Are You Buying an Orlando Vacation Rental Home For All The Wrong Reasons
November 20, 2009 by Erica Muller
Filed under Buying & Selling
Don’t be that guy who thinks he’s going to get rich quick or cash in on an Orlando vacation home cash cow. You should avoid buying a vacation rental home in Orlando if your reasons are any of these three. A vacation rental home if doe the person who just wants to own a piece of Florida and understands they may or may not break even but they don’t care because this is their dream.
1. To Generate an Income
Stop right there and do not pass go. If you’re one of those people that think you’re going to buy a vacation rental home and generate a cash flow on your property all while enjoying the fruits of your investment three months per year you are dead wrong and should reconsider your decision. Yes- There are people in Orlando generating a small income off their vacation rental homes but it’s a very small percentage and there are several factors that have to line up for this to happen. Most of the time, epecially for those taking a mortgage, you should expect to pull 20%-30% out of your pocket every month to own the property. You do have a decent shot at breaking even but it’s going to take some work on your part.
View Properties With Transferable Bookings
2. For a Quick Flip
So you’ve been bit by the get rich quick bug and have decided you’re going to cash in on some of Florida’s foreclosure properties. . . Orlando vacation homes rarely make a good quick flip and its extremely difficult to net anything from the little money you may make flipping it. The only vacation rental neighborhood in the Disney areas that I have seen investors successfully flipping houses for a profit in is Legacy Dunes and even that’s not what it used to be anymore. Legacy Dunes used to be a nice little gold nugget buried away within Kissimmee that investors were cashing in on but word quickly spread and the inventory has dried up. You’re competing against dozens of other investors trying to do the same thing and as the higher you have to bid to get the property the lower your profit margin falls. The best quick flip properties are bulk packages that are generally purchased by investor groups.
Read Also: Legacy Dunes Being Flipped For a Profit On Ebay
3. For a Beach Getaway
I know this sounds obvious but you would be surprised how many people contact me because they want a beach retreat and think the prices in Orlando are great. Nine times out of ten those people leave very dissapointed when they realize that a one hour and fifteen minute drive is not exactly around the corner. It doesn’t sound like a long drive but if you plan on hitting the beach every day on your vacation than you may really want to consider the west coast of Florida as a better choice. Orlando is not known to be a place to visit for the beach, it’s known for Disney and all of the other attractions. The beach just happens to be an option for many, then again for those of you that don’t even live a days drive to the beach an hour and fifteen minutes may be the best thing since sliced bread.
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Important Things You Need To Look For Before Renting an Orlando Vacation House-Part 2
November 19, 2009 by Dave Pollock
Filed under Renter's Tips
Guest Post by: Dave Pollock
Also Read: Important Things You Need To Look For Before Renting an Orlando Vacation House-Part 1
All About Deposits
After you select an Orlando vacation home, and confirm the dates, you will have to put a deposit on the home. This is normally around $200.00 per week. If you are renting directly from a home owner, they usually accept a certified check, PayPal, or even a credit card. I’m okay with any of these forms of payments. If you use a credit card, you will most likely have to give your credit card number, name, and security code. Not all people are comfortable giving this out, it’s up to you. A security/breakage deposit is often also required. It will be around $200.00 and is returned after the house is verified it’s in the same condition as before you arrived. If you cancel your rental, it will cost you the deposit or the full rental amount if it is within a certain number of days before arrival. If you are not a risk taker, consider travel insurance or be prepared to give your neighbor an early Christmas gift. The balance owing is usually due around 35 days before your arrival date. Always read the terms and conditions before you decide to proceed with the rental.
