A connection to family and nature are most important to people traveling, as well as opportunities for outdoor activities.
Many Flagstaff neighborhoods have STRs already and travel trends forecast for the post-COVID climate indicate there will continue to be demand for STRs as people change the way they travel and vacation. A connection to family and nature are most important to people traveling, as well as opportunities for outdoor activities. This can be an opportunity for locals who love Flagstaff and want to share the lifestyle with others as well as for those who want to benefit financially from the growing demand.
How does one finance, purchase and operate a short-term rental? This can be a daunting endeavor, but if you think you would find enjoyment and financial benefit from this expanding market, here are some basic steps to follow:
Work with an experienced real estate agent. In your search for your perfect vacation rental, a real estate agent who is experienced with the market, investment properties and regulations will prove priceless in the process of finding and purchasing your new endeavor. Or, maybe you already own a property or properties that you would like to convert to short-term rentals. A good property manager will help you figure out the details.
Do your research. Appealing to tourists can take many forms: some people like to be downtown and able to walk to restaurants and other local attractions. Others may desire quiet and solitude away from crowds and tourist areas. Consider what you think would be the best fit for what you want to provide your guests and dive into Airbnb and VRBO websites to evaluate what is already out there. How are these properties doing? What do the vacancy rates look like? These sites and others such as AirDNA and Mashvisor provide analytics of the local short-term market and will also help with pricing. Consult with local property management companies to determine if your potential STR will provide cash flow.
Determine if you want to have a large or small STR. A large STR will bring in more money and potentially increase your return on investment, however there may be more wear and tear on the property and more complaints from neighbors, as the bigger homes attract larger groups who are coming together to celebrate. A smaller home may not reap the big monthly income; however, it may be easier to manage since only a family, a couple, or a few friends will be staying.
Figure out if you are going to manage the property yourself or hire someone to do it. If you are going to do the bookings, management, problem solving, cleaning and maintenance yourself, consider whether the time it takes is worth the money you’ll be saving. Property management companies typically charge 10% to 35% of the rental income, depending on how much they manage and what services they provide. Finding a reliable cleaning crew can be one of the most challenging parts of managing your STR, according to Blue Door Properties owner Mary Jane Morse, as well as meeting guest expectations with amenities provided.
Make your STR special with neutral colors that appeal to many, new quality furniture, comfortable beds and linens, a well-appointed kitchen and add some local flare.
Register your STR with the city via the website: ShortTermRental@flagtsaffaz.com. A City Ordinance from December 2020 requires all STRs to be registered here and provide an owner’s contact information. Any complaints from neighbors about the STR may be called to the 24/7 short-term rental hotline number: 928-714-7951 or via an online complaint form: https://lodging.munirevs.com/complaint/?cityid=532. Information submitted will be forwarded to the STR operator’s emergency contact for a response and City of Flagstaff staff will take follow-up action as needed. The information will be stored in a centralized database to resolve conflicts and measure the impacts of STRs.
Stay healthy and prosperous, Flagstaff! FBN
By Amber Welsch
Amber Welsch is a sales associate on The Mary Mendoza Team at Russ Lyon Sotheby’s International Realty. She is a 20-year resident of Flagstaff and a native Arizonan. She can be reached @ amber.welsch@russlyon.com or 928-607-9566.
