Orlando, Florida, remains a thriving market for short-term rentals, boasting high occupancy rates exceeding 70%, competitive revenues, and steady annual growth driven by its renowned tourist attractions and diverse accommodation options.
Orlando Thrives as a Premier Short-Term Rental Market in 2024
Orlando continues to shine as a top destination for short-term rental investments, driven by its robust tourist attractions, strategic location, and diverse accommodation options. The city boasts impressive occupancy rates, often exceeding 70%, significantly higher than the national average. This high demand is fueled by millions of visitors drawn to iconic attractions like Disney World, Universal Studios, and SeaWorld. In terms of revenue, Orlando's short-term rentals yield strong average daily rates (ADRs) of around $130, contributing to substantial monthly returns. Despite some fluctuations in pricing strategies and supply adjustments, the overall market remains lucrative, with larger multi-occupancy units showing particularly strong occupancy premiums, underscoring Orlando's appeal for group and leisure travel.
Short-Term Rental Regulations in Orlando, Florida for 2024
Registration and Licensing Requirements
- All short-term rental properties must be registered with the City of Orlando and pay an annual fee ($275 for the first year, $100 for subsequent years).
- Registration includes submitting an application, proof of residency (e.g., driver’s license, utility bill), a notarized letter from the owner if the application is not submitted by the property owner, and confirmation of the total number of bedrooms listed with the Orange County Property Appraiser.
Zoning and Location Restrictions
- Short-term rentals are prohibited in residential (R) zoning districts for entire units unless the property is in commercial zoning districts (O-3, MU, AC). Home sharing is allowed in all residential zoning districts if the host is present.
- Municipal Planning Board approval is required for certain zoning districts (MXD-2, O-1, O-2).
Occupancy and Rental Period Restrictions
- Maximum occupancy is two people per bedroom plus two additional guests per property, with a total cap of four guests.
- Rentals are limited to one booking at a time.
- Entire home rentals are not permitted in residential areas unless in commercial zoning districts.
Safety and Compliance
- Properties must pass an interior inspection to ensure compliance with safety and zoning requirements.
- Compliance with all building, fire, health, and life safety codes is mandatory.
Tax Obligations
- Collect and remit the 6% Tourist Development Tax to the Orange County Comptroller's Office monthly.
- Register with the Florida Department of Revenue to collect and remit state sales tax.
- Obtain a Business Tax Receipt from the Orange County Tax Collector.
Operational Responsibilities
- Maintain at least $1 million in liability insurance coverage.
- Respond to any complaints or issues within 1 hour, 24 hours a day.
- Maintain a register of all guests and their vehicle information.
Home Sharing Specifics
- Home sharing is allowed if the host is present and no more than half of the bedrooms are rented out.
Enforcement and Penalties
- Non-compliant properties can face penalties of $250 per day, up to a maximum of $5,000. Repeat offenders may have their properties declared a public nuisance, leading to criminal charges.
- The city relies on a complaint-based system for enforcement, with code officers investigating properties after receiving reports from neighbors.
Top Airbnb Revenue-Generating Neighborhoods in Orlando, Florida
1. College Park
- Average Revenue: $85.3K per year
- Average Daily Rate: $423.4 per night
- Average Occupancy Rate: 60%
- Average RevPAR: $255.8
- Appeal: College Park is a charming, historic neighborhood with tree-lined streets, vintage homes, and a thriving community spirit. Its central location provides easy access to major highways, and the neighborhood features a walkable downtown district with local shops, restaurants, and cafes. The proximity to downtown Orlando and major attractions, along with its unique and desirable living environment, make it highly appealing to guests.
2. Doctor Phillips
- Average Revenue: $83.8K per year
- Average Daily Rate: $482.9 per night
- Average Occupancy Rate: 57%
- Average RevPAR: $254
- Appeal: Doctor Phillips is an affluent suburb known for its luxurious mansion-like homes, top-rated schools, and scenic lakes. It offers a tranquil and sophisticated living environment, with easy access to major highways and Orlando International Airport. The neighborhood's upscale homes, picturesque lakefront views, and proximity to world-class attractions like Universal Orlando Resort and Walt Disney World Resort make it highly attractive to guests seeking a high-end experience.
3. Lake Nona
- Average Revenue: $45.8K per year
- Average Daily Rate: $193.9 per night
- Average Occupancy Rate: 86%
- Average RevPAR: $167.6
- Appeal: Lake Nona is a master-planned community that offers a blend of modern amenities, scenic beauty, and a thriving economy. Its well-designed layout and easy access to major highways make it convenient for guests. The community features various shopping centers, restaurants, and grocery stores, ensuring that visitors have everything they need within reach. The high occupancy rate and convenient lifestyle make Lake Nona an attractive destination for both tourists and residents.
