Growing demand for vacation rental homes has prompted many people to purchase a second home as an investment vehicle. Owners can use the property themselves during the year, and let family and friends stay occasionally too. The rest of the year, the home can be rented out on a short-term basis as a primary or secondary source of income and to cover expenses. These second homes are often used later on by the owners when they retire.
According to vacation rental booking site, HomeAway, the average owner earns $28,000 in rental income per year. But it's possible to earn much more than that with the right vacation rental property and a strategic approach to management.
Champions Gate Resort Benefits
Champions Gate in Davenport, Florida is a popular resort community with home buyers because the amenities it offers vacation rental guests are similar to what you'd typically find a resort hotel. Owners and their guests can enjoy a lazy river with waterslide, swimming pool and hot tub, state-of-the-art fitness center, world-class golf course and much more. ChampionsGate is also conveniently located 15 minutes from Disney World, making it an ideal choice for holiday visitors who want a less expensive and more comfortable alternative to staying in a theme park hotel.
ChampionsGate vacation homes vary in size and price. Buyers can choose among townhomes, single family homes and luxury villas with 7, 8 or 9 bedrooms. These larger properties typically accommodate 20-30 people, making them highly attractive to large families who want to vacation together. They also command a higher daily rental price, so your income potential is greater than you might have with a 2 or 3 bedroom property.
Champions Gate Rental Income Potential
As an example, the owner of a 9 bedroom villa in Champions Gate generated rental income of $63,798.17 from Nov. 1, 2017 – Nov. 1, 2018, based on an average booking rate of $452.47 and a 46 percent occupancy rate. Maintenance and other expenses for the year totaled $16,520.43. The owner spent 26 nights at the home during the year.
In another case, the owner of a 7 bedroom single family home in Champions Gate generated $54,639.11 in rental income during the same period from 2017-2018. This home had an average booking rate of $275.96 with a 57 percent occupancy rate. Maintenance and other expenses came to $11,589.83, and the owner spent just 12 nights at the home.
Owners of second homes that don’t live near their properties typically hire a management company to handle maintenance issues, and manage rental bookings. This allows the owner to relax, knowing that the home will be taken care of when they’re not using it.
Team Donovan can help you choose the best Davenport vacation rental home to suit your needs. View the available Champions Gate homes for sale on our website, and contact us at 407-705-2616 for more information about the rental income potential on a particular property.