Owning a short-term rental property comes with challenges, but there are many unique rewards. You can build equity, establish passive income, and have a place to stay if necessary. This is why so many people in Arizona are looking for investment opportunities.
In this state, buyers can expect to pay around $436,000 for a home. While this may seem expensive, it carries the potential for substantial rental income.
Before you get involved with short-term rental management, there are certain aspects to consider to maximize profitability. Let's explore what you should know.
1. Property Marketing
This is one of the most important attributes to keep in mind. You'll have to frequently market your property throughout the year since each tenant's stay will be so short.
The best way to market is to emphasize local attractions. What would a family on vacation be interested in? If someone is traveling for work, what would they like to explore in their downtime?
Don't neglect your property's amenities while marketing. For example, your home might be located in a safe neighborhood and have a robust security system.
This is a major point to emphasize when putting your home on the market. Other factors could include your property's size, the walking distance to metropolitan areas, or neighborhood perks.
Try not to embellish when marketing, though. Giving people an amazing experience could help you acquire seasonal tenants. Guaranteed bookings throughout the year can make rental property management much less stressful.
2. Maintenance and Management
You might need to handle maintenance responsibilities sooner than you anticipate. With so many people coming in and out of the home, it's possible for wear and tear to manifest quicker than normal.
If you don't sufficiently maintain your rental property, it will be harder to market. You also risk tenants backing out of the agreement if they arrive to find the property in poor condition.
The last thing you want is to have unexpected vacancies. In many cases, even a single month of vacancy could cost thousands of dollars.
If you list your rental property on platforms like Airbnb, dissatisfied tenants could leave negative reviews. This will make it more difficult to occupy your property in the future.
3. Local Laws
Local regulations are something you can never overlook. It's best to familiarize yourself before putting your property on the market.
Look into required permits so you can rent to tenants without worry. For instance, some homeowners associations have set rental periods that you can't exceed.
If you've never managed a rental property in Arizona before, you may be unfamiliar with local tax laws. Ignorance of tax laws doesn't mean you can avoid penalties from the IRS. As long as you do your due diligence, you should have no trouble finding short-term tenants for your property.
Short-Term Rental Management Is Simple
It's easier than most people think to handle short-term rental management in Prescott, Arizona. The above considerations will help you get started on the right track and avoid issues you may have otherwise encountered.
At PMI Northern Arizona, our experienced team aims to make property management as easy as possible. With us on your side, you won't have to worry about obligations like rent collection, property marketing, or maintenance.
Contact us today to learn more about how we can help.