It's vital for entrepreneurs to know that over 74 million people visit Orlando each year.
Starting a short-term rental business there can take your finances to new heights. You can't dive into this prospect without research, though.
What should you know about short-term property management? Read on so you can prepare for a successful vacation rental business.
1. Understanding Short-Term Rental Laws
Wait before you list your property on popular vacation platforms. Take the time to familiarize yourself with Orlando's short-term rental laws. Regulations can vary from state to state and also from city to city.
In Orlando, there are specific guidelines to protect vacationers and hosts. Check with Orlando's zoning regulations to confirm that you can host vacationers. Some neighborhoods may have restrictions or require permits, so this step helps you avoid issues.
Ignoring these laws could result in fines or even the shutdown of your rental operation. Reach out to the city's planning department to get a clearer understanding of the rules and regulations. Being informed about the legal aspects will help you set up your short-term rental with confidence and avoid unnecessary complications.
2. Balancing Short-Term Rental Income and Expenses
The allure of extra income from short-term rentals is enticing. It's crucial to evaluate the potential short-term rental expenses against the income. Keep in mind that Orlando's popularity as a tourist destination can influence pricing, especially during peak seasons.
On the flip side, factor in all the expenses related to your short-term rental venture. This includes the following:
- Cleaning fees
- Maintenance costs
- Utility bills
- Property management fees (if applicable)
- Any necessary furnishings or amenities to make your property guest-ready
Understanding the full scope of your expenses will help you set appropriate rental rates to ensure profitability. It's wise to set aside a portion of your income for unforeseen expenses or maintenance issues that may arise. Being financially prepared will contribute to the long-term success of your Orlando short-term rental.
3. Navigating Short-Term Rental Taxes
Taxes are an inevitable aspect of any hustle that creates income. Short-term rentals are no exception. Before welcoming your first guests, research and understand the tax implications associated with operating a short-term rental in Orlando.
In Florida, short-term rentals are subject to both state and local taxes. This includes the transient rental tax, which is applied to the total rental amount collected from guests. Familiarize yourself with the current tax rates and ensure that you are collecting and remitting these taxes.
You may want to consult with an accountant with experience in short-term rental taxation. They can provide valuable guidance on the following:
- How to manage your tax obligations
- Maximize deductions
- Stay compliant with Florida's evolving tax laws
You Have to Consider Short-Term Property Management Solutions
It's possible to earn tons of money from an Orlando vacation rental. Following this short-term rental startup checklist can help you get set up for success.
Having a short-term property management team is the key to flourishing. Contact PMI Platinum FL to see how we can help your Orlando vacation rental. We strive to get tons of repeat bookings.
