Arizona is a prime location for those looking to invest in a short-term rental property due to its various attractions, including scenic deserts, historic landmarks, vibrant city life, and much more. With a demand for rental properties throughout the year, Arizona is a great location for Airbnb investment.
Top Arizona Airbnb Management Companies
The best Airbnb management companies in Arizona include:
- Awning: Best Overall Airbnb Manager
- Evolve: Best Half-Service Airbnb Management
- Vacasa Arizona: Best for Furnished Vacation Rentals
- WanderJaunt: Best For Local Presence
- Casago: Best for Small Properties
- GoodNight Stay: Best for Premium Properties
Top Arizona Airbnb Management Companies by City
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How We Researched the Top Arizona Airbnb Management Companies
The criteria we used to select and rank the top Airbnb management companies in Arizona include:
- Services: We looked at whether a company is a half-service or full-service provider and whether it covers all expected services within each category.
- Pricing: We considered whether an Airbnb property manager has a clear pricing structure covering all services. We also looked at what additional fees hosts will need to pay.
- Value for money: We evaluated whether the provided services and the expected fee offer the best value for money in Arizona.
- Business model: We investigated whether a company uses the latest real estate technology while retaining human touch, which is crucial in property management.
- Reviews: We took into consideration whether companies have a strong online presence and whether reviews are positive or negative.
- Number of listings in Florida: We searched for the Airbnb management companies with the most active listings in the Arizona market.
To maximize your vacation rental investments in Arizona, connect with an Awning property manager now.
How to Choose a Arizona Airbnb Management Company
As an Airbnb property owner in Arizona, choosing the right management company is critical to the success of your rental business. With various cities in the state imposing strict short-term rental regulations, it's important to pick a company that can help navigate these complexities.
When evaluating different management companies, consider the following factors:
- Services: Do you want to be hands-on with the management of your property (half-service option) or aim for complete passivity (full-service option)? What specific services do you need the manager to provide and what do you want to handle yourself? Do you need assistance with furnishing and preparing your property for guests?
- Pricing: How much are you willing to pay for a fully passive investment experience or extra help in managing your rental?
- Value for Money: Compare the list of services provided by a few different management companies, including their monthly fees and any additional charges.
- Business Model: Would you prefer to work with a nationwide company or a local manager with a personal touch? Is the company transparent and trustworthy?
- Reviews: Check out online reviews from property owners and guests, and consider talking to local investors who have worked with the companies you are considering.
- Presence in Arizona: Choose a company with a proven presence in the Arizona market, but not one that is overworked or understaffed. You want to work with an experienced professional with enough local capacity.
When interviewing top management companies in Arizona, ask the following questions to make the best choice for your needs:
- Are you a local manager or a nationwide company?
- How many years of experience do you have managing short-term rentals?
- How many properties are you currently managing?
- What is the size of your local team?
- Do you have an in-house local management team or do you work with vendors?
- What increase in revenue can you achieve in the local market?
- Do you provide assistance in getting properties ready, such as with interior design, furnishings, short-term rental licenses, and taxes?
- Do you collect money from guests and remit to owners, or do booking fees go directly to the property owner?
- Do you offer cleaning, laundry, and restocking services?
- Do you conduct property inspections and maintenance work?
- Do you manage swimming pools and hot tubs?
- What is your Airbnb property management fee, and what does it cover? Are there any additional fees and costs? Is there an onboarding and/or early-termination fee?
- May I review a copy of the property management agreement?
- How can I cancel your services?
- Will I retain my property reviews if I opt out?
Having the answers to these questions will help you select the best Arizona Airbnb management company for your unique needs.
How Airbnb Management Works
There are two broad types of Airbnb property management companies: full-service and half-service.
Full-service property managers are those that take care of all the aspects of owning and running a short-term rental business. They help:
The best full-service Airbnb management companies help investors achieve passive income while boosting performance.
Half-service Airbnb property managers usually focus on listings, marketing, revenue management, guest communication and support, and taxes. Some of them offer to connect property owners with vetted local vendors for the services they do not cover.
