Airbnb Investing in Scottsdale: A Simple Guide

If you are looking for a way to earn passive income in Scottsdale, renting out your property on Airbnb is an option you should definitely consider. Listing your property on the platform is easy and since you won’t get tied to a long-term rental contract, you have the freedom to change your mind whenever things don’t work out.

However, if you have a property in Scottsdale, chances are that you will find investing in an Airbnb to be lucrative mainly because the area is Airbnb-friendly.

What Makes Scottsdale Perfect for Running an Airbnb?

Friendly Legal Framework

Arizona is one of the few cities that embraced Airbnb. They were so open to the idea that they even have a law that prohibits cities from banning the service. Therefore, if you choose to rent out your property on the platform in Scottsdale, you never have to worry about your income disappearing overnight because of getting banned.

The laws that are applicable in Scottsdale are designed to streamline the process of these rentals while also ensuring that people do not abuse the platform. This contributes to an Airbnb-friendly environment since these regulations reduce the odds of owners of neighboring properties being hostile to both guests and hosts.

Consistent Demand

Scottsdale has always been a favorite tourist destination for families who are looking for great vacation spots. Over the years, it has also attracted a steady stream of corporate vacationers. These people are the ideal target clients for Airbnb since they typically prefer the low cost and convenience that being a guest provides.

Low Property Taxes

Taxes cut into your earnings and so it is something that anyone should consider before investing in property. The area is perfect for Airbnb hosting because Scottsdale investment properties generally attract low taxes.

When you add the 1% city transaction privilege tax, the 5.6% state transaction privileges sales tax, and the 5% city transient tax that is charged in the area, the amount of tax that you will end up paying in taxes will be significantly lower when compared to other cities that have taken a hostile stance against short-term rentals.

Affordable Property Values

If you don’t already own property in the area, buying property and then listing it on the platform will be a great investment because properties in the area are relatively affordable. This means that getting started in Scottsdale will be easier since it requires a smaller capital outlay. This reduces your risk exposure, and it also makes it easier for you to make your money back.

What are the Pros and Cons of Running an Airbnb in Scottsdale?


If the Scottsdale area having a friendly environment for Airbnb is not enough to convince you to take the jump, then the various advantages that come with hosting might do the trick. Here are the reasons why people prefer hosting an Airbnb over traditional long-term leases.

Higher Rental Income

You will have absolute control to set your own price for your Scottsdale investment properties. This, in addition to the fact that short-term rentals generally tend to command higher rental prices when compared to long-term contracts, usually leads to higher income.


Hosting an Airbnb gives you more convenience because you get to determine how your guests will stay, the rules that they have to stick to, and what they will pay for each night that they spend at your place. As a result, you can even decide to rent out your space only when you need the extra revenue. You may also decide to rent it out only when you go on a vacation.

More Control

Long-term rentals have restrictions on what you can do for the period that your tenant is occupying it. During this period, you will have less of a say on how it is being taken care of.

Since short-term rentals are shorter, there is more opportunity to maintain upkeep.


While there are a lot of benefits to being a host, it is not for everyone. The following are some of the reasons why opting for a traditional long-term rental may be better for you.

Irregular Income

There is no guaranteed income on Airbnb. Even in cases where you regularly earn a lot of money from your property, things can take a sudden turn if things like pandemics happen. The popularity of your listing will also fluctuate and this can lead to drastic fluctuations. Booking cancellations can also add to the income uncertainty that comes with placing your property on Airbnb.

Higher Expenses

In order to be able to list your home on Airbnb, it needs to be furnished. This includes proving sheets, towels, beds, furniture, kitchen supplies, and everyday use items like toiletries. The cost of providing styling your home to a level where it is competitive with other properties in your area can sometimes be overwhelming.


Scottsdale, Arizona is one of the hottest real estate markets in America, and short-term rentals are a popular option for investors.

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