Short Term Rental in Orlando/ Disney Area

[Shawn Green]

Hey Guys,

I'm a first time poster as I'm new to the Disney STR world. Id like to get a sense from some STR owners as to some of the assumptions I can make in my general underwriting. I'm in the process of purchasing a 9 BR in Solara Resort.

Firstly, Today as the vaccines rollout to the general population, what is the general occupancy rate ?

How much can i expect for management fees, I've seen ranges of 10-20%

on a 9BR what are the expectations for Utilities? i.e. Gas, water, electric, Pool?

I've interviewed a number of management companies, and have seen pros and cons on mom and pop, vs. large sophisticated. any insights as to how this will playout in Disney. My feeling is that Mom and Pop breathe the home, while larger may have greater access to booking tools?

Also, trying to get a general sense of maintenance and Capex. while the home and furnishings are brand new, what are the general maintenance and repairs expectations ? how often should i expect to change furnishings? i.e. Living room /pool/mattresses?

I would like to transform 2-3 bedroom to super hyper Disney themed. inclusive of slide bunks, wall wrap, lighting, sound etc. has anyone done this and give insights as to the general cost?

lastly, we are strongly considering finishing the garage into a high end game room. what can I expect for cost as to "go all out"

my apologies for the ramble, but any insights would be appreciated ! :)

Cheers,

Shawn

[Serena Kim]

@Shawn Green

What everyone here has said is very true. My four Orlando/Kissimmee STR occupancies' have been > 90% over the past few months, and already booked over 90% for the next two months. I keep increasing prices to levels that would have been impossible 1-2 years ago, and still getting booked. As an example, my oldest 3Br grossed $42k in 2019, $35k in 2020, and should do well above $55k in 2021 at this pace.

I self-manage my own properties, but it took a long time to get a system and people to work well. If you don't like dealing with all the minutiae that comes with working with guests and big houses, I would highly recommend a property manager. Just make sure you are listed at a minimum in Airbnb and VRBO (which used to be < 5% of my business, now growing to 10-20%). 

Now, expenses:

Towels and beddings are one of my main costs - keep 3 sets per bed/person and replace every 1-2 months

Furniture - I've been lucky, haven't had to replace any big piece of furniture (I've had guests brake entrance doors and and other wild things, but those are 1 in 100)

Camera - putting a camera in front of the house was a game changer for me! Amazing how well people behave once they know they may be recorded

Repairs - HVACs seem to have a system for breaking every summer during the hottest days. Expect $200-500 bill in August, even when you give it the semi-annual maintenance. Same with pool water heater. From our 4 houses, 2 had issues this winter (another $200-400 bill). 

Appliances don't seem to break that often. Either the washer or dryer can be expected to malfunction given the very heavy use cleaning bedsheets and towels after every check-out. And guests use it as well, and they rarely clean the dryer vents.

Maybe too much detail, but hopefully this helps out!

Serena