Introduction
Scottsdale, Arizona, is not only a popular destination for tourists but also a lucrative market for short-term rentals. With its stunning landscapes, vibrant culture, and wide range of activities, Scottsdale offers an attractive option for vacationers looking for a unique experience.
Market Overview
To understand the dynamics of the short-term rental market in Scottsdale, let’s delve into some key statistics and figures.
Supply
The most popular homes are 4-bedroom homes, comprising 26.26% of inventory. This is followed by 3 and 2-bedroom homes at 24.37% and 15.19% of the total inventory, respectively.
Home Values and Depreciation
According to Zillow, the median home value in Scottsdale, AZ, stands at an impressive $831,129. However, it’s worth noting that homes have experienced a slight depreciation of 1.18% recently. This decline in home values could be attributed to various market forces and should be considered when evaluating investment opportunities.
Revenue
As per Chalet, there are currently 5,541 active short-term rentals in Scottsdale, AZ. These numbers highlight the potential for generating a steady income stream from (Airbnb) short-term rentals in the area.
Average Daily Rate
The median ADR for the market is $516. The Average Daily Rate is the highest for 7-bedroom homes ($607) followed by 6-bedrooms and 5 bedrooms at $548 and $442 respectively.
Occupancy and Gross Yield
Chalet data reveals that the occupancy rate of short-term rentals in Scottsdale is 55%. This occupancy rate indicates a healthy demand for rental properties. Moreover, the average gross yield, a measure of the return on investment, stands at 8.55%. These figures signify the potential profitability of (Airbnb) short-term rentals in the area.
Hosts
The market is dominated by property management firms. The largest host is RoomPicks with 4.53% of the total inventory and an average review of 4.5 ⭐️s .
Property Taxes and Regulations
Investors should consider the average property tax, which is 0.87% in Scottsdale, AZ, according to SmartAsset.
This factor can impact the overall profitability and should be factored into financial projections. In terms of regulations, Scottsdale maintains a somewhat investor-friendly approach to (Airbnb) short-term rentals, though there are zoning regulations and limitations that need to be adhered to.
Familiarizing oneself with these regulations is crucial for running a successful and compliant short-term rental business.
Guests
The majority of the guests come from inside of Arizona. 3.43% of all guests are from Phoenix followed by Chicago with 2.85%.
