Tuesday, February 7, 2012

Disney Vacation Homes

I spent a day in Orlando in a vacation home in Davenport, Florida.  I became fascinated in these properties as I have a few clients looking at this as an investment.  It shocked me, when I arrived off the plane and saw the advertisement that stated "1 in 3 Canadians who visit Orlando stay in a vacation home."

Vacation homes are bigger houses, usually with two master bedrooms, built to accomodate multiple families.  They are located in gated communities with security, that are zoned short term rental.  These houses usually feature backyard pools, attractive parks, clubhouses, etc  

Disney itself is located in Orange County (in Florida, not California).  There are three other counties that intersect in a cross in this area.  Orange County is zoned for hotels.  This area is really highly developed and totally encompassing the Disney brand.  The surrounding counties could not make money trying to sell hotels, so they changed their zoning to short term vacation home rentals.

I met an agent and a property manager.  They both commented that the market has been on a down slope since 2008, but is starting to rebound.  They mentioned a realistic number of weeks for rental yearly would be 30 to 35, with 8 to 10 of these weeks coming from your own friends and families renting.  For most houses the nightly rental rate is between $150 and $200.

The costs are hard to get a handle on, but I have heard $150 per month on costs and a "healthy" percentage on tenant finding fees.  The people I spoke to said you needed a minimum of 35 weeks annually to make some money.

Click here for a forum discussing Orlando vacation homes 

2 comments:

  1. I am going to continue some research on this, while I am here on these two conferences.

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  2. Order your priorities and create a short list of possibilities. Most rental websites let you sort listings by location, price, number of bedrooms and other features.

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