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Orlando Airbnb Occupancy Rate: Top Events Every Airbnb Host Should Know

Post author By Ramon Meris
Post date June 13, 2023

orlando airbnb occupancy rate

Key Takeaways

Orlando Airbnb occupancy rate fluctuates as events happen. The challenge for Airbnb hosts is the strategic pricing of their short-term rental units during peak season. The good news is Airbnb historical data can guide them to maximize their profits during peak seasons.

Introduction

Orlando, Florida is a world-famous destination for its theme parks, beautiful weather, and countless attractions. As an Airbnb host in this exciting city, it’s important to stay informed about the top Orlando Florida events to help you stand out in its highly competitive short-term rental market.

In this blog post, we’ll highlight some of the top events in Orlando you should know to up your Airbnb pricing strategy. So whether you’re a new host or a seasoned pro, read on to discover how you can make the most of the many events that this vibrant city has to offer.

Is Orlando a good city for Airbnb?

Definitely yes! Airbnb hosts who operate a 2-bedroom property earn an average of $43,072 in annual revenue from the 72% occupancy rate. The average booking lead time in Orlando is 44 days, so you are ensured that your property will be booked more than one and a half months in advance. The average nightly rate for the said property size is $144.

We get it – the numbers are enticing. Interested to be an Airbnb host in the city? Make sure to know the airbnb rules in Orlando. But if capital hinders you to be a host, there’s rental arbitrage – an affordable and completely legal way to start an Airbnb. And lastly, If you plan to expand your rental market portfolio in the city, check out the profitable locations for Airbnb in Orlando.

Top Orlando Events Every Airbnb Host Should Know

All Airbnb hosts in Orlando definitely know the following events. But strategic pricing during Orlando’s peak season is what they may be missing out on. The good news is historical data can help hosts guide them to maximize their profits during peak seasons.

Below are some of the top events in Orlando and how much Airbnb hosts cashed in during these peak seasons, as confirmed by Airbtics’ Granular Data Feature.

1. Orlando Fringe

Attendees: 48,000
Where: Loch Haven Park
When: June 3 – 17, 2022
- Booking Lead Time: 21 days
- Occupancy Rate: 30%
- Average Nightly Rate: $145.5

2. Fiesta in the Park

Attendees: 150,000
Where: Downtown Orlando
When: April 1 & 2, 2022
- Booking Lead Time: 57 days
- Occupancy Rate: 14.9%
- Average Nightly Rate: $218.5

3. Orlando Film Festival

Attendees: 12,000
Where: Downtown Orlando
When: July 9-15, 2022
- Booking Lead Time: 45 days
- Occupancy Rate: 10%
- Average Nightly Rate: $185

4. Megacon Orlando

Attendees: 140,000
Where: International Drive Area
When: May 19 – 22, 2022
- Booking Lead Time: 40 days
- Occupancy Rate: 18.2%
- Average Nightly Rate: $279

5. Central Florida Fair

Attendees: 200,000
Where: West Colonial Drive Area
When: March 3-13, 2022
- Booking Lead Time: 14 days
- Occupancy Rate: 35%
- Average Nightly Rate: $104

Conclusion

While it’s tempting to raise your prices significantly during high Orlando vacation rental occupancy rate periods, it’s important to keep in mind this dilemma. Overpricing your listing can lead to missed booking opportunities. On the other hand, pricing too low may mean missing out on potential profits during high-demand periods.

The key is to strike a balance that is fair to both you and your guests. By doing some research and analyzing the market demand on a granular level, you can price your Airbnb listing competitively and attract guests while also ensuring a reasonable profit margin.

Are you pricing your STR unit right? Then see for yourself using this accurate and accessible Airbnb Profit Calculator.

Bird’s-Eye View then Dive into the Granular Data of Orlando Airbnb Market!

Tags Airbnb Occupancy, lat_28.5421109, lng_-81.3790304

Case Studies

Short Term Rental vs Long Term Rental in Orlando

Post author By Ramon Meris
Post date April 14, 2023

Short Term Rental vs Long Term Rental in Orlando

Key Takeaways:

For traditional landlords in Orlando who want to up their rental collection, short-term rentals are a way to go. But for it to work, Airbnb hosts also need to do their part. If you’re already a short-term rental operator, incorporating data analytics into your strategy will give you a ton of insights when it comes to charging a nightly rate.

Introduction

Pundits have declared that the 2023 recession is inevitable. As someone who owns one or several rental properties in Orlando, you are surely restrategizing to make the most out of your real estate investments. While Florida is declared generally safe from the upcoming recession, you may still be wondering how to make your rental property not just survive but thrive in this year’s economic climate. So, we’re here to guide you through.

Whether you own a short-term or long-term rental property in Orlando, this article is for you! We believe that economic analysts should not be the only people who have access to numbers. You too can make sound investment decisions in the upcoming recession by relying on easy-to-use data analytics.

