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Why Airbnb is the Best Passive Income

Airbnb has successfully disrupted the real estate rental market, and the benefits have tipped the scale in favor of passive income potential. Now, anyone with livable space can generate extra income with very little extra time and effort. Of course, Airbnb rentals aren’t 100% automatic; some property owner participation is necessary. However, with the added convenience of a Scottsdale, AZ Airbnb property manager, you can get as close as possible to a completely hands-off landlord experience. Here are some reasons why Airbnb is the best passive income stream right now.

Higher Revenue Potential

Airbnb properties tend to generate higher rental incomes than their traditional long-term rental counterparts. Property owners can charge higher rates, especially if the property is located in desirable locations and during peak travel dates.

Pricing Flexibility

Airbnb doesn’t control the rates that are charged for rentals; that’s entirely in the hands of the property owners. The platform allows for a range of flexibility, empowering owners to change rates temporarily (i.e., over a weekend event), charge more for multiple tenants (from two people and upward), and even to offer special rates or discounts for any reason.

Flexibility With Availability

Dates and times can be blocked out for times when the property owner may not want to make the property available for rental, for any reason. This is especially convenient if the property is the owner’s seasonal or temporary residence when they’re in town, or if they want to offer the property free of charge to visiting friends or family members.

Owner Control

All settings can be controlled in an instant, right from the host’s Airbnb platform dashboard. New settings can be applied instantly, saving the owner even more time and supporting a passive income experience.

Property Management Fills the Gaps

For a fully passive income experience, add the Airbnb property management of Sojourn Properties, serving Scottsdale, AZ and surrounding areas. At Sojourn, we handle important aspects of your Airbnb rental, freeing you from the time-consuming tasks commonly associated with property rental ownership.

Contact Sojourn Properties for your Airbnb and short-term rentals in and around Scottsdale, AZ. Our full-service staff is ready to take the reigns so you can better enjoy the best passive income stream possible from your rental property.

 

How Much Can You Make with Short-Term Rentals?

Deciding to rent your property to tourists or purchasing a property for the specific purpose of turning it into a profitable Airbnb can be a risky financial venture. You naturally want to know if you have a good chance of turning a profit before you make such a big decision or investment.

What Does the Average Airbnb Owner Earn Each Year?

According to an October 2023 report published on ZipRecruiter.com, a website that posts jobs and researches salaries and benefits, established Airbnb owners earn $131,526 annually. This figure breaks down to a monthly salary of $10,960. Properties in coastal states such as California and New York, along with warm weather states like Arizona, typically are in the highest demand by guests.

Factors that can affect your income as an Airbnb owner

Every Airbnb owner has a unique situation, and several factors can determine their profit margin after paying expenses, such as mortgage payments and utilities. Some of the most common ones include:

  • Amenities: The more unique your property and the more notable features you can offer your guests, the more bookings you can expect. A pool or Jacuzzi, a recreation room, and stocking the shelves with board games and books are just a few ways to differentiate your property from the competition.
  • Location: The city and state where you rent property certainly matter, as do the tourist attractions in the local community. You want to play up these benefits in any videos, online ads, or print ads you use to promote your property.
  • Size: The number of bedrooms and bathrooms and the square footage of the property are essential things that guests consider before committing to a booking. Be sure to study other Airbnb properties in your area to ensure that you charge competitive rates.

Maybe you do no know what you can expect as an income when renting an Airbnb property. Sojourn Properties can help.

Request a Free Property Analysis Today

As an experienced management company in the short-term rental market, we are pleased to provide a customized potential earnings report for your property. Just complete the form on our website with details about your investment, and we will contact you with a detailed analysis.

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Should Your Airbnb Have a Theme?

If you’ve seen Airbnb ads, you may have noticed that they showcase properties with a certain vibe to them. It may have left you wondering how yours stacks up and whether you could improve your bookings’ quality and/or quantity. We’ll look at some factors to consider before you decide.

Think Of Your Demographic

Through marketing, Airbnb is trying to create a certain type of longing for its properties. For instance, they’ll put a house on display that’s entirely decked out in 1970s decor. This nod to the past is artfully done and creates a unique environment that leaves a lasting impression on guests.

This is a great gimmick for many property managers in Scottsdale, but it depends on the expectations of your ideal demographic. A luxury home that was practically built for Instagram will likely benefit from becoming a tasteful party house. For instance, a birthday weekend or bachelorette organizer would look for decorations that would fit right into a romantic, celebratory atmosphere.