Vacation rental property management companies can be national (covering most US markets) or local (focusing on a specific city). Both come with their own advantages and disadvantages.
Property management fees range widely in the US market: between 10% and 50% of revenue, with 20-25% of revenue being the average for full-service providers. Some companies charge different rates for different markets and different property types. Property managers frequently charge extra for services outside the core package, like interior design, furnishing, insurance, linen, etc.
The top vacation rental management companies have flexible terms and do not require long-term commitment on behalf of property owners. However, some expect quarterly or annual commitments.
Some Airbnb property managers focus on specific property types, like luxury rentals, group travel rentals, apartments, etc., while others work with most residential properties. Different companies have different eligibility requirements; for example, half-service property managers work with furnished short term rentals, while some full-service companies prefer to be directly involved in design and furnishing.
One thing property owners should keep in mind is that most Airbnb management companies list rentals under their brand name, so hosts lose the reviews and rankings once they leave. A noticeable exception is Awning, which allows properties to keep reviews.
How to Start an Airbnb in Arizona
To start a successful Airbnb business in Arizona, investors must:
- Identify the best investment location (where Airbnb is legal and the ROI is high) in Arizona
- Locate a property with high potential
- Verify that the zoning district allows for short-term rentals
- Obtain assistance from a real estate agent to purchase the property
- Undertake any necessary renovations
- Furnish the rental
- Determine the appropriate business structure
- File the necessary tax and employer identification documents
- Acquire a vacation rental condo or dwelling license from the Arizona Department of Business & Professional Regulation
- Obtain the required local short-term rental licenses and permits by city
- Decide whether to manage the property independently or to hire an Arizona Airbnb management company
- List the property and begin accepting bookings
- Provide ongoing support to guests and handle property maintenance and upkeep
The choice of whether to manage the Arizona vacation rental on one's own or to enlist the services of a property management company will impact the level of passive rental income received.
Arizona Airbnb Laws and Regulations
Arizona has state-wide laws that protect short-term rentals and limit the ability of cities or towns to regulate them. Arizona Revised Statutes Section 9-500.39 defines short-term rentals as an individual or collectively owned single-family or one-to-four-family house or dwelling unit or a group of units in a condominium or cooperative that is also a transient public lodging.
In 2019, the Arizona Legislature passed a law limiting the regulation of vacation or short-term rentals to requiring the owner to provide contact information for responding to short-term rental complaints, protecting public health and safety, enforcing zoning ordinances, and preventing the use of short-term rentals as party houses.
Cities or towns may not prohibit vacation or short-term rentals, and the law provides civil penalties for violations, including a transaction privilege tax license suspension. However, Governor Doug Ducey has signed legislation that attempts to rein in short-term rental properties that become a public nuisance in local communities.
The Supreme Court of Arizona has recently handed down a landmark decision that effectively prevents HOAs from restricting short-term rentals in the vast majority of communities. If you operate an online lodging business in Arizona, it is recommended to navigate short-term rental laws with experienced real estate attorneys.
Sedona, where almost 1,000 of its 6,600 housing units are used as short-term rentals, launched a program in August offering up to $10,000 to property owners who delist from short-term rental platforms and offer long-term rentals to local workers instead. Even with the new law, opposition to Airbnb, Vrbo, and other short-term rental entities will undoubtedly remain in Arizona.
Cities in Arizona can require short-term rental owners to be licensed for a one-time fee of up to $250, have at least $500,000 worth of liability insurance, and notify their neighbors before offering their properties for short-term rentals. The income from short-term rental stays in Arizona is subject to Arizona transaction privilege tax (TPT).
Takeaway
Starting an Airbnb business in Arizona can be a lucrative investment opportunity. However, it is important to be aware of the regulations and competition in the short term rental market. To optimize your vacation rental property management strategy, consider hiring a professional Airbnb manager.
It is recommended to research and compare different Airbnb management companies in Arizona before making a decision. Some companies may offer services at a lower fee, while others may specialize in managing properties with more than six bedrooms. Consider what services and support you will need to make your Airbnb business a success and choose a management company that can provide that for you.