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Scottsdale Rental Property - Scottsdale Rental Property for Home, Vacation, or Investment

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Scottsdale, Arizona is one of the fastest growing cities in the United States. It is in the eastern part of Maricopa County with Phoenix being adjacent to the west. The population of Scottsdale in 2010 is 245,500, up by 40,000 from 10 years previous. Because it is a popular destination for upscale tourists, Scottsdale is sometimes called the “Miami of the desert.” The temperature ranges from highs of 70 F in the winter to over 100 F in the summer. 7.5 million annual tourists are attracted not only by the weather, but by the upscale shopping and resorts. This industry employs a full 39% of year-round residents.

Scottsdale rental property is bought and sold for three primary reasons: as a primary residence, a winter home for snowbirds, or as short-term vacation units for tourists. These rentals come in the form of single-family homes, apartments, townhouses, and high-rise condominiums. Many new families have come to the area because the Scottsdale Unified School District is considered one of the best in the country. The district encompasses a total of five separate high schools. Higher education is provided by Scottsdale Community College and Arizona State University in nearby Tempe.

Many investors say that Scottsdale rental property is not in a good market for pure money-making potential. There are a lot of empty units in the city and competition to find renters is fierce. Because of this, rents are cheap compared to the price of a mortgage. Investors have a hard time even finding a tenant that will pay the cost of the mortgage payment including taxes and insurance. For example, an average two-bedroom home that sells for $250,000 will incur about $1,400 per month in expenses while the average rental rate is between $1,000 and $1,200. This, however, has not stopped many investors from taking the loss in the hopes of a better market years down the road. In any market such as a Scottsdale, where population is sharply increasing, the market situation is in a position to change.

One option that many people exercise for the Scottsdale rental property is to use it as a vacation home for themselves and rent it out when they are not present to help defray some of the costs of owning a vacation home. This strategy works because short-term, fully furnished vacation rentals go for much more than long-term residence rentals. During the peak season, which runs from November to April, a townhome can rent monthly for $4,000 to $5000 if it is in a desirable location.

The best Scottsdale rental property is located in one of the exclusive subdivisions. The subdivisions are often close to shopping centers such as The Borgata, The Shops at Gainey Ranch, or Scottsdale Fashion Square. These planned communities are also near one of the 29 golf courses in the city or a large park. Some of the most desirable communities/subdivisions are Grayhawk Desert Mountain, Gainey Ranch, McCormick Ranch, McDowell Mountain Ranch, Tatum Ranch, and Troon.

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