Differences between Short Term Rental Vs Long Term Rental

Let’s first distinguish one from the other. As we all know, long-term rentals have been a traditional form of housing. They are offered to tenants who choose to reside on a property for at least 6 months with a binding lease agreement. Property owners decide to collect a higher rent than the mortgage to generate monthly income that remains unchanged regardless of the ever-changing economic circumstance.

On the other hand, the setup for a short-term rental is renting out a property to visitors or guests for a very short period. It works pretty much like hotels where guests can stay in for only a couple of days. This can viably extend to weeks or even months. Short-term rentals offer a cozy atmosphere as well as significantly cheaper nightly rates compared to hotels. This is why guests keep coming back to short-term rentals.

Since short-term rentals have become widely used all over the world, rental arbitrage is another popular trend. It has given a lot of nonproperty owners a steady stream of passive income by simply re-renting a unit and listing it on Airbnb, VRBO, or HomeAway. This is a wise, effective, and legal income-generating hustle. Just imagine having a side income from a property that you do not own.

If you’re interested in having another stream of income via real estate without spending a fortune, here’s everything you need to know about rental arbitrage in Orlando.

Rental Regulations in Orlando

Orlando Long-Term Rentals

Orlando has a newly enforced “Tenant Bill of Rights.” This bill aims to promote the well-being of tenants and protects them from any form of discrimination. It also requires landlords to provide a list of fees that tenants have to be paid upfront. These fees cannot be adjusted during the lease. It also mandates landlords to put 60 days’ notice before terminating the lease or increasing the rent by more than 5%.

Orlando Short-Term Rentals

Hosts have to secure a short-term rental permit for their Airbnb properties. They need to pay $275 for the first year and $100 for every succeeding year. You can register your property via this portal. The local government of Orlando will review your application and will get back to applicants in 3-4 business days.

Advantages of Long-Term Rentals in Orlando:

Below are the advantages of operating a long-term or traditional rental property in Orlando:

Continuously growing population – Orlando’s 2023 population is 312,280, which grows annually at 0.5%. This number has increased by 1.52% since the last census.
A steady stream of income – You are ensured to have a steady and regular monthly income immune to erratic economic conditions. The average monthly rent in Orlando is $2,192.
Steady operating costs – You do not need to shell out money upfront for furnishings since the tenants will most likely have their own.
Laid-back management – You will have less interaction with your tenants, and you do not need to be hands-on with managing your property. This is risky, however, since damages on the property can get worse if they’re left unattended.

Advantages of Short-Term Rentals in Orlando:

On the other hand, here are perks that short-term rentals can offer to Airbnb hosts in Orlando:

Very low seasonality rate – Airbtics Dashboard shows that Orlando has a very seasonality rate of just 38%. This means that cash flow is just as stable and does not get affected by the changing events or seasons in Orlando.
Flexible pricing – You can adjust the nightly rate depending on seasonality or market demand.
Experience managing the property – Building connections with people by hosting different guests. If this is not your thing, you can still manage the property remotely via automated management tools.
Feel more control over the property – Since guests only stay in for a limited time, you can easily make changes to your property. Without getting worse, any damages can be repaired in no time and also be covered by Airbnb insurance.

Do you make more money on Airbnb or long-term rentals in Orlando?

According to Airbtics’ Data, you can earn more from an Airbnb in Orlando! As an example, a 1-bedroom property on E Michigan Street can generate a monthly rental income of $1,325 or $15,900 annually. That’s not really bad. However, Airbnb units with the same property size near the said area earn an average of $31,665 annually. They have a nightly rate of $88 and an occupancy rate of 81%.

Short-Term Rental Markets in Orlando

We already have an idea of short-term vs long-term rental income in Orlando. Airbnb is the way to go since it’s one of the top STR cities in the US. Orlando is already a rental market – and a very huge one at that. But what landlords do not know is Orlando can be broken down into smaller markets where you can monitor your closest competitors.

It just so happens that Airbtics has this innovation that allows users to create a Custom Market. From 970 Airbnb listings in Orlando, let us now dive deep into the top rental markets in the city and learn the best property features with the highest occupancy rate and corresponding annual revenue:

1. Lake Eola Heights

Existing Airbnb listings: 30
Average daily rate: $96
Airbnb occupancy rate: 89%
Airbnb annual revenue: $36,041
Best property size: 1 bedroom
- Occupancy rate: 94%
- Annual revenue: $39,477

2. Lawsona – Fern Creek

Existing Airbnb listings: 28
Average daily rate: $101
Airbnb occupancy rate: 81%
Airbnb annual revenue: $35,062
Best property size: 3 bedrooms
- Occupancy rate: 97%
- Annual revenue: $43,164

3. Lake Davis

Existing Airbnb listings: 14
Average daily rate:$93
Airbnb occupancy rate: 78%
Airbnb annual revenue: $31,672
Best property size: 2 bedrooms
- Occupancy rate: 85%
- Annual revenue: $41,272

As you make use of the game-changing Airbtics Custom Market, feel free to draw your own “Orlando Rental Market” as it is not limited by geographical boundaries. The only limit, however, is showing you a maximum of 20,000 Airbnb listings within your own market.