Amenities
I wouldn’t rent a Florida vacation house unless it has the following amenities: A South facing pool. Trust me, you will want this. I made the mistake once, and never again. If you get a cold snap, the sun can help make up for the colder temperatures. If you find the sun too hot, remember that 99% of the pools are covered by a screen that helps block the sun’s intensity. A covered lanai is also a must. A lanai is basically a part of the patio covered by a roof. This is great for eating lunch shaded from the sun or taking a break watching the kids swim. A games room is also valuable. Games rooms are great for those rainy days or a break from the theme parks. They are usually converted garages, that have such games as air hockey (good for the Canadians eh!), pool, electronic darts, and foosball. Look for stools or chairs in the home pictures, to chill out and watch the pool game. Bring your laptop with you, because you’ll want the house to have Internet access, preferably wireless. This is great for researching day trips, restaurants, or other activities. Calling home for free is very convenient. Homes should provide, free long distance calling to the U.S. and Canada. Not to be forgotten, the basic amenities should be a fully equipped kitchen, cable TV and DVD players in each room, a large screen TV in the great room, stereo, games console, chairs and loungers on the patio, and house alarm.
Plan Ahead!
Before you leave for your trip, make sure you have been provided the required information. This includes the electronic door lock and/or lock box codes, house alarm code and instructions, property management phone number, and driving directions with full house address (great for a GPS). Bring change with you in case you hit a toll on the highway. It happened to me, it was around midnight and I hit a toll with no attendant. Whoops no change! I kept going and hoped they would see I had a rental car and not fine me. For the record, I never received a ticket. Take note of where the closest grocery store and pharmacy are. The home owner’s house web site should have this. If not, when you get the address of the house, use Google maps to find them.
When you arrive at the home, take a few minutes and do the following: Take a walk around the house and if there is any damage, take a picture and then call the property management company. You don’t want to pay for someone else’s mistake. Take a stroll over to the pool, and if you paid for heat, make sure it feels warm. Take a drive over to the grocery store, which you research earlier right? Pick up food and a few cold ones. While you are at it, hit the pharmacy if you forgot to bring pain killers. Don’t want to make a run to the pharmacy if you have a headache.
After your vacation is over, and you are sporting the sunburn, there are a few things you have to take care of before you leave the home. Normally this involves removing the sheets from the bed, putting the used towels in the bathtub, start the dishwasher, put all trash in garbage can etc. After a few weeks you should also get the security/breakage deposit back, if you didn’t leave that spaghetti sauce on the carpet.
Renting a vacation home is a great way to spend a vacation with family and friends. If you do your homework upfront, you will most likely have a fantastic vacation with wonderful memories and dreams about next year’s trip.
About The Author: Dave Pollock and his wife Lois own a beautiful Davenport vacation home in Sandy Ridge. It’s the perfect retreat for anyone looking for an affordable vacation home with a private pool. The home is located within a short 15 minute drive to Disney and other Orlando attractions. Consider renting the Pollock’s “Sun Retreat” next time you come to Orlando. www.OrlandoHouse.me
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Important Things You Need To Look For Before Renting an Orlando Vacation House-Part 1
November 18, 2009 by Dave Pollock
Filed under Renter's Tips
Guest Post by: Dave Pollock
Many people are turning to renting vacation homes in Orlando instead of the more traditional hotel rentals. Over the last five or six years my family has rented houses in the Orlando and Tampa, Florida area. This past spring we purchased a house in Davenport, Florida. Davenport is just outside of Orlando, 15 minutes from the theme parks. We are currently renting this house as well as using it for our own personal vacation retreat.
Because I have been on both sides of the fence, renting a home and renting one out, I can give you several tips on renting a vacation home.
Start Your Orlando Vacation Rental Search Early
Six months or more in advance is best. This will take the stress out of renting a home, especially if it is during the vacation season. The good homes go early, so the sooner you start the better. The Internet is a powerful tool. Use Google to help your research. You can also search popular web sites such as VRBO
where Orlando vacation homeowners rent directly to customers or use a travel agent to help out. If you inquire about a vacation rental home, directly to an owner, you should get a timely response, if not move on.
Do not rent an Orlando vacation home that does not have at least 8 pictures showing the exterior and interior of the home. This helps eliminate any surprises you might encounter when you arrive. Who wants to sit on a pink plaid couch or wake up to purple walls! Second to pictures, is a virtual tour which provides video of the home. If there is no virtual tour provided, consider another home, it’s that important. Also, many home owners have a personal web site of their home which provides additional details of the home and surrounding area. Not only is the additional information handy, it shows commitment on the owner’s part.
