Airbnbs are becoming a key contributor to the real estate industry in the US. Many individuals are digressing from renting their property to long-term tenants to transforming their property into Airbnbs. In this post, we will delve into why Scottsdale, Arizona is the best city for investing in Airbnb/VRBO rentals.

Airbnbs vs. Permanent Rentals

The following reasons prove why leasing out long term rentals is losing its popularity.

Lucrative Investment

While owning Airbnb rental units, one can charge a lot of money on a nightly basis and earn a lot of profit. Before deciding to approach a realtor on investing in an Airbnb, one needs to know the best cities to partake in the business. Being misinformed can result in poor investment choices, and you are left salvaging the losses.


Long term tenancy can be disadvantageous since, as the landlord, you cannot access the premises for personal use. Airbnbs are flexible since tenants do not have a permanent residency, so as the landlord, you can access the premises when there are no tenants. Similarly, tenants can choose to switch it up a bit for the experience since they decide to lease the rentals that are alluring to them.


People are more interested in staying at Airbnbs than staying at hotels. Many businesses are opting for this option for their employees. Owning a decent Airbnb will guarantee all the sales you need, and the property will be booked all year long.


Airbnb exudes an adventurous air since, unlike full-term rentals, the landlord tends to interact with people from all walks of life. Diverse cultures are learned through interaction. This investment is also better off since hosts are not forced to put up with nuisances from some unruly tenants for long, unlike long-term tenants there to stay.

With this article, you will learn about the advantage of Scottsdale wields against other cities and why it is the best city for Airbnb investment.

Rules and Regulations of Scottsdale AirBnbs

Scottsdale was not a preferred location to invest in Airbnb until 2016, where the Airbnb bill was passed. The bill allowed residents and homeowners to rent a room or their entire house. Even with this directive, further stern measures had to be put in place to prevent foul play. Some of the measures limit the number of occupants per resident.

Similarly, the tenants are subjected to laws that they are liable to punishment through fines as high as $1500 if they cause havoc to the neighborhood through noise pollution and congestion. Some of the rules that make Scottsdale a top tier Airbnb investment place are:

A law was passed by Arizona to prevent the banning of short-term rental units, with the following provisions added:
  • Guesthouses should be leased out as a unit and dependently.
  • All rental units must be registered under the Maricopa County.
  • Each rental space should have a maximum of six adults.
Short term rental hosts must provide contact information. The ordinance was put in place to provide a platform in case of emergencies or airing out grievances. This rule makes Scottsdale a haven where the hosts are accountable for what goes on in the rental units.

Previously, the residents complained of the noise from the bachelor and bachelorette parties. A law was thereby passed where the hosts are liable to heavy fining when noise complaints are made against them. Moreover, the police now wield power to give civil citations to unruly congregations.

What Makes Scottsdale the Ideal Airbnb City?

Low property taxes

As an aspiring investor in Airbnb in Scottsdale, you need to be conversant with tax laws. Short-term rental taxes have to be paid to the local government as a way to earn revenue. Scottsdale requires that a transaction privilege of 5.5 % be paid. This surcharge is a percentage of the entire listing fee, with the cleaning fee being part and parcel. Similarly, one needs to pay a county excise tax, which varies between 0.28-6.5 % depending on the county.

In addition to this, a city transient occupancy tax is payable, and it accounts for 5.5% of the entire fee charge on Airbnb. These charges are the most affordable, thus making investing in Airbnbs in Scottsdale a good idea. Rental hosts who lease out their condos as a business do not pay a hefty tax fee since they are liable to deductibles. Some of the deductibles are the interest in mortgaged houses that are not included in the tax. Moreover, rental expenses are not taxable. This move ensures that only 80% of the net income from Airbnb is liable to taxation.

Affordable Properties

Before acquiring a property, one needs to be prepared whether they plan on getting condominiums or houses. Old Town Scottsdale condos for sale are diverse with the best deals available compared to buying homes.

The old town should be your best pick since this neighborhood is fun with plenty of activities for all tourists. The condos in these regions are less expensive since they are sold below the price of single-family homes.

Influx of Tourists

The city of Scottsdale heavily relies on tourism to earn revenue. The city is known as a tourist haven because it has myriads of activities that are alluring. Some of the activities tourists often indulge in are shopping, visiting nightclubs, swimming, visiting museums, historic sites, recreational parks, gambling in casinos, and playing golf.

More tourists milling into the city make rentals requisite and a necessity. Investing in Airbnb's within the proximity of these recreational and tourist hot spots increases your earnings tenfold.


Investment in Airbnb is less risky and has fewer discrepancies compared to long term renting. The move is lucrative, and the opportunity assures potential buyers that the capital-intensive investment will bear fruits. The unwavering markets from tourism, less prohibitive laws, low taxation, and affordable properties make Scottsdale a good site. Make an informed choice and invest in Airbnbs in Scottsdale.