Is Las Vegas Airbnb a Good Investment?

Las Vegas will never be short of guests looking to have a good time. But is that reason enough for you to invest in Las Vegas Airbnb?

 Table of Contents

1. Las Vegas Airbnb Rules & Regulations
2. Las Vegas, NV Housing Market: Overall Statistics
3. How to Airbnb in Las Vegas? Running It Legally
4. Top 5 Attractions for Tourists
5. Final Thoughts

Frankly speaking, when it comes to entertainment, nightlife, and shopping destinations such as Las Vegas, investors should not be making the decision on the spot.

Over the past two years, the real estate market has skyrocketed. More and more investors are looking to redirect their funds and savings into buying real estate property in well-known cities—like Las Vegas—that attract tourists throughout the year.

Las Vegas, which is commonly associated with luck and spending money, is truly a tempting opportunity. But before making it official, you need to examine some crucial factors regarding the Airbnb business in the city.

If you’re interested in this attractive real estate location, our advice is to stay tuned until the end of this guide.

Las Vegas Airbnb Rules & Regulations

We’ll start this off by saying that Las Vegas is notorious for its strict rules regarding the Airbnb business. However, it doesn’t imply you should dismiss the opportunity altogether. On the contrary, you can make high profits as long as you abide by the local rules and regulations.

With that said, here’s the legal side of the Las Vegas investment property:

Vacation rentals are permitted in the area stretching from the end of the Strip to the end of Fremont Street—provided that you are registered as a business.

Subsequently, you are expected to pay a $500 annual fee and ensure that your rental is at least 660 feet apart from other competitor rental units. In short, you’re expected to perform a thorough Airbnb analysis before picking an investment spot.

Of course, you should generally do this for every investment—not just the Airbnb Las Vegas Strip. We are merely emphasizing the “severity” of the case when it comes to this particular district.

Why Is Airbnb Illegal in Las Vegas?

Airbnb rules in Las Vegas can be very confusing. Certain parts of the city operate separately and adhere to entirely different rules regarding permissions for a vacation rental.

If you’re considering buying an investment property near the Las Vegas Strip, you should hold that thought. This part of the city follows the rules and regulations of Clark County, and, thus, renting out your property for a period shorter than 31 days is NOT allowed.

Why is it illegal, exactly?

The county is concerned with a number of things that can adversely affect the neighborhood—mainly in terms of disruptions, fire hazards, and general safety. In other words, they are not able to control these standards.

Homeowners who fail to comply with the regulations can be fined $1,000. You shouldn’t take the matter lightly. The authorities generally encourage residents in the neighborhood to report suspicious-looking rentals in the area, too.

Will things stay that way forever?

There’s been no official confirmation yet, but as of January 2022, a new bill has been passed to legalize short-term rentals in the area by July.

While Clark County forbids hosts from renting out Airbnb, Downtown Las Vegas is all for it.

Neighborhoods to Consider

Investing in a particular city implies being aware of the best-performing neighborhoods. The same applies to Airbnb Las Vegas.

Let’s look at the top three neighborhoods in Las Vegas in terms of Airbnb cash on cash returns, arranged from the highest to lowest, based on the latest Mashvisor data:

1. Downtown East

• Number of Airbnb Listings: 90
• Monthly Airbnb Rental Income: $3,960
• Airbnb Cash on Cash Return: 8.28%
• Airbnb Cap Rate: 49%
• Airbnb Daily Rate: $173
• Airbnb Occupancy Rate: 52%
• Number of Listings for Sale: 7
• Median Property Price: $357,843
• Average Price per Square Foot: $213
• Days on Market: 57
• Walk Score: 72

 2. West Las Vegas

• Number of Airbnb Listings: 50
• Monthly Airbnb Rental Income: $3,569
• Airbnb Cash on Cash Return: 6.86%
• Airbnb Cap Rate:03%
• Airbnb Daily Rate: $255
• Airbnb Occupancy Rate: 51
• Number of Listings for Sale: 9
• Median Property Price: $346,977
• Average Price per Square Foot: $246
• Days on Market: 50
• Walk Score: 30

