The Arizona housing market has often been cited as one of the most Airbnb-friendly locations. This is thanks to Senate Bill 1350 which was passed in 2016 and took effect on January 1st, 2017. The bill prohibited cities in the state of Arizona from banning short-term rentals or effectively regulating them. Rather, state legislation set up a legal framework for Arizona vacation home rentals which included certain regulations on tax payments, licensing, and fines for any violations among other rules for Airbnb Arizona hosts. For real estate investors, this meant the opportunity existed to buy investment properties in Arizona and rent them out on Airbnb without living on site.
A new bill, however, may give some power back to cities when it comes to placing regulations on Airbnb Arizona rental properties.
House Bill 2875 Gets Preliminary Approval
This week, House Bill 2875 gained approval with a voice vote, bringing it one step closer to going to the Senate. A few of the new Airbnb Arizona regulations that will be introduced if the bill passes include:
Non-Owner Occupied Airbnb Investment Properties Will Still Be Permitted
The bill will still prevent city officials from completely banning short-term rentals or restricting their use in the way that Airbnb Los Angeles and Airbnb Las Vegas rental properties have been restricted to only primary residences. This means real estate investors can still buy and rent out whole Airbnb rental properties.
However, they will be required to put their name and contact info on the front door. This will make it easier for neighborhood residents to reach out to the property owner directly in case of any disturbances caused by guests.
Airbnb Arizona Hosts Must Be Present for Check-Ins
The bill would require that Airbnb hosts or a designee be present when guests arrive for check-in to go over the Airbnb property rules and handover the keys.
There Will Be a New Limit on How Many Guests You Can Host at One Time
HB 2875 would allow local legislators to put a limit on the number of guests that can occupy an Airbnb rental property during one stay to 2 people per bedroom. Again, the main purpose behind this is to ensure that neighbors are not disturbed by too many guests coming in and out of Airbnb Arizona vacation rentals.
Owners May Have to Install Safety and Noise-Monitoring Equipment
As another measure to preserve the integrity of local Arizona neighborhoods, Airbnb hosts will be required to install certain devices that will notify either the owner or a designee if guests become too rowdy. This is if local officials choose to put this regulation in place in their cities.
To learn about some of the other new Airbnb Arizona regulations that may come into effect if HB 2875 passes, click here.
Representative John Kavanagh, who introduced the new bill, calls it a “zero footprint bill”:
The idea is to try to make these short-term rentals invisible to the nearby neighbors so there will be no complaint and no phone calls to the police and the code enforcers.
According to some local officials and residents, the short-term rental properties causing issues are those purchased by real estate investors and investment companies. Airbnb opponents feel these rentals are run like hotels and have no place in residential neighborhoods- a common complaint across cities in the US housing market. And while some say that HB 2875 does not go far enough in fixing this issue, others say that it’s going to go too far. Representative John Allen believes that if the new bill passes, it will infringe on the rights of property owners:
This is a direct assault on property rights.
So, Is an Airbnb Arizona Investment Still Viable in 2020?
Although some locals strongly oppose the new regulations, they will not prevent real estate investors from buying Airbnb property in Arizona. While the cap on guests may put a limit on the rental income one can generate, Mashvisor’s Airbnb data shows that Arizona short-term rentals are generally profitable:
- Median Property Price: $451,218
- Airbnb Daily Rate: $137
- Monthly Airbnb Rental Income: $2,508
- Airbnb Cap Rate: 2.9%
- Airbnb Occupancy Rate: 58%
Sign up for Mashvisor now to keep an eye on how these new regulations, if passed, may affect the income of Airbnb hosts in the Arizona real estate market.
The Best Cities for Airbnb Investment in the Arizona Real Estate Market in 2020
As investing in Airbnb Arizona rentals can still make for a good real estate investment strategy, it’s important to find out where you can make the most money. Here are the best cities for Airbnb investment in Arizona in 2020. Just remember to stay up to date with the developing bill to understand how regulations may change in any of the following cities in the coming year.
#1. Sierra Vista
- Median Property Price: $221,059
- Airbnb Daily Rate: $83
- Monthly Airbnb Rental Income: $2,376
- Airbnb Cap Rate: 5.4%
- Airbnb Occupancy Rate: 68%
#2. Yuma
- Median Property Price: $248,125
- Airbnb Daily Rate: $91
- Monthly Airbnb Rental Income: $2,587
- Airbnb Cap Rate: 5.4%
- Airbnb Occupancy Rate: 60%
#3. Kingman
- Median Property Price: $246,931
- Airbnb Daily Rate: $78
- Monthly Airbnb Rental Income: $2,313
- Airbnb Cap Rate: 5.2%
- Airbnb Occupancy Rate: 65%
#4. Tucson
- Median Property Price: $293,361
- Airbnb Daily Rate: $97
- Monthly Airbnb Rental Income: $2,689
- Airbnb Cap Rate: 4.8%
- Airbnb Occupancy Rate: 62%
#5. Glendale
- Median Property Price: $317,673
- Airbnb Daily Rate: $169
- Monthly Airbnb Rental Income: $2,660
- Airbnb Cap Rate: 4.6%
- Airbnb Occupancy Rate: 56%
Find the best Airbnb Arizona rental property for sale right now in the city and neighborhood of your choice.
#6. Marana
- Median Property Price: $372,076
- Airbnb Daily Rate: $202
- Monthly Airbnb Rental Income: $3,098
- Airbnb Cap Rate: 4.5%
- Airbnb Occupancy Rate: 52%
#7. Chino Valley
- Median Property Price: $360,439
- Airbnb Daily Rate: $91
- Monthly Airbnb Rental Income: $2,596
- Airbnb Cap Rate: 4.4%
- Airbnb Occupancy Rate: 61%
#8. Avondale
- Median Property Price: $270,706
- Airbnb Daily Rate: $150
- Monthly Airbnb Rental Income: $2,481
- Airbnb Cap Rate: 4.3%
- Airbnb Occupancy Rate: 56%
#9. Hereford
- Median Property Price: $297,331
- Airbnb Daily Rate: $90
- Monthly Airbnb Rental Income: $2,013
- Airbnb Cap Rate: 4.0%
- Airbnb Occupancy Rate: 61%
#10. Oro Valley
- Median Property Price: $450,616
- Airbnb Daily Rate: $166
- Monthly Airbnb Rental Income: $3,205
- Airbnb Cap Rate: 4.0%
- Airbnb Occupancy Rate: 55%
Find and analyze the best Airbnb Arizona investment property now with Mashvisor’s tools.
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