Is Owning a Vacation Rental a Good Investment?
A vacation rental investment can be a lucrative endeavor with the help of a defined business model and clear plans of action to follow.
Short-term rental investing also differs from real estate investing. A traditional real estate investment offers a more stable, consistent income. A short-term rental investment, on the other hand, offers higher profit margins and more room for growth and scaling.
Ivesting in vacation rental properties is one of the best ways of making money and building wealth in real estate. Recent statistics show that hosts generated gross revenue of $14.2 billion in North America in 2019. Due to the Coronavirus-induced travel restrictions and stay-at-home orders, gross revenue dropped to $12.6 billion in 2020. However, with the release of the Covid-19 vaccines and the reopening of economies in 2021, the short-term rental industry is expected to rebound in a significant way.
The occupancy rate is the number of nights a vacation rental is booked divided by the number of nights available. It’s in your best interest to invest in a property that shows a higher potential occupancy rate.
Why Orlando area?
The Sunshine State is the third most populous state in the US. With its pristine beaches, warn climate, and wide array of attractions, Florida continues to attract millions of tourists every year. Popular attractions in the state include the Kennedy Space Center, Disney World, Universal Studios, Clearwater Beach, The Ringling, SeaWorld Orlando, and Salvador Dali Museum. VisitFlorida.org reports that 86.7 million people visited Florida in 2020, which is a 34% decline from the previous year. However, the numbers are expected to go up significantly in 2021, thus creating a huge demand for short-term rentals.
How to Invest in Vacation Rentals
The location of a property is one of the most crucial factors in determining its value. Remember that while you should consider a property’s cost, the property still needs to be in a reasonably safe and attractive area to draw in guests.
Vacation Rental Demand
Consider the overall traffic and popularity of the area. Is it a year-round popular destination, or does it only get busy sporadically throughout the year? All of these elements can influence the vacation rental demand of an area.
5 reasons to invest in short-term vacation rental property
1. The short-term rental market is growing.
2. Short-term rentals can make more money than long-term rentals.
3. A short-term rental property can help diversify your investments.
4. Short-term rental properties can be found for any taste and budget.
5. You’ll have a vacation home to enjoy!
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What Our Clients Say
Townhouse 3 Bedrooms / 2 bathrooms 17' to Disney
Property cost : $ 205,000
Monthly Income : $1,800 ( Annual : $21,600 )
ROI : 10,5%