An Airbnb investment property has become the go-to for short-term rental investing in the world. This is especially true in the US real estate market, which has seen many markets thrive with the short-term rental platform. As we reach the midpoint of 2019, there are several markets that have excelled with Airbnb investing. One of these markets is the Scottsdale real estate market. How profitable is owning an Airbnb investment in Scottsdale? What are the best neighborhoods in Scottsdale for this rental strategy? And most importantly, is Airbnb legal in Scottsdale? To learn the answers to these pertinent questions about Airbnb Scottsdale, keep on reading!
Related: Should You Invest in the Scottsdale Real Estate Market in 2019?
Airbnb Regulations in Scottsdale
Before you can even consider investing in an Airbnb Scottsdale rental property, you need to understand the Airbnb regulations in the city.
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Legal Status of Airbnb Scottsdale
First thing’s first, is Airbnb legal in Scottsdale? The answer is yes! In 2017, the Arizona State Legislature legalized short-term rentals across the state. According to Scottsdale law, a short-term rental or vacation rental is defined as a dwelling unit offered for a rental term of less than 30 days to transient guests. Single-family and multi-family properties can be used as an Airbnb investment property in Scottsdale. Scottsdale short-term rentals must be rented in their entirety, portions of a unit cannot be rented out independently. All Scottsdale short-term rentals must be registered through the Maricopa County Accessor’s Office.
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Airbnb Scottsdale Regulations
An Airbnb Scottsdale investment property must be in line with a number of regulations. All Airbnb units must have a maximum family size of 6 adults, and their related dependent children. Scottsdale non-owner occupied rentals are allowed by right in all residential districts. However, an investor should be aware of any restrictions on an Airbnb investment property, if any, in a given Home Owner’s Association.
As to be expected, an Airbnb Scottsdale investor must pay short-term rental taxes. An Airbnb Scottsdale investment property is subject to a State Transaction Privilege Sales Tax (5.6%), a City Transaction Privilege Sales Tax (1.75%), and a City Transient Tax (5%). For more detail on Scottsdale short-term rental taxes, be sure to check out the City of Scottsdale website.
Related: 13 US Cities with the Least Airbnb Legal Issues in 2019
Airbnb Scottsdale: Investing Data
We can now move on to another, more interesting question: how profitable is owning an Airbnb investment in the Scottsdale housing market? To answer that question, we need the assistance of an Airbnb investment calculator. Where can you get access to an Airbnb investment calculator? Look no further! Click here to learn about Mashvisor’s! In the meantime, here is the Airbnb data for Scottsdale short-term rentals:
Pricing
- Median Property Price: $828,244
- Price per Square Foot: $287
- Price-to-Rent Ratio: 19
Airbnb Investing
- Rental Income: $2,788
- Cap Rate / Cash on Cash Return: 1.8%
- Occupancy Rate: 52%
Reasons to Invest in Airbnb Scottsdale
Why should Airbnb hosts invest in the Scottsdale housing market? There are many different reasons but here are the three that are sure to convince you:
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Tourism Statistics
Tourism is the fuel of all Airbnb investment properties. Airbnb hosts in Scottsdale have benefitted from the city’s tourism over the last few years. Over 4.5 million overnight tourists visited Scottsdale in 2017. These visitors generated a whopping $2.4 billion in city revenue. About $44 million was generated from Privilege Tax collections, which strongly emphasizes the city’s dependence on its tourism.
There are plenty of tourist attractions in Scottsdale. According to the Scottsdale Tourism Study, the top ten activities for tourists, in order, are shopping, dining, swimming, visiting historic sites and parks, going to night clubs, hiking, visiting museums, playing golf, visiting casinos and breweries. If hosts can invest in non-owner occupied rental properties in the proximity of these recreational activities and locations, they’ll definitely capitalize on the city’s tourism.
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Impressive Profitability
Arguably the main advantage of an Airbnb investment property over its traditional counterpart is its exceptional profitability, as rental income is collected on a nightly basis as opposed to a monthly one. This is another reason why Airbnb Scottsdale is also incentivizing to Airbnb hosts. As seen in the data from Mashvisor’s rental property calculator, the average Airbnb rental income in Scottsdale is $2,788. This figure is merely an average, meaning that the typical Airbnb Scottsdale investment property will most likely bring in a higher income than this number. The best neighborhoods in Scottsdale, for instance, have much higher averages. The average Airbnb occupancy rate in Scottsdale is also considerably high, highlighting the significant tourist demand in the city.
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Short-Term Appreciation
Appreciation is usually associated with traditional rentals. But, don’t forget that because you’re holding onto your vacation rentals, you can benefit from value increases as well, depending on the real estate market, of course. The Scottsdale housing market is one of these markets, with an appreciation rate of 10.33% over the last 12 months. This rate is top-tier in the US, as it is higher than the rates of 94 percent of cities and towns in the nation, according to Neighborhood Scout. Scottsdale’s high appreciation rate is nothing new. During the last 10 years, the Scottsdale real estate market appreciated by 34.15%, with an annual average of 2.98%. During that time, Scottsdale was in the top 20 percent in US real estate appreciation. The most recent quarter experienced an appreciation rate of 3.52%, which equates to a whopping 14.84% for the year.
Best Neighborhood: South Scottsdale
Finally, where are the best locations to invest in the Scottsdale housing market? According to Mashvisor’s Airbnb investment calculator, the top neighborhood in the city for Airbnb investment is South Scottsdale.
Pricing
- Median Property Price: $542,174
- Price per Square Foot: $278
- Price-to-Rent Ratio: 18
Airbnb Investing
- Rental Income: $3,308
- Cap Rate / Cash on Cash Return: 3.9%
- Occupancy Rate: 66%
Related: Do You Really Need an Airbnb Rental Income Calculator?
Overall, Airbnb Scottsdale is an excellent option for short-term rental investing. Scottsdale short-term rentals are profitable, in high demand, and come with the rewarding bonus of appreciation. Along with an established and clear legal framework, Airbnb Scottsdale is easily one of the best rising Airbnb opportunities in the US real estate market. Interested in searching for the best neighborhoods in Scottsdale? Then click HERE to start your 14-day free trial with Mashvisor!
