Orlando, Florida — world-famous for its theme parks and year-round sunshine — is also one of the top real estate investment destinations in the U.S. With strong tourism, growing population, and no state income tax, Orlando presents a lucrative opportunity for generating rental income. Whether you’re interested in long-term rentals, vacation properties, or corporate housing, this beginner’s guide will walk you through everything you need to know to succeed in the Orlando rental market.
Why Orlando is Ideal for Rental Income
- Tourism Capital: Home to Disney World, Universal Studios, and convention centers, Orlando attracts over 70 million visitors annually — fueling a thriving short-term rental market.
- Rapid Population Growth: One of Florida’s fastest-growing cities, drawing families, professionals, and retirees.
- No State Income Tax: Florida doesn’t tax individual income, allowing landlords to retain more profit.
- Affordable Property Prices (Relative to Demand): Compared to Miami or Tampa, Orlando offers competitive prices with strong rental returns.
Top Rental Income Strategies in Orlando, FL
1. Short-Term Vacation Rentals (Airbnb, Vrbo)
Orlando is one of the most profitable cities in the U.S. for short-term rentals. Properties in Kissimmee, Lake Buena Vista, and near International Drive can achieve high occupancy and nightly rates. Be sure to follow local licensing and zoning laws.
2. Long-Term Residential Rentals
Buy single-family homes or condos in neighborhoods like MetroWest, Conway, or East Orlando and rent them out on annual leases. This strategy provides stable income with less management than short-term options.
3. Student Housing
Orlando is home to the University of Central Florida (UCF), one of the largest universities in the U.S. Properties in East Orlando and around Waterford Lakes are ideal for renting to students by the room.
4. Corporate & Mid-Term Rentals
Orlando has a growing base of tech, healthcare, and remote workers seeking fully furnished accommodations for 30+ days. Invest in corporate-friendly properties near downtown, Lake Nona, or the convention district.
5. House Hacking and ADUs
Live in one unit and rent the other — for example, a duplex, garage apartment, or finished basement. This helps cover your mortgage while earning income from tenants or travelers.
Legal Requirements & Licensing for Orlando Landlords
- Short-Term Rental License: Required for rentals under 30 days. Check with the City of Orlando and Orange County for zoning and HOA restrictions.
- Business Tax Receipt: Required for all rental activity (short- or long-term) from the City of Orlando.
- State & County Taxes: Vacation rental hosts must collect and remit:
- State Sales Tax (6%)
- Orange County Tourist Development Tax (6%)
- Lease Agreements: Use Florida-compliant lease documents and adhere to the state’s landlord-tenant laws on deposits, eviction, and notice requirements.
- Building & Safety Codes: Ensure all units meet housing code standards, including fire exits, smoke detectors, and occupancy limits.
Estimated Rental Property Costs in Orlando
| Expense Type | Monthly Cost Estimate |
|---|---|
| Property Taxes | $200 – $800 |
| Landlord or STR Insurance | $60 – $140 |
| Maintenance & Repairs | $100 – $300 |
| Property Management (optional) | 8% – 12% of rent |
| STR Licensing & Compliance | $100 – $250/year |
Best Neighborhoods in Orlando for Rental Investment
- Kissimmee: Prime area for short-term vacation rentals near Disney.
- East Orlando: Popular for student and family rentals near UCF and Waterford Lakes.
- Lake Nona: High-end long-term rentals and executive housing near the Medical City.
- MetroWest: Affordable condos and family-friendly rental opportunities.
- Downtown Orlando: In demand for professionals and furnished corporate rentals.
Tax Benefits for Orlando Landlords
Florida has no income tax, but you still report rental income on your federal tax return. Deductions you may qualify for include:
- Mortgage interest
- Property taxes and HOA dues
- Depreciation
- Repairs and maintenance
- Insurance premiums
- Legal, accounting, and property management fees
Short-term rental hosts must register with the Florida Department of Revenue and remit both Sales Tax (6%) and Tourist Development Tax (6%) monthly or quarterly.
Tips for Maximizing Rental Income in Orlando
- Invest in Furnishings: STR guests and corporate tenants expect clean, modern, and fully equipped spaces.
- Check Zoning Early: Some HOAs and municipalities restrict STR activity. Always verify before purchasing.
- Price Seasonally: Rates increase during spring break, holidays, and summer vacation months.
- Use a Local Property Manager: Particularly for STRs or if you live outside of Florida.
Conclusion
Whether you’re investing in a condo near Universal Studios or setting up a student rental near UCF, Orlando offers endless opportunities to generate passive income through real estate. With smart planning, legal compliance, and targeted marketing, beginner investors can build a successful rental income business in one of Florida’s most vibrant cities.
Need expert help with STR permits, tax filing, or business registration in Florida?
Get in touch with PEAK Business Consultancy Services — your reliable partner for setting up and managing profitable rental properties in Orlando, FL.
