Buying a short-term rental or vacation property can be a great way to invest in real estate and realize a profit. Recently, with the shock of the global pandemic, US citizens have had to shelter in place and make significant changes to their domestic travel plans. However, despite these limitations, the outlook for Arizona short-term rentals remains steady. Here are 5 reasons the Arizona vacation rental market remains strong:
The Destination Isolation Concept
Recently, the New York Times featured a story on how short-term rental owners across the country have been finding ways to keep their properties occupied during social distancing. For certain clientele, these rentals have become premier destinations where they can quarantine in comfort and style. This trend has emerged in Arizona, where luxury vacation property owners have elevated the concept of sheltering in place. For example, D. Alexander owns properties throughout the US, including in Sedona, where you can stay for a month in a five-bedroom home in the Red Rocks for $19,000 as part of a destination isolation plan. Arizona vacation high-end property owners can market their properties as secluded retreats where those with means can shelter in style.
Arizona Does Not Have Travel Restrictions
Arizona currently does not have travel restrictions, although residents and non-residents coming into the state from New York, New Jersey, and Connecticut will have to quarantine for 14 days or for the duration of their visit, whichever is shorter. Presently, public health authorities are recommending limitations on non-essential travel. However, this recommendation does not prevent people from leasing short-term rentals. Further, many vacation property owners are adapting to conditions by either requiring that renters stay for more extended periods, or making it easier for them to do so. Some citizens are staying longer in their current rentals or making plans to extend their vacation rental stays.
Arizona Vacation Rental Owners are on Trend
Arizona short-term rental property owners are responsive to the changing market. For instance, a few months ago, when metro Phoenix was at capacity, many of these properties were marketed to prospective buyers waiting for the right house to come up for sale. In the present situation, owners are not only making properties available longer, but they are adding safety features. For example, some Arizona vacation property rental owners are reportedly advertising that their units come with free Personal Protective Equipment (PPE). Further, others are letting potential renters know that recreation options such as golf course access are still available with their properties.
Arizona Vacation Rental Properties Provide a Housing Solution
Although some people may use vacation properties to socially distance, others will need these properties to use as shelter during this uncertain time. Before the pandemic, Arizona was experiencing a population boom. During this period, the areas in and around Phoenix were seeing as many as 200 new residents moving in per day. Many of these transplants were in the middle of finding housing in a competitive real estate market when the shelter-in-place order was issued. Arizona vacation rentals have offered members of this group a safe housing option for the time being.
Arizona Vacation Rental Investments
While it’s impossible to predict the immediate future, it is reasonable to expect that at some point, people will be traveling more widely again. Many travelers prefer the privacy and reliability of a property rented through Airbnb or VBRO. Additionally, budget-minded travelers may prefer this option over a pricey hotel where they have to purchase expensive meals and beverages. Arizona continues to offer some of the most beautiful natural landscapes in the world. It also has exclusive spas and yoga retreats, major league sports teams, universities, cultural arts, and world-class golf courses. Visitors are going to continue coming to the Grand Canyon State to enjoy some, if not all, of these offerings. When they do, vacation rental properties will be needed to accommodate them.
Laura B. Bramnick is an experienced Arizona real estate attorney who has the expertise you need at every stage of your real estate transaction. If you are seeking an exceptional, client-driven real estate lawyer in Scottsdale, Phoenix, Sedona, and throughout the state of Arizona, contact Laura B. Bramnick to schedule your consultation.