Could You Be Making Money From an Airbnb Property in Orlando?
Could you be making money from an Airbnb property in Orlando?
Let’s find out…
There’s been a lot of noise surrounding the conversation of Airbnb investment properties over the past few years. Some property investors swear by the dividends while others think of the industry as a trendy fad with unnecessary fees and risks.
With the right guidance, Airbnb properties are a great way to increase your passive income.
The case for Airbnb.
Airbnb has become a staple for travelers in need of comfortable and affordable accommodations. Similar to Uber, Airbnb has disrupted the hospitality industry creating new income opportunities for the everyday person. Airbnb rentals tend to rent for higher rates than traditional rentals due to the high turnover of occupants. The popularity of the service along with higher rental rates are the main points of attraction for short term rental investment properties.
The case against Airbnb.
Some of the main concerns of operating Airbnb rentals have to do with home insurance and property occupancy. The majority of home insurance policies don’t cover damages for short term rental properties. Although Airbnb does offer its own insurance option (of up to 1 million dollars), its a little bit more complicated than your average policy.
The Main Takeaway
The dominant tourism industry in Orlando makes it the perfect location to own an Airbnb property, but it’s important to take into account factors such as: location, property management services and insurance before you commit to purchasing a property. Consulting with a real estate professional who specializes in Airbnb rentals is a great way to minimize the risks of owning an Airbnb property.
Pros
- Higher rent.
- High demand in tourist heavy markets such as Orlando.
- Increasingly popular platform especially amongst Millennials .
Cons
- More complicated to insure than long term rentals.
- Mandatory service fees for utilizing the Airbnb platform.
Whether you are looking to invest in an Airbnb rental property or a traditional rental property, Orlando is full of opportunity!
Still not convinced?
Are you looking to generate some extra income from an Airbnb property? Give us a call and we will be happy to help you find the perfect property.
