Airbnb occupancy rates by city state that an average host in Scottsdale can earn up to $38,172 during the peak seasons of September. With over 3,262 Airbnb listings in Scottsdale, it’s certainly a catch for property investors.

Aside from looking at a property’s fascinating architectural design, proximity to major tourist areas, and accessibility to the best go-to places, the primary step is to determine profitability. In this article, we’ll discuss the metrics in order to gauge the best property investment.

This includes the best website recommendations for property investment in Scottsdale, property gross rental yield, cash-on-cash return, and annual revenue, along with some of the most ideal and profitable properties according to their location. Stoked to learn more? Continue reading!

Pros of buying an Airbnb Property in Scottsdale

It’s a fact that Scottsdale is a fascinating city with plenty of unique attractions, eye-catching natural landscapes and an interesting arts scene. However, there’s more to learn as to why we recommend purchasing a property in this city. Here are some of the major reasons why you should consider buying a property for Airbnb in Scottsdale:

1. Luxurious tourist destination

Scottsdale is best known for being a luxury destination with striking nightlife, shopping, world-class golf courses and many other outdoor activities. In fact, around 4,3M travelers arrive in this city annually according to Scottsdale Visitors Statistics. This surely sounds attractive to investors who want to cater to tourist accommodations.

2. Proximity to major cities

Scottsdale also enjoys a privileged location since it’s close to major cities such as Phoenix, Mesa and Tucson and Prescott. In addition to this, it’s just 8 miles away from Phoenix Sky Harbor International Airport.

3. Booming job market

Scottsdale is home to many major companies and startups, plus it’s also an emerging tech market. Thanks to this, the city offers many opportunities to those who are looking for jobs. As a matter of fact, the job market is steadily growing, thus the city is considered the best city to find a job while having an unemployment rate of 2.5%. 

4. Property taxes

Arizona has one of the lowest property taxes rates, in fact, according to SmartAsset, it’s just 0.51% while the national average is 0.99%. While Scottsdale is a little higher than the average property tax in the State, there’s not much difference as the city’s rate is 0,64%.

Cons of purchasing a property in Scottsdale

Now that we know the pros of investing in Scottsdale, let’s take a quick look at some of the cons. It’s always better to look at the two sides of each coin in order to properly set your expectations!

1. High property prices

Scottsdale is known as a luxury destination, thus, you may already have an idea of what real estate looks like. The average housing value in this city is 42% higher than the national average, being a median selling price of $801K according to Zillow Index.

2. Cost of living 

The cost of living is also something investors should consider when looking for an appropriate location to set up an Airbnb listing. Unfortunately, aside from having a pricey housing market, the cost of living is also one of the downsides of Scottsdale since this is 26% higher than the national average based on Areavibes data.

3. Watch out for the desert wildlife!

Snakes, coyotes, bobcats, scorpions, spiders and many other species are common inhabitants in the desert area, so you may encounter them from time to time. While most of them are harmless for humans, you should absolutely watch out if you’re planning on allowing domestic animals on the property.

Best Neighborhoods for Airbnb in Scottsdale

Let’s take a closer look at the important Airbnb key metrics to discover which is the most profitable neighborhood in Scottsdale. Filtered for a 1-bedroom apartment, here is a brief overview of some of the most recommended and profitable neighborhoods:

1. Chateau de Vie

• Annual Revenue: $43,219
• Occupancy Rate: 85%
• Average Daily Rate: $117

2. Indian Bend

• Annual Revenue: $46,422
• Occupancy Rate: 79%
• Average Daily Rate: $130

3. Sands Scottsdale

• Annual Revenue: $33,881
• Occupancy Rate: 78%
• Average Daily Rate: $103

Is Property Investment Profitable in Scottsdale City Centre?

Using a short-term rental income calculator, it was discovered that a 3-bedroom property in Scottsdale City Centre can generate an annual revenue of $70,866 with a steady occupancy rate of 56% and a nightly rate of $324.