The Beauty of Themes

The beauty of themes is that they can be adapted to anyone. If you’re largely catering to budget-minded travelers, your theme might highlight how you’re able to keep costs down and how they can keep costs down too. Plus, it doesn’t have to be elaborate. You don’t need every inch of the property to reflect your chosen theme. For instance, IKEA furniture, books on money-saving, and lists of cheap recipes that they can make in the kitchen would be a great start.

The only real reason not to have a theme is if you don’t want to cater to anyone specific. For instance, maybe you host travelers from all over the world, and you don’t want certain colors or items to turn your guests off. There’s a reason why home sellers all stick with the same neutral color palette: unless they’re living in an artist colony or other niche neighborhood, they want the highest possible offers for their home.

Property Management in Scottsdale

If you’re looking for a professional to manage your Airbnb property in Phoenix or Scottsdale, Sojourn Properties LLC is here to help. We can not only outfit your property so it attracts the right people, but we can also help you keep it looking sharp from one booking to the next.

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How to Be a Better AirBnB Host When You Live States Away

Having an AirBnB property in Scottsdale or Phoenix, AZ is a great way to make a little extra money, no matter where you live. Of course, the realities of caring for that property and the guests who stay there can be different from what you pictured.

One major problem is that if you’re too far removed from the property, it’s easy to let problems slip through the cracks. While you’ve undoubtedly covered your major bases (e.g., keeping the property standing, the property listed, etc.), it’s critical to take care of all the other details. We’ll look at a few tips so you’re more connected to what’s happening.

Start with Communication

If you’re living in a different state, you need to be as upfront as possible with your guests about what they can expect when they’re there. In other words, if a plumbing emergency happens at 2 a.m., they should have some idea of who’s in charge of the problem.

This might be a plumber that you know, or a family member that’s in the area, or it could even be you managing the problem from afar. A property manager can handle a lot on this end, but you don’t want to ignore this step.

Think Through Different Scenarios

Owning a property is sometimes an exercise in the unthinkable. Mild-mannered guests with excellent reviews can wreck your living room after a party. Repairs that you spent a bundle on from the most recommended maintenance person can fail after a week. Storms can pop up out of nowhere and cause the type of damage that no one could have budgeted for.

If you haven’t considered what to do when different types of emergencies happen, then your property manager will be left to make all of the decisions on their own if they can’t get ahold of you.

Find Strong Property Management in Phoenix, AZ

There’s nothing like doing a job on your own, but in some cases, that’s just not a possibility. If you’re looking for people who can work with you no matter where you are and help you with the unexpected, Sojourn Properties LLC is a property management group serving the Scottsdale and Phoenix area.

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How to Help Guests Care For Your Property

Many of your guests are homeowners, too. Whether you host business travelers, digital nomads or vacationing families, chances are that many of them understand the seriousness and necessity of keeping a property in good condition. As such, your guests very likely want to keep your property well cared for during the duration of their stay. You can encourage this behavior and help guests care for your property quite easily.

Have a Property Manager in Place

Not every situation can be planned for. When your guests have a situation for which they are not prepared, you can help avoid damage to your rental by having a Scottsdale, AZ property manager in place. This gives your guests 24-hour access to help when you may not be available or reachable. This is the single most important thing you can do to help guests care for your property.

Provide Trash Guidelines

To maintain a hygienic rental, let your guests know how to dispose of trash. This is an often-overlooked detail that can result in trash piling up in the wrong place. Let guests know in the welcome documentation where to access trash bins outside the rental, what the community pickup days are, and consider supplying a starter kit of trash bags that fit your waste receptacles.

Provide Housekeeping Essentials

Simply providing daily housekeeping essentials will help guests to keep your property tidy. Make sure you provide:

  • Mop and bucket
  • Broom and dustpan
  • Toilet plunger and toilet basin scrubber
  • Can of insect repellant
  • Window/mirror cleaning solution
  • Counter disinfectant
  • Paper towels
  • Kitchen cloth towels/tea towels
  • Microwave splatter cover
  • Starter dish soap

Provide Convenience Items That Will Minimize Problems

You can also provide some items that guests will see as a convenience, but which will also help minimize the chances of problems. These include:

  • Large key fob for keys to the unit (to prevent misplacing keys)
  • Second set of keys to open doors within the unit (for guests who lock themselves out of bedrooms or bathrooms)
  • Instructions to turn off gas/electricity/water to the unit
  • Placemats for the kitchen table
  • Coasters for drinks
  • Trash cans in every room, including the living/seating area

These small little details can help in a big way when you’re trying to support guests in their efforts to care for your property. When you’re ready to hire an Airbnb property manager in Scottsdale, AZ, please contact us for details.