Maximize Your Rental Income

Every investor wants to get the most out of their investment This is understandable because their capital can be a few hundred thousand to even a million dollars. Real estate investments can be a bit tricky since there’s really nothing much that you can do with the property. Instead, homeowners can strategize their rental business for their financial freedom to be unscathed in the upcoming economic recession. This can allow homeowners not only to keep but also increase their market rent in Orlando.

For traditional landlords who want to up their rental collection, short-term rentals are a way to go. But for it to work, Airbnb hosts also need to do their part. If you’re already a short-term rental operator, incorporating data analytics into your strategy will give you a ton of insights when it comes to charging a nightly rate. As we have seen, Airbtics can provide us with macro and micro views of rental markets for you to arrive at a data-driven decision!

Take your Airbnb to the next level, try this powerful Short-Term Rental Profit Calculator!

Be on Top of the Orlando Airbnb Market &
Make Your Property Investment Recession Ready!

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Airbnb Investment All About Airbnb

Discover Airbnb Property Investment Profitability in Orlando, FL

Post author By Robyn Peña
Post date January 9, 2023

airbnb property investment Orlando

Orlando’s sunny weather and exquisite nightlife provide the best of both worlds for all kinds of tourists. Since this city is recognized for popular theme parks such as Disney World and Universal Studios, you can instantly imagine what the market is like for property investors.

But wait! Before deciding to purchase a property in Orlando, it’s certainly important to consider the major costs and revenue. While rental arbitrage in Orlando is fairly popular and does not require you to purchase a property, it’s still recommended to learn about buying a property for Airbnb in the future and making sure that it’s profitable.

At the same time, it’s also essential to consider the Airbnb rules in Orlando in order to operate an Airbnb business without worrying about breaching the laws.

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“There are a lot of things that make Orlando one of the best places to invest in Florida. The city is home to many of the country’s top-rated entertainment centers and theme parks, major colleges and universities, and the fastest-growing employment sectors.”
– Lima One Capital on Orlando Multifamily Investment

Airbnb occupancy rates by city state that an average host in Orlando can earn up to $27,828 during the peak season of February. With over 1,109 Airbnb listings in Orlando, it’s certainly a catch for property investors.

Aside from looking at a property’s fascinating architectural design, proximity to major tourist areas, and accessibility to the best go-to places, the primary step is to determine profitability. In this article, we’ll discuss the metrics in order to gauge the best property investment.

This includes the best website recommendations for property investment in Orlando, property gross rental yield, cash-on-cash return, and annual revenue, along with some of the most ideal and profitable properties according to their location. Stoked to learn more? Continue reading!

Pros of buying an Airbnb Property in Orlando

Orlando is a city where you can find legendary themed parks, but not only that because it also offers entertaining activities linked to ecotourism, top-tier restaurants and unique shops. However, there’s more to learn as to why we recommend purchasing a property in this city. Here are some of the major reasons why you should consider buying a property for Airbnb in Orlando:

1. Booming local economy and job market

It’s a given fact that tourism is one of the major contributors to Orlando’s local economy, however, we can forget that the city is also known as a business hub. In addition, Orlando also hosts events and its convention industries also rank high as economy contributors. Thanks to this, the city brings both job opportunities and ongoing investments.

2. Popular tourist destination

Probably one of the first things that come to our minds when we think about Orlando is its fantastic themed parks, right? Walt Disney World, SeaWorld and Universal Studios are some of the major attractions in this city. Thanks to this, Orlando stands out when it comes to tourist destinations that people love to visit. Based on Visit Orlando Website report, the city welcomes nearly 60M tourists annually!

3. Livability and low cost of living

Livability and cost of living also play an important role when you are deciding whether you should invest in a city or not and luckily, Orlando offers a great quality of life. The city cost of living is fairly cheaper than most cities in Florida, in fact, it’s 18% lower according to Zumper.

Cons of buying an Airbnb Property in Orlando

Now that we know the pros of investing in Orlando, let’s take a quick look at some of the cons. It’s always better to look at the two sides of each coin in order to properly set your expectations!

1. Extreme weather conditions

While Florida generally has warm temperatures throughout the year, this doesn’t mean that it’s not prone to face natural disasters. Albeit Orlando is not located in the coastal area, it’s still threatened by the hurricane season that happens from June-November. Hence, investors can expect harsh winds and heavy rains during these months.

