Thinking about buying a short-term rental near the theme parks but not sure how to underwrite it with confidence? If you are eyeing Reunion Resort in Osceola County, you are in the right place. You need a clear, month-by-month framework that captures real seasonality, HOA and resort costs, and realistic financing scenarios. This guide walks you through a practical checklist so you can build a defensible model before you write an offer. Let’s dive in.
Market snapshot: Reunion demand
Reunion Resort sits near Kissimmee and is close to major Orlando attractions like Walt Disney World. It is a master-planned resort community with amenities that often attract families and golfers. Before you model anything, verify your unit type, bed and bath count, and which amenities your building or neighborhood includes.
Seasonality drives revenue here. Holidays, spring break, summer, and major events in the Orlando area can spike demand. Off-peak periods require sharper pricing and minimum-stay strategies. Also keep an eye on competing supply from nearby vacation rentals, resort-managed units, and new condo inventory.
Action items:
- Confirm drive times to major parks and Orlando International Airport.
- Verify ownership type and title restrictions for your unit.
- Note local event calendars that may create short booking surges.
- Identify your closest comparable rentals by bedroom count and amenity set.
Build your revenue model
Use a 12-month model. A single annual average will hide dips and peaks that matter for cash flow. Structure your worksheet month by month so you can plan for demand swings and understand break-even.
Key terms to use correctly:
- ADR: average nightly rate for occupied nights.
- Occupancy rate: occupied nights divided by available nights.
- RevPAR: ADR times occupancy. Helpful for comparing productivity.
- Gross rental revenue: nightly revenue plus consistent ancillary items.
- Net rental revenue to owner: gross revenue minus platform, management, cleaning payouts, and taxes collected.
How to set ADR:
- Pull 12 months of listing rates and calendars for close comps on major booking platforms. Match bedroom count, bathrooms, capacity, and amenities.
- Adjust up or down for condition, furnishings, floor level or view, and your booking channels.
How to set occupancy:
- Use Reunion micro-market data when possible. Broader Kissimmee averages can mislead.
- Adjust for your minimum-stay rules and any owner-use blocks.
- Map occupancy to holidays, school breaks, and major events.
Ancillary revenue and fees:
- Treat cleaning fees as pass-through unless you truly mark them up.
- Only include add-on fees like pets or late checkout if the market consistently supports them.
Suggested monthly inputs:
- Available nights and planned owner-use nights
- Market ADR and occupancy percent
- Cleaning fee per stay and average length of stay
- Platform commission percent and management fee percent
- Utilities, HOA or resort fees, insurance, property tax allocation
- Replacement reserves for furniture and appliances
Core calculations:
- Occupied nights = available nights × occupancy percent
- Gross nightly revenue = occupied nights × ADR
- Cleaning fees collected = number of stays × cleaning fee
- Gross revenue = nightly revenue + cleaning fees + other ancillary revenue
- Platform fees = nightly revenue × platform percent
- Management fee = (nightly revenue − platform fees + ancillary) × management percent
- Net rental revenue before expenses = gross revenue − platform fees − management fee
- Operating expenses = HOA, utilities, insurance, property taxes, cleaning payouts, supplies, maintenance, reserves
- NOI = net rental revenue − operating expenses
- Debt service = monthly mortgage payment based on your loan scenario
- Cash-on-cash return = (NOI − debt service) divided by equity invested
- Break-even occupancy = (fixed costs + debt service + reserves) divided by (ADR − variable cost per occupied night)
Run sensitivity tests. Model ADR and occupancy at −20 percent, −10 percent, base, +10 percent, and +20 percent to see how NOI and returns respond. This shows your cushion in soft months and your upside in peak season.
Model expenses in Reunion
Start with the association. Request the current budget, fee schedule, and any special assessment history from the master association and your sub-association or condo. Ask what your monthly fee includes, such as exterior maintenance, landscaping, security, trash, cable or internet, and common-area insurance.
Confirm any rental registration or resort amenity fees. Some resorts charge per-booking or per-stay fees and may restrict minimum stays or require specific managers. Model these as either owner-paid costs or guest-paid pass-throughs based on the rules.
Operating expense categories to include:
- Fixed and recurring: HOA or condo dues, property taxes, insurance, accounting, marketing tools, management base fees if any
- Variable per stay: cleaning and laundry, utilities, supplies and consumables, maintenance, concierge or guest services if outsourced
- Transactional: platform commissions, payment processing, transient rental taxes collected and remitted
Insurance is not optional. Short-term rentals often require specific STR or commercial liability endorsements. In Florida, confirm wind or hurricane deductibles and evaluate flood coverage based on the property’s risk.
Taxes and licensing in Osceola County
You will need to register and remit Florida state sales tax and local tourism or transient rental taxes for STR income. Rules and rates can change, so verify details with the Florida Department of Revenue and Osceola County authorities before you go live. Depending on the property’s location, you may also need a business tax receipt or local license.