4. Williamsburg
- Appeal: While specific revenue figures are not provided, Williamsburg is notable for its serene suburban ambiance within the energetic Orlando setting. It is close to top attractions like SeaWorld and features a mix of traditional Florida homes, modern townhouses, and community parks. The quiet, family-friendly atmosphere and diverse accommodation options make it appealing to guests seeking a calm retreat near major attractions.
5. Windhover
- Appeal: Windhover offers a unique mix of urban and suburban living, with quiet residential areas and proximity to major attractions like Universal Orlando Resort. It provides a peaceful retreat for guests while offering easy access to the city’s entertainment and a range of budget-friendly lodging options. This blend of serenity and convenience makes Windhover an attractive choice for Airbnb guests.
Tips for Furnishing and Designing an Inviting Airbnb in Orlando, Florida
1. Incorporate Local Flair and Themes
- Reflect Orlando's unique culture by incorporating decor elements inspired by local attractions such as Disney and Universal Studios. Use themed decor, artwork by local artists, and decorative pillows with patterns inspired by the region's traditional textiles.
2. Focus on Comfort and Cleanliness
- Invest in comfortable and contemporary furniture, including sofas, beds, and dining tables that can accommodate large groups. Ensure high-quality linens, stylish decorations, and functional kitchen appliances to create a cozy home-like atmosphere. Maintain a clean and clutter-free space to enhance guest satisfaction.
3. Utilize Natural Elements and Texture
- Bring the outdoors in by adding natural elements such as high-quality faux potted plants and natural accents like agate napkin rings. Incorporate plush throw blankets, soft pillows, and accent rugs to create a cozy and inviting atmosphere.
4. Optimize Lighting and Ambiance
- Experiment with different lighting options, such as dimmer switches or warm-toned bulbs, to create a soothing ambiance. Consider adding string lights or flameless candles for a warm and intimate vibe.
5. Provide Essential Amenities
- Ensure the property is well-equipped with essential amenities like a fully stocked kitchen (including a microwave, coffee maker, and necessary utensils), a practical bathroom setup (with good water pressure, niches for toiletries, and ample storage), and comfortable bedrooms (with nightstands, lamps, and ample storage).
6. Highlight Outdoor Spaces
- If available, emphasize outdoor spaces such as private pools, which offer a relaxing retreat after a day at the attractions. Also, consider adding game rooms or entertainment options to enhance the guest experience.
7. Humanize the Environments
- Add personal touches to the decoration, such as plants, books on shelves, and tablecloths, to make the space feel more like a home than a hotel room. This helps guests feel more connected to the local culture and environment.
8. Invest in Quality Photos
- Hire professional photo services to capture the details and amenities of your property. Photos play a crucial role in showcasing the property and attracting potential guests.
9. Consider Neighborhood and Proximity
- Choose neighborhoods that are close to popular tourist attractions, such as Kissimmee, Davenport, and areas near the theme parks. These locations attract significant tourist traffic and offer accessible amenities that enhance the guest experience.
10. Pay Attention to Guest Feedback
- Regularly review and value feedback from your guests. Adapt your property to meet the needs and preferences of your customers, ensuring continuous improvement and better guest satisfaction.
Local Attractions and Insider Tips for Orlando, Florida
Theme Parks and Water Parks
- Sea World: Experience aquatic life, animal interactions, and thrilling rides, including the Mako roller coaster and a unique water park.
- Disney’s Typhoon Lagoon and Blizzard Beach: Enjoy tropical and icy-themed water parks with various slides and attractions at the Walt Disney World Resort.
- Fun Spot America: Home to tall Sky Coasters and the only wooden roller coaster in Orlando, White Lightning, along with Gator Spot for reptile enthusiasts.
Wildlife and Nature
- Gatorland: Known as the "Alligator Capital of the World," featuring thousands of alligators and other animals.
- Discovery Cove: Interact with dolphins, tropical birds, and other marine life in a serene, tropical setting.
- Central FL Zoo & Botanical Gardens: Explore over 23 acres of lush greenery and see animals like the Florida black bear and American alligator.
Unique Attractions
- Orlando Science Center: An interactive museum with exhibits on physics, space exploration, and more, perfect for families.
- WonderWorks Orlando: A museum with educational and exciting attractions that challenge the mind.
- Ripley’s Believe It or Not: Marvel at incredible oddities and unusual artifacts.
