A couple of months ago I joked that Dalton’s Arizona Homes blog was huge in Belgium based on the dots on the cluster map to the lower right. Well, forget the Old Country. We now are becoming the Phoenix real estate blog of choice for our friends north of the border in Canada.
Two days ago I received a call from a Canadian investor looking for condos or townhouses in the Phoenix area under $200,000. Not a problem at all. I work with lenders who are able to provide financing for Canadians and there’s plenty of inventory under their price point.
(As I’ve written previously, the loony reaching parity with the U.S. dollar has given the Canadian investor substantial buying power than was missing before. Should the loony fall even to 20% of the U.S. dollar in the future, that’s an additional 20% investors would pay then that they could save now simply based on the exchange rate.)
Here was the tricky part … he and his brothers would like to be able to use the townhouse themselves to escape the snow and possibly watch Jarome Iginla light up the Phoenix Coyotes when the Calgary Flames came to town. Having a year-round tenant in place would preclude them from this sort of usage.
So now we were looking at either a series of three- to six-month leases, where the tenants would have to vacate at the end of the lease or, better yet, a true seasonal rental.
What’s the difference? Both are short-term rentals. But seasonal rentals usually refer to those properties rented out to Phoenix’s ubiquitous winter visitors. The vast majority of season rentals are in active adult communities. Some are in Scottsdale, where the price tag for a townhouse runs well above the $200,000 mark.
In theory, any property can be a seasonal rental. But to be the type of rental that brings in more than $2,000 a month, as in-season rentals do in areas such as Westbrook Village, Sun City Grand, Sun City West and Ventana Lakes, it almost certainly needs to be in a golf course community where additional amenities are available.
(As a side note, seasonal rentals in Westbrook Village virtually all are booked for January through March already. Having the Super Bowl coming has helped but it happens about every year.)
Golf seems to be the grand attraction for the vast majority of our winter visitors, who relish the opportunity to be putting out on the 15th green while their friends back home are excavating themselves from three feet of snow.
Of course, there are no absolutes and situations vary from person to person. If you’d like to see if there’s a solution for your situation, even if you aren’t Canadian, call or send me an e-mail and I’ll see what I can do.
[tags]Phoenix real estate, seasonal rentals[/tags]