Jay@AgsReward.com said:
Interesting article about STR in Phoenix for the super bowl:
https://www.nytimes.com/2023/02/09/realestate/phoenix-rentals-airbnb-super-bowl.html
Quote:
But despite two of the world's largest sporting events descending on greater Phoenix on the same weekend, at the height of the season for both snowbirds and sightseers, most short-term rental sites are barely breaking 50 percent occupancy. Frustrated homeowners are being forced to slash prices, and some small investors are beginning to think they made a bad bet.
About two years ago, Karen Ochoa and her husband, who live 400 miles away in Thousand Oaks, Calif., spent $645,000 on a four-bedroom, two-bath investment property in Phoenix and then did a $100,000 renovation, adding a heated pool, firepit and putting green. Ms. Ochoa began renting it out for passive income, and also launched a side business serving as a co-host for other local owners, helping them furnish and design their own rental properties. She listed the house for $1,200 a night during Super Bowl weekend. There are no takers.
Quote:
Los Angeles's short-term rental market is significantly less competitive than that of Phoenix. A 2019 law made it illegal to rent out any property other than your primary residence in Los Angeles, effectively shutting investors out of the market.
Though Arizona homeowners need to obtain a license to operate a vacation rental, there are fewer restrictions making the market a free-for-all and ripe for investors, big and small.
Investors like Ms. Ochoa snapped up more than 30 percent of Phoenix's housing stock in the third quarter of 2022. She will still make money during the Super Bowl she owns a second property, a five-bedroom, three-bath house that she bought for $670,000 and has been able to rent it for $2,500 per night that weekend. One company alone, the Dallas-based Invitation Homes, now owns more than 8,700 homes in Phoenix.
Casago, a vacation rental company headquartered in Scottsdale, has added about 3,000 new listings in just the last two months, said Ryan Dame, Casago's co-owner.
this is shocking news!Jay@AgsReward.com said:
About two years ago, Karen Ochoa and her husband, who live 400 miles away in Thousand Oaks, Calif., spent $645,000 on a four-bedroom, two-bath investment property in Phoenix and then did a $100,000 renovation, adding a heated pool, firepit and putting green. Ms. Ochoa began renting it out for passive income, and also launched a side business serving as a co-host for other local owners, helping them furnish and design their own rental properties. She listed the house for $1,200 a night during Super Bowl weekend. There are no takers.