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Sinlge Bedrooms Vs. Whole Homes: Airbnb’s Marketing Shift

Airbnb started off with a simple concept. The founders realized that there were plenty of people who wanted to travel, even if that meant giving up a few conveniences along the way. They might be willing to share a bathroom, sleep on a couch, or stay in a bedroom that didn’t have a lock on it, all in the name of staying within their budget.

Of course, where a company starts and where it ends up are often nowhere near one another. Lately, Airbnb is course correcting to try to once again appeal to penny-pinching vacationers. If you have a rental property in Scottsdale, AZ, we’ll look at the debate, and how you can prepare to stay ahead of it all.

Marketing Shifts

Airbnb has been seeing a lot of complaints about how much it costs to stay in one of their properties. This is, in part, due to excess fees — many of which travelers won’t see until they’re at the very last step of the booking process. In addition, many of these costs seem entirely unfair to the guests. For instance, hosts may charge $100 for a cleaning fee while still requiring the guests to clean the property while they’re still on site.

It’s led to the company putting more efforts into their single-room options, which will make it easier to stay with the host (which is usually far cheaper than staying at a hotel. As Airbnb leans into this direction, though, companies like VRBO lean the other way. VRBO’s marketing continues to emphasize the downsides of living with a stranger, even if it’s only for a day or two.

Rental Properties in Phoenix and Scottsdale, AZ

Sojourn Properties LLC provides property management in Phoenix and Scottsdale, AZ, so our staff knows that bad PR and marketing shifts can make a difference to your bottom line. The main takeaway here is that there will be a continued market for both types of travelers. If you do happen to cater to the whole home crowd, the best thing that can do for them is be as fair and transparent as you possibly can. To learn more about how a property manager can make this easier, contact us today.

Why Short-Term Rentals Are Better Than Normal Hotels For Travelers

There are more options than ever for travelers, including corporate travelers, families and other vacationers. In the past, normal hotels were the only choice for accommodation. Now, short-term rentals such as Airbnbs offer an alternative option that many travelers see as a big step up from traditional hotels. Here are just a handful of the reasons why short-term rentals in Scottsdale, AZ are better than normal hotels for travelers.

Kitchen Facilities

Unlike hotels, short-term rentals give travelers the option of cooking their own meals in the unit. While sampling local cuisine is often an integral part of every trip, sometimes dining out for every meal is cost-prohibitive, inconvenient or simply not an option due to time constraints. It doesn’t have to mean home cooking a five-course meal. Just being able to prepare a few simple dishes is a big convenience that hotels don’t offer.

Affordability

It used to be that large metropolitan cities were the only places where hotel room charges were excessive. Now, though, hotels are pricey no matter where you travel to. Since most travelers–even corporate travelers–are looking to save money, short-term rentals just make more sense. With monthly rates that are deeply discounted compared to hotel nightly rates, this is one of the best reasons to choose short-term rentals over hotels.

Flexible Checkout Times

Check out times at hotels are typically either 11 AM or noon. If guests stay over by as little as 15 minutes, hotels automatically charge for another night. But when you book a short-term rental, you get to stay for a longer period of time, with no need to worry about checking out the next day. Also, if you need a little bit of extra time to pack your belongings and clean up after yourself, most short-term rental owners are understandable and flexible.

Personal Touch

When you stay at a hotel, you’re paying a corporation for a service, and it’s very impersonal. When you stay in a short-term rental in Scottsdale, AZ, you enjoy a guest experience, where there is more of a personal touch. Short-term rental owners are more vested in your satisfaction as a guest, as opposed to a giant corporation who only sees you as a number.

If you are looking for a short-term rental for yourself, your family, or for business travel needs, contact us. We have a range of beautifully-appointed short-term rentals to suit every need!

Who’s Taking Vacations in Scottsdale? Trends in Rentals

Scottsdale tourism has recovered remarkably well after the pandemic. While the levels are still lower than pre-pandemic, the city hosted 5.3 million overnight visitors (4.3 million domestic and 1 million international) in 2021. Local spending saw a $2.5 billion hike that year between day and overnight travelers. It’s estimated that each overnight visitor spends around $272 per night when they’re in town. If you own a rental property in Scottsdale, AZ, we’ll look at the trends of travelers.

Who’s On the Move

While the age data for visitors to Scottsdale is few and far between, we do know the activities that are bringing people in. The top three were shopping, sightseeing, and hiking/backpacking. These statistics give property owners an easy shorthand for who’s stopping by. Attending a celebration and nightclubs were also major draws.

As you decide which aspects of your property to promote, consider how different types of travelers might respond to your amenities. Being in the middle of the desert will be great for anyone who wants a beautiful backdrop for their photos and some privacy. However, if you advertise it as being close to town when it’s really a 45-minute drive in traffic, it can leave a bad impression on your guests.

