Short-term rentals have become a popular way for people to make money and invest in real estate. With companies such as Airbnb becoming commonplace, many owners have been able to use these kinds of properties to generate regular sources of rental income. If you are considering making a real estate purchase in Arizona, you may want to know: Should I invest in the Arizona short-term rental market?
Arizona Short-Term Rentals
In 2016, Governor Ducey signed a law that limited the ability of cities and counties to regulate short-term rental properties. Since then, there has been significant tension between the rental owners and those living in the neighborhoods where their properties are located. Residents often complain that renters create disruptions to the peace and quiet in the community.
Arizona Home Owner?s Associations (HOAs)
One way the neighborhoods are permitted to control how a short-term rental is used is through a home owner’s association or HOA. HOAs are allowed to have covenants, codes, and restrictions (CC&R’s) that govern certain aspects of how owners may use their property. This may include things such as having a certain number of cars parked outside and can even include something as restrictive as prohibiting an owner?s use of their property as a short-term rental.
Therefore, if you are looking into buying an Arizona property with the expectation of using it as a short-term rental, you will want to be sure to find out if there is an HOA, and if there are any restrictions in place about its use as a short-term rental.
The Arizona Short-Term Rental Market
Another issue to think about is the housing market where the property is located. For example, if you are considering a college student style residence in Tempe, near Arizona State University, you should be able to determine how much of the year the property would be occupied. If the dwelling is somewhere less populous, you may need to do more research to determine what kind of return you may get on the investment.
Work with Experienced Arizona Real Estate Professionals
One of the best ways to explore your Arizona short-term rental real estate investment opportunities is by working with experienced Arizona real estate professionals. With the right Arizona real estate agent, you will have the insight you need to understand the market. Additionally, your Arizona real estate attorney will be there to protect your interests and provide guidance on critical issues.
Laura B. Bramnick is an experienced Arizona real estate attorney with the expertise you need to assist with all aspects of your Arizona real estate matter. If you are seeking an outstanding, client-driven real estate lawyer in Scottsdale, Phoenix, Sedona, and throughout the State of Arizona, contact Laura B. Bramnick to schedule your consultation.