In 2016, the State of Arizona legalized the investment of property as real estate for homeowners. This has made it possible for homeowners who are already in the Airbnb business as well as those who are looking to start the business to be able to not only invest but get their money’s worth when they sell their properties. The Phoenix real estate market naturally has its advantages that allow the housing market to be a profitable investment for homeowners. If you are looking to start your Airbnb business in Phoenix, then there are several tips that you may find useful.
Why would you want to start an Airbnb business?
This may seem like a simple question, but it is very important when you set up your business. Apart from its popularity, Phoenix is enjoying a growing economy, which makes it the perfect place to start an investment. Any experienced investor would tell you that a thriving economy attracts all kinds of business opportunities, and real estate is one of them. A growing economy means people will start moving into the city, and these people will need homes (temporary or permanent), which is where you come in and deliver.
Phoenix median home value is also another thing to consider. Currently, houses in phoenix have a median home value of $242,400, which is a bit below the national average of $243,225, although it is predicted to rise this year. These prices are attractive not only to tourists but also to buyers.
The current houses for sale in phoenix az is also what the real estate consider as a hot market. There is a greater need for Airbnb over hotels. So, if you are planning on buying a few properties and turning them into Airbnb, then this is the best time for you to invest in the business.
Finally, unlike certain parts in the country, the real estate business in Phoenix has never been worried about national disasters that may affect their business. Once you start your Airbnb business, you can be rest assured that disasters such as snow storms, earthquakes, tornadoes, hurricanes, or fires have never been reported.
Understand your city laws
Like any business, there are laws that have to be followed when setting up and running a particular business. The Airbnb business in Phoenix has certain laws that you need to familiarize yourself with if you want your business to take off and run smoothly.
Starting for construction to design and maintenance, there are standards that you need to meet for your business to meet the city’s approval for buildings used for residential and nonresidential purposes. Once these are met, then a house can be listed in houses for sale in phoenix az, and your business can finally take off.
An equally important requirement in the Airbnb business is the transient and sales taxes. These taxes affect not only your property but also the buyers depending on their stay in Phoenix. This is something you don’t want to miss when looking for , especially if you are new to the city and are unfamiliar with the state, county, or city tax laws.
The zoning ordinance
While going through the listing for houses for sale in Arizona, it is important to also consult about the laws and regulations that govern how property in the geographic zone you plan on buying can be used.
Once you go through the listing for houses for sale in phoenix az, you need to apply for a license as per the chapter 14 of the city code before you start operating your Airbnb.
Setting up your Airbnb
Before you start setting up your Airbnb, there are a few things to consider:
No tourist will pick an Airbnb host that is in an unsafe residential area. This is probably the first thing they will be looking for when looking for an Airbnb host. So, when you go through the list of houses for sale in Arizona, it is important for you as an investor also consider the security of the location.
Accessibility concerns both online availability of your Airbnb, as well as convenience in location. Finding the location of the property you want to buy shouldn’t be a problem as the list of houses for sale in phoenix az also come with the location of the property. All you have to do is evaluate their accessibility for your future customers.
3) Facilities and amenities
The types of facilities (air conditioning, parking, etc.) and amenities (hot tubs, breakfast, etc.) you provide will affect the number of visitors coming to your business as well as referrals in their reviews.
The real estate market is very competitive, and getting the right pricing can be a bit challenging since you want to keep the costs within your client’s ability to afford. At the same time, you want consider the profitability of the prices you set. Prices can also affect the ability of your Airbnb to compete with other similar businesses.
Once you have these factors in mind, the following tips should help kickstart your Airbnb business:
i. Get your first impressions right
How you interact with your potential customers will determine whether you become a successful host or lose them. This will also affect any potential for repeat customers. Be friendly, attentive, and answer any questions or concerns your customer might have. All of these will make an impact on your first impressions.
ii. Organize your calendar
The last thing you want to do as a host is to get your dates mixed up. Considering your customers will most likely have traveled a long way to get to Phoenix, the least you can do is not waste their time with delays or cancel any appointments you made for hosting them because you ended up being busy.
iii. Research on your competitors
Competitors can be a headache or a minor inconvenience that you can deal with. The Airbnb business is bound to be very competitive, and the last thing you want for your business to be is unsatisfactory compared to your competitors. Therefore, it is necessary to take your time and investigate who you will be competing with both in your area and online.
iv. Get quality photos
Pictures speak a thousand words, and nothing will get your Airbnb business more attention than getting quality professional photos. These photos will increase the appeal of your business to potential customers when they browse for Airbnb services in Phoenix.
v. Additional services
Finally, it is also smart to list other services your Airbnb business offers. You may never know if what you list will edge out your competitors. Services such as cleaning, entertainment options, breakfast, etc. anything that will give you a competitive edge will be good for your Airbnb business.