The short-term rental market in Kissimmee, Florida, is thriving, characterized by high occupancy rates of around 68-75%, average daily rates of $150-$170, and annual 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 shine as a vibrant and lucrative destination for short-term rentals. The city boasts an impressive median occupancy rate of 68%, indicating a strong and consistent demand for vacation rentals throughout the year.
The average daily rate (ADR) for short-term rentals in Kissimmee stands at approximately $170, reflecting the area's attractiveness to tourists, particularly due to its proximity to major theme parks like Walt Disney World.
With over 2,000 active Airbnb listings and a high occupancy rate even in off-peak months, Kissimmee offers a stable and profitable environment for investors in the short-term rental market. The city's lenient regulations and the potential for annual host income of around $42,000 further enhance its appeal as a prime location for real estate investment.
Short-Term Rental Regulations in Kissimmee, Florida for 2024
Licensing and Permits
- Conditional Use Permit: Required for many short-term rental operators, involving 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 this receipt, with the city evaluating the application against its regulations and zoning criteria.
Zoning Requirements
- Permitted Zoning Districts: Short-term rentals are allowed in specific zoning districts, including RB-, RB-2, RC-1, and RC-2. The Kissimmee Zoning Map serves as a visual guide.
Building and Housing Standards
- Compliance with Florida Building Codes: Short-term rentals must adhere to minimum construction, design, and maintenance standards to ensure habitability, health, and safety for guests.
Taxes
- Tourist Development Tax: Imposed by Osceola County on guest stays of less than six months.
- State Sales Tax: A 6% sales tax levied by the state of Florida on stays spanning less than six months.
Safety and Health Standards
- Enhanced Safety Standards: Osceola County has implemented stricter safety standards, including updated requirements for fire safety equipment and emergency protocols.
Enforcement and Penalties
- Increased Enforcement: Higher penalties for non-compliance with short-term rental regulations, emphasizing the need for hosts to stay informed and compliant.
Additional Requirements
- Proof of Property Ownership: 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 also abide by other contracts or rules, such as lease agreements, condo board or co-op rules, HOA rules, or guidelines set by tenant organizations.
Updated Regulations for 2024
- New Licensing Requirements: Updated application process and additional documentation to ensure compliance with local laws.
- Increased Fees: Licensing fees for short-term rentals have been increased.
- Updated Zoning Regulations: Recent changes in zoning regulations may affect where short-term rentals are allowed.
Top Airbnb Revenue-Generating Neighborhoods in Kissimmee, Florida
1. Windsor Hills
- Location: Close to Walt Disney World, major attractions, shops, and restaurants.
- Amenities: Gated community, pool with a splash pad, movie room, and other family-friendly amenities.
- Appeal: Low HOA fees, optimal location, and a variety of home types from condos to expansive homes make it highly desirable for families and groups.
2. Storey Lake
- Location: Central location with quick access to major attractions.
- Amenities: Modern homes, lazy river, state-of-the-art clubhouse, and various in-community amenities.
- Appeal: Attractive to both families and younger travelers due to its contemporary stay experience and top-tier amenities.
3. Terra Verde
- Location: Gated environment with a mix of townhomes and private homes.
- Amenities: Large communal pool, tiki bar, fishing opportunities, and a tranquil setting.
- Appeal: Offers security and luxury, making it a haven for relaxation and a sought-after location for travelers seeking a peaceful environment.
4. Encantada
- Location: Close to shopping areas and popular attractions.
- Amenities: Modern townhomes, two pools, playground, and a relaxing ambiance.
- Appeal: Ideal for smaller groups or families due to its comprehensive amenities and resort-like living.
5. Championsgate
- Location: Although further from theme parks, it offers easy access via major roads.
- Amenities: Golf courses, spa, and separate areas for vacation homes and private residences.
- Appeal: Zoned for short-term rentals, with amenities like golf courses and a spa, making it appealing for both families and those seeking privacy.
6. Bella Vida
- Location: Near shopping and fine dining areas.
- Amenities: High-end comforts including private pools and water scenes.
- Appeal: Luxury living with high-end amenities, perfect for a luxurious escape and close to various amenities.
7. Reunion
- Location: Just south of Celebration, near Championsgate.
- Amenities: Gated community with 3 golf courses, a water park, and large new construction homes.
- Appeal: Offers exceptional amenities, but note the significant HOA and membership fees. Ideal for those seeking a luxurious and amenity-rich stay.
