All Forum Posts by: Mick Hofmann

https://www.azcentral.com/story/news/local/scottsdale/2023/0...

AI Summary Here for those who don't want to read the article: 

Local governments in Arizona are advocating for increased regulation of the short-term rental industry through proposed legislative changes to address concerns about housing shortages and community impacts. The proposed regulations, backed by the League of Arizona Cities and Towns, aim to grant local officials more control over short-term rentals and address the following key points:

1. **Occupancy Limits:** Local officials would have the authority to set limits on the percentage of housing stock that can be used for short-term rentals. For example, a city may restrict such rentals to occupy no more than 10% of available houses.

2. **Neighborhood Density:** Similar to occupancy limits, regulations could be imposed on a neighborhood level to prevent entire communities from becoming dominated by short-term rentals.

3. **Spacing Requirements:** Cities could require short-term rentals to maintain a minimum distance from each other, preventing the clustering of rental properties and maintaining a balance in neighborhoods.

These proposed changes are in response to concerns arising from a 2016 state law that limited the ability of local governments to regulate short-term rentals. The rapid growth of such rentals has been linked to housing shortages and various community issues. However, in 2022, Arizona lawmakers partially restored some regulatory powers to local authorities by allowing them to establish licensing rules and suspend properties for rule violations.

Short-term rentals now make up a significant portion of vacant homes in some areas, affecting housing availability and pricing. Local leaders argue that these issues impact their communities, reduce workforce availability, and impact state-shared revenue. They emphasize the importance of preserving neighborhoods and addressing the challenges posed by the short-term rental industry.

Overall, these proposed changes reflect the ongoing debate between local and state authorities, as well as the short-term rental industry's impact on housing markets and communities in Arizona.

I would definitely connect with a lender to talk about options. There are lot of loan programs out there that you could qualify for. Are you open to a duplex or triplex, 4 plex? Sometimes you can use the rents from those to qualify for a home. 

@Graeme Teeple sounds like you are on the right track. I have a friend down there in Tucson who is an investor/realtor. Dm me and ill send his info. 

@Jeff Minc Did you ever pull the trigger on a STR in Scottsdale? A lot of people are barely staying afloat around PHX/Scottsdale in the STR space.

It is a misleading metric. RevPAL or Revenue per available Listing. Prices were very high here in PHX and we had a huge supply inflow for Super Bowl in an already saturated market. So it is understandable. A lot of people getting into STRs are not prepared to weather the storm and we have already seen many people offloading properties. 

 I would be reaching out to insurance placement agencies, traveling nurse platforms, etc and be building relationships with them so you get added into their database and they seek you when they need a placement

@Jonathan X Sanchez You are looking to start an STR in the AZ? Dm me if so. There are a lot of opportunities now with the market slowing down. Everyday I am presented with opportunities.

@Chris Lai most of the people with STRs are seeing a slow down in the Phx area. In fact there are a lot going up for sale for this reason or being transitioned into LTR. I think it would be a good pivot to STR for the high months but then pivot back to MTR after that. I just went live with a STR in Tempe a month ago. It is getting booked, but not as well as we projected.

@Noah Laker I see you manage a lot, do you hire a VA or do you do it all in house?

 Enjoy. Flagstaff is beautiful this time of year. Make sure you go up to Snowbowl to see the Aspens.