Owning a Short-Term Rental in Central Florida

Central Florida, with its world-renowned theme parks, year-round sunshine, and diverse landscapes, is a prime location for those seeking to invest in short-term rental properties. The area, encompassing Orlando and its surrounding cities, draws millions of visitors each year. As such, owning a short-term rental in Central Florida can be both a lucrative and rewarding venture. However, it also comes with a unique set of responsibilities, legal considerations, and market dynamics that potential hosts must understand to succeed.

The Allure of Central Florida for Short-Term Rentals

Central Florida’s appeal for short-term rentals is rooted in its proximity to major attractions. Walt Disney World, Universal Studios, SeaWorld, and LEGOLAND lure tourists from around the globe. In addition, the region offers a vibrant arts scene, sports venues, golf courses, and easy access to both the Atlantic and Gulf coasts, making it an enduring destination for vacationers, business travelers, and snowbirds alike.

The region’s popularity means demand for accommodations remains high throughout much of the year, with peak seasons aligning with holidays, school vacations, and major events such as theme park anniversaries or sports tournaments. For property owners, this represents an attractive opportunity to generate rental income by offering comfortable, convenient, and affordable alternatives to traditional hotels.

Choosing the Right Location

Location is crucial when investing in a Central Florida short-term rental. Popular areas include:

·         Orlando: The heart of tourism, with proximity to major attractions and the Orange County Convention Center.

·         Kissimmee: Known for its vacation homes and resort communities just minutes from Disney World.

·         Davenport: Offers more affordable properties with easy access to highways and theme parks.

·         Winter Park and Celebration: Charming, upscale neighborhoods with boutique shopping and dining.

·         Clermont and Haines City: Growing areas with new developments and a more relaxed pace.

When selecting a location, consider key factors such as proximity to attractions, neighborhood safety, HOA rules, local amenities, and whether the area is zoned for short-term rentals. Some communities welcome vacation rentals and cater to tourists, while others restrict or prohibit short-term stays.

** Art Hartunian at Hartunian Agents can help you find you short term investment.

Legal and Regulatory Considerations

Operating a short-term rental in Central Florida requires compliance with various state, county, and municipal laws. Key legal requirements include:

·         Licensing: The Florida Department of Business and Professional Regulation (DBPR) requires most short-term rental properties (rented for less than 30 days) to be licensed. Operators must obtain a vacation rental license and may need a local business tax receipt.

·         Zoning and HOA Rules: Not all neighborhoods permit short-term rentals. Some HOAs have strict rules against them, and cities like Orlando and Kissimmee have specific ordinances regulating where and how short-term rentals can operate.

·         Safety Requirements: Properties must adhere to building and fire codes, including smoke detectors, fire extinguishers, and clear emergency exits.

·         Taxes: Owners must collect and remit state sales tax, county tourist development tax, and any other applicable local taxes. Many online platforms offer assistance with tax collection, but ultimate responsibility rests with the owner.

It’s essential to research local regulations before purchasing a property or listing it as a short-term rental. Consulting with a real estate attorney or property manager familiar with Central Florida’s market can help ensure compliance and avoid costly fines.

Here are a few helpful sites:

Zoning Division

Chapter 24 - IMPACT FEES | Code of Ordinances | Osceola County, FL | Municode Library

factsheets_shorttermrentals.pdf

Preparing the Property for Guests

To stand out in Central Florida’s competitive short-term rental market, your property must offer more than just a place to sleep. Today’s travelers seek comfort, convenience, and memorable experiences. Consider the following tips for preparing your rental:

·         Furnish for Function and Style: Invest in durable, easy-to-clean furnishings that reflect the local vibe. Themed rooms—think Disney princess or Harry Potter—can set your listing apart.

·         Provide Amenities: High-speed Wi-Fi, smart TVs, fully equipped kitchens, and laundry facilities are expected by most guests. Extras like swimming pools, game rooms, or baby gear can increase appeal.