These neighborhoods are highly appealing due to their strategic locations, diverse range of amenities, and the ability to cater to various types of travelers, from families to solo adventurers and those seeking luxury or relaxation.
Tips for Furnishing and Designing an Inviting Airbnb in Kissimmee, Florida
Kitchen and Dining Area
- Fully Equipped Kitchen: Ensure the kitchen is equipped with modern appliances, including a coffee maker, microwave, oven, dishwasher, and essential cookware and utensils like pots, pans, mixing bowls, and kitchen utensils.
- Dining Table and Chairs: Provide a dining table and sufficient chairs to accommodate the maximum number of guests. If there is no separate dining room, include a small dining table in the kitchen.
- Tableware and Silverware: Stock up on durable plates, bowls, serving dishes, drinking cups, silverware, and cutlery to ensure there are enough for all guests.
Living Room and Common Areas
- Comfortable Furniture: Invest in comfortable, modern sofas, chairs, and coffee tables. Add rugs, curtains, and blinds to create a cozy atmosphere.
- Entertainment Features: Consider adding game rooms, movie theaters, or themed rooms to enhance the family-friendly and entertainment aspect of the stay.
- Decor and Ambiance: Use bright colors and whimsical designs, especially in properties targeted at families visiting nearby theme parks. Incorporate local cultural and nature-inspired elements to add a personalized touch.
Bedrooms
- High-Quality Mattresses and Bedding: Ensure each bedroom has a comfortable mattress, mattress protector, bedding sets, pillows, and pillow protectors. Provide different bed sizes to accommodate various group sizes.
- Functional Furniture: Include essential furniture like bed frames, dressers, nightstands, and closet space. Consider adding cribs or children’s furniture if targeting families with small children.
Outdoor Spaces
- Private Pools and Patios: Properties with private pools or access to community pools are highly desirable. Highlight any outdoor spaces, patios, BBQ areas, or lounging spaces that allow guests to unwind.
- Outdoor Decor: Ensure outdoor areas are well-maintained and decorated to match the indoor style, creating a seamless transition between indoor and outdoor spaces.
Maintenance and Guest Experience
- Regular Maintenance: Perform regular maintenance checks to ensure all appliances, electrical systems, and plumbing are in good working condition. Address any issues promptly.
- Clear Communication and Welcome Package: Establish clear communication with guests and provide a welcome package with information on local attractions, check-in procedures, and insider tips.
- Personalized Touches: Anticipate guests' needs and preferences, and consider leaving small gifts or cards for special occasions to enhance the guest experience.
Additional Tips
- Liability Insurance: Consider obtaining liability insurance coverage specifically designed for short-term rentals to protect against accidents or damages caused by guests.
- High-Speed Internet and Entertainment: Ensure high-speed internet is available, and consider providing additional entertainment options like smart home tech or streaming services.
By following these tips, you can create an inviting and unique Airbnb space in Kissimmee, Florida, that reflects the city's style and caters to the needs of your guests.
Discovering Kissimmee, Florida: Local Attractions and Insider Tips for Your Guests
Top Local Attractions
1. Old Town Kissimmee
- Experience the classic charm of Florida with shopping, dining, and entertainment.
- Don't miss the Saturday Nite Classic Car Show and Cruise.
- Enjoy live music, outdoor stages, and a Ferris wheel ride.
2. Airboat Tours
- Explore Florida's wild natural beauty with high-speed airboat rides.
- Spot alligators, turtles, and native bird species at places like Boggy Creek Airboat Adventures.
3. Fun Spot America
- A family-friendly amusement park with roller coasters, go-karts, and the famous Mine Blower wooden coaster.
- Daredevils can enjoy the SkyCoaster, combining elements of skydiving and hang-gliding.
4. Kissimmee Lakefront Park
- A tranquil oasis with a boardwalk, playground areas, and opportunities for picnicking and wildlife spotting.
- Enjoy leisurely walks and scenic lake views.
5. Shingle Creek Regional Park
- A 456-acre park often referred to as the "northernmost headwaters of the Florida Everglades."
- Perfect for hiking, fishing, and reconnecting with nature.
Insider Tips
Outdoor Adventures
- Hot Air Balloon Rides: For a bird’s-eye view of Central Florida, consider a hot air balloon ride.
