Airbnb Orlando: Is It Worth Investing In?

Airbnb Orlando is now witnessing record numbers of visitors, both from within the state and outside the state, compared to other areas in the US.

Despite the impact of COVID-19 on Florida’s tourism industry, it was able to recover quickly. Domestic tourism increased during the pandemic due to Governor DeSantis’ invitation for Floridians to travel within the state.

It is also reported that Walt Disney World will continue to increase its capacity. With Disney World in Orlando being open since summer 2020, visitors have rushed to the area searching for vacation rental houses. Disney World actually sold out numerous days for spring break 2021, and the STRs have been occupied since.

Florida Real Estate Market: What to Expect?

Except for Texas, Florida has attracted the newest residents of any state in the United States. The Sunshine State accepted more than 210,000 new people in one year, according to the US Census Bureau. The majority of this group came from the Northeastern states and California, looking for a better quality of life and lower taxes. The enormous influx of people has dramatically helped the Florida housing market, resulting in property appreciation, particularly in the cities of Miami, Orlando, and nearby cities.

The surge of new people has not slowed, and this year appears to be a bright one as well. Property prices are expected to remain under pressure due to low supply and considerable pent-up interest from international purchasers, known as “pent-up demand,” which emerged following the recent reopening of American borders to many nations. The new influx of immigration carries specific real estate market trends for Airbnb Orlando.

Let’s see what Florida real estate market has in stake for the investors.

Adaptable Way of Life

Interestingly, remote or hybrid work (partially in the office and partially at home) is here to stay. The pandemic has demonstrated that the new, more adaptable dynamic is entirely feasible and, in most situations, more effective. Not to mention the improved standard of living for coworkers.

During the pandemic era, hundreds of thousands of Americans hunted apartments and houses in Florida to spend extended periods. Many of them opted to stay permanently, which increased the numbers mentioned in the article’s beginning. Nevertheless, most of this audience who used the new movements of remote work did not quit their native homes and just made the best of the chance to spend a more extended amount of time in the Sunshine State.

The city of Orlando already has this trend, offering various vacation home condominiums near the amusement parks, located in districts with particular zoning for the activity of short-term renting, such as the well-known tourist spot of Kissimmee.

Nevertheless, when it comes to rental restrictions, the city of Miami has traditionally been tighter. Luckily, developers and municipal governments have established an agreement that allows them to offer this sort of product.

Branded Condominiums

Another Airbnb Orlando trend that is expected to grow is so-called “Branded Condos,” which are condominiums affiliated with prominent businesses.

This business model is not new. Miami already has a variety of luxury condo choices. Sunny Isles Beach is well-known for being host to a few. The Porsche Design Tower, a 51-story oceanfront luxurious residential building, created in collaboration with the German company Porsche Design, is the most spoken about and has changed the worldwide real estate market.

Following in the footsteps of Porsche, the same building firm announced the debut of Bentley Residences, also on Sunny Isles Beach, in collaboration with the British automotive manufacturer Bentley Motors. The new property will also provide homeowners with a car lift.

The Aston Martin Tower in Brickell is also a noteworthy development. Several more, including Baccarat Residences, Residences by Armani Casa, and Waldorf Astoria Tower, were announced or completed in 2021.

Global investors and buyers perceive the branded-condo Airbnb business as having many benefits, ranging from exclusivity to safety in the purchase. A world-renowned company will use all of its influence on the development to keep the high standard.

Coworking Along With Other Shared Spaces

The “share” habit, which was primarily abandoned throughout pandemic periods, has now returned to the “new normal.” Architects have discovered that, after years of seclusion, people crave a little social contact—but with safety precautions—more than ever. In this environment, new developments provide office spaces as well as other common facilities such as wine salons, karaoke bars, and outdoor open fires, among others.

New Developments and Mixed-Use Projects

In this new setting, some communities stand out, such as fast-growing districts and mixed-use complexes that are actual mini-cities. The Miami Worldcenter is the most well-known of Miami’s huge mixed-use complexes. Miami will also get the Magic City Innovation District, which will cost more than a billion dollars to build.

Midtown Miami, an oasis between Wynwood and the Design District, is another area that has drawn residents and tourists. Aside from being a region that encourages walks and outside socialization, it also has excellent restaurants, stores, and cafes, among other facilities and entertainment alternatives.

Now that we have seen what Florida has to offer, let’s focus on Airbnb Orlando and discuss some of the best neighborhoods to invest in.

Orlando Real Estate Market: What You Need to Know

Should you invest in Orlando Airbnb vacation home rentals? Without a doubt! By far, one of the greatest places to buy an Airbnb investment home is the Orlando real estate market. While this can be stated for most Florida vacation rentals, it can be claimed that vacation property rentals in Orlando are among the best in the state.

Is Airbnb Legal in Orlando?

Let us begin with the most basic question: Is Airbnb legal in the Orlando housing market? Yes, absolutely. The city has been accessible to Airbnb investment for some time and has recently implemented Airbnb legislation that makes it easier to operate an Airbnb vacation rental property.

The city adopted an act in February 2018 that permits hosts to rent out their Airbnb in Orlando Florida for less than 30 days. According to the Airbnb rules, the host must also reside on the rental property. Airbnb investing may be restricted in some locations due to zoning and homeowner groups despite these rules.

That is, though, the sole cause for concern with Airbnb Orlando, and it is readily solved if the host conducts research before investing in the home. Visit Airbnb’s Orlando regulations page to learn more about the regulatory obligations of Airbnb.