For planning and year-end reporting, work with a CPA who understands short-term rentals. Classification, passive activity rules, and depreciation schedules affect your returns and should be set up correctly from the start.
Finance scenarios for resort condos
Lenders typically treat Reunion units as investment properties. Expect stricter underwriting than a primary residence, including higher rates and larger down payments. Lenders will review the condo project with a questionnaire that checks reserves, owner-occupancy, litigation, and rental policies. Some resort communities do not meet standard agency guidelines, so start that conversation early.
Loan types to explore:
- Conventional investor loans with typical 20 to 30 percent down
- Portfolio bank loans that may consider STR income for underwriting
- DSCR loans that focus on the property’s cash flow over your personal income
- Commercial or small-balance commercial loans if the project is classified like a condo hotel
- Cash purchases or HELOC-backed strategies from other holdings
Underwriting metrics to track:
- DSCR = NOI divided by annual debt service. Many lenders want above 1.20 to 1.35, though it varies.
- LTV based on your loan program and condo type.
- Debt yield = NOI divided by loan amount.
- Cash-on-cash return after debt service.
- Break-even occupancy using your monthly fixed and variable costs.
Scenario testing to de-risk:
- Baseline: use Reunion-specific ADR and occupancy for your unit type
- Downside: ADR −15 percent and occupancy −15 percent or the worst comparable 12-month period
- Upside: ADR +15 percent and occupancy +10 percent
- Stress test: model several low-occupancy months for events like storms or supply spikes
- Rate sensitivity: raise your mortgage rate by 1.0 and 2.0 percent to see the impact on DSCR and cash flow
Do not forget financing costs. Include origination fees, escrows for taxes and insurance, reserves the lender may require, and any PMI for higher LTVs.
Choose the right management partner
Your manager can make or break your returns. Confirm services such as dynamic pricing, multi-channel distribution, housekeeping scheduling, 24-7 guest support, maintenance coordination, and whether they can handle tax remittance. Ask for sample owner statements and their payout cadence.
Fee structures vary. Full-service management in resort markets can range widely based on scope, often from mid-teens to higher rates for turnkey service. A la carte models charge per service. Watch for onboarding fees, maintenance markups, and any concierge commissions.
Ask for KPIs. Request historical ADR, occupancy, and RevPAR by unit type in Reunion, average length of stay and turnover rate, and monthly owner net payouts for comparable properties.
Compliance checklist before you offer
Confirm the rules first. Review HOA and resort rental restrictions, minimum stays, registration steps, and any blackout dates. Check whether you can use your own manager or if the resort requires an approved list. Verify any advertising limits, such as platform restrictions.
Safety and licensing matter. Ensure you can meet fire and health requirements and that you can complete any resort safety checks. Secure copies of the HOA budget, last 12 months of meeting minutes, reserve study, and the current rental rules including pending amendments.
Due-diligence asks for seller and manager
From the seller, request the last 12 months of gross rental revenue and net owner payouts, itemized by month. Ask for the historical occupancy calendar and cleaning invoices, plus the last 12 months of HOA statements and any notice of pending assessments.
From the manager, request their Reunion ADR and occupancy comps by bedroom count, how they price during peak windows and off season, and who remits transient taxes. Ask for a sample owner statement, payout timing, reserves policy, and a clear list of fees and inclusions.
Put it together: your next steps
Before you write an offer, assemble your ADR and occupancy comps, HOA documents and fee schedules, the seller’s P&L and calendar, and a clear loan scenario. Build a one-page summary that shows your baseline and downside NOI, DSCR, cash-on-cash, break-even occupancy, and any non-financial risks like rental caps or special assessments.
Finally, verify local taxes, HOA rules, and lender condo eligibility early. These can be deal breakers in resort communities. If you want experienced help assembling the right data and introductions to trusted property management options in Reunion, reach out to Mark Werner. Our team supports out-of-state buyers with on-the-ground knowledge and investor-focused service in Central Florida.
FAQs
What is a realistic occupancy rate in Reunion?
- Build it month by month using Reunion comps for your unit type, then test downside and upside scenarios rather than relying on a single annual average.
How should I treat cleaning fees in my model?
- Treat cleaning fees as pass-through unless you mark them up; model the cleaner payout on each turnover so you do not overstate owner revenue.
What HOA costs are typical at Reunion Resort?
- Model monthly HOA or condo dues, any resort registration or amenity fees, and plan for special assessments by reviewing the budget, reserves, and assessment history.
Which loan types work for Reunion condos?
- Explore conventional investor, portfolio, DSCR, or commercial loans, and confirm early whether the condo project meets your lender’s eligibility standards.
What break-even metric should I track?
- Use monthly break-even occupancy: total fixed costs plus debt service and reserves divided by ADR minus variable cost per occupied night.
