Over the last few years, we have seen an explosion in the term “Airbnb homes“. What this actually equates to are properties that have been zoned for legal short term rentals. Having a home zoned for short term rentals is an extremely valuable asset as it gives you the opportunity to rent the property “per night” much like a hotel does. Of course, like a hotel you are also responsible for paying the relevant state and county taxes on this (added to the renter’s nightly rate) and also things like the utilities etc which are usually included in the nightly rate.
Are all homes in the Orlando Disney Area able to be rented as Short Term Rental Homes?
No! In the four counties that allow short term rentals surrounding Disney, Osceola, Polk, Lake and Orange, there are certain communities that have been legally zoned for short term rentals. This means that renters can usually occupy the homes on either a short term rental basis (ie. 1 night or more), long term basis or use it for residential purposes.
Now, here comes the tricky part. There are some communities that do not allow residential at all OR long term rentals. So please ask me if there is a home you have seen advertised on the Internet, that you wish to use for specific purposes. Please remember that you will also need to take into account if the community allows no more than 30 days as that will restrict you on some rentals. Plus you will need to bear in mind that 6 months+ will constitute a long term rental and then residential rules and laws apply. So there are several things that you need to take into consideration as we navigate our way through the sales process.
How much will I get per night for my home?
That is probably the number one question I get asked by every buyer BEFORE they have found the home they wish to buy! It’s almost impossible for me to answer this. As I have explained before in other posts, this is really dependent on the community and the location. Not all 4 bedroom properties are worth the same to purchase, therefore they are not all worth the same on the Airbnb rental market. Once we have identified where you wish to purchase and then what type of home you wish to purchase, then we can start to request local management companies (or in the case of a resale, the seller) for financials for similar homes that they have in their pool of rental properties. This will give us a far more accurate figure than guesstimating, which I just won’t do!
Of course you will need to be registered by the City and County that your property is located in and they will give you a list of requirements that you will need to fulfill in order to get your Lodging License, which you will have to renew annually.
Here is direct information from the DBPR:
Vacation Rentals & Timeshare Projects
The Division of Hotels and Restaurants is responsible for regulating public lodging establishments in Florida. Florida law defines a “Public lodging establishment” as transient public lodging establishments and non-transient public lodging establishments. [Section 509.013(4), FS]
Vacation Rental: Vacation rentals are transient public lodging establishments defined in s. 509.242(1)(c), FS, as: any unit or group of units in a condominium or cooperative or any individually or collectively owned single-family, two-family, three-family or four-family house or dwelling unit that is also a transient public lodging establishment, but that is not a timeshare project.
Licensing: To obtain a Vacation Rental or Timeshare Project license you need to fill out an Application for Vacation Rental or Timeshare Project License. The application packet is available at https://www.myfloridalicense.com/intentions2.asp?chBo ard=true&boardid=200&SID. The Application for License must be submitted along with the following items: A list of all units or houses to be licensed. A completed DBPR HR-7020, Certificate of Balcony Inspection if the units or houses are 3 or more stories in height and the railings, stairwells and/or balconies are not in common areas. Appropriate Fees: Fees are based on the number of units to be licensed. An automated fee calculator and fee tables are provided on our website at our lodging license fee page. You also can contact the Customer Contact Center at 850.487.1395 to obtain the correct license fee. In addition to the license fee, there is a one-time application processing fee of $50.
General: License must be current and renewed annually. License shall be conspicuously displayed in the office or lobby (if available) or made available upon request. Any change in the number of units must be reported to the division. License is not transferrable from one place or individual to another. If provided, baby cribs must meet safety standards established by the Consumer Products Safety Commission.
For further information on Short Term Rentals and When A License is Required, please visit:
http://www.myfloridalicense.com/dbpr/hr/forms/documents/5025_753.pdf
Can I do my own Airbnb rentals or can I use a management company to do that?
It depends on the location. There are some short term rental communities where you must sign up with their on-site management company, and these are usually condo communities that literally operate like 4-5 star hotels. The upside on this is that you know you will be in a rota of similarly furnished homes and usually have regularity of occupiers. Some condo communities actually offer new owners a leaseback for a year or so. This gives the new owner the opportunity of having a fixed ROI income whilst they are getting used to the first few months of their new business venture.
In most communities you can choose to do your own Airbnb rentals or work hand in hand with a local property management company. These companies are already high profile on travel platforms like Airbnb. Of course, you will have to pay a monthly management fee to them and some people prefer to just ‘go solo’ and forego the fee. For others, who may be overseas owners or, in a different state, they prefer to know that there is a local management company who is there to take care of any difficulties or emergencies quickly.
For further information on short term rental villas and homes for sale in Orlando, Florida please do not hesitate to give me a call on 407-259-6211.