You’ve probably heard – and may even believe – many myths about summer vacation rentals in Arizona. With our extensive vacation rental home experience, Moxie Girl has seen first-hand that vacation rentals in the Phoenix area are more popular than ever! Read on as we debunk a few of these myths and find out how to maximize your vacation rental home this summer.
Myth #1 – No One Comes to Arizona in the Summer
Wrong! While it’s true that the volume of summer visitors is less than the rest of the year, there are still plenty of people coming to Arizona in the summer – consider these three examples…
- California IS a popular summer destination and many travelers use the I-10, through Arizona, to get there and many will need to places to stay on the way.
- Business travel happens year-round. Vacation rental homes can be a superior choice for employee lodging, especially for businesses sending teams of employees.
- The Phoenix Metro area is one of the fastest growing in the U.S. This means people are relocating to Arizona at a rapid rate. With the kids out of school, summer is often the preferred time to move. Whether seeking a short-term “check-out-the-area” stay, or a longer-term “waiting for escrow to close” stay, a vacation rental home can be the perfect solution for new arrivals.
Myth #2 – Summer Renters are “Lower Quality” Renters
As hotels and resorts slash their rates for summer, vacation rental owners must follow suit. The reality is that guests who paid $500/night in our cooler months are the SAME people paying $125-$175/night during the summer.
At Moxie Girl, we actually see the most damage done to vacation rental properties outside the summer months. Golf tournament weekend is always at the top of the list. March seems to be full of “boy’s weekends.” And May is very popular for bachelor party weekends before June weddings. End-of-semester parties with groups of students celebrating their freedom…things like that. Also, guests enjoying longer stays during any time of the year seem to get really comfortable around the 3rd week of their stay, becoming a little less careful and a little more messy.
Myth #3 – Keeping My Vacation Rental Home Available in Summer is Too Expensive
Really? Even if you ‘close’ your vacation rental for the summer, your mortgage, HOA dues, and utility fees don’t go on vacation. You’ll also have at least a minimum electric bill, even if the home is empty!
So, let’s do the math…using a “baseline” electric bill of $100, here’s what your fixed monthly expenses look like:
$1,500 Mortgage Payment
$75 HOA Dues
$100 Utility Fee
$100 Electric Bill
$1,775 out of pocket, every month…on a property sitting empty? But what if you booked 20 nights in a month? Even at a summer rate of $89/night, you’d have $1,780 cash incoming. Granted, your electric bill is going to increase, because people LOVE air-conditioning! But even if your electric cost increases from $100 to $350, bringing your monthly expense to $2,202, your net cash outlay goes from a whopping $1,775 to just $245 a month – and you’re showing activity and collecting reviews on your property!
Well, those myths certainly appear to be debunked, don’t they? That math should be plenty of incentive for you to keep your Arizona vacation rental home up and running, year-round. Understanding your potential summer guests and keeping your price-point in line with summer hotel rates will definitely work to your advantage! Discover more ways to make your life as a vacation rental homeowner easier, safer and more profitable by checking out our other Moxie Girl blogs.