Is Phoenix, New York Good for Airbnb Investment?

To start an Airbnb in Phoenix, New York, begin by researching local regulations as Phoenix requires short term rental permits through the Planning and Zoning Department, with properties needing to comply with zoning laws that typically allow STRs in residential areas with proper registration.

Launch checklist

• Obtain necessary permits including a Certificate of Occupancy for short term rentals, business license from Oswego County.
• Find a suitable property by analyzing the local market around Oswego Lake and nearby attractions, considering properties that meet Phoenix's requirement for owner occupied or locally managed rentals within city limits.
• Furnish the space with quality amenities suitable for lake visitors and business travelers, including essentials like linens, kitchen supplies, WiFi, and local guidebooks highlighting Oswego County attractions.
• List your property on Airbnb and other platforms with professional photos showcasing the Phoenix location's proximity to recreational activities and Syracuse metropolitan area.
• Manage the property by establishing cleaning protocols, guest communication systems, and compliance with Phoenix's noise ordinances and parking requirements.

For identifying profitable STR properties in Phoenix and New York, focus on location criteria including proximity to major attractions, business districts, and transportation hubs in Phoenix target areas near Scottsdale, downtown Phoenix, and airport corridors, while in New York prioritize Manhattan below 96th Street, Brooklyn Heights.

What to prioritize

• Property features should include 2 to 3 bedrooms with modern amenities, parking availability (crucial in Phoenix), and unique characteristics like pools or city views, with New York properties benefiting from doorman buildings and in unit laundry.
• Pricing analysis involves studying comparable nightly rates using AirDNA and STR data platforms, calculating potential revenue against mortgage, taxes.
• Competition research requires analyzing occupancy rates, guest reviews, and pricing strategies of similar properties within a 1 mile radius using tools like Mashvisor, AllTheRooms, and local market reports from companies like RedAwning.
• Phoenix specific resources include Arizona Association of Realtors market data, City of Phoenix STR regulations compliance guides, and local property management companies like RedAwning and Vacasa for market insights.

To obtain an Airbnb/STR permit in Phoenix, New York, you must first contact the Town of Phoenix Planning Department at 315 to 695 1120 or visit their office at 3100 Main Street to determine specific zoning requirements.

Documents and approvals

• Required documents typically include a completed application form, property deed or lease agreement, site plan showing parking and access, proof of liability insurance ($1 million minimum), contact information for a local property manager if you're not local.
• The process involves submitting your application, scheduling a site inspection with the code enforcement officer, attending a Planning Board meeting if required (usually held monthly), and obtaining approval from the Town Board if needed.
• The timeline ranges from 30 to 90 days depending on whether special approvals are required.
• Phoenix specific requirements include maintaining adequate off street parking (typically 2 spaces minimum), ensuring the property meets all building and fire codes, registering with Oswego County for tax purposes.
• You must also comply with New York State tax collection requirements and may need to register for sales tax collection through the Department of Taxation and Finance.

Short term rentals (STRs) are legal in Phoenix, Arizona with specific regulations, while New York has much stricter limitations.

Core operating requirements

• In Phoenix, STRs are permitted citywide but require a business license, must comply with zoning regulations, and are subject to occupancy limits, noise ordinances, and safety requirements including smoke detectors and fire extinguishers.
• Phoenix implemented comprehensive STR regulations around 2016 to 2017 and has continued to refine them, requiring hosts to register properties and maintain local contact information for guest issues.
• The city allows both hosted and non hosted rentals but prohibits them in certain residential areas where HOA covenants restrict commercial activities.
• In contrast, New York severely restricts STRs through Local Law 18 (2023), effectively banning rentals under 30 days unless the host is present and registers with the city, making platforms like Airbnb largely non viable for traditional short term rentals.
• Phoenix maintains a more business friendly approach while balancing neighborhood concerns through licensing, taxation, and enforcement mechanisms.

In Phoenix, the best Airbnb investment areas include Old Town Scottsdale, known for its vibrant nightlife, golf resorts, and proximity to spring training facilities that attract tourists year round, and Downtown Phoenix/Roosevelt Row, which benefits from business travelers, sports events at Chase Field and Footprint Center.

Areas to research

• Arcadia and Biltmore areas are attractive for luxury travelers seeking upscale accommodations near high end shopping and dining.
• In New York, Manhattan's Midtown West near Times Square and Hell's Kitchen offers consistent demand from tourists and business travelers, while the Lower East Side and East Village attract younger travelers seeking authentic NYC experiences and nightlife.
• Brooklyn's Williamsburg and DUMBO neighborhoods have become hotspots for visitors wanting trendy areas with Manhattan skyline views, artisanal dining, and cultural attractions, while Park Slope appeals to families and longer stay visitors.
• Long Island City in Queens provides more affordable investment opportunities while maintaining easy Manhattan access via subway, attracting budget conscious travelers and those attending events at nearby venues.

