I'm happy to say I just purchased my first STR in Phoenix! It's right neat the airport and very centrally located between DT Phoenix, Old Town Scottsdale, and ASU in Tempe. The property is most definitely class A with high-end finishes. We have yet to furnish it and plan to renovate the back yard to make it a mini oasis for renters.
That being said, do you have any words of wisdom or things you really wish you would've done or known after you acquired your first STR? I've been compiling a list of to-do's and to-buy's and want to throw everything into a calendar to make sure I'm chipping away at this each day.
Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
5y
@Derek Hobart use a 1) channel manager for guest messaging (Your Porter, IGMS, Smartbnb, OwnerRez to name a few), 2) dynamic pricing tool (Pricelabs or Beyond Pricing), 3) digital guest guide where you can embed short instructional videos (Hostfully), 4) WiFi lock (Schlage Smart Connect w/Smart Things Hun or Schlage Encode no hub needed), camera (Ring Cam) and thermostat (Honeywell). After that you need a *great* cleaner and a couple handymen on speed dial. Stessa is great for diy STR accounting. Good luck!
Investor · Seattle, WA · Member since 2016 · 10 posts · 6 votes
5y
Congrats Derek!
I don't have any STR experience but while researching the Phoenix market, I've been told that segment is performing quite well. Can't wait to see what advice the community has...
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
5y
I would say know your numbers. I hope you thoroughly checked you rent potential before you purchased.
I would evaluate your top competition and emulate what they are doing. Create a great description and get professional photos and you should be off and running.
Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
5y
Congratulations! I don't have an STR yet, but I do live in Phoenix. I know that visitors here want to take advantage of the warm weather during the winter, and love to send pics of themselves in t-shirts or shorts to gloat to friends back home. I'm glad to hear you're paying attention to the back yard. My only suggestion is to add some flowering plants there, to really wow them. Bougainvillea, Baja fairy duster, and Mexican and Cape honeysuckle are some that bloom all year, including the winter.
Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
5y
@Derek Hobart use a 1) channel manager for guest messaging (Your Porter, IGMS, Smartbnb, OwnerRez to name a few), 2) dynamic pricing tool (Pricelabs or Beyond Pricing), 3) digital guest guide where you can embed short instructional videos (Hostfully), 4) WiFi lock (Schlage Smart Connect w/Smart Things Hun or Schlage Encode no hub needed), camera (Ring Cam) and thermostat (Honeywell). After that you need a *great* cleaner and a couple handymen on speed dial. Stessa is great for diy STR accounting. Good luck!
@Brian G. what are your thoughts about a commercial homeowners insurance policy like proper.insure? The policy is about 2x the price of other regular policies, but I'm curious if you've seen the value or if you've found a better/cheaper solution?
Real Estate Agent · Tempe, AZ · Member since 2011 · 1k+ posts · 543 votes
5y
STR's in the Phoenix Metro area are doing really well, overall, but that's mainly due to the state law that prohibits cities from restricting them.
But STR's may be in for a drastic change in AZ with the current bills that are being debated in the Legislature. Currently, STR's are largely unregulated but each city can require a registration. Other than that, it's kind of like the Wild Wild West, and many cities don't like that (i.e. Sedona, Scottsdale, Tempe, etc.) and they are pushing for a statewide change allowing each city to make their own rules, restrictions, regulations, fees, etc.
Even if the debated bills get passed and cities can control STR's, the weather, low property taxes, outdoor activities, etc. will still probably make STR's viable, but not as much as before.
Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
5y
@Derek Hobart yes you need a good fire insurance/commercial liability policy which commonly is a $1M policy. Proper is one. Ask your realtor for referrals. I’m insured with Foremost through a Brightway agent. Good luck! Reach out any time.