According to Property Management (2019), there are almost 450 million vacation rental users in the world. These users spend more than 29 billion dollars on rent alone. If you haven’t yet considered investing in a vacation condo, you’re missing out on your share. Let’s see the advantages of this thriving business and how buying houses in Orlando for summer can become your best business option.

What is a vacation condo?

To understand this term, let’s first look at the definition of condominium. According to the RAE (n.d., definition 1) it is “a property that belongs collectively and indivisibly to a group of people without allocation of quotas between them”.

For example, if you buy homes in Orlando on a condominium basis, you share a private space with the other owners. This space could include common recreation areas, security, among other amenities.

In that sense, a vacation condominium is a complex of houses or apartments professionally conditioned and managed for the temporary use of tourists. This, as an alternative to a hotel. In fact, you can invest in this property for a double purpose: vacation with your family or share with friends three or four weeks of the year and rent to tourists for the rest of the time (Casale, 2020).

Advantages of condominiums over other types of investment

Here are some advantages of investing in vacation condominiums, compared to other types of real estate investments:

  • You get greater profitability. Homes in Orlando and other vacation rental cities have a much higher rental cost than apartments for housing purposes.
  • Tourists prefer vacation condos because they are cheaper than a hotel. In addition, they have amenities and activities that allow people to share social experiences. This is not offered by a single home.
  • The vacation condo business is booming. Property Management reports that there are 23 thousand companies that offer this service only in the United States. In addition, the business projects revenues of more than $88 billion by 2023.

Why buying homes in Orlando can be a good investment option?

The city of Orlando is one of the main cities in the state of Florida. Loved for its pleasant climate, its lush vegetation and its paradisiacal beaches. In addition, there are Orlando’s favorite parks for families around the world: Walt Disney World Orlando , Universal Studios and SeaWorld.

This tourist ecosystem makes Orlando one of the favorite cities for vacations. Thousands of vacationers prefer to rent one of the beautiful homes in Orlando, rather than a hotel room. This is why the occupancy rate of these properties remains around 60%. (Andreevka, 2018). This would allow a higher return on investment (ROI) than an apartment dedicated only to housing.

Houses in Orlando: why invest in vacation condos?

4 Recommendations for Investing in Home Condos in Orlando

You may be wondering: what should I do to invest in home condos in Orlando? Let’s look at the following recommendations:

1. Choose the right location of homes in Orlandor in which you are going to invest

Choosing the right location can increase your ROI. Many people around the world dream of traveling to Orlando just to enjoy Disney attractions. For this reason, Rented (n.d.) recommends investing near the Orlando airport or the roads leading to the Disney World complex.

2. Analyze the rules of the condo where you intend to buy homes in Orlando

Including maintenance and collective service costs in the rental price is more competitive than adding them as an additional cost. Also, make sure you publish the rules on the digital portals where you will advertise your property and that the tenant accepts them when hiring your home.

3. If you’re buying homes in Orlando with a mortgage, consider your income

While the initial is around 20%, the mortgage payment should not exceed 36% of your income. This does not include potential income from the property itself (Duling, 2018).

4. Create a marketing plan immediately after purchase

List your property on all Orlando home websites. Such as Airbnb, Homeway and Homestay. You can also negotiate with travel agencies that offer Orlando packages for tourists. Duling (2018), reports that Orlando received 75 million visitors in 2018. This, along with the fact that people prefer to stay in vacation condos, is the ideal scenario to invest in homes in Orlando. If you dare, follow the tips we describe and seek advice from an experienced Orlando real estate business professional.

References

Andreevska, D. (November 17, 2018). Airbnb occupancy rate by city in florida 2019: what to expect. Retrieved from https://www.mashvisor.com/blog/airbnb-occupancy-rate-by-city-florida-2019/#:~:text=Let’s 20take 20a 20look 20at,Orlando%3A%2059.5%%20take%%20look%

Casale, P. (2020, January 21). Benefits of investing in vacation properties. Forbes. Retrieved from https://www.forbes.com.mx/beneficios-de-invertir-en-propiedades-vacacionales/

Duling, T. (2018). 9 steps to buy a vacation rental in Orlando (a place that saw 75MM visitors in 2018!). Retrieved from https://www.biggerpockets.com/blog/buy-vacation-home-orlando

Property Management. (n.d.). Vacation industrial rental statistics. Retrieved from https://ipropertymanagement.com/research/vacation-rental-industry-statistics

Royal Spanish Academy. (2001). Condominium. Dictionary of the Spanish Language. Retrieved from https://www.rae.es/drae2001/condominio

Rented. (n.d.). Tips for buying an Orlando vacation rental property near Disney with high ROI potential. Retrieved from https://www.rented.com/2017/02/23/tips-buying-orlando-vacation-rental-property-near-disney-high-roi-potential/