Realtors in Orlando are ecstatic to see condo sales rebounding in Orlando this quarter. With the low-interest rates, private single-family homes took the spotlight as homeowners could afford these larger homes more than ever. Unfortunately, the single-family prices are staying high since they are in such high demand lately. Condominiums took a backseat due to this shift, but recent reports from HousingWire indicate that they are gaining track in sales this winter.
These are perfect investment vacation homes for homeowners who are snowbirds. Most of our owners live in Michigan and New York who will come stay in Orlando for the warm weather during the cold winter months. Snowbirds are typically couples who have grown children who might come visit for a week during their stay so they do not need a large vacation home. The rest of the year, they will allow property management companies like us to rent them to cover their bills on the condo.
Condos are often a more affordable option for homeowners that want an investment property. The average single vacation home near Disney World is starting at $200,000 whereas a condominium in a great resort is running around $112,000. Homeowners in condos will still have the same access to great amenities in resorts like Windsor Palms that have condos, townhomes, and single-family homes in the resort. Homeowner Association Fees will typically be a little bit lower than the private homes as well which will save you on costs. There won’t be extra costs for heating a pool, pool service, and landscaping like single-family homes have.
Another reason condos are appealing to owners who are new to investing in a vacation rental is there is less risk with condos. If there is a hurricane and their roof gets damaged, that is the responsibility of the homeowners association whereas a single-family homeowner would be solely responsible for their roof.
While single-family vacation homes seem like the best vacation rental investment, condos still get rented out well in the Orlando area. We have had many homeowners start with renting out their condo and eventually upgrading to a larger home once they have tested out the market and have seen success. It is important to work with a management company that has the knowledge and marketing capabilities to rent out a condo. We have been renting out condos since 2006 and have had great success keeping the condos booked out for our owners. If you or your client are interested in purchasing a condo, we would be happy to guide you to the best income-producing options in Orlando.
As you can see, we are extremely active with our marketing efforts. We would love to have the opportunity to manage and market your vacation home. Last year, we did not have one vacation home occupied less than 220 nights and our average vacation home was occupied 248 nights annually…that is over 20 nights a month!