Invest in Arizona Short-Term Rentals and Vacation Homes: Your Comprehensive Guide to High-Yield Opportunities

There are very specific criteria that go into determining if a property would make a good rental and that starts with does it qualify, is it in an area that allows short term/vacation rentals. If it does, then next is looking at the saturation levels in the area or seeing who your competition is, analyzing the neighboring properties on the major booking platforms to get an idea of average price per night, occupancy rate and evaluate how your listing can potentially outperform your neighbors based on what you would offer that they are not. Through our exclusive partnerships with various vacation rental companies, we can assist with this often difficult step and provide insight, saturation levels in addition to revenue estimates and projections.

Sleeping capacity is one of the biggest factors when looking at how much a property can generate. Other things such as the addition of amenities like a pool, hot tub, game/movie room, putting green, golf cart or even a home office for those that work remotely can attract more renters and increase income. We have a comprehensive list of over 100 unique things to add to your property to increase overall appeal and revenue.

Outside of your normal expenses with owning real estate such as your mortgage, taxes, insurance and any HOA dues, with short term/vacation rentals you will also have the following expenses:

• Initial Design and Furnishing
• Electricity
• Gas
• Water 
• Sewer
• Internet
• Maintenance
• Cleaning
• Supplies
• Towels/Linens
• Welcome Gifts
• Repairs

We provide a short term/vacation rental spreadsheet to all our clients so during the search we can analyze total costs, including those above so clients feel confident with the total expenses on a specific property before making an offer and purchasing.

This depends on your target audience and market in addition to the location of your short term/vacation rental. You also want to do some research to see how other properties in the area have been designed and what they offer. Luckily for our clients, we offer design services, consultations and recommendations to assist you with designing your property to meet the needs of your target audience and specific location.

The short answer is yes, especially here in the Phoenix area as well as other markets such as Sedona, Flagstaff, Prescott and other secondary markets. Since every property and individuals finances are different, it’s best to have an in depth conversation to review if it makes sense for you and would be profitable. On average, our recent clients are experiencing a cap rate of anywhere from 5 - 12% on their properties.

Short term rentals are not allowed everywhere and you have to be very diligent in your research on what property will qualify based on local ordinances and the HOA in which the property is a part of. For example, here in the Phoenix Metro, we are very HOA heavy so it is very important to ensure the HOA allows short term or vacation rentals. Luckily for our buyers and investors, we have been tracking these HOAs for many years, making your search very focused on the properties that are eligible.

Plain and simple, we are real estate advisors that specialize in building wealth through real estate accumulation for clients. While there are many real estate professionals out there that are great at what they do, we offer a very unique service. From financial planning, revenue projections, extensive property and area analysis, tracking of specific areas and neighborhoods, design recommendations and a focus on providing clients with passive income through real estate. Come and let us show you a real estate experience like no other!

This often comes down to personal preference and each can offer its own benefits. There is a lot of time, effort and resources that are required to manage a short term/vacation rental. 

Some of the responsibilities and tasks include:

• Hot Tub Maintenance
• Pool Maintenance Service
• Cleaning Service
• Lawn Maintenance Service
• Check In/Out Management
• Marketing
• Supplies & Restocking
• Licensing
• Calendar Management
• Listing Optimization

And these are just a few. Before you decide if you are going to self manage or hire a property manager, it is best to first decide on what strategy you are going to implement (short term, mid term, long term etc.) and it varies depending on property size, if there is a pool, low maintenance yard etc. While there is no fee to you for self managing your property, it does come at a cost since it can often be a part time or in some cases a full time job. Whereas hiring a property manager starts as low as 10% and up to 30%. We can help you decide what makes the most sense for you and help you with your property management selection.

The best, well this all comes down to your budget, strategy and purpose for the property. There are many various areas all across Arizona that produce great returns and revenues but a lot of it has to do with how the property is marketed, what it offers and if it is priced right. There is demand and an audience for just about anywhere in our market, the first step is to determine your budget and your overall strategy. From Phoenix to Scottsdale, Tempe to Gilbert, Chandler to Mesa, Goodyear to Surprise and beyond, each city presents its own unique offering. Having the right representation is vital to determine which city is best for you!