If you’re looking to make some substantial side income or even switch careers to something more self-sufficient, then investing in vacation rental properties may be just the thing for you. And by taking the time to invest in a good property (and the right vacation rental management group to increase your renting ability), you’ll be able to not only earn a good income but also build property value, expand your net worth and just have some actual fun with work!
Of course, it all starts with knowing where to invest. Currently, one of the most promising markets in the country is Arizona. Here are 10 reasons why the vacation property market here is particularly attractive:
1. Affordable Property Tax
Arizona property taxes vary depending on property size and location, but in most cases they come out to an average 1.3 percent of the market value (most taxes fall between 0.87 percent and 1.5 percent). This is relatively low compared to other states (New Jersey has an average property tax of 2.44 percent!)
2. Lower Utility Costs
Property taxes aren’t the only things you’ll be saving money on. Monthly utility costs also tend to run low in Arizona, which is a huge benefit for rental property owners. Part of this is due to the fact that it costs a lot more to heat a home than to cool it down, and it’s no secret that heat just isn’t needed very often in Arizona homes, if at all.
3. Warm Weather Throughout the Year
Whereas other areas of the country are limited to welcoming high amounts of tourists only during peak summer and winter months, the weather in Arizona means it is a desirable location year-round! Our state gets some of the most hours of sun each year, and in fact, Yuma, AZ is officially the sunniest place in the U.S.
4. Growing Population
Arizona has been undergoing a population boom in recent years, and now in 2020 it is the 6th fastest-growing state in the nation! This is leading to a stronger economy with an ever-growing amount of restaurants, bars and tourism destinations. And in addition to drawing outsides, it also means more Arizona residents that are interested in traveling around their state.
5. High Repeat Visitors
Once people visit Arizona, they want to keep coming back. Really, the term “Arizona Snowbird” exists for a reason!
6. Access to Property Management Companies
Especially if you are investing in more than one property, enlisting the help of a good vacation property management company is crucial to success. And thanks to the growing population and economy of Arizona, there are plenty to choose from. The right company will help your property get more exposure and build trust with renters.
7. Variety in Investment Opportunities
Whether you’re looking for an exotic desert getaway, a small valley cabin or a vibrant metro home, Arizona has it all. Price points and opportunities vary across the state, so you have an abundance of strategies to choose from.
8. Low Cost of Living
People love coming to Arizona because the day-to-day costs are often much lower than in other states. These lower costs will also help you furnish and fix up your vacation rental property into a desirable getaway without breaking the bank.
9. Transportation Options
Tourists and locals alike have more transportation options than ever before these days. Not only are there numerous car rental places just about everywhere, but Uber and Lyft are also very active in most cities. Buses also run throughout the state.
10. Proximity to Desirable Destinations
The Grand Canyon is particularly high on the list, but don’t forget about the plethora of other nature destinations here. Both Las Vegas and Los Angeles are also very accessible.