The short-term rental market in Kissimmee, Florida, is thriving, with high occupancy rates averaging around 68-75%, average daily rates of $150-$170, and annual host revenues of approximately $42,000, making it a highly profitable and stable investment opportunity.
Thriving Short-Term Rental Market in Kissimmee, Florida
Kissimmee, Florida, continues to excel as a prime destination for short-term rentals, driven by its proximity to major theme parks and a year-round appealing climate. The city boasts an impressive median occupancy rate of around 68-75%, indicating a strong and consistent demand for short-term rentals throughout the year.
The average daily rate for these rentals stands at approximately $170, reflecting the high demand and attractiveness of the area to tourists. With an average of 248 nights booked per year, short-term rental properties in Kissimmee generate significant revenue, with typical annual incomes for hosts reaching around $42,000. This robust performance makes Kissimmee an attractive and profitable market for investors in the short-term rental sector.
Short-Term Rental Regulations in Kissimmee, Florida for 2024
Licensing and Permits
- Conditional Use Permit: Many short-term rental operators must apply for and obtain a conditional use permit from the city. This involves a review by the Development Review Committee and a public hearing by the Planning Advisory Board.
- Short-Term Rental Business Tax Receipt: Hosts must apply for and obtain a business tax receipt specific to short-term rentals. The city evaluates the application against its regulations and zoning criteria to ensure compliance.
Zoning Regulations
- Permitted Zoning Districts: Short-term rentals are allowed in specific zoning districts, including RB-, RB-2, RC-1, and RC-2. Hosts should refer to the Kissimmee Zoning Map for visual guidance.
- Updated Zoning Regulations: Recent changes in zoning regulations may affect where short-term rentals are allowed. Hosts need to check the updated zoning maps to ensure their property is in a compliant area.
Building and Housing Standards
- Florida Building Codes: Kissimmee enforces specific building and housing standards based on the Florida Building Codes, covering minimum construction, design, and maintenance requirements to ensure habitability, health, and safety.
- Enhanced Safety Standards: Osceola County has implemented stricter safety standards, including updated requirements for fire safety equipment and emergency protocols.
Taxes
- Tourist Development Tax: Osceola County imposes a tourist development tax on guest stays of less than six months.
- State Sales Tax: The State of Florida levies a 6% sales tax on guest stays of less than six months.
Compliance and Enforcement
- New Licensing Requirements and Fees: Osceola County has introduced updated licensing requirements and increased fees for short-term rentals. Hosts need to budget for these new costs and understand the fee structure.
- Increased Enforcement and Penalties: There will be increased enforcement of short-term rental regulations, with higher penalties for non-compliance. Hosts must stay informed to avoid legal issues.
Other Rules and Regulations
- Property Ownership Documentation: Applicants must provide documentation proving ownership of the property, such as a copy of the property deed or title.
- Compliance with Other Contracts: Hosts must comply with other contracts or rules, such as lease agreements, condo board stipulations, co-op rules, or guidelines set by HOAs or tenant organizations.
Additional Requirements
- Public Hearings: The application process for a conditional use permit includes a review by the Development Review Committee and a subsequent public hearing by the Planning Advisory Board.
- Application Review: The city evaluates the application against its regulations and zoning criteria, and may reject the application if the listing is not consistent with zoning requirements.
Top Neighborhoods for Airbnb Revenue in Kissimmee, Florida
1. 34746 Zone
- Average Daily Rate (ADR): $298.4, peaking at $329 in December and March.
- Occupancy Rate: Average 66%, peaking at 79% in March.
- Average Annual Revenue: $71,400 per listing.
- Appeal: This area is close to major attractions, offers a diverse range of properties, and features amenities like lazy rivers and clubhouses. Neighborhoods such as Bella Vida and Terra Verde provide modern homes, security, and luxury amenities, making them attractive to families and younger travelers.
2. 34747 Zone
- Average Daily Rate (ADR): $359.2, peaking at $407 in March.
- Occupancy Rate: Average 62%, peaking at 76% in March.
- Average Annual Revenue: $81,500 per listing.
- Appeal: This upscale area attracts discerning travelers with its premium rates and amenities. Neighborhoods like Windsor at Westside, Paradise Palms, and Celebration offer luxurious stays, gated environments, and top-tier amenities such as pools, bars, and proximity to theme parks, making them ideal for families and groups seeking luxury vacations.
3. Storey Lake
- Location: Within the 34746 Zone.
- Appeal: This resort community offers a blend of townhomes and single-family residences with modern amenities like a lazy river and a state-of-the-art clubhouse. Its central location ensures quick access to major attractions, making it appealing to both families and younger travelers.
4. Windsor Hills
- Location: Within the 34747 Zone.
- Appeal: Known for its secure gated environment, Windsor Hills features a lagoon-style pool, water slides, and proximity to major attractions. This community caters to a broad range of vacation needs, making it a favorite for families and groups.
