Short-term rentals increased in Scottsdale last year | City News
DDespite a slight setback created by the pandemic in 2020, the number of short-term rentals in Scottsdale continues to grow.
There were 5,404 short-term rentals in the city in December 2021 listed by Airbnb and Vrbo, according to AirDNA, an independent agency that monitors the short-term rental industry. This is up from 4,119 in December 2020 and 5,221 in December 2019.
“It appears that the decline took place almost right after the start of the pandemic, and more properties came back online in the spring of 2021 as bookings picked up,” AirDNA spokeswoman Madeleine Parkin said.
“One thing to keep in mind is that the short-term rental supply is much more flexible than in the hotel world,” Parkin continued. “Property managers may choose to take their property offline for a month, for personal use or longer-term rentals, perhaps, and then return to short-term rentals when the market is more profitable – for example, in high season, whether it’s summer or winter.
Airbnb and Expedia Group released new data on the economic impact of short-term rentals in Arizona, showing the industry is big business in the state.
Short-term rentals generated 75,543 jobs in Arizona alone. This translated into an economic impact of $6.57 billion. Tax receipts were just over $538 million.
In Maricopa County, those numbers were 41,134 jobs, nearly $3.58 billion in economic impact, and just under $307 million in tax revenue.
AirDNA’s annual short-term rental report shows homes are spread across the city, though the vast majority are located in South Scottsdale.
Of the total in Scottsdale, 5,021 rentals were for entire homes, 298 for private rooms and two for shared rooms, with 40% of all rentals listed on Airbnb, 24% on Vrbo and 36% on both.
In terms of the size of these rentals, 2% were studios, 8% T1, 26% T2, 21% T3, 20% T4 and 13% T5 or more.
The vast majority included heating and air conditioning, a washer, and a kitchen, although only 66% had a clothes dryer. Swimming pools were available in 64% of rentals and spas in 33%. The least likely equipment was cable television, available in only 28% of households.
A one night minimum stay was required in 22% of households while 29% required two nights, 19% had a three night minimum, 10% four to six nights and 8% anywhere up to 29 nights. A minimum of 30 nights was required in 12%.
The average daily rate was $292, with March having the highest average rates at $321 and September having the lowest at $268.
The average occupancy rate was 68%, with March again being the most popular at 84% occupancy and the lowest in September at 60%.
Average revenue per rental was $3,708, with March being the highest at $4,984 and January the lowest at $2,919.
Meanwhile, Airbnb released year-end data outlining its efforts to try to combat and stop unauthorized parties in Arizona throughout 2021.
In the summer of 2020, Airbnb took action to ban parties on its platform as part of its mission to prioritize public health in the early days of the pandemic as well as to try to prevent community disruptions and wild parties.
To help enforce its party ban, the company has rolled out a number of strategies aimed at blocking and stopping potential unauthorized parties while promoting safe and responsible travel.
More importantly, in 2020, Airbnb announced a new policy that prohibits guests under the age of 25 with no history of positive reviews from booking entire home listings in their area under certain circumstances. These guests are still allowed to book private rooms where usually the host lives on site.
In 2021, this anti-party “under 25” policy prevented or redirected approximately 11,000 people in Arizona from making local whole-home reservations.
Additionally, certain times of the year are more likely to encourage attempts to throw unauthorized parties. To help enforce its party policy during events like the 4th of July, Halloween, and New Years, Airbnb has introduced new rules to further protect hosts from unauthorized parties during these weekends.
The anchor of that plan for those weekends was a ban on one-night bookings in whole-house listings for guests with no history of positive reviews.
It affected over 3,200 people on July 4, over 2,100 people on Halloween, and over 2,900 people on New Year’s Eve.
“The vast majority of guests treat their hosts’ homes and neighbors with the utmost respect. Airbnb said in a statement. “These initiatives are about trying to find the needles in the haystacks and stopping potentially disruptive parties in service of our guests and neighbors.”
Scottsdale passed two laws in 2021 aimed at addressing abuse by short-term tenants.
The first order requires each property’s emergency contact to respond in person to the site within an hour in the event of an emergency if police need to respond to complaints about unruly gatherings.
The second ordinance sets fines at the maximum amounts allowed by state law. For example, it creates a sliding scale of fines of $750, $1,500, $2,000, and $2,5000 (the maximum allowed by state law) for property owners and $250, $500, 1 $000 and $2000 for occupants based on number of prior violations.
It also eliminates the police duty fee provisions of the city’s harmful party and unruly gathering ordinances and replaces them with civil penalties through citations filed in city court. Officials said this would improve enforceability, including the ability to file criminal charges against someone defined as a repeat offender.
Paradise Valley recently passed a law requiring all owners of short-term rentals to conduct background checks to ensure no guest is a registered sex offender.
Scottsdale’s revised code states, “No vacation rental or short-term rental may be used for any non-residential purpose, including, but not limited to, any of the following…housing sex offenders .”
“Thus, it is illegal to use a short-term rental to house sex offenders in Scottsdale,” Scottsdale City Assistant Manager Brent Stockwell said.
Although the state Legislature loosened its grip on regulating short-term rentals by returning some of the power to municipalities it took away from them in 2016, some lawmakers introduced bills during the session. under way so that the state no longer regulates them. and return this power to the municipalities.
This effort split the Republican delegation, as Chandler Sen. JD Mesnard was submitting a weaker bill that would restore only a few powers.
The issue has been divisive in previous legislative sessions, with many owners of short-term rentals appearing to testify against any effort to limit their ability to use their property as they see fit.