Outdoor Activities
- De Leon Springs State Park: Enjoy natural springs, hiking, and a meal at The Old Spanish Sugar Mill and Griddle House.
- Canyons Zip Line & Canopy Tours: Experience zip lines, horseback riding, and other land and water activities near Ocala.
- Orlando Tree Trek Adventure Park: Navigate obstacle and ropes courses suitable for all ages and skill levels.
- Wekiva Island: Rent paddleboards and enjoy the natural beauty of the area.
Cultural and Entertainment
- The Plaza Live: Catch live performances, comedy shows, and cultural events at this iconic venue.
- Harry P. Leu Gardens: Stroll through 50 acres of stunning gardens along Lake Rowena.
- Lake Eola Park: Rent swan-shaped paddle boats and enjoy the scenic views.
Insider Tips
- Early Mornings: Arrive early at popular attractions like De Leon Springs to avoid crowds.
- Discounts and Special Pricing: Check for discounts at places like Orlando Tree Trek Adventure Park, especially for Florida residents, early-risers, seniors, and large groups.
- Local Markets: Visit the Orlando Farmers Market at Lake Eola or the East End Market for fresh produce, local goods, and unique crafts.
- Bioluminescent Kayak Tour: Experience the unique bioluminescent waters off the coast of Florida, a rare natural phenomenon.
- Scenic Boat Tour – Winter Park: Take a picturesque boat tour through the lakes and canals of Winter Park.
Hidden Gems
- Tibet-Butler Preserve: Explore peaceful trails and educational programs in this preserve, ideal for nature lovers.
- Crystal River Watersports: Swim and snorkel with manatees in their natural habitat, a unique and memorable experience.
- Drive Shack: Enjoy golfing and socializing in a relaxed, fun environment.
By sharing these local attractions and insider tips, you can help your Airbnb guests make the most of their visit to Orlando, Florida.
Practical Tips to Run a Successful Short-Term Rental Business in Orlando, Florida
To ensure the success and smooth operation of a short-term rental business in Orlando, Florida, several practical tips can be implemented. Here are some key considerations:
Noise Regulations and Guest Communication
Informing guests about quiet hours is crucial to maintain good relations with neighbors and comply with Orlando's noise and nuisance regulations. Include clear guidelines on quiet hours in your digital and physical house manual to avoid potential issues.
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 be easily accessible to guests, either through a digital link or a physical copy left at the property.
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 ensure a smooth arrival.
Additional Considerations
- Zoning and Licensing: Ensure compliance with Orlando's zoning laws and obtain the necessary permits, including the short-term property rental permit and vacation rental business license.
- Financial Planning: Balance short-term rental income against expenses such as cleaning fees, maintenance costs, and utility bills to ensure profitability.
- Property Management: Consider hiring a property management company to handle reservations, check-ins, and maintenance to maximize revenue and occupancy.
By following these tips, you can enhance the guest experience, reduce potential issues, and ensure a successful and profitable short-term rental business in Orlando.
Here is a brief list of house cleaning providers in Orlando, Florida:
House Cleaning Services in Orlando, FL
The Cleaning Authority
- Provides detailed house cleaning services using a rotating system to ensure thorough cleaning.
- Serves Orlando, Winter Park, and surrounding areas.
- Fully bonded and insured, with environmentally responsible cleaning products.
- Contact: (407) 278-8749.
Ruby Red Cleaning
- Offers house cleaning and maid services, including recurring and deep cleaning.
- Serves the entire Orlando metro area, including Lake Nona, Maitland, and Winter Park.
- Professionally trained, vetted, and insured staff.
- Contact: (321) 348-7474.
Merry Maids
- Provides professional cleaning services, including weekly, bi-weekly, or monthly plans.
- Offers various services such as holiday cleaning, deep cleaning, green cleaning, and more.
- Backed by four decades of experience.
- Contact: (321) 286-5421.
Two Maids
- Specializes in home cleaning services, including one-time and recurring cleanings.
- Supplies all necessary cleaning products and equipment.
- Fully licensed, bonded, and insured team.
- Contact: (407) 440-4074.
These services cater to various cleaning needs and offer different packages to suit individual preferences.
Orlando, Florida Short-Term Rental Management Fees: A Comprehensive Guide
In Orlando, 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, offer a wide array of services including guest communication, strategic pricing, property maintenance, and cleaning, which generally fall on the higher end of this spectrum, often between 12% to 30%.
Basic service packages, which may include only essential services like booking management and guest screening, tend to be less expensive, starting at around 10% of the rental revenue. Additionally, property owners may incur 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 fee structures is crucial for property owners to make informed decisions and maximize their rental income.