Now more than ever, it’s hard to keep up with the news and know exactly how the current pandemic will affect the vacation rental market long term. The news media reports that vacation rental owners are “losing their empire” and unable to make ends meet.
That may be the case in some areas of the US, but as with most real estate investments, it’s all about the location.
Arizona Vacation Renters and Property Owners are Fortunate
Here in Arizona, vacation renters and property owners have been very fortunate. After the initial shock and reservation cancelations, business came back quickly. In early spring, it was Arizona’s warmer weather that kept guests coming in. Now that summer is here, guests are looking for private get-aways that they can drive to or something to take the place of a resort stay-cation.
Higher Than Normal Bookings and Rates
The vacation rentals that Tru Realty works with across Arizona are experiencing higher than
normal bookings, all while keeping rates the same (and in some cases raising them). The reason is simple; people want to get out, but they are trying to avoid air travel and crowds.
They are looking for a change of pace, privacy, and a place to spend quality time with a couple of friends or family members. When you add the closure of hotels to the mix, it makes sense that the vacation rental market in Arizona is staying strong.
No Sign of Stopping
It’s likely that vacation rentals will continue to hold even stronger than long term rentals, as vacation reservations are paid in advance with a credit card. No payment = No permission to enter the property.
One issue that also makes vacation rentals a more attractive investment than long term rentals are the current mandates in place for long term rentals that prevent evictions due to the inability to pay. With a long term rental, you may end up with someone in your investment property for months with zero cash flow.
Without a doubt, the vacation rental marketplace looks different than it did last year, but it’s as strong as ever!
Tru Vacation Rentals
If you’re unhappy with your current property management company or if you’re interested in learning more about vacation rental management at Tru Realty, contact Odessa@TruRealty.com to see if our services are a good fit for your needs!
About the Author
Odessa Keilman is a long-time Phoenix resident, with 20+ years of experience in contract writing, pricing negotiations, budgeting, and project planning. She has 8 years of experience in the Vacation Rental Industry and holds an MBA from Arizona State University’s WP Carey School of Business.