Over the last couple of years, Scottsdale has proven itself to stand out as one of the top vacation destinations for all types of travelers. Scottsdale is a golfer's paradise, a bachelorette's dream, and a families relaxing vacation.
There are over 200 golf courses in the Scottsdale area as well as a wealth of luxury resorts. Beyond golf, though, the area is host to several annual events that draw, literally, millions of travelers to the area.
The 2023 Super Bowl (LVII) will be held in Glendale, Arizona - just a short drive from the heart of Scottsdale - and is expected to draw over 70,000 visitors to 'the Valley' as the Phoenix/Scottsdale area is affectionately known.
Beyond the Super Bowl, though, the Waste Management Phoenix Open is the PGA Tour's most popular event, drawing nearly a million visitors to the area.
Outside of sports, though, the Barret-Jackson auto show and auction is just one of the major auto collector events that the area draws in a packed January schedule that also includes the RM Sotheby's, the Gooding & Company and the Bonhams auctions.
Scottsdale is, perhaps, the mecca of short-term rentals. With over 8,000 short-term rentals in the market, the Phoenix/Scottsdale area certainly offers a wealth of vacation stay options for travelers searching for year-round golf and outdoor fun. What sets Scottsdale apart as a key market, however, is not only its climate, but its events and amenities.
Lodging for the January through April months is notoriously tight, driving high average rates throughout the area. While the hot summer months will tend to drive lower average daily rates and occupancy levels, the winter months are also exceptionally strong for the market.
While there are many beautiful properties in the Scottsdale/Phoenix area, not all will prove to be strong investments. Scottsdale has recently implemented new restrictions on short term rentals (STRs) as a result of the rapid expansion of these properties in the area. Residents who live in Scottsdale have bristled at the proliferation of vacation rentals and have lobbied for ever more regulation.
Sometimes, beautiful properties with a great Scottsdale location will project lower returns. It is critical for your investment success, to separate amazing properties with poor economics from properties that will help you generate successful returns.
It is also important to note that properties in Scottsdale will require local management. Scottsdale requires that owners have a local representative that can respond to (noise or other) complaints within 1 hour. Of course, for a successful rental business, local management is a 'must', anyway, but it is good to be aware of the regulations.
For a more in-depth review of the city's policies on short-term rentals, check out the Scottsdale's Short Term Rental Regulations. This great resource also provides info on the state and county level requirements.
The Valley Beyond Scottsdale
Beyond Scottsdale, there are many outstanding areas to own and operate rental properties. There are neighborhoods in nearly all of the surrounding cities (Phoenix, Mesa, Glendale, Tempe, etc.) that will generate high demand and outstanding returns. By the same token, there are neighborhoods in all those areas that will seem like they should perform well that just will not. Careful selection of properties for location and performance of nearby comparable properties will help you find success in your real estate investments in The Valley.
In these other cities, you will find somewhat more lenient short-term rental regulations which can also help smooth out your overall operation. With proximity to ASU (Tempe and Phoenix), golf courses, small area recreational lakes and much more, many of these other areas can be just as economically advantageous (and in some cases, even more so). The Valley offers an outstanding airport, several professional sports teams, Phoenix's bustling downtown scene and much more, so there is certainly no shortage of opportunity outside of Scottsdale.
The Phoenix area is home to multiple professional sports teams. The city offers fans of all four major professional sports leagues a bit of something to enjoy.
NBA: The Phoenix Suns have had a very successful run for the last couple years, raising the team's profile among the league and raising Phoenix's standing as a basketball town. As well, the WNBA Phoenix Mercury are the 'sister' team to the Suns and play in the beautiful new Footprint Center in downtown Phoenix.
NHL: The Arizona Coyotes are the region's hockey franchise. Despite the frequently blistering temps in the region, hockey has found an ardent fan base for their team.
NFL: The Arizona Cardinals are an NFC West team that plays in the State Farm Stadium in Glendale, a Phoenix suburb.
MLB: Of course, we would be remiss if we didn't mention baseball. While the area is home to the Arizona Diamondbacks, Scottsdale is one of the most heavily trafficked and well-known destinations for spring training. Many of the most popular teams descend on the area in the spring for early time on the diamonds, including:
- Chicago Cubs
- Chicago White Sox
- Cincinnati Red
- Cleveland Guardians
- Colorado Rockies
- Kansas City Royals
- Anaheim Angels (aka Los Angeles Angels of Anaheim)
- Los Angeles Dodgers
- Milwaukee Brewers
- Oakland Athletics
- San Diego Padres
- San Francisco Giants
- Seattle Mariners
- Texas Rangers
Beyond these major leagues, soccer has four teams in the area, the Valley United FC (of the National Independent Soccer Association) and the FC Arizona (of the National Premier Soccer League), as well as the Phoenix Rising FC (USL Championship).
Colleges and Universities
There are 29 colleges and universities in the Phoenix area. The largest and most well known are Arizona State University (with campuses in Tempe and Phoenix), Arizona Christian, Grand Canyon University, University of Phoenix, DeVry and many more. Whether students are looking for NCAA Division 1 athletics or an assortment of specialty technical, medical/nursing or other schools, Phoenix and its surrounding cities have something for (nearly) everyone.
A Bit of Everything
While the Phoenix-Scottsdale area represents amazing vacationing in perfect weather almost year round, the area means different things to different people. From sports, to universities to recreation, nightlife, restaurants and more, the region offers a little bit of (nearly) everything, which makes this one of our top destinations for short-term rental success.