Should you invest in Airbnb vacation home rentals in Orlando? Most definitely! The Orlando real estate market is, by far, one of the best places to purchase an Airbnb investment property. While the same can be said for most Florida vacation rentals, it can be argued that vacation home rentals in Orlando are some of the best in The Sunshine State.
Related: The 7 Best Places to Buy a Vacation Home in Florida
So, why should you invest in Airbnb Orlando, how profitable are Airbnb vacation home rentals in Orlando, where should you invest in Orlando real estate for Airbnb, and is Airbnb legal in Orlando? This blog will answer these four questions clearly and completely.
Is Airbnb Legal in Orlando?
Let’s start with the most fundamental question, is Airbnb legal in the Orlando real estate market? The answer is a resounding yes! The city has been open to Airbnb investing for some time and has also added recent Airbnb regulations that ease operating an Airbnb vacation rental property. In February 2018, the city passed an ordinance that allows Airbnb hosts to rent out their short-term rentals for fewer than 30 days. These Airbnb regulations also require the host to live on the rental property. Despite these regulations, Airbnb vacation rental investing may not be allowed in some areas due to zoning and homeowner associations. This, however, is the only concerning issue with Airbnb Orlando, and it is easily avoidable if the host does research before investing in the property. To learn more about the legal requirements of Airbnb Orlando, visit Airbnb’s Orlando regulations guide.
Why Should You Invest in Airbnb Orlando?
Next up, why should you invest in Airbnb vacation home rentals in Orlando? There are two main reasons: Florida’s wonderful sunshine and the world’s most famous rodent.
Orlando’s tourism is top-notch, especially because of the two aforementioned factors: Florida’s beaches and Disney World. Orlando’s unbelievable tourism statistics back this up. In 2015, Orlando was the first and only city in the world with 60 million tourists visiting it. New York City did not reach this number until two years later. Most recently, in 2017, Orlando beat its record once again when a whopping 68 million people visited Orlando. Airbnb vacation rental investments clearly benefit from these massive waves of tourists. Just later that year, about 215,000 people were guests in Airbnb vacation home rentals in Orlando.
How Profitable Are Airbnb Vacation Home Rentals in Orlando?
The next question we have to tackle is how profitable are Airbnb vacation home rentals in Orlando. According to Mashvisor’s investment property calculator, the answer is very profitable, with the average Airbnb investment property generating $1,156 in rental income. Here’s the Airbnb Orlando real estate data according to Mashvisor. To learn about our investment property calculator, click here!
Related: Buying Rental Property Calculator: The First Thing to Do in Real Estate Investing
Median Property Price: $343,663
Rental Income: $1,156
Cap Rate / Cash on Cash Return: 1.46%
Where to Invest in Airbnb Orlando Real Estate
One question remains unanswered: where should you buy Airbnb vacation home rentals in Orlando? Once again, Mashvisor has the answer. According to Mashvisor’s real estate market analysis, the best neighborhoods to buy an Airbnb investment property in Orlando are Delaney Park, Millenia, Florida Center North, Florida Center, Lake Eola Heights, Thornton Park, and Central Business District.
Delaney Park
Median Property Price: $509,300
Rental Income: $3,037
Cap Rate / Cash on Cash Return: 2.02%
Occupancy Rate: 68%
Delaney Park is the Orlando neighborhood with the highest average Airbnb rental income. It’s safe to say that Airbnb hosts in this area are making money in real estate.
Millenia
Median Property Price: $79,000
Rental Income: $1,882
Cap Rate / Cash on Cash Return: 8.76%
Occupancy Rate: 59%
Millenia’s median property price is the lowest in Orlando, and the only one under $100,000. This low price, coupled with its high Airbnb rental income, help it generate the highest return on investment in Orlando real estate. Without a doubt, this ROI is also one of the highest in the entire Florida real estate market.
Florida Center North
Median Property Price: $223,641
Rental Income: $2,073
Cap Rate / Cash on Cash Return: 3.17%
Occupancy Rate: 57%
Is Airbnb a good investment in Florida Center North? According to Mashvisor’s data, absolutely! It is one of only three neighborhoods in Orlando with over $2,000 in Airbnb rental income.
Florida Center
Median Property Price: $374,271
Rental Income: $1,927
Cap Rate / Cash on Cash Return: 1.73%
While Florida Center does not quite match up with Florida Center North, it is surprisingly close. It may have a more expensive median property price, but its Airbnb rental income is not too far off from that of its northern neighbor.
Lake Eola Heights
Median Property Price: $569,950
Rental Income: $2,381
Cap Rate / Cash on Cash Return: 1.55%
Occupancy Rate: 60%
Lake Eola Heights is one of the best places to buy Airbnb vacation home rentals in Orlando. Despite their above-average property price, investment properties in this area generate high Airbnb rental income and are consistently occupied by guests.
Thornton Park
Median Property Price: $448,330
Rental Income: $1,899
Cap Rate / Cash on Cash Return: 0.79%
Occupancy Rate: 62%
Thornton Park’s above average rental income and property prices help cement it as one of the best neighborhoods in Orlando for rental income and long-term appreciation.
Related: How to Calculate Real Estate Appreciation
Central Business District
Median Property Price: $334,000
Rental Income: $1,987
Cap Rate / Cash on Cash Return: 0.2%
Occupancy Rate: 60%
The last neighborhood on this list, Central Business District, is close to the city’s average for property prices, but it is well above average in terms of rental income. This area is definitely one Airbnb real estate investors should consider.
Airbnb vacation home rentals in Orlando are some of the best an investor can find in the Florida real estate market. With its conducive Airbnb regulations, record-setting tourism numbers, and statistically high Airbnb rental income and ROI across the city and its many neighborhoods, the Orlando real estate market is ripe with Airbnb money-making potential. To start searching for an Airbnb investment property in The City Beautiful, click here
1 Comment
I found this article on october 2019 and it called attention on the optmistic view of the author. I personally own 3 vacation home properties in Kissimme that are listed in Airbnb and, as a Superhost I am doing short term rental for 8 years, so I believe I have a good experience and knowledge on this matter. The reality of the short term rental market is not as good as this article tries to demonstrate. While Airbnb as a platform offers good partnership to generate business and increment your occupation rate, it also constantly push the location rates down, in several ways, making the hosts to strugly with low profits. I know whell all cost structure for vacation rentals and the need to maintain, renew and improve the houses to keep them attractives. Based on the rates I have observed some hosts offering, I strongly believe they are even not making any profit with their properties. Finally I am not saying the author is 100% wrong, but I strongly adivse potential investor to better study the market before put your money on this.