Arizona has become a massive draw for tourists looking to escape the cold winter weather in North America thanks to its year-round warm temperatures, lively nightlife, and remarkable desert sunsets.
Statistics have shown that about 22 million people visit the cities in Arizona yearly, which has resulted in the massive boom in the vacation rental industry. Several estimates indicate that the earning potential of vacation rentals in Arizona can be 80 percent more than other properties.
Outlined below are reasons why investing in Phoenix, Tucson, or Parker Az vacation rentals can provide a higher return on investments.
Annual Winter Migration Provides More Opportunities
The Arizona rental market is alive and thriving. With a relatively low cost of living and abundant sunshine, Parker Az vacation rentals provide plenty of opportunities to explore your hobbies and indulge in leisure and recreational activities.
According to the Census Bureau, more than 200,000 people from other states have migrated to Arizona last winter. Interestingly, figures show that almost 60,000 of them were residents of California.
In a nutshell, purchasing vacation rentals in Arizona provide investors an excellent strategy to make money in real estate.
With the number of people migrating to Arizona annually, investors can set competitive prices that will not only provide healthy returns but are also appealing to tourists.
Likewise, investors can also take advantage of the number of guests who return every year as well as the longer duration of their stay. Relevant statistics show that about 131,000 people used rental services like Airbnb in Arizona last year.
While vacation rental homes are usually rented out for a maximum of 30 days, some owners are open to having guests stay as long as three months in places like Arizona when the weather is favorable.
Real Estate Costs Are Affordable
Trulia, a leading real estate database in the US, considers Arizona as one of the most-watched real estate markets of 2019. Last year alone, the prices of Arizona real estate significantly dropped to 17 percent, which is 6 percent lower compared to 2017.
Arizona real estate market analysis revealed that buying a 2,500 square foot rental investment property in the state would only cost you $250,000. The study further added that investors have to pay up to $585,000 to buy the same property in Seattle or Los Angeles.
In other words, landlords and real estate investors can double their revenues by purchasing two investment properties in Arizona instead of one in Seattle.
Moreover, several studies also revealed that Arizona rental property owners earn an average of $4,000 to $6,000 per year from their rental properties.
Arizona Laws Are Short-Term Rental-Friendly
The regulators of the State of Arizona eliminated all restrictions on short-term rental properties last year.
Before gaining approval from the State of Arizona, investors had trouble navigating the rental property market due to limitations on rental services.
Elimination of these restrictions will provide real estate investors the freedom to make their rental properties available for as many days as they want each year. This will ensure a continuous flow of revenue for rental owners.