Seems like an easy yes or no, right? The answer is like most, it depends. It depends on your goals, finances, and expectations. It also depends on the person.
If you’re investing in a vacation rental and have a plan for managing it, then I say yes, it’s a good idea. If you think buying a house and turning it into a vacation rental means automatic returns on your investment without lifting a finger or hiring someone else to—you’re in for a surprise.
More on that later. First, let’s review the state of the market for vacation rentals in Arizona.
What’s the Vacation Rental Market Like in Arizona Right Now?
The last year has taught us so much that it’s hard to keep track. As we return to normal, one thing is clear. After a quick dip for Arizona vacation rentals, the travelers came back quickly and with pronouncedly different needs. We’re getting more long-term guests (hello, virtual office!) and many people are still more comfortable staying at a private residence versus a hotel.
This is great news, especially if this is your first vacation rental. The turnover of guests and keeping a rental booked can be stressful. If you’re able to book more long-term guests, take it!
Do You Want to Keep Your Home?
Another thing to consider when deciding to invest in a vacation rental is your long-term plans for the property. It can be hard to turn the keys over to a renter, especially if the home is newly remodeled. Maybe you’re moving out of state and still want to come back periodically to visit friends and families. Although it can be an adjustment, this scenario is actually perfect for turning that home into a vacation rental. The transition is much easier with the help of a property manager.
Hiring a Property Manager for Your Vacation Rental
While all guests have the potential to damage property, you can take comfort in knowing that there is someone coming in after every guest, giving the home a professional cleaning, and informing you of anything that isn’t working quite right. Not only does Tru Vacation Rentals handle property management, but we can also help you find the perfect property to turn into a vacation rental.
One tip: If you’re out looking for a property to buy – just compare the condition of a vacation rental versus something that’s had long-term guests. It’s like the difference between a model home and a fixer-upper.
Are You Looking to Buy?
It’s all about the cash flow. With the right property and financing, vacation rentals are still profitable, even in this real estate market! Like with any investment, the key is to pick the right one. Be sure to consult with a Realtor who understands the short-term rental market, and knows what features are most desirable to maximize revenues and occupancy. There are lots of factors to consider before you make a purchase.
Tru Vacation Rentals – From Buying to Managing Rentals
At Tru Vacation Rentals, we offer a free evaluation of any property to help you determine the potential rent, occupancy, and overall revenue you can expect to receive from that home. Couple that with our experience managing rentals and knowing what guests in this market are looking for and you’ll have all the information you need to determine if a property meets your financial goals.
Odessa Keilman is a long-time Phoenix resident, with 20+ years of experience in contract writing, pricing negotiations, budgeting, and project planning. She is a down-to-earth businesswoman with a sound contracting background, providing a no-nonsense approach to real estate by focusing on what you value the most. She’s ready to help you buy your next home, sell your existing property, or build your real estate investment portfolio!