Better to short term (AirBnB) or long term rent in Scottsdale?

3 Replies | Phoenix, Arizona

I have a brand new build near Old Town Scottsdale. I am trying to decide if I should furnish it and short term rent it out and take advantage of the peak season or just take the sure thing and long term rent it and not have to furnish it. Anybody have any experience that they could share or any agents that specialize in either that could give some advice?

Depends, if you only want to take advantage of the next 6 months through April 2018, then you need to weigh in the costs of signing up for Homeaway or Airbnb.  You also have to weigh in the cost of cleaning, furnishing, management, utilities.  If you were going to do it for longer than the furnishing cost may not be so bad, but to spend 5-10K furnishing a place for just a few months may be a hard pill to swallow.

You also need to determine if the HOA will allow short term rentals, some are enforcing a 30 day minimum.

Lastly, it is a lot of work to manage a short term rental if you plan on doing it yourself.  I would calculate the cost of your time into your numbers.

We've operated VRBO since 2011 and this year we sold all of them.  

Good luck,

Stone

Originally posted by @Dee Bowers :

I have a brand new build near Old Town Scottsdale. I am trying to decide if I should furnish it and short term rent it out and take advantage of the peak season or just take the sure thing and long term rent it and not have to furnish it. Anybody have any experience that they could share or any agents that specialize in either that could give some advice?

 Hi Dee!  Sorry to be so late to the discussion, but I wanted to reach out to you.  

Our Winter visitor season is AWESOME! From late Oct through April, we just see a flood of snow birds and travellers come through. January is big because of the car shows, horse shows, Phx Open, Barret Jackson, etc etc etc. So, the prospect of an AirBNB is there IF you pick the right property in the right location. The other poster in not wrong in that there are some issues to consider like the HOA (more importantly the CC&Rs, which are really what dictate) restrictions on lease duration minimums, and weighing the increase in revenue for a short period of time vs getting less for a more consistant period.

However, in terms of managing the rental itself, AirBNB actually already has a system in place for this.  You can offer the property up for a local "Host" to manage.  Then they handle the posting, the calendar, the screening, the turnover....everything, and you pay them a % of the rental rate.  It's a good deal....especially since the host is rated on AirBNB by the visitors, so they are encouraged to provide exemplary service in order to get the best feedback and boost their scores.  This works to your advantage over a regular property manager who can just take the listing, post in mls and sit on it.

Old Town is a great area for considering as it provides many "walk to" options.  However, it doesn't cater well to the January crowd that will want to be up further North in the action.  So, the old town property may be good for a snow bird renter who will be there consistantly for 6 months.  Then you can offer a short term lease for the off season.

If you are looking for an AirBNB type, you may consider something further North into Scottsdale that would allow for access to some of the events I mentioned, as well as close proximity to shops and dining.  The new Scottsdale Quarter is great as it is an added bonus to the already established Kierland area.  There's golf, shops, dining, and night life all right there.

No matter where the location, it probably will never compare to what you see in your area.  You have the beach!  Nothing beats the beach for booking AirBNB travellers.  Those rentals go so fast, and for so much!  It's crazy.

Anyway....not to go on too long, but I wanted to reach out and share my thoughts.  If you are still looking for some suggestions or help, please don't hesitate to reach out.  I am happy to answer any questions or help you explore options.

@Dee Bowers  I wanted to reach out and introduce myself. This is my speciality, as I have a few full time vacation rentals in Old Town Scottsdale that do very well for me, and I would be more than happy to assist you with any questions.

It is extremely exciting to see others want to be apart of the growing niche of investing in vacation rentals, especially in a market like Phoenix where we have no shortage of events ( Spring Training baseball games, Barret Jackson auction, The Phoenix Open, are just a few of the popular events that tourists flood Scottsdale in the Spring time). 

 I gross roughly 30-35k on the year for my units.  During peak season, you can expect to gross between 12-15k (Jan-April(. Not bad considering all expenses are covered, and you would get the perks of using it at your own leisure during the off season. The key is a good manager and making sure to furnish the unit properly and COMMUNICATION with all your guests. 

George