All Forum Posts by: Chad McMahan

It seems in most areas, vacation rental property management companies charge 40%. Some higher. In Sedona they only charge 20%. Needless to say, budget it in- it's a significant chunk of the gross monthly.

Hi Matt. Every market is different. Hitch yourself to a realtor that works primarily with vacation rental buyers so they know their stuff and meet for an hour with a list of questions. Then go look at some properties. 

A small number of markets in the country have the best ROI. Our market has become one of these. $150k - $250k condos in Sedona typically net $1k - $2k per month and appreciate well. Lots of opportunties $250k - $500k, as well.

If an experienced realtor who genuinely specializes in buying/selling vacation rental properties tells you their market is comparable, chances are you've found a good market.

Hi Gary. In Sedona I see furnishing costs between $8k - $20k, depending on buying new or used and from what source. Something that works well, here, is calling companies that "stage" homes for sale and asking if they have nice used furniture they can sell at discount, to furnish the entire home. Then they do it all and you usually get a great deal. I helped my buyers of a 2100 sq. ft. $700k home get 95% furnished by one of these companies for $5500. Then the owners just had to get kitchen and bathroom items and linens.

Believe it or not, there are a few amazing vacation rental condos for sale in Sedona under $200k. They sell quickly. They typically net $1000-$2000 per month. Great appreciation at the moment, as well.

Hi Mayda. 

Being that you are from Sedona, I'm surprised you don't want to buy a vacation rental here. This has recently become one of the hottest vacation rental markets in the country. I specialize in vacation rental properties here in Sedona. Let me know if you have questions or would like a proforma or two.

Within the last 6 months, the real estate market in Sedona, AZ has changed from an average time on the market of 3 months, to a month or less on the market. We are now seeing multiple offers at or above asking price for homes priced at fair market value that have a desirable floor plan and are turn-key. As a result, we are seeing the start of a strong appreciation trend.

In 2016, a law was passed, removing city and county control over rental time frame restrictions. Now these restrictions are in the hands of local HOA's. Suddenly, there are great vacation rental candidates in Sedona, in a market where there are not enough short term rentals, to meet the demand. There are still many HOA's that limit rentals ( 1+ month, 6+ months, 12+ months) at this time, but quite a few completely flexible great choices on the menu. As an example, owners at one Sedona condominium PUD recently voted to reduce the rental restriction from 6 months to 1 night. This subdivision has become a hot potato in our local paradise. And it is in the lowest price range.

Typical vacation rental returns (Assuming financed purchases, not cash):

Sedona vacation rental property management companies concur occupancy should be 55-85% through the year. These companies charge 20% of gross monthly income. I expect by the end of 2017 the estimation will be revised at 65% - 90%.

Any success setting this up, Verna? I would also be interested. I've lived in the area for nearly 30 years and purchased about 50 properties in the area.