2. Tourists everywhere

Of course, being a popular tourist destination is an advantage for your Airbnb investment, but still moving around may be a little difficult in Orlando. Travelers from around the world arrive in Orland each day to experience its thrilling adventures. So you can expect a lot of traffic and large crowds while managing a listing here.

airbnb property investment Orlando

Best Neighborhoods for Airbnb in Orlando

Let’s take a closer look at the important Airbnb key metrics to discover which is the most profitable neighborhood in Orlando. Filtered for a 1-bedroom apartment, here is a brief overview of some of the most recommended and profitable neighborhoods:

1. Florida Center

Annual Revenue: $37,265
Occupancy Rate: 90%
Average Daily Rate: $97

2. Delaney Park

Annual Revenue: $37,670
Occupancy Rate: 85%
Average Daily Rate: $117

3. College Park

Annual Revenue: $29,874
Occupancy Rate: 80%
Average Daily Rate: $98

Is Property Investment Profitable in Orlando City Centre?

Using an Airbnb income calculator, it was discovered that a 2-bedroom property in Orlando City Centre can generate an annual revenue of $64,446 with a steady occupancy rate of 75% and a nightly rate of $198.

airbnb property investment Orlando

New Homes for Sale in Orlando

Finding the best properties that have the potential to produce high yields and capital growth are certainly some of the preferences of major investors. It’s always best to ask for assistance from real estate agents to access exclusive and unique properties during the development stage.

At the same time, it’s even better when a property investor like you conducts research about predicted growths and market forecasts. Here are some of the new build homes in Orlando City Center along with the calculated gross rental yield, cash-on-cash return, and annual revenue:

Disclaimer: The properties featured in this article are indicated as examples and there is a possibility that they have already been sold and removed from the website's listings.

7900 S Orange Blossom Trl # 2052, Orlando, FL 32809

1. Studio-type Property for Sale Orlando

(Home for sale Orlando with pool) Near S Orange Blossom Trl
Asking Price: $55,900

GROSS RENTAL YIELD	28.98%
ANNUAL REVENUE	$16,200
CASH ON CASH RETURN	61.17%

120 Sherwood Dr Unit 120, Kissimmee, FL 34746

2. 1-Bedroom Type Property for Sale Orlando

Near W Irlo Bronson Memorial Hwy
Asking Price: $64,900

GROSS RENTAL YIELD	26.80%
ANNUAL REVENUE	$17,392
CASH ON CASH RETURN	54.63%

2753L B McLeod Rd Unit A , 2753, Orlando, FL 32805

3. 2-Bedroom Type Property for Sale Orlando

Near l-4 Express (Toll road)
Asking Price: $95,000

GROSS RENTAL YIELD	29.27%
ANNUAL REVENUE	$27,807
CASH ON CASH RETURN	62.04%

2113 Royal Troon Ct Unit 821, Orlando, FL 32826

4. 3-Bedroom Type Property for Sale Orlando

Near Pebble Beach Blvd
Asking Price: $153,000

GROSS RENTAL YIELD	26.69%
ANNUAL REVENUE	$40,843
CASH ON CASH RETURN	54.32%

2883 Canyon Dr Unit 687, Orlando, FL 32822

5. 4-Bedroom Type Property for Sale Orlando

Near Canyon Dr
Asking Price: $156,900

GROSS RENTAL YIELD	35.08%
ANNUAL REVENUE	$55,037
CASH ON CASH RETURN	79.47%

Conclusion

Since Airbnb is rapidly increasing and constantly changing for each city in the world, it is crucial to make decisions based on wild guesses. The data points mentioned in this article for Orlando such as Airbnb occupancy rates, annual revenue, and average daily rate should be the primary basis before investing in a property.

Hence, if the data presented above has given you ideas to boost your strategic pricing plan for your business, then an Airbnb rental arbitrage calculator is certainly what you need for success in the long run. It’s a fact that some of the STR investors are also considering Airbnb Rental Arbitrage, but they still need to have a reliable data tool on to base their conclusions!

As we live in a digital era, an accurate data analytics tool can help your business stand out among your surrounding competitors and benchmark your property by tracking the occupancy rates of competing listings in your preferred city.

Tags Airbnb Investments, lat_28.5421109, lng_-81.3790304

Airbnb Rules All About Airbnb

Airbnb Rules in Orlando

Post author By Yukta Debnath
Post date December 6, 2021

Table of Contents

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Is Airbnb legal in Orlando?

The answer is yes! Short-term rentals in Orlando homes became legal on July 2021 which allowed homeowners to rent out their homes. Airbnb rules in Orlando requires a short-term rental property permit for anyone who wants to use a section of their home for a short-term rental. To receive a short-term rental permit from the city of Orlando, a host will have to apply to the local city council.

