Short-term rentals are rapidly becoming popular among travelers because they offer the privacy of a home and the comfort of luxury utilities at reasonable prices. So, if you’re looking to get one soon, here’s how to determine if a neighborhood has a lot of short-term rentals.
How to Determine if a Neighborhood Has a Lot of Short-Term Rentals
As their name implies, short-term rentals are fully-furnished apartments that are rented out for short periods of time. They are a better option than hotels for people looking for higher value, more privacy, and the chance to live like they would in their own homes.
This presents a highly viable investment option, especially in locations where these rentals are in high demand. The feeling of getting a semblance of a ‘home away from home’ is a concept that many people find to be attractive.
Investing in Short-Term Rentals
If you are looking to invest in rentals, it is important to be able to tell the neighborhoods that are populated with top-tier rentals. This ensures that you are not limited in your options. So, to determine if a middle neighborhood has a lot of these rentals, look out for the following:
- Tourist attractions
- Annual festivals
- Economic hubs
Areas with a lot of tourist attractions and vacation sites are highly likely to attract many visitors, increasing the demand for these rentals. More often than not, a high demand like this will be met with a high supply, thus ensuring the area is populated with lots of rentals.
Annual local festivals, concerts, and other social gatherings are magnets that attract people to a particular area. As a result, there is a need to provide comfortable accommodations for people throughout the course of these events.
Some of the most popular annual festivals in Arizona are:
- Arizona Renaissance Festival, Gold Canyon
- Tucson Festival of Foods, Tucson
- Arizona Polish Festival, Phoenix
Areas like these are bound to have a good number of these rentals.
Businesses and work are one of the major reasons people travel, outside of vacations. Therefore, places with high economic activities tend to attract many visitors. Often, these work-related trips take months to complete, and paying for a hotel might be too expensive, making rentals a preferable option.
Tips on How to Find Good Rentals
When you are choosing the location, and type, and considering other specifics with respect to a rental property, there are certain necessary tips that would help the process along:
- Create a budget
- Identify your options
- Hire a real estate agent
- Carry out an online search
- Carry out your due diligence
- Do not pay before signing
Create a Budget
Finance is everything when it comes to real estate. Therefore, before seeking out a rental property, it is important to carefully decide on a realistic budget for the property you have in mind to avoid unnecessary expenses that might leave you stranded.
Your budget would also guide you with respect to areas that you can get a property in for that price range.
Identify Your Options
In addition to determining your budget, next, you want to evaluate the housing options available to you. You would be looking at housing types such as cabins, bungalows, and chalets. You could also decide on whether to opt for either of the following categories of properties:
- An entire home
- Individual rooms
- Accessory dwellings
Your choice here would be significantly dependent on your budget too, however. So, your options and budget go hand in hand. You can also use the housing affordability index to determine whether or not you can actually afford the property you want to purchase.
Hire a Real Estate Agent
One of the main benefits of working with a professional and experienced agency, especially when you’re in a new environment, is that they offer you a higher chance of finding the best rental property to suit your needs and budget in record time.
Agencies such as AZ Flat Fee have a vast network of contacts and information at their disposal, making them invaluable when looking for a suitable rental to invest in.
Carry Out an Online Search
If you’d rather be actively involved in your search for a short-rental property, your best bet might be to use the internet. There are many websites that list properties, and you could visit them to find a suitable one for yourself.
Alternatively, you can opt to carry out a physical search for yourself, especially if you have a specific area in mind. This gives you a chance to inspect the buildings in real life, instead of in photographs, and determine if you like them.
Carry Out Due Diligence
Once you have identified a potential property, the next step is to carry out proper research on it, if possible, before payment. This is to ensure you get your money’s worth and are not stuck with an undesirable property.
If you found the property on a website that lists such properties and offers 3D tours, ensure that you research the property and make the necessary inquiries before going ahead to carry out the transaction. Working closely with your real estate agent is vital as well. Also, learn the local rules for this rental type in the area and make sure the place you are investing in complies with these rules.
What Is the 90-day Airbnb Rule?
This rule states that a property can not be put up for Airbnb rentals for more than 90 occupied days per year. This rule applies to renting the property for 90 consecutive days and 90 days spread unevenly across the year. This may apply in specific areas and should be verified before purchasing.
Can an HOA Limit the Number of Rentals in Arizona?
No, the law in Arizona states that the state, cities, and towns of Arizona are prohibited from restricting these rentals. Hence, renting property for a short term is legal in any neighborhood within the state, and property owners are allowed to rent their property for any duration, including nightly rentals.
As a traveler, it is important to know how to spot neighborhoods with several decent short-term rental properties to enable you to always make the best choice. We have provided some tips to help guide you on how to spot these neighborhoods and how to find the ideal rental property to suit your needs.