Hi all! Stumbled across this site and forum quite by accident, and I'm hoping to obtain some information. I have a unique opportunity in the near future to relocate to Orlando Fl, for the purpose of school. My thought process is that since I'm not sure once schooling is complete if I will remain there, I have been reviewing properties there that are zoned for short term rental purposes. I realize that since I will be occupying the residence for the first 18 months that these inquaries could be a tad premature, but I really just want to make sure this transition goes as smoothley as possible. So my questions are, are there any special circumstances I should/could be looking for now that will help me when I'm ready to rent my property?? Are there realtors whom specialize in just short term rental properties? I've read on a few instances where short term rentals are governed highly, and getting tougher in the state of florida, is that true?? I have a host of other questions, but these should get me headed in the right direction. Any information I can obtain to push me in the right direction would be greatly appreciated.
Thank you,
GinaJ
Realtors don't dedicate much time to vacation rentals usually. However, there are many vacation rental managers that should be able to assist you. I recommend you visit the Vacation Rental Managers Association website (vrma.com) for finding vacation rental managers in the area your are planning to move to. Only in very few areas in Florida laws got tougher in regards to vacation rentals. However, in the area you are looking for there is a pretty big vacation rental marketplace.
Good Luck!
Actually - in the Orlando area, there are realtors that specialize in vacation home market and that have a great deal of knowledge of the short term rental market! We found one while on vacation in Orlando (we just picked up a free magazine at the grocery store that focused on vacation homes). We have now used our agent twice (first home purchased in May, 2007 - second one being built!) - in Orlando, it is a great market but it is huge, with TONS of options - a good realtor can make the process very pleasant!
Best of luck to you!
Deanna Quinn
Quinns Vacation Homes
i do agree with quinn, realtors specializes in vacation home rentals.they don't dictate what to do.it would be your call.
I'm looking for information from someone who has gone through the process of selling their vacation home. I've been a lodge owner for 4 years & was thinking of looking into selling. Any comments...
Linda - Home in Tahoe ... leader in lake tahoe real estate
Hi Gina,
I would be very cautious about purchasing a short term vacation home in the Orlando area. If you are going to school most of the vacation homes are located in Osceola County and North Polk County which is a pretty good drive from most schools located in Orlando.
In my opinion vacation homes are not investments but rather luxury items that should only be purchased by someone that enjoys vacationing in Orlando and can afford the cost of owning and maintaining a second home. I would not look for a vacation home in Orlando to have a positive cash flow if you choose to not stay in Orlando after school.
Orlando has been hit pretty hard with the down turn in real estate and there are some really go buys out there. With so many homes in Orlando available for both short term and long term rental you may want to rent for a while and see if Orlando is for you. For a long term investment you may find a home near the school you are going to attend that is for long term rental use that you can rent out long term if you choose to leave Orlando after attending school.
Short term rentals in Florida are governed under the Florida Statue 509 which also covers other short term lodging like hotels and campgrounds. Florida is a short term rental friendly state and I do not see any reason for that to change. In Central Florida the short term vacation homes add millions of dollars to the local economy.
Make sure to keep doing your homework.
Gina, the advice Brian gave you is excellent...I agree with him 100%
The first question to ask yourself is if you are buying this vacation rental as an investment that will cashflow or as a second home that you would like to have cashflow, but are banking more on appreciation.
In order to figure out either, here are some of the first pieces of info that you’ll need to gather: information on the real estate market in the vacation area that interests you, as well as what the estimated income and expenses will be for an average property. (P.I.T.I. *principal, interest, taxes and insurance as well as utilities, and misc expenses like property manager fees.) Start out by looking at some data points to consider when analyzing the stability of different real estate markets (these tips go for any market, not just vacation areas.) First you’ll need to speak with a Realtor in the area who can give you certain MLS data. What you are looking for is:- The average days on the market for homes in that area over a six-month period - The list price (what the home is listed for) to sale price (what it sold for)- The number of homes currently on the MLS in that area*All of this information you will want to see for a consecutive period of six months (give or take.)The reason that you will want to see a six month or so period of time, is so that you can see if there are any trends in the market. You will also want to make sure that the same data points are being tracked, such as price range and area of homes. Data that is outside of these points can dramatically skew your results, so review them carefully. If even in doubt of what you are looking at, ask your Realtor. So now you’ll need to analyze this data. Are there more homes on the MLS now then there were 6 months ago? More homes on the MLS can mean that supply has flooded demand, which generally leads to more of a buyer’s market. This is helpful information for you to know, as it may impact the offer that you make. Have the average days on the market decreased or increased? If the average days on the market have increased it may be a sign that the real estate cycle in that area is turning into more of a buyer’s market as properties are sitting longer. Are sellers getting close to their asking price for their home? This number generally appears in the form of a percentage such as 93.5%. What this means is that of the homes in the price range that you had your Realtor research, the sellers are getting 93.5% of their asking price. If this number starts dropping every month, then this is also another signal that it is a buyer’s market. As a general rule of thumb when considering if a rental property is a good investment or not, a property should ideally be able to cash flow (meaning that your rental income should cover your mortgage and all other expenses associated with the property) as well be in an area that is appreciating. If pressed to chose one or the other, choose a property that cash flows, as we all know that the real market fluctuates, and if it does, you want to make sure that the property can support itself. If you are looking at all possibilities, then here are some basic facts you’ll need to gather first:- When is peak season?- How long is peak season?- What are the rental rates for comparable properties out there?- How many days a month (and days a year) are comparable properties renting?- What are the upkeep, taxes and utility costs of the property?In a nutshell, your goal is to try to gather as much info on your projected income and as much info on your expected expenses in order to determine if the property will make a solid (money making) investment.
This is just a start of the info you will need, however, don't let it overwhelm you! I own a handful of vacation rentals, as well as a property management company and an online business dedicated to vacation rental reservations. I can tell you that I have made countless mistakes. Joining a forum like this and asking different owners will help you shave years off of the learning curve!
:) Dana
www.ReservationsRightNow.com/forum
Linda,
Is your property a lodge (commercial property) or a vacation property (residential)? If it is a commercial property, I would start by gathering the Cap rate info for comparable commercial properties in your area. You may also want to consider listing your property with a real estate exchanger. ...I will have to ask my friend who they use, and post that link later.
If your property is residential, then I'd try to sell it as an investment property, which means you'll need to gather all of your rental income and expenses to calculate your NOI.
Hope that helps! :)
http://www.ReservationsRightNow.com/forum