Currently, there are 12,670 Airbnb listings in Orlando, with 23% of listings consisting of 2-bedroom properties. An average host who does rental arbitrage in Orlando, who owns 244 listings, earns the annual revenue of $16,209,111. According to vacation rental market data source Airbtics, there are 55% of entire houses in Orlando with12% of private rooms and 33% of apartments (condominiums). In addition to this, a 2-bedroom apartment in Orlando can make up to $48,886 each year.

Continue reading this article to learn more useful information that can help you better understand the Airbnb Rules in Orlando.

Short-Term Rentals Policy

City commissioners in Orlando approved the rule in February 2021, which allows homeowners to rent out a part of their property while they remain on-site during visitors’ visits. While there are local zoning requirements and housing standards according to Orlando City Code, it’s certainly legal to operate Airbnb in this city.

Owners of duplexes can rent out the entire second unit if it is on the same site as the first one with an equal or less size. These new laws will not override existing neighborhood or homeowner association restrictions.

Airbnb rules in Orlando

New ordinances require short-term rental businesses to register and pay $275 for the first year and $125 yearly after that.
A new regulation limits short-term rental hosts to only one bookingat a time, no more than two guests per room, and no more than four guests in a single rental.
Short-term rental hosts in Orlando must also collect lodging taxes from their visitors. When owners book through Airbnb, Airbnb will automatically collect these taxes on their behalf.

ZONING REGULATIONS

Airbnb provides a wealth of information on local rules in various places. This information is useful in establishing whether your home complies with the Airbnb rules and legislation. Before moving forward with Airbnb, we recommend meeting with a local legal or tax specialist.

HOUSING AND BUILDING CODES

You should review the rules and regulations governing the smallest building construction, design, and maintenance standards. Regulations on habitability, health, and safety should all be considered. Your listing may be subject to some limitations. The Orlando City Code contains the Building Code and the Minimum Standards Code.

Reference | Avalara.com

Pros and Cons of running Airbnb in Orlando

Short-term rentals are vacation rental properties rented out on a short-term basis to guests, like hotels. This form of rental helps guests to feel more at ease and “at home” because the properties are typically designed in this manner.

A long-term rental is the most common sort of rental property utilized for residential purposes. This sort of rental property is usually protected by a long-term lease agreement with more binding terms than a short-term rental. Renting out their homes for a higher price than their mortgage allows them to generate regular income regardless of the market. Because it is more traditional and well-known, most people are more familiar with this sort of rental property.

Now that we’ve defined vacation rentals and long-term rental properties, let’s look at each component of rental properties that explains both the benefits and drawbacks of a short-term or long-term rental.

Pros

Flexibility – You have the option of renting for days, weeks, or months. You can rent as much or as little as you want. There’s also the possibility of going on a trip at any time and earning money while doing so!

Privacy – Short-Term Rentals are ideal for families. They provide guests with more privacy and space than standard hotels.

Earns more money than a long-term rental – It’s simple to calculate: $1500 for a vacation week vs. $1500 per month to rent for a year.

Good Deductions – There are numerous popular deductions available to rental property owners. Cleaning and maintenance, insurance, management fees, and utilities are just a few of the costs to consider. You may make a loss and avoid paying taxes entirely if you take enough deductions.

Tax Breaks – Short-Term Rental Owners receive the best home-related tax breaks.

Less Wear and Tear on the Property – With frequent renters, you can keep up with tiny repairs before they become major issues!

Social Advantages – There are a lot of interesting people in the world, and many of them travel! Your next acquaintances in a Short-Term Rental could evolve into lifelong buddies!

Cons

Inconsistent payments – If you rely on a stable income, a yearly renter is a much safer option. There’s a chance you won’t have a Short-Term Renter for weeks or months.

Must cover the utilities – Utility costs are usually paid by long-term renters. Short-term tenants don’t.

Increased risk – There is a higher danger of theft, breakage, or problem tenants because of the number of tourists going through your doors.

Requires extra effort – Running a Short-Term Rental requires more effort because you are the innkeeper. You’ll be in charge of collecting money, scheduling clients, and bringing in tenants. You’ll do it every week instead of every 5 years or so!

Additional maintenance expenses – As the landlord, you are responsible for housekeeping, pool maintenance, and general upkeep. Not always the case with a long-term renter.

Some HOA– Managed neighborhoods make it tough and complicated to rent short-term Rentals. People prefer comfortable, peaceful surroundings where they feel safe and know everyone, rather than random strangers coming and going at all hours. They may submit complaints, and some HOAs may sue Short-Term Rental Owners.

Conclusion

If you’ve made it this far, you’re thinking of starting an Airbnb.

We’ve been assisting folks like you, who are first-time Airbnb hosts. We don’t provide consulting since we aren’t experts in running Airbnb businesses; but, we do provide useful data to Airbnb hosts.

