are online resources that list Kissimmee communities zoned for short-term rentals, but you should double-check the accuracy of those resources so you don’t make a costly mistake. Working with a knowledgeable real estate agent will give you much peace of mind for this and many other reasons. If you’re looking for property in Central Florida, the Erica Diaz Team will help you through the whole process.
Learn more about how we can help you here!
Being so close to all the attractions that The City Beautiful has to offer, Kissimmee is among the most desirable locations for short-term rentals in Orlando. We connected with the savvy team at AirDNA (airdna.co), who helped us put their powerful MarketMinder search tool to work. Here’s what we found:
Investing in a short-term rental is a big step. As of June, 2022, Realtor.com lists the median listing home price in Kissimmee, FL as $390,000. There is, of course, a range involved when it comes to pricing all short-term rentals, with smaller condos generally listing less than single-family homes. Whatever the size of the property, though, it’s important to carefully review your finances to know if you can afford a second home as an investment.
It’s also critical to know how much you can rent an investment property for to be sure you’re making a wise decision. As real estate experts, we find our clients the perfect properties to match their financial goals and navigate the home buying process. We then help them manage their new income property to ensure their success. We’re always happy to help if you need the guidance of a professional!
This is a great question, and one that should weigh into your decision as to what type of short-term rental to buy. It helps to understand the market your rental home is targeting. Central Florida visitors generally look for short-term rentals versus hotels when:
With this in mind, properties that offer multiple bedrooms, full-sized kitchens, a washer and dryer, and private pools rank among the most popular. Convenience to area attractions is also important, and one of the top reasons to invest in a short-term rental in Kissimmee! Because Florida weather can be unpredictable, rentals offering a game and/or movie room also rank high with renters. And today’s clients want an assurance of cleanliness and sanitization as well as more flexibility in booking, which is something to discuss with a potential property manager.
Per AirDNA’s current stats, the most popular size short-term rental in Kissimmee is a 4-5 bedroom home sleeping 10-11 guests. Also, 96% of Kissimmee short-term rentals are whole-home rentals versus a single room or part of a home. This is useful information to have when hunting for the ideal investment property!
The team at AirDNA came through for us again with the below statistics. As we previously mentioned, the most popular short-term rental type in Kissimmee is a house, with townhomes coming in second and villas close behind. Condos and apartments are less popular in Kissimmee than in coastal areas, but still remain a solid investment option.
Whether you’re just getting started in the short-term rental market or you’re looking to add another property to your listings, there are plenty of great options in Kissimmee! This city boasts one of the strongest markets when it comes to Florida short-term rentals, offering a potential high return on investment. With more and more tourists venturing to Central Florida each year, the short-term rental market is sure to remain strong.
Before you invest in a new property, partner with a knowledgeable Realtor who can guide you through the process. A team like ours can even help manage your property after the sale! That way, you can be confident you’re making a sound buying decision and your investment will remain in great hands throughout your ownership.
Living in Central Florida is the dream of many, and it’s well within reach! The many attractions and world-renowned vacation destinations bring millions of visitors here throughout the year. Why not capitalize on the tourism revenue by investing in a short-term rental in Orlando or a surrounding city?
If you’re ready to purchase a home in Central Florida, our team would love to help! Contact us today.