LTR or Short Term Rentals in Kissimmee Florida

Are you deciding between renting out your property in Kissimmee, Florida as a vacation rental (also known as a short-term rental) or a long-term rental? Both options have distinct benefits and challenges, and the right choice depends on your investment goals, level of involvement, and the type of tenants you want to attract.

This guide will help you weigh the pros and cons of each rental strategy, with a focus on Kissimmee, FL – one of the best locations for both vacation rentals and long-term rentals due to its proximity to world-famous theme parks, stunning golf courses, and warm year-round climate. Are you considering a Kissimmee vacation home? Let us help! 

What is a Vacation Rental?

A vacation house rental is a fully furnished property rented out for short stays, usually ranging from a few nights to a few weeks. Some owners also consider extended stays (30+ days), though these are becoming less common in the market.

Why Choose a Vacation Rental?

In Osceola County, a STR house in Kissimmee are in high demand due to their unique amenities, such as:

• Private pools and hot tubs
  
  
• Game rooms and themed rooms
  
  
• High-speed Wi-Fi for remote workers and digital nomads
  
  
• Spacious living areas perfect for families and groups

Many travelers prefer vacation rentals over hotels for a “home away from home” experience. With major attractions like Walt Disney World, Universal Orlando, and SeaWorld nearby, Kissimmee is a prime market for vacation home investments.

However, vacation rentals require ongoing management, including:

• Marketing & listing management (Airbnb, Vrbo, Booking.com)
  
  
• Frequent cleaning and maintenance
  
  
• Handling guest inquiries and issues
  
  
• Seasonal demand fluctuations

How Do Vacation Rentals Make Money?

Unlike long-term rentals, vacation rentals charge per night and often include additional fees such as:

• Cleaning Fee
  
  
• Laundry Fee
  
  
• Booking Fee (depending on the platform you use)

Is a Vacation Rental Right for You?

Consider a vacation rental if:

• You want higher rental income potential (but with seasonal variation).
  
  
• You’re comfortable with frequent guest turnover and property management.
  
  
• You have a prime location near tourist attractions, beaches, or entertainment hubs.
  
  
• You’re prepared for marketing efforts, guest communication, and property upkeep.

If passive income and long-term stability are your priorities, a long-term rental may be the better option.

Seasonal Flexibility 

Vacation rentals provide the flexibility to generate high income during peak seasons but require more active management. Platforms like Airbnb, VRBO
(vacation rentals by owner) allow property owners to reach guests worldwide, and increase visibility of their property. 

Although staying competitive means maintaining top-notch reviews, updating property photos, and responding to inquiries promptly. Because of the high turnover rate, vacation rentals need regular cleaning, restocking, and marketing, making them a hands-on choice for property owners who prefer active engagement.

Since vacation rental income is seasonal, owners may see significant income during holidays and summer but need to budget carefully for lower occupancy months. Managing cash flow is important, as expenses like cleaning, utilities, and repairs can accumulate quickly.

What is a Long-Term Rental?

A long-term rental is a property rented for six months or longer, typically with a 12-month lease. Unlike vacation rentals, these properties:

• Provide consistent rental income
  
  
• Require less active management
  
  
• Have lower marketing and turnover costs

Why Choose a Long-Term Rental?

Long-term rentals attract tenants looking for stability, including:

• Local professionals and families
  
  
• Remote workers relocating to Florida
  
  
• College students attending nearby universities
  
  
• Retirees looking for permanent housing

These rentals typically require less maintenance and marketing than vacation rentals. With steady monthly rent payments, they offer predictable income and less risk of vacancy.

Pros & Cons of Long-Term Rentals

Benefits:

• Steady monthly rental income
  
  
• Fewer expenses for cleaning and utilities
  
  
• Lower turnover, reducing marketing costs
  
  
• More passive investment compared to vacation rentals

Challenges

• Fixed rental income – No ability to charge seasonal rates
  
  
• Tenant issues – Late payments, lease violations, or evictions
  
  
• Longer vacancy periods – If the tenant moves out, you may wait months to find a new one
  
  
• Property wear and tear over time

Is a Long-Term Rental Right for You?

Consider a long-term rental if:

• You prefer passive income and don’t want to manage frequent guest turnovers.
  
  
• You want consistent cash flow instead of fluctuating seasonal income.
  
  
• You are okay with longer tenant stays and traditional lease agreements.

If you enjoy hospitality and want to maximize earnings per night, a vacation rental might be better.

Financial Considerations for Vacation vs. Long-Term Rentals

When choosing between vacation rentals in Kissimmee and long-term rentals, financial goals and management style are essential factors. 

Vacation rentals can offer impressive short-term returns, especially for properties with amenities like private pools or game rooms, which allow owners to charge premium nightly rates. 

The operational costs are higher due to frequent turnovers, marketing, cleaning, and property management fees. The average management fee for vacation rental homes is around 20% of the income that the home makes through renting out the home. 

Long-term rentals, on the other hand, bring steady monthly income and lower expenses. Since tenants stay longer, landlords spend less on repairs, cleaning, and marketing. This setup can be ideal for property owners seeking a predictable, stable revenue stream. 

Although long-term rentals typically generate lower monthly income, the cumulative earnings can be comparable due to lower management costs. The choice ultimately depends on whether you value a seasonal income boost with higher involvement or consistent, hands-off cash flow.