You may use the Airbtics dashboard to figure out how much money you can make doing Airbnb in your city. Unlike other online Airbnb income calculators, it will provide you with a lot more useful information, such as

which neighborhood to target,
which amenities are in high demand,
what is the market’s historical performance,
what are the occupancy rates of a two-bedroom house,
should I do a two-bedroom house or a three-bedroom house?

In that case, the tool might be too complex for you, visit our tutorials. With the data dashboard, you can get meaningful and actionable insights.

Well, if you are new to this industry, there are many Airbnb host communities on Facebook. Type “Airbnb host” in the Facebook search, and you’ll see plenty of active communities where you can get help from experienced Airbnb hosts.

Tags Airbnb Rules & Regulations, lat_28.5421109, lng_-81.3790304

Airbnb Rental Arbitrage All About Airbnb

Rental Arbitrage Orlando

Post author By Yukta Debnath
Post date November 26, 2021

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What is Rental Arbitrage?

Rental Arbitrage is a method similar to house hacking. But unlike house hacking in Rental Arbitrage, you don’t own the house. Instead, you convince a landlord to lease you a property which you then furnish and sublease on Airbnb and VRBO.

Rental Arbitrage is a really good method to do in a multifamily house, duplexes, or triplexes. You can easily use the money from your short-term rental to pay off your lease and also profit some more. If done right this can be a full-fledged business in itself. If you own a duplex or triplex then it is pretty straightforward. You can live in one section and rent out the other. This is known as house hacking. People use this after taking a loan on a property and use the rent to pay off the mortgage. The short-term rent helps you pay for the long-term lease that you have on the house. This helps you keep the difference at the month-end after paying for the long-term lease. Let’s take an example to help you understand Rental Arbitrage better.

Assume you are renting a duplex in Orlando for $1,800/month. You are living by yourself on one of the sides and you decide to sublease the other on Airbnb. Let’s say you listed it for $100/day and got 80% occupancy. This will bring in approx $2,600/month in revenue. Not only will it help you pay off your complete rent, but give you a profit of $800. This, in a nutshell, is called Rental Arbitrage.

Read more in detail about short-term rental arbitrage to make sure that you’re on the right track!

Things to do before getting started?

How to convince the landlord

Let’s say you want to get into Rental Arbitrage. Now comes the big question, how to find a good property and how to convince the landlord. Later in the blog, we’ll be explaining how to find a good property by doing proper research using vacation rental analytics. In this section, we will be focusing more on how to convince landlords. As you’ll begin your Rental Arbitrage journey, you’ll come to know that this is the hardest part of the whole process.

You need to be prepared and well researched, good communication skills come in handy here. Also, one thing to always keep in mind: never sublease without informing the landlord, there will be a huge number of people coming in and going out when you’re sub renting, it will not be hard for the landlord to figure out that you are subletting and you might end up getting in trouble.

For the convincing, rule number one is always talking about the upsides. If you can rent the property on Airbnb, so can the landlord himself. You need to make a deal with the landlord that is beneficial to them. So they lease the property to you instead of renting it by themselves.

Points to tell an indecisive landlord.

Doing Rental Arbitrage is a full-time business. It doesn’t generate passive income like long-term leasing. You should try approaching older people who are looking for some sort of passive income. They are more likely to agree to a fixed long-term lease. You can also reach out to full-time working professionals or business owners. They will also be happy with a source of passive income till their property is well maintained. This brings us to our next point.
You are more likely to take care of the house than a normal renter. As you are using the property to do business you will take good care of it to make sure you get better reviews. Having a beat-up property isn’t good for business and you are more likely to monitor it often. Not monitoring it will affect your revenue a lot. You may end up paying a huge sum of money for damages done by someone else. So telling this to the landlord might instill some confidence in them.
You can ensure timely monthly rent. You can tell the landlord that doing Rental Arbitrage is a full-time business with ups and downs. It doesn’t guarantee fixed income at all like long-term leasing. But if they lease it to you, you’ll make sure to pay the lease no matter what. Either from the money made after rental arbitrage or from your savings. You need to ensure timely monthly lease payments to gain the trust of a landlord.

In conclusion, you need to take care of the property like your own. Make sure to timely pay the monthly lease and keep the situation beneficial for both parties.

Ensure the Property and Gain landlords’ trust

Being on the safe side is always a good idea. From trouble guests to bothering landlords. You need to make sure you are using the right tools to ensure the property is safe and neighbors are happy. Many landlords will have this concern when renting out their property to you. They will be worried about neighbors raising noise complaints. It is a legitimate concern. To help you with all these problems, here are some suggestions that you can implement and have peace of mind.

Simply Safe – These are home monitoring tools that you can install in the house to make sure no suspicious activity is happening there. Make sure to let the guests know about them and have their consent.
Auto host – Automatically screens problematic tenants.
Alexa Guard: If you already own an Alexa, you can use its Alexa guard feature to detect parties. It is an inbuilt feature that monitors changes in sound and sends you an alert in case the guests are having a party and making too much noise.
InsuraGuest – This insurance and tech company helps you with risk analysis and gives protection beyond Airbnb and VRBO policies.
Vacation Rental Income Calculator – Give your landlord ease of mind by providing income estimates backed by Airbnb data.

