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One of the favorite investments of global buyers in Orlando is the purchase of vacation homes in condominiums near the parks. These are called Vacation Homes, which allow seasonal rentals. Thus, it is possible to obtain income from the rental activity, which makes the investment extremely interesting.

What is the expected return on investment for Orlando vacation rental?

Orlando receives more than 70 million people annualy, mostly tourists. All this audience guarantees a great outlet for vacation rentals. Many Brazilians are swapping hotels for Orlando vacation homes.

What is the expected return on rent?

It’s hard to say or guarantee a return on rental homes in Orlando. It is possible to predict something between 6% and 8% per year. This percentage can reach 10% or more depending on the profile of the property.

Larger properties, with more than 5 bedrooms, tend to have a higher return. That’s because many people travel in groups. They can all be members of a single family, group of friends or even a corporate group that will participate in an event in Orlando. Larger houses tend to have more output to serve this type of public. In addition, even if the rate is more expensive, as it is a larger property, the value per person becomes smaller (more people sharing). A spacious house, in this sense, becomes more interesting for both the owner and the guests.

Orlando homes for sale near Disney also offer more outlets. Tourists want the convenience of being close to parks.

It is also important to highlight that the return is influenced by external variables, which are beyond the management’s control. Economic, climatic and other variables affect the expected return on rent.

Property occupancy rate

The occupancy rate of a vacation home in Orlando, in regions with strong demand such as Kissimmee for example, is between 75% and 80%. In the article What is the Occupancy Rate for Orlando Vacation Rental? we explain in detail the behavior of demand in different months of the year.

What is the approximate daily rate to be charged

Orlando vacation home rates range from approximately $125 to $250 (homes larger than 6 bedrooms may be considerably more per diem). This amount can be considerably higher in high season periods, increasing the expectation of the expected return on rent.

Online platforms make renting easier

The rental of the house can be managed by an administrator in Orlando or by the owner. With the arrival of online short-term rental platforms, the process became easier and more profitable.

Even with the practicality of online platforms, not everyone who buys homes abroad wants to have the trouble of managing seasonal rent. For this reason, most investors choose to hire the services of a management company in Orlando. These are called “Property Managers”.

The condominium where the house is located already offers some Property Manager options. The advantage is that they take care of everything, from advertising and attracting the customer, to maintenance, check-in/check-out and collection of values. The landlord doesn’t even have contact with the tenants. Learn more about the total rent management service offered by rental companies in Orlando in this article: Total Rent Management

Orlando Launches Guarantee Minimum Return on Rent

Some Orlando launches guarantee a minimum return on the property’s rent for the first two years. Usually the guaranteed return is 6% per year and the owner must follow certain rules to participate in the program.

Investment leverage

The great strategy behind the purchase of Vacation Homes in Orlando is that it is possible to leverage the investment through American banks, taking advantage of the low interest rates in the USA. The loan installments can be paid with the income from the rent itself. Learn more in the article: How to leverage your investment in Orlando

Want to learn more about Orlando investments?

CAP International is a global real estate company specializing in Florida. If you want to know more about the real estate market in Orlando or another region in Florida, contact me right now and chat with me on WhatsApp: +1 305 318 6968 (Heloisa Arazi).

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