What You Need To Ask
How do you gain access to the home? If you arrive at midnight, do you have to go to a property management office to pick up the key? I’ve read a couple of horror stories where families have had to wait outside all night or rent a cheap motel until the next morning. At a minimum, the home should have a lock box with the key inside. You will be given the lock box code a few weeks in advance. Even better, a door lock with an electronic keypad. This allows you to punch in the code on the keypad, and presto you’re in the house. There should also be a lock box, in case the electronic keypad malfunctions.
Are you provided with a local property management phone number? Who are you going to call if the AC unit fails, the pool heater is not on, or toilet is plugged? You should be provided with a phone number you can call 24/7. Do not call the phone number outside of normal business hours unless it is a real emergency. If you call after hours, and it’s not an emergency, it will cost you money. The pool heater can wait until the next day!
About The Author: Dave Pollock and his wife Lois own a beautiful Davenport vacation home in Sandy Ridge. It’s the perfect retreat for anyone looking for an affordable vacation home with a private pool. The home is located within a short 15 minute drive to Disney and other Orlando attractions. Consider renting the Pollock’s “Sun Retreat” next time you come to Orlando. www.OrlandoHouse.me
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Latest Canadian Dollar Update
November 17, 2009 by Ian
Filed under Buying & Selling
Guest Post by: Ian Cragg
Market Update – GBP CAD
In our last update we were trading around 1.6850, and feeling decidedly more buoyant given that sterling has bought itself a reprieve by recapturing the January ’09 lows at 1.6750.
“A short squeeze happens when speculators who have sold the pound in expectation of further declines are forced to re-buy the currency to close their bets and stem losses. This situation can develop with little warning when large numbers of traders are caught “offside” when a market turns unexpectedly.” – Last update
The short squeeze continued into the end of October,
and the new month has seen us trade in a corrective range between 1.75 – 1.80.
Last week’s Bank of England meeting was widely expected to result in a further increase to QE, but traders were relieved that the bank extended the bond purchasing programme by just £25bn, and not the £50bn that some expected. Sterling duly rallied, breaking new high ground against the Euro and US dollar this week, but found it harder going against the commodity currencies which are still enjoying the tailwind of record gold prices, and oil bumping along close to 12 month highs. The Canadian dollar is benefitting from a continued flow out of its US counterpart. While yields between the two are flat, the exodus from USD is helping gold, which in turn is supporting CAD. The US currency plunged on Monday following comments from the G20 over the weekend, indicating that interest rates would need to remain low for some time yet. A weak US dollar dents Canadian exports, leading Bank of Canada governor Mark Carney to vocalise his desire for currency stability. Intervention by BoC is almost certainly not an option however, as the US dollar down trend is broad based. Competitive devaluation will continue to be governed by monetary and fiscal stimuli rather than direct participation in the markets.
The technical outlook remains positive as long as we continue to trade close to recent highs. While there can be no guarantee that sterling is out of the woods yet, the extreme levels of pessimism reached last month could signal a major low. That pessimism was characterized by a sense of general resignation that the pound was heading for parity against the euro! That is still possible, but in the short term we would like the pound to defend 1.7500 and certainly 1.7110 in order to maintain the initiative.
If You Don’t Research Your Florida Vacation Home Neighborhood Now, You’ll Hate Yourself Later
November 9, 2009 by Erica Muller
Filed under Buying & Selling
There is so much that goes into buying the perfect Florida vacation rental home. Many people think that it’s as simple as just jumping online and browsing for Florida homes. Though that’s not a horrible place to start it absolutely shouldn’t be the first place. Florida vacation rental homes are a very specialized niche and understanding that fact will help guide you down the right path that will save you the most time and money. One of the major factors that play a huge role in choosing the right vacation rental home in Florida would be neighborhood research. In my ebook “Everything You Wish You Knew Before Buying a Florida Vacation Rental Home” I go into all the steps in great detail but for the sake of keeping this short and sweet I’m going to touch on this very important subject.
Is The Potential Florida Neighborhood a Vacation Rental Hot Spot?