You can integrate the majority of these tools with a PMS of your choice.

Pro’s and Con’s

The initial cost of starting Rental Arbitrage Orlando?

You can expect to spend anywhere between $3,000 to $5,000. This cost consists of everything including deposit, furnishing, amenities, legal paperwork, and LLC Incorporation.

But doesn’t this contradict the low upfront cost of Rental Arbitrage? Well, these estimates vary from city to city. There is a possibility to do Rental Arbitrage for even less than this depending upon your situation and the type of property you lease.

Still, the amount is much less than investing in a new property and getting a mortgage of thousands of dollars. Plus you won’t be on the hook for property maintenance expenses and being stuck for years with debt.

But this doesn’t mean Rental Arbitrage can be done with no or very tight budget. There will be some upfront costs that you would have to bear. Having some extra cash is also a good thing to have. It will help pay off the lease in not-so-profitable months in case bookings don’t happen right away.

Expense 1: Rental Deposits

A Rental Deposit is going to be one of the first and major expenses. You would need money to be able to sign a long-term lease with the landlord. For that, you will need a Security deposit, First and Last month’s rent. Sometimes you can negotiate with the landlord and use the first month’s rent as a security deposit.

Expense 2: Furnishing

Most of the time you should always aim to lease a semi-furnished place. As someone with a fully furnished home might be doing short-term rentals themselves. Also furnishing a place from scratch can add anywhere from $3,000 to $5,000 to your initial capital. Not choosing the right property can make Rental Arbitrage not so low cost, so choose wisely.

If the place is semi-furnished, then your best bet is to shop cheap for the rest of the stuff. You can go and find cheap supplies from places like Home Depot and IKEA. Sometimes even Walmart can have a hidden gem if you look closely.

Expense 3: Photography

Do it yourself!!! iPhones have good cameras. Will save you some money.

Expense 4: Cleaning Services

This is not a starting cost, but you will end up spending on cleaning eventually. The best way to save money is to do it yourself initially if you have the skills and experience.

If you have no experience or you don’t want to invest time in cleaning a place. Then your best bet will be to hire a professional cleaner. This can cost you anywhere from $50 to $250 depending upon the size and location.

Expense 5: Legal Consultation

Maintaining a professional relationship with a Real Estate lawyer can be very helpful in the Airbnb business. Airbnb regulations keep updating and you would need some legal guidance on the way to adjust your business accordingly.

They can also come in handy if you face any legal issues with the landlord or guests. They can help in damage claims and insurance as well in case of any mishappening.

Legality and Regulations in Orlando

Residents in Orlando can now register their home as a home-sharing house as of July 1, 2018. Yet, there is one snag: you cannot rent out your entire home. Homes, so, are being approved for house sharing to advertise on Airbnb and other similar sites. To receive a short-term rental permit from the city of Orlando, you must first submit an application.

A short-term rental property permit for anyone who wants to use a section of their home for a short-term rental is necessary.

You must complete these conditions to rent out a piece of your house for a short-term rental.

If you have a residential rental property, you can only rent out half of it.
You can only rent out half of your home;
You can only rent out half of your home;
Only one reservation can get done at a time.

You must collect sales tax besides possessing a short-term rental property permit. The Florida Department of Revenue will need you to register. Short-term rentals are often known as “transient” rental arrangements.

Apart-hotels Licensing

Apart-hotels are becoming popular among residential complexes, and Orange County is approving them. It’s a reliable source of cash that’s also pretty appealing. Many apartments from a complex are rented out by property management businesses. After that, you may rent them out on short-term rental sites like Airbnb. Only a few properties in Orlando were approved for master leases or corporate leases.

Zoning Regulations

On its website, Airbnb provides a wealth of information on local rules in various places. . This information is useful in establishing whether your home complies with the Airbnb rules and legislation. Before moving forward with Airbnb, we recommend meeting with a local legal or tax specialist.

The Land Development Code

It is a set of rules that governs land use. Orlando City Code contains information that is relevant under the Land Development Code. The majority of land use in Orlando is overseen by this. You can check here to determine if your listing complies with any zoning regulations. “Apartment,” “accessory apartment,” “dwelling,” “bed and breakfast facility,” “commercial dwelling unit,” “commercial usage,” “dwelling,” “dwelling unit,” “group housing,” “hotel,” “motel,” “residential use,” and “owner-occupied home sharing” are all crucial terms to look for when searching.

Housing and Building Codes

Registration of a company

The city of Orlando requires all firms to get a business tax receipt. The Orlando City Code can assist you in determining whether these rules apply to your listing.