What Are the Benefits of Investing in Airbnb Orlando?

There are two key reasons for this: Florida’s beautiful weather and the world’s most popular mouse.

Orlando’s tourism is excellent, thanks in large part to the previous two factors: Florida’s beaches and Disney World. The incredible tourism stats in Orlando support this claim. Orlando was the first-ever city in the world to get 60 million visitors in 2015.

This figure was not reached in New York City until two years later. In addition, more than 32 million tourists visited Florida in the third quarter (July to September) of 2021, representing a more than 60% increase over the same period in 2020.

Overall, Florida had approximately 118 million domestic tourists in 2021, the greatest number in state history, as residents from other states rushed to Florida to escape lockdown policies.

Airbnb Orlando: Key Statistics

Orlando’s multifamily market is thriving, making it the hottest part of the market for real estate investors and perhaps one of the finest places to invest in Florida. Over the last year, occupancy has improved from 94%  to 96%, and 16,571 more units are expected to be finished. Orlando ranks 12th out of 98 countrywide markets in multifamily development work.

Orlando’s rental market was relatively steady for several years, but it has seen substantial spikes in price and demand in recent months. Orlando currently ranks 23rd out of 53 significant metros in terms of the percentage of single-family homes. A new building in Orlando has also begun. Furthermore, new development permits have grown by 26% year on year. Permits for single-family homes have climbed by 25%, while permits for multifamily homes have increased by 29%.

Orlando is built for Airbnb long term rentals, and new construction sectors should continue to be a strong investment for real estate investors looking for prospects in the city.

Where to Invest in Airbnb Orlando Market

There is one unsolved question: where should you buy Airbnb in Orlando Florida rentals? Mashvisor has the solution yet again. The top neighborhoods in Orlando to acquire an Airbnb investment property, according to Mashvisor’s real estate market study, include the following:

Best Orlando Locations

So, what are the best Airbnb locations and neighborhoods in Orlando for you to invest in? Let’s see the exclusive Mashvisor’s list.

Rowena Gardens

• Median Property Price: $798,700
• Price per Square Foot: $293
• Monthly Airbnb Rental Income: $5,411
• Airbnb Cash on Cash Return: 4.33%
• Airbnb Daily Rate: $135
• Airbnb Occupancy Rate: 59%
• Walk Score: 54

East Central Park

• Median Property Price: $399,900
• Price per Square Foot: $316
• Monthly Airbnb Rental Income: $3,962
• Airbnb Cash on Cash Return: 6.26%
• Airbnb Daily Rate: $130
• Airbnb Occupancy Rate: 65%
• Walk Score: 79

Colonialtown North

• Median Property Price: $676,250
• Price per Square Foot: $321
• Monthly Airbnb Rental Income: $5,686
• Airbnb Cash on Cash Return: 5.25%
• Airbnb Daily Rate: $138
• Airbnb Occupancy Rate: 57%
• Walk Score: 71

Lancaster Park

• Median Property Price: $917,500
• Price per Square Foot: $278
• Monthly Airbnb Rental Income: $5,914
• Airbnb Cash on Cash Return: 4.17%
• Airbnb Daily Rate: $131
• Airbnb Occupancy Rate: 56%
• Walk Score: 40

Delaney Park

• Median Property Price: $794,500
• Price per Square Foot: $372
• Monthly Airbnb Rental Income: $2,957
• Airbnb Cash on Cash Return: 5.73%
• Airbnb Daily Rate: $139
• Airbnb Occupancy Rate: 55%
• Walk Score: 21

Delaney Park is among the best Orlando Airbnb locations at the neighborhood level, with the highest median Airbnb rental income. It’s safe to conclude that Airbnb Orlando hosts experience high profits in this neighborhood.

How Can Mashvisor Help?

Once you’ve determined that Orlando is an excellent and profitable area for short-term rentals, it’s time to select the ideal Airbnb for sale. First, decide on the finest neighborhood for your short-term rental.

While purchasing a rental home near a specific tourist resort is desirable, it is preferable to consider investing in an area close to numerous attractions. Consider a location with a high Walk Score or one that is close to a variety of public transportation choices.

If you’re not certain where or how to invest in real estate, Mashvisor’s extensive real estate market analysis can help you identify which places are suitable for Airbnb Orlando rentals. Mashvisor’s database includes thousands of homes: using our Investment Property Search, simply enter a city or neighborhood of interest, and you will be presented with a list of homes and duplexes for sale in that area.

We’ll present you with a complete analysis of the monthly average rental revenue, Airbnb cap rate, cash flow, average daily rate, occupancy rate, median home value, and more when you pick a unit that attracts you. You can also utilize our Mashvisor tools to find comparable rental listings, analyze neighborhoods, and gain important Airbnb data insights. You will require this information and market data to make an educated investment decision and have better Airbnb management.

Conclusion

Orlando will be a fantastic location for any Airbnb investment. And with our top 5 neighborhoods already mentioned, you’ve completed the first stage in your Orlando real estate investment. To truly make the most outstanding real estate decisions, you must undertake a thorough real estate investment analysis as well as an Airbnb study based on current and reliable data.

Real estate investing entails more than simply selecting an area that appears appealing—you must devote yourself to this business and analyze every part of it. Mashvisor is here to educate you and assist you in developing a good short-term rental plan using our tools. Click here to select the plan that best meets your needs.