Much like hotels the Florida short term rental vacation home industry has a reputation. Anyone who has been to Florida and stayed in a vacation rental home understands the importance of staying in a neighborhood that caters to vacation home renters. If you are looking to purchase a home that will actually rent out to guests than the first thing to want to do is check out which neighborhoods rent the best. There are many different ways to do this but one of the easiest ways is to hop on Trip Advisor and start researching what people are saying about some of the local vacation rentals. You can get a good idea of what some of the more popular vacation rental neighborhoods are just by reading the reviews. You’ll start to see some of the same neighborhood names pop up over and over.
What Type of Rental Rates Can I Expect In This Particular Neighborhood?
Another important factor to consider is the potential booking revenue you can expect from the neighborhood you are considering buying your Florida vacation rental home in. You might love the community and absolutely adore the house but if the rental revenue is much lower in that neighborhood than the surrounding ones wouldn’t it make more sense to fall in love with another home that’s similar in price and going to bring you in a better return? Don’t make the mistake of thinking that because another community close by gets great rental rates that your neighborhood will too. Know the facts. You can check rental rates several places but one of my favorite and probably the easiest way to do this is to go on VRBO.com and look it up. VRBO is an owner site so the rates advertised are by vacation rental home owners.
It Pays To Do Your Homework-Literally
I hope you put these tips to good use on when buying your Florida vacation rental property. As you can see buying in the right neighborhood makes all the difference in the world when it comes to rental revenue. If you would like even more great tips about buying a Florida vacation rental home or perhaps you’re looking for some type of reference to guide you through the process, check out my ebook “Everything You Wish You Knew Before Buying a Florida Vacation Rental Home” which is launching Dec 7, 2009 to everyone on the waiting list.
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Why Orlando is a Great Choice for Canadians to Own a Vacation Home
November 4, 2009 by Dave Pollock
Filed under Buying & Selling
Guest Post by Dave Pollock, Davenport Vacation Homeowner
As a Canadian, living in Ottawa, Ontario, I can relate to many people wanting to escape to the warm climate of the southern United States. Having a young family, we were drawn to Florida because of its unique qualities: It is very easy to get there by a relatively short plane ride, or for the adventurer you can drive, and of course there is so much to see and do for all ages. We had been renting houses in the Orlando area for several years; and after a couple of years I said “Honey, we should look into buying a house in Orlando” – “Sure, dream on” my wife says with a smile.
We love Orlando; it has so much more to offer then just the well known theme parks, shopping, and restaurants. You could be in the countryside in less than 20 minutes, and on the beach in approximately 1.5 hours. It also has great neighborhoods with highway access nearby. Oh, and let’s not forget NHL hockey in Tampa, less than 1 hour away! We discussed buying a home more seriously, about a year ago, and while there on another 2 week vacation we hooked up with a Realtor from the Pink Flamingo Group, and went and looked at around 10 houses. Not only did we want to own “a piece of paradise”, in our own minds, this would also be a great location to rent out to people from all over. We had certain criteria in-mind, which the house had to meet. It had to be in a neighborhood that was under 5 years old, within 15 minutes to the theme parks, 4 bedrooms, south facing heated pool, reasonable HOA fees, and need little or no repairs. We thought it was crucial to have these qualities to help rent the house out as well as meet our own needs. We had experience with renting, so we knew what renters would want.
We finally found the perfect house in a great neighborhood named Sandy Ridge, which is in the city of Davenport. Davenport is a very attractive location for renters because of its close proximity to all that Orlando has to offer. It feels like a country retreat because of the undeveloped area and it’s just far enough away from all the hustle and bustle. Looking back…would we do it all again? Absolutely! Orlando has turned out to be a great location to own a rental home. Not only do we get to take our vacations with friends and family to our very own “Sun Retreat”, we help supplement the expenses of the home by renting it when we are not there.
About The Author: Dave Pollock and his wife Lois own a beautiful Davenport vacation home in Sandy Ridge. It’s the perfect retreat for anyone looking for an afforable vacation home with a private pool. The home is located within a short 15 minute drive to Disney and other Orlando attractions. Consider renting the Pollock’s “Sun Retreat” next time you come to Orlando. www.OrlandoHouse.me
Did you enjoy this post? Consider subscribing and get our Free Report: Top 20 Most Critical and Frequently Asked Questions About Buying and Owning an Orlando Vacation Rental Home