In Phoenix, Arizona, Airbnb hosts must collect and remit a 13.27% total tax rate consisting of state transaction privilege tax (5.6%), county excise tax (0.7%), and city privilege tax (2.3%), plus a tourism tax that varies by location but typically adds around 4.67%.

Taxes and filing responsibilities

• The city requires hosts to obtain a business license and register for tax collection, with monthly remittance due by the 20th of the following month through the city's online portal.
• In New York, the tax structure varies significantly by location in New York City, hosts must collect 14.75% hotel occupancy tax plus 8.25% sales tax for stays under 30 days, totaling 23%.
• New York requires hosts to register with the Department of Taxation and Finance and remit taxes quarterly or monthly depending on volume, with stays over 30 days typically exempt from occupancy taxes but still subject to sales tax.
• Both jurisdictions have moved toward requiring platforms like Airbnb to collect and remit these taxes directly since 2019 to 2021, though individual hosts remain liable for compliance and may need to collect additional local taxes not covered by platform agreements.

Starting an Airbnb in Phoenix requires approximately $450,000 to 500,000 total initial investment, including median property purchase price of $425,000 (2024), furnishing costs of $15,000 to 20,000 for a complete 2 to 3 bedroom setup, initial setup costs of $3,000 to 5,000 for professional photography, listing optimization, and cleaning supplies. In New York, the total investment ranges from $750,000 to 850,000, with median property purchase prices of $700,000 to 750,000 depending on borough, furnishing costs of $20,000 to 30,000 due to higher quality expectations and smaller spaces requiring efficient furniture.

Airbnb properties in Phoenix and New York show significantly different profitability profiles based on market dynamics and operational costs.

Profitability indicators

• In Phoenix, typical Airbnb properties generate average monthly revenues of $2,800 to 4,200 for 2 to 3 bedroom homes, with expenses including mortgage ($1,800 to 2,500), utilities ($200 to 300), cleaning ($150 to 250), and maintenance ($200 to 400).
• New York properties, particularly in Manhattan and Brooklyn, command higher nightly rates of $150 to 400 but face substantial expenses including rent/mortgage ($3,500 to 8,000), utilities ($300 to 500), frequent cleaning ($200 to 400), and strict regulatory compliance costs.
• Success factors in Phoenix include targeting winter snowbird visitors, maintaining pools, and focusing on family friendly amenities, while New York success depends on prime locations near transit, business district proximity.
• Phoenix properties typically achieve 60 to 75% occupancy rates year round, while New York properties average 70 to 85% occupancy but with higher seasonal volatility.

Airbnb investments in Phoenix typically generate annual ROI of 12 to 18% with cash on cash returns ranging from 8 to 15%, while New York properties generally yield 6 to 12% annual ROI with cash on cash returns of 4 to 10% due to higher property costs and stricter regulations. Phoenix investors can expect profitability within 6 to 12 months given lower acquisition costs averaging $350,000 to 500,000 and strong tourism demand, with properties generating $2,500 to 4,000 monthly revenue.

Return planning figures

• New York Airbnb investments require 12 to 24 months to reach profitability due to higher entry costs of $600,000 to 1,200,000 and regulatory challenges, though prime locations in Manhattan and Brooklyn can generate $3,500 to 8,000 monthly revenue.
• Phoenix offers superior cash flow potential with occupancy rates of 70 to 85% year round, while New York provides higher absolute returns but lower percentage yields.

STRSearch is a leading national platform that specializes in identifying profitable short term rental properties across multiple markets including Phoenix and New York.

Companies and resources

• In Phoenix, local services include AZ Short Term Rental Advisors, Desert Property Investments, and Phoenix Airbnb Consultants.
• For New York, companies such as NYC STR Investments, Empire State Rental Properties, and Manhattan Short Term Rental Group provide specialized services.
• National services that operate in both markets include Awning (established 2017), Mashvisor, RedAwning Property Management, Vacasa, and AirDNA, which provide market analysis, property management, and investment guidance.
• Additional local Phoenix services include Scottsdale Vacation Rental Experts and Arizona Investment Property Group, while New York specific companies include Brooklyn STR Solutions and Queens Airbnb Advisors.