What is a short-term rental property in Central Florida?
Millions of visitors flock to Orlando every year. Tens of thousands have fallen in love with the fabulous climate, wildly exciting Theme Parks of Central Florida, world-class golf courses as well as enchanting and unique flora and fauna of the State of Florida. So much so, that many of them have purchased a vacation home in the area. After enjoying their holiday villa once or twice a year, many owners opt to register their properties in the short-term rental program governed by the Florida Statutes.
Is it necessary to appoint a Property Management company?
Absentee owners of a vacation home are required by local County authorities to appoint a property management company whom they can contact in the event of official home inspections or in case of emergency. The management company should not be more than 30 minutes from the vacation home.
What are the duties and obligations of the Management Company?
The Property Management company has the fiduciary obligation to preserve the integrity of the absentee homeowners’ investment in compliance with the owners’ instructions and terms of a mutually agreed contract. Another top priority is to register the home with the County and State authorities for the Hotels and Restaurant license as well as the Local Business license. The Property Management company provides management and maintenance related services engaging with utility companies, paying State and County sales and tourist taxes collected on all rentals. A Form 1099 or 1042 is sent to the owners’ accountant at the end of each fiscal year in preparation of their annual tax return to the United States Internal Revenue Service.
How do short-term rentals work?
A well-established property management company is usually comprised of a marketing and rental department as well as a property maintenance division. The rental department invests considerable resources to market the vacation home on various commercial websites and marketing platforms. Short-term rentals range from a one night stay to 180 nights. Any length of stay longer than 180 nights is considered a long-term lease and falls under Chapter 475 of the Florida Statutes which is handled by a licensed Real Estate brokerage. Rental departments confirm bookings, collect payments from guests and offer travelers 24/7 customer service.
Can I stay in my vacation home?
Owners and their families are welcome to use their vacation home for their own enjoyment.
What ROI can I expect?
Depending on the location, size and style of the vacation home, investors can expect to cover overheads and attain some percentage points on their investment. Meanwhile, the vacation home appreciates in value.
Any more questions?
If you are considering acquiring a vacation home for the short-term rental business or already own one, we are quite sure that you have many more questions and concerns. Please feel free to contact Lizzy Byrne, Realtor, who is very knowledgeable and experienced for a free consultation. Our objective is to offer you as much information as possible to help you reach a well informed decision about this exciting venture in Florida.