When looking through Scottsdale real estate for an Airbnb property, it can sometimes be tricky to know exactly what you should be looking for. You want to make sure that your investment is worthwhile and that visitors will actually want to stay at the property. With so many Scottsdale homes for sale, the options can quickly begin to feel overwhelming.
Airbnbs are growing more and more popular every year, with travelers choosing the more homey option over traditional hotels. While this means that there is competition out there looking for Airbnb real estate, it also means that you have a greater opportunity of making a return on your investment if you choose to rent out your new property.
To make the wisest decisions for yourself possible, there are four simple things to consider when looking for Airbnb real estate properties. These tips and tricks will make your real estate search far easier and help you have success when renting out your property down the line. Below, we have gone over what to look for when buying an Airbnb property so that you don’t get left with a money-pit.
1. Choose a Location that You Know Attracts Attention
Let’s face it, nobody is going to rent your Airbnb if they aren’t interested in what the area has to offer. Renters want to be close to the action, knowing that they can make the most of their trip without having to stray very far from the property they chose to stay at. While it can be tempting to choose a more affordable home that lies outside popular tourist areas, we assure you that you’ll experience a better return on your investment if your prioritize location during your real estate search and purchase.
Arcadia, a historic neighborhood in the Phoenix area, is an extremely popular area for Airbnb renters thanks to its proximity to both Scottsdale and Phoenix, an amazing shopping and dining district, and a high safety rating. This charming area is the ideal spot for you to purchase Scottsdale real estate and turn it into a popular Airbnb destination. Renters are likely to book a longer trip, leave a better review, and return for a second visit when they stay at a home that is close to all the action.
2. Pay Attention to the Number of Rooms
At the end of the day, bigger groups of guests booking your Airbnb means that you’ll be making more money per visit. Don’t limit yourself by choosing a small property that doesn’t allow for large parties and families who are vacationing together. When looking at Scottsdale homes for sale, we would not recommend even considering a property for an Airbnb location unless it has at least room for four beds. Choose a home with either four small to medium-sized rooms, or a home with just a couple of large rooms that have enough space for multiple beds. You will be amazed by how many people travel in groups and want to stay in your amazing location!
To open up more options, remember to consider properties that have the potential square footage to add more rooms after purchase. Dens and second living rooms can easily be converted into an additional bedroom, and space won’t be missed!
3. Look At Off-Market Properties
Real estate these days can be an extremely competitive market. In popular areas, especially, it can sometimes feel like a property you’re interested in has been sold to someone else as quickly as it was listed. Because of this, you want to make sure that you are first in line when it comes to new properties about to hit the market.
Work with a trustworthy real estate agency that is ahead of the game and can tell you when Scottsdale condos and homes are about to be listed. This will allow you the opportunity to bid on the property before the public even knows about it, giving you an advantage over competing buyers. This will especially come in handy in Arcadia, where properties are constantly being bought quickly and converted into Airbnbs.
Don’t Rule Out Short-Sell Properties
Keep in mind that an Airbnb in a popular location will very quickly make back the money you have invested in it. For this reason, you should consider homes that may require a bit of an additional investment up-front if you believe that the property will be profitable down the line. We recommend keeping the costs of renovations to about 10-15% of the homes value if you want the investment to be worth it.
Distressed properties, or fixer-uppers, can be a great option when searching for an Airbnb property. Knowing what your renters are looking for, you will be able to convert the home into exactly the kind of rental you know will make for a popular vacation destination. Short-sell properties are another great option, and owners who need to sell their properties as quickly as possible can often be negotiated with for a lower price, which makes up for the initial costs of repairs you may have.
By even considering distressed and short-sell Scottsdale condos and homes, you will be dramatically increasing the number of properties you have to choose from. This allows you to be pickier about the things that matter most, like location and number- of bedrooms in the home.
Keep these four simple things in mind when you are looking for and buying an Airbnb property, and you’re sure to set yourself up for success and a return on your investment. The real estate process doesn’t have to be as overwhelming as it can sometimes seem from the outside. Simply choose a popular location that attracts travelers and tourists, opt for a property with multiple bedrooms, work with a realtor to become aware of off-market properties, and stay open-minded about fixer-uppers and short-sell properties. With these four things in your mind as you search for an Airbnb property, you’ll be able to find one that suits your needs in no time.