According to a survey by Compass Longwoods International, the majority of tourists come from Canada and Mexico. Before the pandemic, 1.7 million international visitors came to the area in 2019. While the city is down to 1 million, the reality is that there’s still a market for international travelers in the area.

Property Managers in Scottsdale

If you’ve been in the property game for a while, you likely already know the general demographics of people who are staying on your property. What you might not realize is that there could be far more revenue opportunity than you realize just by making a few simple adjustments. From Instagram-worthy corners to welcomes for guests in multiple languages, catering to your guests can go a long way toward boosting your reviews and giving you more leverage in the market. If you want to learn more about how to make the most of your rental in Scottsdale, AZ, Sojourn Properties LLC can help you figure it all out.

How Would a Recession Impact Your Short-Term Rental?

As the government debates how to cut spending at a time of unprecedented debt, the trickle-down effects of a potential recession are hitting everyday people in different ways. If you own a short-term rental property in Scottsdale or Phoenix, AZ, here’s what you should know about the future.

Different Circumstances

Despite all the doom and gloom of layoffs, we are in a different position than recent recessions of the past. The unemployment numbers, while certainly falling in some sectors, aren’t uniform by a long shot. Tech may be seeing an exodus, but there are still plenty of companies that are hiring.

In terms of economic sentiment, basically, how consumers feel about whether they’ll spend, pessimism is running fairly high. The inflation and the news have made a distinct mark on whether people are ready to part with some of their hard-earned dollars. However, there does seem to be one key area of spending that isn’t falling into that trap.

Why People Are Still Vacationing

It’s not that travel is immune from a recession, but the demand for short-term rentals isn’t falling the same way that spending in other categories is falling. The good news is that experts don’t expect it to fall either. This doesn’t mean that people aren’t changing the way they travel. They’re more likely to stay close to home, so they can at least cut back on transportation costs.

This is something of a byproduct of the pandemic, but it’s also a nod to people’s desire to get out of their regular routine and try something new. Property managers in Phoenix, AZ have seen just how powerful it can be for guests to experience a city in an entirely new way. It gives them a fresher perspective on the world around them, a truly priceless benefit.

Property Managers in Scottsdale or Phoenix

Sojourn Properties LLC is a rental management company serving the areas of Scottsdale and Phoenix. Part of our job is monitoring the trends of the economy, so that our clients can navigate the changes and make adjustments. From online visibility to price, we help you thrive no matter the climate. If you want to make your property as recession-proof as possible, contact us today to see how we can help.

 

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Dispelling 3 Common Myths About Hosting on Airbnb

The Airbnb platform offers a lucrative way for residential property owners to earn extra income. Yet, thousands of property owners don’t leverage this opportunity. One of the reasons is the proliferation of untrue myths about hosting on Airbnb. Three of the most common myths include:

Myth#1: Hosting an Airbnb Brings on a Ton of Headaches

This is a myth often perpetuated by people who have no experience being landlords. They are simply amplifying what they’ve heard from yet more people who have no experience being landlords. The claim has no basis in reality.

While hosting an Airbnb is not exactly like being a landlord, it is similar in that you are inviting others to rent from you. However, the smartest—and most successful—landlords and Airbnb hosts don’t try to wear all the hats. They hire a property management company to manage and maintain their Scottsdale, AZ, and surrounding areas property so that the income derived from it is completely passive, with no aspirin required.

#2: Hosting an Airbnb Means You Can’t Leave Town

This is another myth concocted by people who have not actually hosted an Airbnb. The false premise behind this myth is that owners have to stay in town to clean up in between lettings, manage tenants’ questions and more.

No one is going to tell you that you have to remain in proximity of your Airbnb property. Only certain rare cities have laws about hosting local Airbnbs, and Scottsdale and Phoenix are certainly not among them.

If you want to host an Airbnb in and around Phoenix, you are free to do so, even if you want to take a vacation of your own now, then or all the time! The smart way to do this is to use an Airbnb property management company in Scottsdale, AZ who does all your work for you. So go ahead, pack your bags and enjoy your trip!

Myth #3: Airbnb Guests Will Trash the Place

This myth suggests that property owners will have their furniture destroyed and the lawn ripped to shreds by vacationers. Hmmm. Is that true?

No, of course not! When was the last time your family trashed a hotel when you vacationed? In addition, we screen guests to ensure you and your property are protected.

As you can see, the negative myths about being an Airbnb host simply are not true. If you have a property available to be rented in Scottsdale, AZ, make everything easy on yourself by hiring an Airbnb property management company like Sojourn Property Management in Scottsdale, AZ. Contact us today!