All Forum Posts by: Keith Courtney

Aaron -

It appears you are well on your way in your analysis of where the opportunities are in your search of our short term rental market here near Disney World.  A few things I can add to what you have already discovered -

Encore At Reunion - It's in a great location, and, when you buy in there, you have access to the amenities in Reunion itself.  The problem is, as you have already discovered, you have to use one of their designated property managers.  You can't make money paying their high commissions on your home's rentals.  The same developers are the owners of Margaritaville, and they have the same property management requirements there.

Reunion - Great location, beautiful homes, 3 championship golf courses, multi-million dollar water park and award winning tennis center - Appears great, but it's hard to make a profit.  The expenses are higher and there are limitations on how much your guests can use the amenities.  The only homes that I see making a good profit are the multi-million dollar homes.

ChampionsGate - Of the three vacation home communities, I think this is your best chance of making a profit.  I encourage you to go on Airbnb and HomeAway/VRBO and look at the homes that are renting the best at the highest rates and emulate them.  Regardless of which home you buy, you will need to spend some money in upgrades and fun features to maximize rentals.

One last note:  I would not put too much of emphasis on a PSF analysis.  While that works with long term rentals, it does not work well with short term rentals here.  I often see short term rentals with a higher PSF (sometimes much higher) perform better than those with a much lower PSF.  

Hope this helps.

Keith

Vincent -

I assist people with the purchasing, managing and short term rentals of vacation homes here in the Orlando area around Disney World.  Even though there is a lot competition here from other short term rentals, there is good potential here for profit if done correctly. The homes that do well stand out against the competition.  They have been renovated (if not new), and they are loaded with features and amenities that attract travelers - features like themed kids bedrooms, video games, flat screen televisions and a garage that has been converted into an air conditioned game room or movie theater.
A number of potential investors call me stating they have the 20% down for the mortgage, but they don't have the extra cash to pay for any renovations, which can't be financed.  I strongly discourage them from buying.  The renovations are critical. The most important numbers in a P/L for a short term rental are the average nightly rate and the occupancy %.  Homes that have been renovated incorporating the features described above have a much higher average nightly rate and a much higher occupancy %.  The result is a much higher profit.

One last comment and this is directed to @Paul Sandhu - I totally enjoy your comments.  I deal with people from all over the world - many going to Disney World and the other theme parks.  It makes my life interesting, but your experiences with your renters are far more "interesting".

Keith

Hi Joshua -

I deal a lot in short term rental vacation homes in the Disney World area and am familiar with Margaritaville.  I would encourage you to contact their sales team and ask for contact information for the approved property managers.  I would then contact the property managers and ask for their charges especially what they charge for short term rental marketing.  Unless something has changed recently, I think you will find it will be very difficult for you to profit on one of the homes because of the high percentage they charge for each booking.

Keith  

Robert -

I would recommend a townhouse in certain short term rental vacation home areas near Disney World.  Easier to buy and sell mainly because financing is easier and cheaper.  Also, as a general rule, townhouses will rent for a higher nightly rate and more often.

Feel free to contact me if you would like me to give you some specifics.

Keith

Collin -
Go on HomeAway, VRBO and/or Airbnb and look at the calendars of comparable short term rental vacation home properties in the area of the home you are considering purchasing.
Here in the Orlando area, the nightly rates and occupancy %s for homes that are new or newly renovated with fun amenities are significantly higher compared to those that need renovating and offer limited fun amenities. I am sure this fact will also apply in your situation. If your home is new or newly renovated, it will stand out against your competition. You can anticipate your rates and occupancy %s will be higher than the rates and occupancy %s of your competition that need renovating that you may see on the listing websites.
Good luck,
Keith

@Kevin Coleman -

Here are answers to your questions:

1) Buying a short term rental vacation home here in the Orlando area doesn't involve any special requirements than in other states.
2) You will need to use a lender licensed in Florida.  I have some very good lender contacts for vacation homes.  
3) Success will be contingent on a number of factors.  To name a few - the vacation home and the community it is in; your property manager; and, your short term rental marketing. I can provide you with pro forma statements to give you a good idea of what you can expect for income, expenses and profit for various vacation homes here.  The pro forma statements are based on the income and expenses of comparable homes currently being short term rented.
4) HOA fees do vary from $500+ per month to zero. The HOA fees are worth it in a lot of cases when you analyze what all is covered by the fee.

Keith  

Warren -

I can help you.  I deal almost exclusively with short term rentals in the Kissimmee area near Disney World.  I can send you pro forma statements and other helpful information.  I'm going to private message you.

Keith

Hi Chris -
I deal almost exclusively in short term rental properties in the Kissimmee and Davenport areas.  Combining my efforts with a property manager, we help people purchase vacation homes, renovate them when needed, manage them and short term rent them.
The process all starts with finding the right vacation home in the right vacation home community.  A large part of the initial advice I provide people potentially interested in buying a vacation home here in the Orlando area is built around pro forma statements that we have created based on actual rental incomes and expenses.
Feel free to private message me if you feel that I can help you.
Keith

Hi Ken -

I can help you.  I have been a part of a lot of transactions in the vacation home communities you mentioned plus in some other communities in the same area around Disney World.  I have pro forma statements on various short term rentals in those communities and others that I will be happy to send to you that will help you in making a decision.  I have a few questions that I will send to you via private message, which will enable me to pinpoint which pro forma statements to send to you.
If you will be financing your purchase, I also have excellent lender contacts for financing as second homes or investment properties (some projected rental income will be used toward qualification).

Keith

@Patrick Philip -

I would not be too concerned about square footage of vacation rentals.  The number that is most important to renters is the number of bedrooms.  I have found that renters don't read much of any listing.  They mostly look at the photos, which need to be top quality.
I would look at current rental listings in your area on Airbnb and on HomeAway/VRBO and look at their nightly rates and look at their calendars.  You will learn a lot about your rental market by doing this.  I am in Orlando, and I have found that the short term rentals that are either new or that have been renovated and that offer the best amenities (i.e. - game rooms, movie theaters, themed kids bedrooms) rent for higher nightly rates and more often.
Keith