What is the current landscape for STR in Scottsdale, AZ? Is Scottsdale the most desirable city for STR in the Phoenix metro area? Any insight would be great.
As always, it depends on your goals. Scottsdale is over saturated with luxury STRs and many are selling right now with the COVID issues. Affordable STRs in Scottsdale are doing very well though. Consider some of the surrounding cities too. I have a handful in PHX and Mesa that far outperform my Scottsdale ones.
I have operated (4) in Scottsdale since 2015. Send me a PM and I can share some of my experience with you.
@Brian G. STRs in Scottsdale were booming just prior to Covid, but the virus wiped out the peak spring season here. Some operators are still limping along with scattered bookings here and there. I live directly across the street from a high end rental in North Scottsdale and it's probably been 50-60% occupied for the past 60 days. Many owners that were over leveraged are selling now, and we agents are seeing those properties hit the MLS (you can always tell because they're fully furnished yet lack any personal decorations or effects). If covid passes and life returns to "normal", then I can't imagine why the demand for STRs from travelers would be dampened come spring 2021.
I have other clients with STRs in Phoenix that are still doing quite well now, mostly because they cater to a different demographic. These travelers are often nurses, doctors, traveling businessmen people, or people coming to Phoenix for a short stay for a specific purpose. Many of my out of state investors stay at such a property when they are here doing drive tours or on inspection day.
STRs in Tempe also do well because they are less seasonal than Scottsdale rentals and receive a ton of bookings from ASU students, parents, and traveling professors coming to Tempe.
my partner and I had two SFRs right near the old town area. For the most part we have had a good amount of bookings coming from both Airbnb and VRBO. I ended up getting rid of one of the homes because trying to manage both short term rentals from out of state was aggravating. I ended up selling one of the homes a few months ago but recently made the decision to sell my second home so i could focus more exclusively on my RALs. (if you’re interested in purchasing along with all furnishings let me know).
Interestingly despite the Covid season I still had multiple bookings from people within the Phx area looking for a weekend getaway or a short stay during the week if they were traveling through the area. Many were locals just looking to get a house for a staycation, (a place w a pool for them). during the fall and winter months I was asked multiple times if the pool was heated￼ - probably one of the most important criteria for guests. ￼ overall I think Scottsdale is a phenomenal place to have a short term rental. The variety of guests I’ve gotten has unbelievable but I have been managing them for several years and just burned out from the constant need for attention lol.
Did you end up selling your STR already?
I’m interested and would love to get some more information.
I know this thread was from a year ago but we're looking at Scottsdale as our next market- luxury STR, north side. Looks like bookings for these are 50-60% occ from what I see on AirBnB. Many are priced under 1M. We'd be buying from So CA. We have one here in the mountains and another near Joshua Tree. Any updates on how Scottsdale is doing now post COVID?
@Christina Hall The second half of 2020 turned out to be a great market for STRs in Scottsdale. A lot of people from more locked down states ended up coming here for extended stays to enjoy the more relaxed rules and the weather/pools. This trend continued through 2021.
@Ryan Swan very good point. Many of my friends from Cali headed to AZ for this reason. Glad the trend is continuing. Going to reach out to you next few months to discuss RE. Thanks