Arizona Short Term Rentals

As a short term rental investor in Arizona, I keep close tabs on the STR market in Arizona in order to understand how it is performing, the outlook of my current rentals, and the long-term forecast for the STR market. Arizona is a Short-term rental friendly state, with lots of income potential for STR investors who choose the right sub-market.

Arizona Short Term Rental Investors

How is the Arizona STR Rental Market?

The STR rental market in Arizona can be described as robust and growing. Because of the influx of travelers to Arizona, demand for STRs continue to rise. According to Airdna, the amount of short term rental properties in Arizona has more than tripled in just under two years, meaning that more and more investors are purchasing short term rental properties. This does pose a potential long-term problem where the market becomes over-saturated, driving potential nightly rates down. Up to this point, however, demand has continued to grow alongside of inventory so there has been no significant market correction in nightly prices.

Is Scottsdale a Good Place for for Airbnb?

Scottsdale is consistently rated one of the top cities to purchase an Airbnb or short term rental property. This is due to Scottsdale’s world-wide reputation as a top vacation spot, which brings visitors to the Scottsdale area year-round. Because of the high demand in the area, Scottsdale short term rentals boasts significantly higher nightly rates than the rest of the country.

Scottsdale Airbnb Saturation

While Scottsdale still remains a top place to invest in an Airbnb property, Scottsdale is becoming over-saturated with rentals. It is not uncommon for the average STR property in Scottsdale to dip below expected occupancy for the area and be forced to lower their rates. Because of the amount of STR units in Scottsdale, the area is losing the significant returns that investors were able to get once upon a time by purchasing a Scottsdale Short-Term Rental. Because of this, I advise my STR Investors to look at properties just outside of Scottsdale, such as Glendale or Mesa. This is because these areas are a short drive from Scottsdale and still attract Scottsdale visiters while attracting other types of visitors at the same time.

Scottsdale Airbnb Regulations

Because investing in Scottsdale STRs, the city of Scottsdale has introduced new regulations that restrict the purchase and use of properties for short-term rental use. These regulations were put in place in response to growing frustrations amongst residents that Scottsdale STR properties cause disruptions to their city and homes. So called “party properties” have resulted in negative press attention due to the destruction and disruption they cause the neighbors. Scottsdale short-term rental owners are now required to liscense their properties and pay an annual fee to operate their Short Term rental property.

Is Airbnb Legal in Arizona?

Yes! Not only is Airbnb legal in Arizona, Arizona is a very short-term rental friendly state thanks to our former governor, Doug Ducey. During his term, Ducey introduced and signed legislature that gave some added protection to Arizona Short Term rental owners from HOA regulations. Because Airbnb is legal in Arizona, STR investors from across the world are investing in Arizona STR real estate to grow their investment portfolio and realize significant returns on their investments.

Economic Impact of Arizona Short-Term Rentals

According to Airbnb’s website, short term rentals generated over $6.6 billion dollars in revenue for the state of Arizona since 2021. This equates to more than $500 million dollars in direct tax revenue collected by the state of Arizona from short term rental taxes. The economic impact of Arizona short-term rentals can not be overstated— Airbnbs and short-term rentals are a major contributor to the Arizona economy. This means that additional jobs and employment opportunities are generated from Arizona short term rentals, as well as an increase in standard of living for Arizona residence.

Do I need a license for Airbnb in Arizona?

Arizona does not require any licenses or permit to operate an Airbnb or Short-term rental. That being said, it is important to check with the local municipality that the short-term rental is located in as some Arizona cities require licenses or permits to operate short term rentals

Short Term Rental Real Estate Agent

As a short term rental real estate agent in Arizona, I help STR investors find and purchase properties to be used for short term rentals and Airbnb. As a STR investor myself, I understand the importance of choosing the right property and understand the unique challenges that STR investors face when purchasing new properties. I work with my STR investor clients to do market research, identify properties that meet their specific requirements, and facilitate the real estate transaction so that the process is smooth an painless for the investor. As a STR investor I also offer years of STR investing experience to help my clients avoid the common pitfalls I see STR investors make when purchasing new properties.