·         Keep It Spotless: Cleanliness is non-negotiable. Hire a professional cleaning service and conduct routine maintenance between guests.

·         Secure the Property: Install smart locks and outdoor cameras (while respecting guest privacy) to enhance safety and streamline check-in/check-out.

·         Stock the Essentials: Provide starter supplies of toiletries, paper products, and cleaning items. A welcome book with house rules, local tips, and emergency contacts is a thoughtful touch.

Marketing and Managing Your Short-Term Rental

Effective marketing is key to maximizing occupancy and revenue. Nearly all guests begin their search online, so a strong digital presence is essential.

·         Listing Platforms: Sites like Airbnb, Vrbo, and Booking.com dominate the market. Use high-quality photos, accurate descriptions, and timely responses to inquiries to improve booking rates.

·         Dynamic Pricing: Adjust nightly rates based on demand, local events, and seasonality. Tools like PriceLabs or Beyond Pricing can automate rate changes for optimal profitability.

·         Guest Communication: Prompt, polite communication sets the tone for positive reviews. Provide clear check-in instructions and be available to respond to guest needs.

·         Reputation Management: Encourage reviews and address feedback constructively. High ratings lead to better search placement and more bookings.

·         Professional Management: Consider hiring a local property manager to handle cleaning, maintenance, guest relations, and legal compliance, especially if you live outside Central Florida. Art Hartunian at Hartunian Agents can help refer you to property managers.

Financial Considerations

Owning a short-term rental is an investment. Understanding the financial aspects can help you plan and maximize returns.

·         Startup Costs: Include down payment, closing costs, furnishings, décor, licensing fees, and marketing expenses.

·         Operating Expenses: Factor in mortgage payments, insurance, property taxes, utilities, cleaning, maintenance, HOA fees, and replacement of supplies.

·         Income Potential: Income varies by location, property size, and seasonality. Homes closest to theme parks generally command higher rates and occupancy, but also higher purchase prices and taxes.

·         Reserves: Maintain a financial cushion for unexpected repairs, slow seasons, or regulatory changes.

Challenges and Risks

While the opportunity is appealing, owning a short-term rental comes with challenges:

·         Seasonal Fluctuations: Bookings can drop during hurricane season or school months. Diversifying guest appeal (e.g., catering to business travelers) can help smooth income.

·         Regulatory Changes: Laws and taxes can change, sometimes with little notice. Stay informed about local council decisions and state legislation.

·         Competition: The market is saturated in popular areas. Continuous improvement and unique offerings are key.

·         Guest Issues: Property damage, parties, or neighborhood complaints can occur. Clear rules and responsive management minimize risks.

·         Maintenance: Florida’s humid, storm-prone climate means properties require regular maintenance to avoid mold, pest, and storm damage.

Maximizing Success as a Host

To excel, prioritize guest experience, compliance, and adaptability:

·         Stay Informed: Join local property owner associations, follow tourism trends, and network with other hosts.

·         Prioritize Safety and Accessibility: Make upgrades for child safety, accessibility, and insurance compliance.

·         Cultivate Repeat Business: Offer loyalty discounts or referral bonuses and communicate with past guests about special offers or improvements.

·         Adapt to Change: Be prepared to pivot with new technology, changing guest preferences, and evolving regulations.

Conclusion

Owning a short-term rental in Central Florida is a dynamic venture offering the potential for significant income and personal satisfaction. By understanding the unique opportunities and challenges of the Central Florida market, complying with regulations, and focusing on the guest experience, property owners can not only succeed but thrive in this competitive landscape. With the right approach, your property can become a sought-after destination for travelers from around the world, all while providing a valuable return on your investment.

EET World is a media company owned by Florida licensed real estate agent Art Hartunian. If you’re thinking of buying or selling a house in Orlando, Southeast Florida, or Space & Treasure Coasts, reach out and he would love to help you realize your goal! We got you covered!! Email Art at arthurhartunian@gmail.com .