5. Champions Gate
- Location: Within the 34747 Zone.
- Appeal: This area offers a mix of properties and amenities, including golf courses and resort-style living. Its proximity to theme parks and various recreational activities makes it highly desirable for vacationers.
These neighborhoods in Kissimmee are highly appealing due to their proximity to major attractions like Walt Disney World and Universal Orlando Resort, diverse range of properties, and luxurious amenities that cater to various vacationer preferences.
Tips for Furnishing and Designing an Inviting Airbnb in Kissimmee, Florida
Understanding the Local Market and Guest Preferences
- Proximity to Theme Parks: Given Kissimmee's proximity to Walt Disney World and Universal Studios, design your space to cater to families and large groups looking for comfortable and spacious accommodations.
Furniture and Decor Choices
- Modern and Contemporary Designs: Opt for modern and contemporary furniture styles, often infused with playful and fun themes suitable for families.
- Local Cultural and Nature Elements: Incorporate elements of local culture and nature into your decor to add a personalized touch.
- Bright Colors and Whimsical Designs: Use bright colors and whimsical designs, particularly in properties targeted at families visiting the nearby theme parks.
Essential Amenities and Features
- Outdoor Spaces: Include outdoor spaces such as patios, pools, and BBQ areas, which are highly desirable for guests seeking relaxation and downtime.
- Game Rooms and Entertainment: Consider adding game rooms, movie theaters, or themed rooms to enhance the family-friendly and entertainment aspect of the stay.
- High-Speed Internet and Entertainment: Ensure reliable and high-speed internet, and provide entertainment options like smart TVs, streaming services, and gaming consoles.
Kitchen and Dining Area
- Fully Equipped Kitchen: Provide a well-stocked kitchen with essential appliances (e.g., coffee maker, microwave, toaster), cookware, utensils, and dining table with at least six chairs.
- Durable and Neutral Kitchen Cabinets: Choose durable kitchen cabinets in light, neutral colors to make the kitchen look spacious and modern.
Bedroom Comfort
- Comfortable Bedding: Ensure each bedroom has a comfortable bed frame, mattress, mattress protector, and quality bedding sets. Add baby cribs and children’s furniture if targeting families with small children.
- Cozy Ambiance: Include table lamps, book shelves, and rugs to create a cozy atmosphere in the bedrooms.
Living Room and Common Areas
- Comfortable Living Room Set: Furnish the living room with a comfortable sofa, coffee table, and ceiling lights. Add rugs, throw blankets, and throw pillows to create a homey feeling.
- Additional Touches: Consider adding floor lamps, table lamps, candle holders, and plants to enhance the warmth and coziness of the living room.
Safety and Maintenance
- Clear Emergency Instructions: Prepare and share clear emergency contact numbers and instructions with your guests.
- Regular Maintenance: Perform regular maintenance checks to identify and address any safety hazards or potential risks, including electrical systems, plumbing, and gas appliances.
House Rules and Communication
- Establish Clear House Rules: Communicate clear house rules to your guests, including guidelines for maintaining safety within the property and proper usage of appliances.
By following these tips, you can create an inviting and well-designed Airbnb in Kissimmee, Florida, that reflects the city's unique style and meets the needs of your guests.
Discover the Best of Kissimmee, Florida: Local Attractions and Insider Tips
Top Attractions
Outdoor Adventures
- Boggy Creek Airboat Adventures: Take half-hour or hour-long tours through the swamps, spotting alligators, turtles, and various birds. Additional activities include mining, bicycle rentals, and visiting the Native American Village.
- Wild Florida Drive-thru Safari: Explore a drive-through safari where you can see wildlife such as wildebeest and native birds up close.
- The Paddling Center at Shingle Creek: Paddle through a cypress forest and enjoy the scenic natural beauty of Kissimmee.
Theme Parks and Entertainment
- Walt Disney World® Resort: Just minutes away, offering magical attractions, thrilling rides, and live shows.
- Universal Studios Florida and Universal Orlando Resort: Experience the Jurassic World VelociCoaster and other adrenaline-pumping rides at these world-famous theme parks.
- Old Town, Kissimmee: An 18-acre entertainment district with kid-friendly fun zones, shops, restaurants, bars, and events like car shows and live music.
Cultural and Historical Sites
- Osceola County Historical Society: Visit the Osceola County Museum to explore the county's four different habitats and the Osceola County Pioneer Village to see 19th-century houses.
- Eleanor Foerste Adventures: Learn about the natural and historical aspects of the area through interactive displays and scavenger hunts.
Family-Friendly Fun
- Fun Spot of Kissimmee, Florida: Enjoy the Mine Blower wooden roller coaster and the world’s tallest sky coaster, along with other family-friendly activities.
- KINGS Dining & Entertainment: Savor award-winning food, enjoy luxury bowling lanes, billiard tables, arcade games, and karaoke nights.
