Considering it is a billion-dollar component in what has become the sharing economy, Airbnb is in the process of disrupting the hotel industry. It allows anyone with a home or piece of real estate to offer nightly rentals to customers looking for affordable boutiques or a different overnight experience from what is offered by typical hotels. In hotels, for instance, customers get a room. With Airbnb, they can get an entire apartment, townhouse, or house. With Airbnb, customers can rent your apartment, townhouse, or house.
As with any business, one of the keys, of course, is location. In terms of locations, the region surrounding Scottsdale, Arizona is one of the most popular Airbnb hubs in the country. Just as Airbnb continues to grow, Scottsdale continues to develop as a prime opportunity for someone wanting to earn part-time or full-time income on their property.
1. Airbnb friendly
While many cities across the United States either prohibit or have enacted strict rules as to how an Airbnb business is to be run, there are cities that welcome this business model. For instance, in 2017, the ability of cities to regulate rentals based solely on how they are used or classified was eliminated by the Arizona State Legislature under A.R.S. §9-500.39. This means that running an Airbnb in Maricopa county is, by law, allowed.
However, this statute does not supersede the rules and regulations set forth by any one Homeowners Association to regulate or restrict the running of an Airbnb. That said, residential neighborhoods that do not have a Homeowners Association allow for both short-term and vacation-rental business models.
That said, there are a few relatively reasonable rules that anyone considering running an Airbnb must familiarize themselves with. For instance, regardless of whether the dwelling is categorized as a short-term or vacation rental, there can be no more than six adults and their dependent children renting at one time. Additionally, it is prohibited to rent beyond the capacity of the home. For instance, it is against the rules to rent a four-bedroom house to 16 people as there are not enough beds to accommodate everyone. Common sense rules like these are what make starting an Airbnb business in Scottsdale a great choice.
For any homeowner, property taxes are a reality that will impact your decision to purchase or hold a property. In many parts of the country, property taxes range from one percent to two percent of the property’s market value.
In some east-coast municipalities, for instance, property taxes are on the upper end of this range. New Hampshire homeowners as well as those living in New York or Illinois can pay upward of 1.9 percent. In rural areas across the country, property taxes are obviously lower, ranging between .85 to 1.1 percent.
However, the Scottsdale area represents one of the highest-grossing tourist destinations in the country. It is home to just under a quarter of a million people. By no means is it a rural area. Yet its property taxes typically range between .86 and 1.5 percent, making it affordable for anyone wanting to own a home.
Moreover, because of its location and amenities, such a low property tax can easily be offset by anyone wanting to start hosting for Airbnb.
The success of any Airbnb is partly, if not heavily, dependent upon where said Airbnb is located. As the weather in Scottsdale is welcoming year-round, it is a popular vacation destination. For instance, it never actually drops to drastically cold temperatures that make venturing outside prohibitive. In terms of the summer, even though the temperatures get rather high, the lack of humidity makes the summer months quite bearable.
Additionally, although Scottsdale is often thought of as an upscale area that caters only to the wealthy traveler, this could not be further from the truth. In fact, Scottsdale is packed with activities for any budget, including great places to eat, exciting outdoor adventures, and a wide variety of beautiful art galleries to explore.
For instance, just a short drive outside of Scottsdale is the McDowell Sonoran Preserve. Comprised of five major trailheads that are connected to more than 200 miles of trails, outdoor enthusiasts can completely immerse themselves in the wonders of the Sonoran Desert. Conversely, for visitors that love the water, kayaking or tubing on the Salt River are popular activities that even the locals enjoy.
Regarding art enthusiasts, Scottsdale does not disappoint. In fact, there are numerous art galleries and museums to choose from, including exhibits that showcase technology as well as ones that display the art and culture of Native Americans.
Old Town Scottsdale is another attraction that makes running an Airbnb in Scottsdale a great choice. It is packed with things to do during the day or night. During the day, visitors can enjoy such wide-ranging activities as shopping for jewelry made by Native Americans or browsing art galleries of local or regional artists. After the sun sets, visitors have the opportunity to enjoy the many renowned restaurants.
With millions of visitors traveling to Scottsdale each year, deciding to open an Airbnb is almost an obvious choice. One reason so many people travel to Scottsdale each year is Wonderspaces. Wonderspaces were developed according to the guiding principle that art is for everyone. As such, visitors are encouraged to explore art via touch, sound, and sight. There are even opportunities to explore art via virtual reality. Additionally, visitors can enjoy the many wine-tasting rooms that provide samples of the most celebrated craft breweries and vineyards in Arizona.
5. Bachelor and bachelorette parties
Scottsdale is a popular destination for bachelor and bachelorette parties due to the climate as well as the variety of bars, restaurants, and unique activities. Moreover, it is right next door to Phoenix, making it easy to fly in from anywhere. Furthermore, because the addition of hotel rooms to accommodate bachelor and bachelorette parties can increase rental costs significantly, many people are choosing to stay at an Airbnb for their special festivities.
In addition to the variety of things to do to celebrate, there are companies that cater to people planning bachelor and bachelorette parties. For instance, the Arizona Party Bike is a fun and unique way to enjoy the quintessential bachelor and bachelorette party activity: the pub crawl. Designed to seat up to 15 people, the bike is electric. Even though revelers will have to pedal, it will not actually wear them out. Additionally, there are fun drinking games incorporated into the ride, and parties receive discounts at the pubs they visit.
6. Affordable property values
In addition to low property taxes, property remains affordable. In fact, affordable properties are the final component in what amounts to a perfect Airbnb storm. For instance, low property taxes are the first part of operating a profitable Airbnb location. Being able to draw customers is the second component, and as indicated above, Scottsdale is a popular tourist destination. Affordable property values are the final component in what amounts to a small business that can prove both profitable and consistent.
In places like New York City, starting an Airbnb location is virtually impossible due to extraordinarily high home prices. In Scottsdale, however, prices for homes range from $100,000 to $750,000, making it possible for just about anyone in any income bracket to begin their career as part-time hotel manager. In fact, because of the affordable prices and low interest rates, many people are already using Airbnb to finance their mortgages. For any homeowner, this new opportunity in the sharing economy represents an unprecedented moment in history.
If you happen to be looking to invest in an Airbnb property you should look up The Kay-Grant Group, they are Scottsdale realtors that specialize in properties for this type of investment.
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