Kissimmee / Davenport 5+ bed STR post Covid

[Sebastian P.]

Hi all, I'm looking at entering the Short Term Rental Market in Kissimmee / Davenport. I'm just looking for any advice/recommendations/sanity check.

Is it a terrible idea to be looking at buying down there right now?
I assume occupancy numbers have dropped a lot due to Covid as MLS prices look to be dropping.

What else should I be wary of?
What other questions should I be asking?
Should I wait longer to see if prices drop further?

I'm based up in Canada so will likely have to make a corporation I assume.

Many thanks for any information!

[Alice Horn]

Hi @Sebastian P.!  

Demand for properties near Disney is actually quite high at the moment. We manage 79 properties in that market, and ended the summer at 66% occupancy overall for all of our homes. Many of our top properties were well above that, in the 80's. Overall,it's slightly below last year, but still very positive, and we are seeing occupancies and rates bounce back.  

Here are some things to consider.  

Travel patterns are changing post-Covid. This means there has been a strong uptick in the demand for vacation rentals as opposed to hotels. Families are looking for the privacy, control over their environment, and social distancing they can find in an STR.

With work and school schedules changing due to remote work and learning, families may start traveling in the previously "slower" months. They are eager for a change of pace, and spending time in a pool home in a resort with all the amenities is very appealing. 

Not everyone is ready to go back to the theme parks yet, but we anticipate significant pent up demand when things return to normal. 

- What else should I be wary of? - Look for homes in communities with strong HOAs. Yes, the fees may be a bit higher, but the demand and rates will be higher in these communities. Plus, you will have an added layer of security.

- What other questions should I be asking? - Ask for transparency. Booking history on the home/community you're interested in, and even an example of a statement. 

- Should I wait longer to see if prices drop further? Jury's out on that one. Some people do believe that overall, prices may drop once mortgage protection ends in October. I would say that if the numbers check out on a property and your projections are sound, the timing is up to you. 

Good luck, and let us know if we can help provide any analytics or projections for a specific home and community.