Estimates of rental income
The disclaimer I put on estimated costs of ownership applies even more to estimates of rental income. There are several factors that can change rental performance quite dramatically, including:
The top communities like The Retreat at ChampionsGate, Windsor at Westside and Storey Lake have maximum renter recognition, and exceptional community amenities. The second tier, incuding Solterra Resort, Sonoma Resort, Veranda Palms and Bellavida Resort, are a little less well known, and generally have slightly less spectacular amenities. Rental performance will therefore be a little lower. Other communites either have a less popular location or lesser amenities, or both.
The top management companies like Global Resort Homes, Villa Direct and a handful of others have high visibility in internet searches and strong brand recognition, so they will generate substantially more bookings than smaller companies. Owners should in general not expect to be able to generate large numbers of bookings by 'going it alone', although providing a few additional bookings from internet promotion or by personal contact can help the bottom line considerably.
Features of the home
Homes that have a lot of the features that renters look for are more likely to generate maximum rental income. These features include a south or west-facing pool deck, a private pool deck, a pool deck with a good view, a pool/spa combination, multiple bedrooms with en sute bathrooms, a games room or media room. It isn't necessary for a home to have every one of these features, but it is good to have at least some of them.
Income estimates for the top tier resort communities
The following figures are based on a best case scenario. They are for a home with several popular features, managed by one of the top property management companies, and with a few additional bookings generated by the owners' own efforts.4/5 Bedroom Townhome - nightly rental $175 to $195, net income at 50% occupancy $1,800 to $2,100 per month
4/5 Bedroom Single Family Home - nightly rental $260 to $280, net income at 50% occupancy $2,700 to $3,000 per month
6/7 Bedroom Single Family Home - nightly rental $290 to $320, net income at 50% occupancy $3,100 to $3,400 per month
8/9 Bedroom Single Family Home - nightly rental $350 to $380, net income at 50% occupancy $3,600 to $4,000 per month
Net income is after rental commissions, cleaning fees and other charges.
50% occupancy is a comfortably achievable target for a well featured home on a top community with a strong management company. Many owners achieve 60% occupancy, and some owners who work to generate additional bookings are achieving 70% occupancy.
Estimates for the second tier communities should be reduced by about 20 to 25%, and for less popular communities by 30 to 50%.