Top LocationsShould You Invest in Phoenix Vacation Rentals in 2019? by Eman Hamed February 27, 2019February 26, 2019 by Eman Hamed February 27, 2019February 26, 2019The Phoenix housing market seemingly never falls off the charts for the best places to invest in real estate. This year, Phoenix ranked 7th in Trulia’s Top 10 Housing Markets to Watch in 2019. The giant metro area features everything a real estate investor looks for in a location to buy rental property: a booming economy, population growth, affordability, low vacancy rates and more. On top of that, Airbnb Phoenix is one of the most popular markets in the vacation rental industry. Short-term real estate investors have found good fortune in Phoenix vacation rentals, which explains why many have turned their rental properties into Airbnb rentals. Keep reading to learn why and where to invest in vacation home rentals in Phoenix in 2019.First Things First: Phoenix Short-Term Rental RegulationsBefore buying an Airbnb investment property, there are some laws about short-term rentals that property investors need to understand. Here are the most important laws about Airbnb Phoenix to keep in mind:1. All Arizona Municipalities Must Allow Short-Term RentalsIn 2017, the state of Arizona passed a new law announcing that cities, towns, and counties can’t place any restrictions on short-term rental properties because these properties are not classified as hotels. This law specifically targeted municipalities that were trying to restrict Airbnb investors from operating in the area. The law further states that there are no restrictions on how many rental properties a real estate investor can own and rent out as vacation home rentals. There is also no limit to the number of days that a home can be rented out. This definitely makes an owner of Airbnb investment properties a happy investor.Click here to start your search for the best Phoenix vacation rentals to rent out on Airbnb! 2. Arizona Senate Bill 1382 for Lodging MarketplacesIn April 2018, Arizona governor signed Senate Bill 1382 that requires all short-term rental sites to collect and remit state and local taxes starting January 2019. Airbnb used to be the only site that collected taxes on short-term rentals in Arizona due to a voluntary agreement with the state in 2017. Now, other sites like VRBO and HomeAway are required to register with the Arizona Department of Revenue and collect taxes on bookings. For owners of Phoenix vacation rentals, this means that they don’t have to worry about collecting additional taxes from their guests. Instead, the site is responsible for collecting these taxes and making payments to the state and local authorities.3. HOAs Can Still Ban Short-Term RentalsBefore buying an investment property to rent out to short-term guests, a real estate investor needs to carefully review the rules surrounding Airbnb investments if a homeowner’s association is involved. An HOA’s documents have land use restrictions, so it can place restrictions on the length of a lease or completely ban short-term rentals. Therefore, an Airbnb investor in Phoenix should work with a real estate attorney to make sure that his/her desired rental strategy for making money in real estate falls within the HOA CC&Rs before moving forward with the purchase.Related: Four Things to Consider Before Purchasing an Airbnb Investment PropertyPhoenix Has a Large Tourist Population Besides the fact that Airbnb is legal here, another reason why many find that investing in Phoenix vacation rentals is great is due to the city’s booming tourism industry. Naturally, tourism means that the demand for Airbnb rental properties is strong. In fact, between 2016 and 2017, the number of Airbnb arrivals in Phoenix grew by a whopping 90%. For these tourists, short-term rentals are ideal because they provide the comfort of home and are more affordable than hotels.Tourism in the Phoenix housing market is driven by a few factors. Every year, 22 million people from all over the country flock to Arizona’s capital to enjoy the warm climate, stunning desert sunsets, frequent sporting events, recreational activities, and lively nightlife. With all of this to offer, it’s no wonder why Phoenix is one of the most popular Airbnb cities in the US. The demand is so great that owners of Phoenix vacation rentals have no trouble getting bookings throughout the peak season (which spans from January through March) and even during the low season.Still, not every neighborhood enjoys high occupancy rates. So you should use a tool like Mashvisor’s Heatmap to find the hottest areas in Phoenix for Airbnb rentals. Simply set the tool to show an overview of the best-performing areas in terms of Airbnb occupancy rate. As you can see in the picture below, areas highlighted in green have the highest Airbnb occupancy rates. These are the best places to buy vacation home rentals in the Phoenix housing market 2019.Mashvisor’s HeatmapRelated: Airbnb Rentals: Finding Income Properties Using a HeatmapPhoenix Vacation Rentals Provide Great ReturnsAccording to Mashvisor’s data and analytics, the median price of Phoenix homes for sale is $384,435. Even though this is higher than the national average, many property investors find it more affordable compared to other major housing markets in the US. In addition, with an average Airbnb monthly rental income of over $2,000, Airbnb real estate investors are bound to make a good Airbnb return on investment here. Just take a look at the chart below by Evolve, a vacation rental network, which shows the annual revenue of Phoenix vacation rentals by property size:One thing worth mentioning is that Zillow predicts home values will rise 8.4% over the course of 2019. This tells real estate investors that now is the best time to buy Phoenix vacation rentals before prices start rising as well and become unaffordable! Start out your 14-day free trial with Mashvisor now to start looking for and analyzing the best Airbnb investment properties in the Phoenix housing market 2019.Top 3 Neighborhoods for Owning an Airbnb in Phoenix It would seem that Phoenix vacation rentals are a great choice for real estate investing in 2019. For the best Airbnb return on investment, we recommend investing in one of these top neighborhoods in Phoenix according to Mashvisor’s Investment Property Calculator:Paradise ValleyMedian Property Price: $339,698Price/Square Foot: $193Airbnb Rental Income: $3,574Airbnb Occupancy Rate: 43%Cash on Cash Return: 6%AlahambraMedian Property Price: $347,178Price/Square Foot: $178Airbnb Rental Income: $1,884Airbnb Occupancy Rate: 51%Cash on Cash Return: 3%EncantoMedian Property Price: $394,772Price/Square Foot: $920Airbnb Rental Income: $2,012Airbnb Occupancy Rate: 62%Cash on Cash Return: 2%Note: Remember, these are only neighborhood averages. You can find properties that yield higher cash on cash return with our Property Finder! Ready to Invest in Phoenix Vacation Rentals? While any type of investment property will do well in the Phoenix housing market 2019, owning an Airbnb rental is your best bet to make maximum profits. So don’t hesitate to invest in Phoenix vacation rentals! With advanced investment tools like the ones Mashvisor provides, you can find and analyze the best short-term rental properties in a matter of minutes.Wondering which other cities in the US are good for owning an Airbnb rental property? Here are the 8 Best Cities for Airbnb Investment in 2019. Start Your Investment Property Search! START FREE TRIAL AirbnbAirbnb RegulationsPhoenix AZVacation Rental 0FacebookTwitterGoogle +PinterestLinkedin Eman HamedEman is a Content Writer at Mashvisor. With a focus on market reports, she enjoys researching the state of the real estate market in different cities across the US. Eman also writes about trends, forecasts, and tips for beginner investors to gain the confidence and knowledge they need to make wise decisions. Previous Post Can a Real Estate Investment Blog Really Teach You How to Invest? Next Post When Is It Okay to Buy a Negative Cash Flow Rental Property? Related Posts Should You Invest in an Airbnb Houston Rental Property in 2019? 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