3. Huntridge

• Number of Airbnb Listings: 223
• Monthly Airbnb Rental Income: $3.996
• Airbnb Cash on Cash Return: 5.92%
• Airbnb Cap Rate:04%
• Airbnb Daily Rate: $211
• Airbnb Occupancy Rate: 52%
• Number of Listings for Sale: 17
• Median Property Price: $459,988
• Average Price per Square Foot: $278
• Days on Market: 73
• Walk Score: 54

Las Vegas, NV Housing Market: Overall Statistics

Suppose you are interested in investing in Las Vegas Airbnb. If that’s the case, regardless of the particular neighborhoods you’re interested in, you should examine the current situation in the real estate market.

So, broadly speaking, should you consider investing in Airbnb Las Vegas?

Here’s what Mashvisor’s latest data has to say on the matter:

• Number of Airbnb Listings: 1,685
• Monthly Airbnb Rental Income: $2,947
• Airbnb Cash on Cash Return: 2.78%
• Airbnb Cap Rate: 86%
• Airbnb Daily Rate: $209
• Airbnb Occupancy Rate: 58%
• Number of Listings for Sale: 2,470
• Median Property Price: $626,040
• Average Price per Square Foot: $423
• Days on Market: 92
• Walk Score: 3

 Whether it’s Airbnb in Las Vegas—or anywhere else in the US—you should not overlook this chance to use investment tools that could help you get accurate information about a specific investment opportunity.

Mashvisor’s Rental Calculator is a practical investment tool that aims to help real estate investors make a well-calculated decision about their desired rental property and maximize returns.

Investing in Las Vegas Airbnb: Should You Go for It?

Looking at this opportunity from a wider angle, considering Nevada investment property can undoubtedly grant the investor a generous income.

If we focus on Las Vegas only, you’re not necessarily entitled to the best of both worlds:

Investors can generally expect a higher return on investment. However, you should also be aware of some of the potential drawbacks of your Las Vegas-focused investment strategy.

With that in mind, let’s briefly comment on the good and bad sides of investing in Las Vegas Airbnb.

Low Tax Rates

To your luck, property taxes in Nevada are among the lowest in the United States.

The current average effective tax rate is 0.53%, notably below the national average of 1.7%.

Nevada’s residents are protected by the country’s property tax abatement law, which limits the annual increase on property tax bills.

High Living Costs

How high are we talking about here?

Housing costs in Las Vegas are 8% above the national average, which can be alarming for some. The most significant jump, however, was noticed in the prices of transport, with a 14% increase.

That is mainly because this city is in motion 24/7—especially during summer vacation.

Still, someone with a flexible budget will have no problem affording all the luxuries of this magnificent city. The key is in bringing in the tenants who are attracted to a slightly more urban lifestyle—and at the same time, securing a stable passive income for yourself.

How to Airbnb in Las Vegas: Running It Legally

With Las Vegas being a complicated location, you can certainly use some pointers on how to run your investment property legally.

First, you should double—or even triple-check—the regulations of the county you’re set on investing in. As you can see, legislation is prone to change, and the last thing you need is a hefty fine.

Next, prepare your Airbnb for your target tenants. It means buying specific things that are necessary for them, doing repairs as needed, organizing cleaning services, and the like.

All of the above things mean nothing if you don’t communicate your property’s unique features and calculate cash on cash return to know how you’re performing.

Since Las Vegas Airbnb is a top-rated destination, you will need to step up your game if you hope to succeed in this business.

To get access to our real estate investment tools, sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.

Top 5 Attractions for Visitors

As soon as the tourists’ feet touch Las Vegas, tons of fun and a lot of new things are already waiting for them.

