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Home to the land of Mickey Mouse and Disney World, world-class golf courses, fine dining and shopping, Orlando attracts a wide variety of tourists and travelers from around the world. More than 70 million people visit the city annually, representing nearly 60% of all visitors across the state of Florida.
All this flow of people is looking for lodging in Orlando, which makes vacation homes (Vacation Homes) one of the best real estate investments in the world, especially for those looking to earn income with vacation rentals.
But before investing, it is essential to understand the main metrics for analyzing this market, such as the occupancy rate of houses, expected return on rent, property type, among other information.
In this article, we will comment specifically on the occupancy rate of Vacation Homes in Orlando and the seasonality of the market. You might also want to check the other article we created commenting the possibility to pay off mortgage and other costs of ownership with the rental income from the Vacation Home.
Before we explain about the occupancy rate, here’s a reminder!
REMINDER: In order to make a solid investment in Orlando, it is essential to have the advice of an experienced real estate agent in Florida. Only those who have been operating in the market for years can indicate the ideal type of property, what characteristics the property should have, the condominiums that generate the greatest return, among other information. Feel free to chat with me right now by WhatsApp: +1 (305) 318-6968 (Heloisa Arazi).
Orlando month-to-month occupancy rate
The high season (high occupancy) months in Orlando are the ones you should avoid traveling to Orlando and using the home you have purchased. The reason is simple, these are the months with the highest rent billing and, therefore, you must make the house available to your guests. Of course, you can also use the house during these periods, just don’t block it for most of the period. Fortunately, this is a manageable situation!
Also, in our article about best time to travel to Disney, we explain that during these periods the ideal is to avoid traveling to Orlando for other reasons: Crowded parks and long lines at rides and attractions! Not to mention the intense heat, especially in June and July.
If you want to enjoy your home in Orlando, the ideal is to prioritize the low season months. This is not always possible, as the months of July and December, which are holidays in Brazil, are also periods of high season in the US.
What are Orlando’s peak season months (high occupancy rate)?
The high season months in Orlando are:
In these periods, the occupancy rate of homes in Orlando reaches its peak.
March and April is Spring Break period. It is one of the most popular school holidays in the United States. At this time, Florida welcomes thousands of young Americans looking for action, beautiful beaches and, of course, fun in Orlando’s parks.
June and July are months where the whole world is on vacation. It is natural that Orlando receives, at this time, Americans and tourists from all over the world.
December is the Christmas and New Year season. Christmas at Disney is an extremely popular celebration for tourists from all over the world and parks tend to reach maximum capacity. The occupancy rate of Orlando homes in December is also very high.
Below is an illustrative chart of occupancy rate at Vacation Homes in Orlando:
Low and mid season months
The off season months are:
- May **
- September **
** May and September are very low season months. These are months where you, ideally, could spend long periods enjoying your Orlando home. In addition, during these periods the temperature in Orlando is not so uncomfortable (or even too cold and not too hot) and there will be little demand for rent.
What is the average occupancy rate for homes in Orlando?
This question is a little tricky to answer, as the search is different depending on the characteristics of the house and the location. Size (number of rooms) can also play a role. Larger houses are more sought after and offer better expected returns. The infrastructure in the condominium is also crucial. Condominiums with larger and more complete leisure areas, such as the Storey Lake and the Windsor Island, tend to be more in demand.
We can, however, adopt as a reference metric, the average rate of 75% occupancy in the year. This is the percentage we use to calculate the expected return on Orlando homes. Obviously, this is an estimated indicator and should not be understood as any guarantee of occupancy.
Want to learn more about Orlando investing?
AMG International Realty is a global real estate company specialized in Florida. If you want to know more about investing in Orlando, contact me right now and chat with me on WhatsApp: +1 (305) 318 6968 (Heloisa Arazi).