A new report, published by MarketWatch, reveals that the market for vacation rental properties is expected to experience significant levels of growth between 2019 and 2022. In fact, even while the property market has been enjoying a general trend of positive growth, the vacation rental property market is currently expected to grow at an even faster rate.
The report reveals that the property rental market is expected to enjoy an adjusted compound annual growth rate (aCAGR) of about 6.89 percent. While this figure is enough for many holders of capital to justify an investment, it does not even include the income that can be generated from renting the property on a regular basis.
The growth of the vacation property rental market has been far from surprising from those who are familiar with the industry. Rental platforms, such as Air BnB, have more than 150 million active users. In many cities, the use of Air BnB and other “non-traditional” property rental markets has completely unseated the hotels that once enjoyed a strong monopoly in this space.
The growth of the vacation property rental market has been nearly universal, but it is clear that some regions have been able to enjoy this revolution more than others. As the American population continues its gradual movements south and west over time, properties in the Southwestern corner of the country have produced incredible short-term returns on investment.
Unsurprisingly, vacation rental properties in Scottsdale, Arizona, and surrounding areas have been able to command higher rents while also sustaining property value increases with each passing year. The Phoenix metropolitan area is not only among the fastest growing in the country, but it is also able to offer visitors warm, sunny weather over the course of the entire year.
Finding Ways to Stand Out in The Vacation Rental Market
By now, most successful vacation property owners have a marketing plan that involves the use of Air BnB, social media, and multiple other platforms. However, because these marketing efforts have become standard throughout the industry, some property owners have begun looking for additional ways to stand out.
One of the most effective ways to add value to a vacation rental property is to hire an experienced vacation property management team. These companies, who typically offer a guest-oriented approach to business, offer services including marketing, legal support, cleaning, customer service, and many others. A property management team will make it easy to continue earning income from a property without needing to spend large amounts of time or money managing it.
By the end of the year, a $200,000 rental property could increase in value by as much as 14 percent (per the statistics mentioned above) and also generate a comparable amount of rental income. Clearly, the vacation rental property market is extremely competitive—there is no surprise why many Arizonans are looking to get in on the ground floor.
Company Name: VacayAZ
Contact Person: Patrick Tice
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Phone: (480) 590-1655
Address:8151 E Evans Rd #3
Country: United States