Learn why some Orlando apartment owners are now renting to tourists
In an interesting and innovative move to increase income, a handful of Orlando apartment owners are now renting out some of their multifamily units to tourists visiting the Central Florida region.
How renting to tourists works
Apartments that are approved for short-term rentals are usually required to hire professional rental companies to book and manage them. The available units are then listed on home-sharing platforms like Airbnb, as well as via the rental company’s own advertising channels.
Who can do it?
Within Orlando city limits, there are only a few multifamily properties that have been approved for master leases or corporate leases, according to Orlando’s Assistant City Planning Division Manager Jason Burton.
This includes five condo communities near Orlando International Airport and three apartment complexes, one in downtown Orlando and two by the Mall at Millenia.[1]
In most cases, buildings can only lease out a very small portion of their units: Orlando city code states that the number of units in apartment buildings that can be leased as short-term rentals cannot exceed 10 percent.
Altogether in Orlando, there are currently around 150 units set aside for short-term stays within multifamily complexes that also have permanent tenants.
Why this could be a good idea for owners
Offering short-term leases and renting to tourists can be a great way for apartment owners to secure a reliable stream of income—especially if the property has a high vacancy rate.
For the tourists themselves, it’s a great opportunity to escape the more touristy parts of Orlando and to see a different side of the City Beautiful.
The downsides of renting to tourists
Short-term rentals mean more turnover, more upkeep, and potentially more burden on the owner or property management company. There’s also the risk of disturbing long-term residents—who in many cases have moved into a particular neighborhood because they didn’t want to live in a tourist area.
Our conclusion
Renting to tourists is definitely an innovative way for Orlando multifamily owners to increase their income, especially for properties that have higher vacancy rates.
However, owners should be mindful of how this may affect the condition of their units, as well as the impact it may have on their property’s long-term residents.
With the caps put in place by the Orlando city code, there is currently little risk of this new trend causing too much disruption to the multifamily market in general. Nevertheless, our team are very interested in seeing what the future holds.
More resources for you
Visit the rest of our blog for more multifamily market insights, investor advice, videos, and more. You can also follow us on Facebook and LinkedIn.
Don’t forget to subscribe to our YouTube channel!
Looking for an Orlando multifamily investment opportunity?
Sources:
[1] GrowthSpotter
]]>