Owner-Occupied Home Sharing In Orlando, you must register for owner-occupied home sharing. The Home Sharing Registration page has further information about fees, registration requirements, and the registration application.

Because of Orlando’s zoning restrictions, this is necessary. When renting out a piece of your home, they need you to be present.

Taxes in Orange County

Within the city of Orlando, Orange County collects tourist development taxes. Hotels, inns, tourist homes or houses, and other home-sharing properties are all subject to these taxes.

For transitory rental accommodations in Orlando, you must collect sales tax. You will need to collect this from each renter because you can only offer short-term rental alternatives due to zoning rules.

Other Regulations

There are a few more rules to investigate and understand. These include other contracts or rules that bind you.

Leases, condo board or co-op rules, HOA rules, or rules set by tenant organizations could all be examples. Checking with your landlord is the best method to find and understand these. You might be able to locate them in your lease agreement as well.

Reference| Ericadiazteam

Best areas for Rental Arbitrage Orlando

Some obvious places come to mind when thinking of Orlando like Lake Underhill, Mills 50 and Rose Isle. But two of the best choices for rental arbitrage top our list. The first one is:

1. Parramore

According to our Airbtics Dashboard, Parramore is the top market to start your Rental Arbitrage business. There are more than 17,185 Airbnb listings with 3,598 private rooms properties and 2,160 one-bedroom properties. Monthly revenue for most properties is more than $3,090/month with occupancy being more than 50%.

2. South Eola

According to our Airbtics Dashboard, South Eola is the second-best market to start your Rental Arbitrage business. There are more than 15,235 Airbnb listings with 3,457 private rooms properties and 2,085 one-bedroom properties. Monthly revenue for most properties is more than $3,034/month with occupancy being more than 48%.

To see full data of Orlando – Click Here

FIND STATS FOR YOUR CITY – CLICK HERE

🎉 FREE WEBINAR - July 24th, 11am / 8pm CET - Learn Airbtics in 7 Minutes - Revenue and Market Analysis Tips and Best Practices!

Key Takeaways

Introduction

Is Orlando a good city for Airbnb?

Top Orlando Events Every Airbnb Host Should Know

1. Orlando Fringe

2. Fiesta in the Park

3. Orlando Film Festival

4. Megacon Orlando

5. Central Florida Fair

Conclusion

Bird’s-Eye View then Dive into the Granular Data of Orlando Airbnb Market!

Key Takeaways:

Introduction

Differences between Short Term Rental Vs Long Term Rental

Rental Regulations in Orlando

Orlando Long-Term Rentals

Orlando Short-Term Rentals

Advantages of Long-Term Rentals in Orlando:

Advantages of Short-Term Rentals in Orlando:

Do you make more money on Airbnb or long-term rentals in Orlando?

Short-Term Rental Markets in Orlando

1. Lake Eola Heights

2. Lawsona – Fern Creek

3. Lake Davis

Maximize Your Rental Income

Be on Top of the Orlando Airbnb Market & Make Your Property Investment Recession Ready!

Pros of buying an Airbnb Property in Orlando

1. Booming local economy and job market

2. Popular tourist destination

3. Livability and low cost of living

Cons of buying an Airbnb Property in Orlando

1. Extreme weather conditions

2. Tourists everywhere

Best Neighborhoods for Airbnb in Orlando

1. Florida Center

2. Delaney Park

3. College Park

Is Property Investment Profitable in Orlando City Centre?

New Homes for Sale in Orlando

1. Studio-type Property for Sale Orlando

2. 1-Bedroom Type Property for Sale Orlando

3. 2-Bedroom Type Property for Sale Orlando

4. 3-Bedroom Type Property for Sale Orlando

5. 4-Bedroom Type Property for Sale Orlando

Conclusion

Is Airbnb legal in Orlando?

Short-Term Rentals Policy

Airbnb rules in Orlando

ZONING REGULATIONS

HOUSING AND BUILDING CODES

Pros and Cons of running Airbnb in Orlando

Pros

Cons

Conclusion

What is Rental Arbitrage?

Things to do before getting started?

How to convince the landlord

Points to tell an indecisive landlord.

Ensure the Property and Gain landlords’ trust

Pro’s and Con’s

The initial cost of starting Rental Arbitrage Orlando?

Expense 1: Rental Deposits

Expense 2: Furnishing

Expense 3: Photography

Expense 4: Cleaning Services

Expense 5: Legal Consultation

Legality and Regulations in Orlando

Apart-hotels Licensing

Zoning Regulations

The Land Development Code

Housing and Building Codes

Registration of a company

Taxes in Orange County

Other Regulations

Best areas for Rental Arbitrage Orlando

1. Parramore

2. South Eola

Airbnb Data At Your Fingertips!

Get Started

Be on Top of the Orlando Airbnb Market &
Make Your Property Investment Recession Ready!