- Paddling and Kayaking: Explore the cypress forests and waterways of Kissimmee through paddling or kayaking.
Cultural Experiences
- Osceola County Historical Society & Pioneer Village: Learn about Florida’s rich pioneer history in this living history museum.
- Museum of Military History: Gain a deeper understanding of the nation’s military history through guided tours and special events.
Entertainment and Dining
- Downtown Kissimmee: Explore unique shops, restaurants, and entertainment options in the heart of the city.
- Icon Park and SEA LIFE Orlando Aquarium: Visit for a variety of attractions including the SEA LIFE Aquarium, Madame Tussauds, and The Orlando Eye.
Shopping
- Orlando Vineland Premium Outlets: Shop at one of Florida’s best outlet malls for a wide range of brands and deals.
Festivals and Events
- Check Local Event Calendars: Kissimmee hosts various festivals, concerts, and seasonal celebrations. Make sure to check what’s happening during your guests’ stay.
Additional Tips for Airbnb Hosts
- Interactive Maps: Provide guests with an interactive map of Kissimmee to help them navigate and find attractions easily.
- Local Recommendations: Offer personalized recommendations based on your guests’ interests, whether it’s outdoor adventures, cultural experiences, or family-friendly activities.
- Discounts and Packages: Inform guests about any special discounts or packages available for attractions and activities in the area.
Practical Tips to Run a Successful Short-Term Rental Business in Kissimmee, Florida
To ensure a smooth and profitable short-term rental business in Kissimmee, Florida, several practical tips can make a significant difference. Here are some key considerations:
Noise Regulations and Guest Communication
Inform your guests about quiet hours and noise regulations to maintain a harmonious environment. Clearly outline these rules in your digital and physical house manual to avoid any misunderstandings.
Comprehensive House Manual
Create a detailed digital and physical house manual that includes essential instructions, Wi-Fi passwords, and other important information. This manual should cover everything from appliance usage to emergency contact details, ensuring guests have a comfortable and stress-free stay.
Simplified Check-in Process
Utilize smart locks to streamline the check-in process, eliminating the need for physical key exchanges. Provide guests with clear instructions on how to use the smart locks, along with parking instructions accompanied by photos to help them navigate the property easily.
By implementing these strategies, 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 providers in Kissimmee, Florida:
House Cleaning Providers in Kissimmee, FL
Royal Maid Service
- Offers residential and business cleaning services
- Licensed, bonded, and insured maids
- No contracts required
- Customized cleaning plans and eco-friendly products.
The Cleaning Authority
- Provides detailed cleaning services using the Detail-Clean Rotation System
- Uses environmentally responsible cleaning products and EPA-registered disinfectants
- Customized cleaning plans and free in-home estimates
- Fully bonded and insured.
My Cleaning Angel
- Matches clients with local cleaners for various cleaning services
- Offers one-time, move-in/move-out, post-construction, recurring, and vacation rental cleaning
- Uses eco-friendly products and provides customizable cleaning services
- 100% satisfaction guarantee.
MaidPro Kissimmee
- Offers customized cleaning plans, including weekly, bi-weekly, and one-time cleanings
- Uses a 49-Point Checklist™ to ensure thorough cleaning
- Trained and certified PROs, bonded and insured
- Satisfaction guaranteed with the PRO Clean Promise.
Vacation Home Help
- Provides comprehensive and unique cleaning services with detailed checklists
- Offers holiday cleaning, deep cleaning, green cleaning, move out cleaning, and more
- Flexible plans including weekly, bi-weekly, or monthly services
- Bonded and insured team members with a worry-free guarantee.
Short-Term Rental Management Fees in Kissimmee, Florida: A Comprehensive Guide
In Kissimmee, Florida, the fees for short-term rental management 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 a wide array of services including guest communication, marketing, price optimization, and property maintenance, and these comprehensive packages usually come with higher fees, often starting at 15% to 20% of the rental revenue.
On the other hand, basic services that focus on specific aspects like property maintenance or guest check-ins may incur lower fees, sometimes as low as 10% per booking. Additional costs can include fees for cleaning, repairs, and design services, which may be charged separately or included in the overall management fee. For instance, some companies charge guests a cleaning fee, while others may include consumables and maintenance costs within their service packages.
Understanding these fee structures is crucial for hosts to ensure they are getting the best value for their investment and to comply with local regulations, including licensing and tax requirements.