Regulations & Considerations in Kissimmee, FL

Before deciding on a rental strategy, understand local laws and regulations in Kissimmee and Osceola County:

• Vacation Rentals: Some communities have restrictions on short-term rentals. Check HOA rules and county zoning laws before investing.
  
  
• Taxes & Licenses: Vacation rentals require tourist development taxes, while long-term rentals may have different tax rules.
  
  
• Property Management: Consider hiring a professional property manager to handle guest communication, maintenance, and compliance.

Which Rental Strategy is Right for You?

Deciding between a vacation rental and a long-term rental ultimately depends on your investment goals, management style, and financial preferences.

Choose a vacation rental if you enjoy interacting with guests, marketing your property, and maximizing income potential—even if it comes with seasonal fluctuations and higher management demands.

• Choose a long-term rental if you prefer stable, predictable income with less hands-on management, fewer turnovers, and lower operational costs.
  
  
• Each strategy offers unique benefits, and the best choice depends on how involved you want to be in managing your property.

Maximize Your Rental Investment with Allegiant Management Group

Whether you’re leaning toward vacation rentals or long-term rentals, both offer great investment opportunities. The key is choosing what aligns with your goals, lifestyle, and management preferences.

At Allegiant Management Group, we specialize in long-term single-family residential homes—it’s what we do best. With 75+ years of combined experience, our team ensures hassle-free property management for homeowners in Kissimmee and Central Florida.

If you’re looking for a vacation rental in Kissimmee, FL, we can refer you to top vacation rental agencies in the area. And, on a case-by-case basis, we may offer short-term leases depending on your property’s needs.

Why Choose Allegiant Management Group?

• Expert knowledge of the Kissimmee rental market
  
  
• Full-service property management, from marketing to maintenance
  
  
• Maximized rental income with minimal hassle
  
  
• Dedicated support to help you achieve your investment goals

Contact us today to learn how we can help you succeed in Florida’s rental market!

Frequently Asked Questions (FAQs): Vacation vs. Long-Term Rentals

What is the difference between a short-term rental (STR) and a long-term rental (LTR)?

A short-term rental (STR) is typically leased for days to months, often catering to vacationers or business travelers. A long-term rental (LTR) is leased for six months or more, usually requiring a formal lease agreement. STRs offer flexibility and higher nightly rates, while LTRs provide stability and consistent income.

Which rental strategy is more profitable in Kissimmee, FL?

Short-term rentals (STRs) in Kissimmee, FL tend to be more profitable due to high tourist demand from Disney World and other attractions. STRs generate higher nightly rates but require more management. Long-term rentals (LTRs) offer stable income with less turnover but may yield lower annual revenue.

What are the management responsibilities for each rental type?

Short-term rental (STR) management includes guest communication, cleaning, marketing, dynamic pricing, and maintenance. Long-term rental (LTR) management involves tenant screening, lease enforcement, rent collection, property upkeep, and legal compliance. STRs require frequent attention, while LTRs offer stability with fewer turnovers.

How do short-term rentals make money?

Short-term rentals (STRs) make money by charging nightly rates, often higher than long-term leases. Income comes from booking fees, cleaning fees, and upsells like early check-ins. Profitability depends on occupancy rates, seasonal pricing, and effective management to maximize revenue.

What are the advantages of a long-term rental over a vacation rental?

Long-term rentals (LTRs) offer stable income, lower turnover, and reduced management costs compared to vacation rentals. They require less frequent marketing, cleaning, and guest communication, making them easier to manage. LTRs also face fewer regulatory restrictions and provide consistent occupancy without seasonal fluctuations.

What are the challenges of short-term rentals?

Short-term rentals (STRs) face high turnover, increased management demands, and fluctuating occupancy rates. Owners must handle frequent cleaning, guest communication, and dynamic pricing. STRs also encounter regulatory restrictions, higher maintenance costs, and market competition, impacting profitability and operational complexity.

How much does it cost to manage a short-term rental?

Managing a short-term rental (STR) costs 15%–40% of revenue if using a property manager. Expenses include cleaning ($75–$250 per stay), maintenance, booking fees, utilities, and marketing. Self-management reduces costs but requires time. Dynamic pricing and high occupancy help offset expenses.

What type of tenants do long-term rentals attract?

Long-term rentals (LTRs) attract families, professionals, students, and retirees seeking stable housing. Tenants often prioritize affordability, location, and lease security over short-term flexibility. Reliable renters with steady income provide consistent occupancy, reducing turnover and vacancy risks for landlords.

Can I switch between short-term and long-term rental strategies?

Yes, you can switch between short-term and long-term rental strategies based on market conditions, regulations, and demand. Short-term rentals offer higher income potential but require more management. Long-term rentals provide stability with fewer operational demands. Flexibility depends on local laws, lease agreements, and property setup.

Is there a difference in insurance needs?

Yes, vacation rentals require additional liability insurance due to higher guest turnover, which increases the risk of incidents. Long-term rentals need standard property insurance but may not require as much liability coverage.

How does location impact rental success?

Location plays a key role. Vacation rentals thrive near tourist attractions like theme parks in Kissimmee, while long-term rentals perform well in residential neighborhoods, attracting tenants looking for stability and community. So now is the time to rent in Kissimmee FL. 

Disclaimer: This blog is for informational purposes only and does not constitute legal, financial, or professional advice. Readers should consult appropriate professionals before making any decisions.

Blog Updated: 03/08/2025