If you're thinking about buying an investment property in Scottsdale, this guide is here to help you make the right choice. Buying a home to use as a rental property in this city could be a smart move, given the area's booming real estate market and year-round demand for housing. But like any investment, it comes with its own set of considerations and potential challenges.
Should You Buy a Home to Use as a Rental in Scottsdale?
If you're thinking about purchasing a home to use as a rental property in Scottsdale and wondering whether it's the right move for you, here's what you need to consider:
- What Scottsdale’s real estate market is like right now
- Whether you’ll make a return on your investment
- What maintenance responsibilities you want to take on
- Whether there are local rules and regulations on rentals
Here’s a closer look at each.
Scottsdale’s Real Estate Market
Though the rental market in Scottsdale is robust, the market for buying and selling can be fairly competitive. Often, the best way to set up a rental property is to purchase at an affordable price with a good interest rate, but that's not always the case. If you're interested in purchasing a rental property in Scottsdale, whether you want to buy a single family home, a multifamily home or an apartment or condo complex, your best bet is to talk to a real estate agent who understands the local market and its current conditions.
Return on Investment
To determine whether a rental property in Scottsdale will make a good investment for you, you'll definitely need to crunch the numbers. You'll have to consider the property’s price, your estimated rental income, operating expenses and potential appreciation. You'll also need to consider whether you'll hire a property manager to handle finding tenants, maintenance and a variety of other issues for you.
Maintenance Responsibilities on Rental Properties
Owning a rental property means you'll have to deal with ongoing maintenance and occasional repairs. In Scottsdale, where summer temperatures can get fairly high, you'll have to pay special attention and maintain air conditioning systems, which sometimes require more frequent maintenance than they do in other areas. Many people choose to hire a property management company that can handle all of their maintenance needs, even if they live out of town.
Local Rules and Regulations on Rentals
Not all communities in Scottsdale are rental friendly. In fact, some communities severely restrict or even prohibit rentals. Before you make a purchasing decision, you need to check the community or homeowners association bylaws to ensure that you'll be able to rent out your property like you want to.
FAQ on Buying a Home to Use as a Rental in Scottsdale
If you're thinking about buying a home to use as a rental in Scottsdale, check out these frequently asked questions period if you don't see what you're looking for here, please call our office or contact us online so we can get you the answers you need.
What Kinds of Rental Properties Are Available in Scottsdale?
There are several types of rental properties available in Scottsdale, ranging from condos and townhomes to single family homes. If you're interested in learning about the properties available in Scottsdale, you should use our website to browse real estate listings. You'll get the most up-to-date idea by scrolling through our site.
How Much Money Will I Make From a Rental Property in Scottsdale?
The amount of money you'll make from a rental property in Scottsdale depends on a variety of factors, including how much you pay for the property, how much you ask for in rent, the property’s amenities, and its location.
How Can I Decide Whether a Rental Property is Right for Me?
If you've never rented out a property before, it's in your best interest to talk to a financial advisor or another expert who can help you make these types of determinations. Nothing can replace expert advice when you're making a big financial decision.
Are You Buying or Selling a Home in Scottsdale?
If you’re selling a luxury home in Scottsdale, we can help. You can use our home value calculator to get a ballpark idea on what your home may be worth – and you can call us at 602-694-3200 to talk to a REALTOR® about how we can market your home to all the right buyers.
If you're also looking for a new home, we’ll be happy to show you the homes that interest you most. While you’re here, explore all our Scottsdale real estate listings or look in specific communities:
- Ancala homes for sale
- Boulders homes for sale
- Cactus Corridor homes for sale
- Scottsdale Country Club homes for sale
- Scottsdale Ranch homes for sale
- Old Town Scottsdale homes for sale
- Paradise Valley homes for sale