However, for someone visiting Las Vegas for the first time, deciding where to go first—and what to do next—can be tricky. So, investors in Airbnb las Vegas can take the chance to recommend fun places to their first-time guests.

Keeping in mind that the median age in Las Vegas is 36.8, you should invest in real estate that are close to attractions that may appeal to the said age group.

Let’s look at a couple of tourist attractions you can recommend to guests upon arriving and settling in your Las Vegas Airbnb.

Get Married in the Graceland Chapel

Every now and then, a young couple might choose to elope to Las Vegas and get married. Some of them will take the opportunity to renew their vows, while others will “tie the knot” in one of Las Vegas’ famous chapels—and continue with their honeymoon here.

The Graceland Chapel was established in 1939, and today, it stands as one of the oldest wedding chapels. However, it is best known for its Elvis-themed weddings, which started in 1977.

Another reason to get married here—or at least to visit the facility—is that you’ll be able to say that you got married in the same place as Jon Bon Jovi and Billy Ray Cyrus.

Play Poker at the Bellagio Hotel

It’s not a secret—Las Vegas is the capital of poker.

If your Airbnb guests are fond of poker and other traditional casino card games, the place you should recommend is the one and only—The Bellagio Hotel.

The luxury resort and casino is an attraction for everyone—and it may just be the primary reason for you to consider investing in Las Vega Airbnb.

You can put your money on the table or sit back and watch the professionals play—maybe even pick up a few tricks that’ll come in handy back home. Either way, the cash exchange is enormous—and Las Vegas tourists are up for the thrill.

Ride the Tallest Ferris Wheel – the Las Vegas High Roller

If you pay attention, you can spot at least a fraction of the High Roller in almost every picture of Las Vegas.

The Las Vegas High Roller is what Big Ben is to London, and visitors should definitely put the attraction on their bucket list. One round lasts almost 30 minutes, and tickets are booked in advance. The great thing about it is that the cabin can hold 40 people, meaning you can even host a party. The experience takes you 550 feet above the ground. Mind-blowing, isn’t it?

Go Biking in the Red Rock Canyon

For people looking for a slightly different adventure in Las Vegas, signing up for a bike tour in the Red Rock Canyon is the way to go. The three-hour self-guided tour with an electric bike will surely give you a taste of the great outdoors in Vegas.

Cyclists get to cross more than 20 miles of the beautiful landscape in the prehistoric location and stop to admire the beauty whenever they want.

Pick-ups are organized to transport the tourists further to the Red Rock Conservation Area.

From there on out, it’s all up to them and their adventurous spirits.

Go to Amazing Pool Parties

Extravagant pool parties are another thing that makes Las Vegas so attractive. We’re talking about Wet Republic, Venus Pool Lounge, and many other locations known for their unforgettable parties. Summer parties in Vegas are simply different:

They may be slightly more expensive and harder to get into than in your hometown—but ask anyone who went to one, and they’ll likely say the experience is worth every dollar.

Truth be told, we’re merely scraping the surface. There are plenty more reasons to relocate your funds and invest in Las Vegas Airbnb.

 

Final Thoughts

We’ve successfully closed the topic on investing in Las Vegas Airbnb.

Now, let’s look back at some crucial information regarding such an investment opportunity and discuss whether you should proceed with your plans or search for an alternative city.

From what we’ve gathered, Las Vegas investment property has proven fruitful for investors. However, it doesn’t apply to the entire city. Potential investors should avoid the Strip area, as it is forbidden to list your short-term rental there.

Other than that—and the fact that Las Vegas expects a deeper wallet from its residents—it is the perfect place to buy rental property and generate a steady passive income:

Property taxes are already below the national average, and real estate investors don’t need to worry about annual increases, either.

There’s no doubt that Las Vegas has a lot to offer. The city promises a new adventure every day—and investors should learn to use that to their advantage by creating a well-thought-out short-term rental strategy.

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