Insider Tips
Dining
- Celebrity Chef Restaurants: Try out restaurants by famous chefs for a unique dining experience.
- Local Favorites: Explore global fare at local restaurants, some offering water views or sky-high vistas.
Shopping
- Orlando Vineland Premium Outlets®: Shop at this popular outlet mall for a variety of brands and deals.
- Unique Boutiques and Pop-up Markets: Discover eclectic mixes of big brands and local finds at various shopping hubs and main streets.
Events and Festivals
- Parades, Concerts, and Art Fairs: Check out the local events calendar for parades, concerts, art fairs, foodie events, and major seasonal celebrations.
- Car Shows and Live Music at Old Town: Attend the Saturday car shows and cruises, and enjoy live music events throughout the week.
Outdoor Activities
- Kayaking and Airboat Tours: Explore the wetlands and lakes of Kissimmee by kayak or airboat for a unique outdoor experience.
- Hiking and Biking: Enjoy hiking and biking at local parks, such as those along the Kissimmee River.
Additional Tips for Guests
- Interactive Map: Use the interactive map to plan your Central Florida adventures, locating major highways, transportation hubs, attractions, and more.
- Vacation Home Capital: Take advantage of the wide range of vacation homes, resorts, and hotels available in Kissimmee to find the perfect fit for your stay.
- Free Activities: Explore the free activities available in Kissimmee, such as visiting certain attractions and enjoying local events without spending a dime.
Practical Tips to Run a Successful Short Term Rental Business in Kissimmee, Florida
To ensure a smooth and enjoyable experience for both you and your guests, several practical tips can be implemented when running a short-term rental business in Kissimmee, Florida.
Noise Regulations and Quiet Hours
Inform your guests about noise regulations and quiet hours to maintain a respectful environment. Include clear guidelines in your digital and physical house manual, highlighting the quiet hours and any noise restrictions to avoid potential issues with neighbors.
Comprehensive House Manual
Create a detailed digital and physical house manual that includes essential instructions, such as Wi-Fi passwords, appliance usage, and emergency contact information. This manual should be easily accessible to guests, either in the property or via a digital link provided before their arrival.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with a unique access code and detailed instructions on how to enter the property. This not only enhances convenience but also reduces the likelihood of lost keys.
Parking Instructions with Photos
Ensure that parking instructions are clear and accompanied by photos to avoid any confusion. Include information on designated parking spots, any parking restrictions, and nearby parking options if necessary. This helps in preventing potential parking issues and makes the guest's arrival more seamless.
By implementing these practical tips, you can enhance the guest experience, reduce potential issues, and maintain a positive reputation for your short-term rental business in Kissimmee.
Here is a brief list of house cleaning, repair, and maintenance providers in Kissimmee, Florida:
House Cleaning Services
My Cleaning Angel
- Offers one-time, move-in/move-out, post-construction, recurring, vacation rental, and commercial cleaning services.
- Uses eco-friendly products and provides customizable cleaning plans.
Turno
- Specializes in vacation rental cleaning with vetted and experienced cleaners.
- Services include deep cleaning, maintenance cleaning, and specialized tasks like carpet and upholstery cleaning.
Vacation Home Help
- Provides professional cleaning services, including holiday cleaning, deep cleaning, green cleaning, move-out cleaning, and disinfection services.
- Offers flexible plans for weekly, bi-weekly, or monthly cleanings and is bonded and insured.
Royal Maid Service
- Offers residential and business cleaning services with no contract required.
- Uses eco-friendly products and provides personalized cleaning plans with licensed, bonded, and insured maids.
Molly Maid
- Provides flexible service options including same-day cleaning, routine cleaning, move-in cleaning, and special occasion cleaning.
- Maids are insured and equipped with necessary equipment; locally owned and operated.
Additional Services
Vacation Home Help
- Also offers packing and unpacking services, as well as small office cleaning and apartment cleaning.
Turno
- Some cleaners associated with Turno also offer additional services like swimming pool cleaning and treatment, and work with handymen and certified AC technicians.
Short-Term Rental Management Fees in Kissimmee, Florida: A Range of Services and Costs
In Kissimmee, Florida, short-term rental management fees can vary significantly, typically ranging from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management companies, such as MasterHost and GoSummer, offer comprehensive services including guest communication, marketing, price optimization, and property maintenance, which usually come with higher fees, often around 15% to 30% of the revenue.
On the other hand, basic service packages may incur lower fees, starting at around 10%, and are ideal for owners who manage some aspects of their rentals themselves but need support with specific tasks like property maintenance and cleaning.
Additionally, hosts may encounter extra fees for services such as cleaning, repairs, and interior design, which can be charged separately or included in the overall management fee structure. Understanding these fees and the associated services is crucial for hosts to ensure they are compliant with local regulations and maximize their rental income.