Updated: February 22, 2026
Sedona’s red rocks offer more than beauty; they provide lucrative investment opportunities. This guide outlines neighborhoods, property selection, and tricky regulations. Expect expert advice on turning a desert house into a thriving vacation rental while you relax and enjoy the rewards.
Purchasing real estate is one of the top investment activities, and when you live in, or are exploring purchasing in, an area known for its tourism, purchasing real estate for vacation rental purposes trumps all. The town of Sedona is one of those spots, its red rock landscape and mystical vibe making it a premier destination that draws approximately 3 million visitors annually, and practically guaranteeing that investors will have an easier time garnering a higher ROI on their investment.
If you are in the process of purchasing a vacation rental in Sedona, you may have some questions, especially if you don’t live in the area, and because we at Sedona.Org know it is still possible to be less than successful owning a vacation rental in town, we have created this ultimate guide to owning a vacation rental in Sedona.
Contents
- Why Sedona?
- What Type of Rental Is Best?
- Where Is the Best Area in Sedona to Operate a Vacation Rental?
- Why Choose a Vacation Rental Property Management Company?
- You Don’t Live Anywhere Near Sedona
- Do You Know the Laws, Rules, and Regulations for Rental Property Ownership?
- You Don’t Have the Time
- Why Choose Sedona.Org for Your Vacation Property Management Needs?
- No One Knows the Market Better
- No One Knows the Area Better
- We Are the Voice on the Other End of the Line in an Emergency
- Our Teams Are Trustworthy and Proven
- Call Us Today and Discover All That We Can Do for You
Why Sedona?
There are so many reasons why choosing Sedona for your next Sedona vacation rental property is a great idea that we hardly know where to begin, but let’s start at the top. Sedona is ranked number 12 in the US in popularity as a vacation destination, and each year an estimated three million tourists flock to our doorstep. Some are day visitors, of course, but the large majority of tourists are looking for a place to stay, and your property could be the one they flock to the most!
Of course, because the demand is great, you know there will be a lot of investors supplying properties, and when you partner with Sedona.Org, you don’t have to worry about getting lost in the crowd! We live here, work here, and play here, and we know all the best ways to ensure that your property will be the popular one in the neighborhood, the one that everyone wants to visit! Even more important, choosing a Sedona vacation rental increases your chance of receiving a higher return on your investment.
What Type of Rental Is Best?
The good thing about our red rock town is that all types of vacation properties are needed, so you can’t go wrong with the choice you make. Honeymooners love this part of the world, so small casitas, cabins, or bungalows are always at a premium. On the other end of the spectrum,
Sedona is a place that large groups like to visit, so a sprawling estate stocked with all the luxury amenities is equally popular. And everywhere in between, there are guests for every type of rental, which is one reason this Arizona town is popular with vacation rental investors.
As of February 2026, there are about 1,218 active short-term rental permits within the City of Sedona, though the broader Verde Valley market offers several thousand additional listings, and that number does not include hotels or motels. (See what we mean about potentially getting lost in the crowd?)
Where Is the Best Area in Sedona to Operate a Vacation Rental?
There really aren’t too many bad parts of Sedona, so almost anywhere you find a potential rental property can be a good one, but the two most well-known and desired areas are Uptown Sedona and West Sedona, which offer two distinctively different personalities. Uptown Sedona is preferred by travelers who prefer to be in the thick of it all, offering quick and convenient access to the best shops, restaurants, and even tour companies.
West Sedona, however, offers a more laidback vibe, a slower pace, and appeals to hikers and those who are looking for a more natural experience. Some other popular areas include Sunset Hills (a very peaceful neighborhood also known for its countryside and relaxing vibe), Oak Creek (appealing to those seeking a home near a water source while also offering proximity to golf courses), and any home that is located off the Red Rock Loop. Private, relaxing, and so tranquil, if you can find a property in this part of town you should definitely snatch it up. Additionally, no matter where you purchase, it is vital that there are views of the red rocks from somewhere within the property.
Why Choose a Vacation Rental Property Management Company?
Why it may seem like a no brainer to purchase a home in one of the popular neighborhoods in Sedona and start advertising its availability, while waiting for the money to start raining from the sky, there are potential errors that can be made that can keep you from succeeding. We don’t want you to fail in any way, and so below we have listed some of the main reasons you may want to partner with a vacation rental property management company.
You Don’t Live Anywhere Near Sedona
The thing about purchasing an investment property is that the best property may not be located anywhere near your hometown. As beautiful as your hometown may be, and as much as you love it, we can be pretty sure there aren’t a lot of people visiting Washington Court House in Ohio. And yes, that’s a very real and very charming town, we’re not dissing it, we’re just saying it’s not a prime tourist spot. So, it’s only natural that you have started to branch out, seeking a home in the most popular vacation destinations, and Sedona became a very real opportunity.
But how do you take care of cleaning, maintenance, and major problems when you are located thousands of miles away from your rental? The internet has truly made the world a much smaller place, but you’re going to need a team of people to handle all that needs to be done, and you probably don’t have a lot of contacts. Hiring a vacation property management company is the best way to develop contacts, and different companies offer different programs, allowing you to participate as much or as little in the management process as you desire.
Do You Know the Laws, Rules, and Regulations for Rental Property Ownership?
One of the worst things an investor can do is disregard the laws, rules, and regulations created for rental property ownership, especially as the fines and fees potentially associated with your disinterest in learning or following the rules can prohibitively affect your ROI and possibly lose you your vacation rental privileges.
Did you know that you must be licensed and permitted before you open for business, that you need to notify the neighbors of your intent to operate a vacation rental business, or that property owners must collect and pay Transaction Privilege Taxes in the state of Arizona? Chances are you didn’t, and if you disregard any of this, there can be very high fines you will have to pay.
Also, to remain compliant with Sedona City Code Section 5.25, you must maintain $500,000 in liability insurance and provide 24-hour emergency contact information to the city before you begin operations.
You Don’t Have the Time
There is a lot going on behind the scenes when operating a vacation rental, and even if you do live in Sedona, do you really have the time? From cleaning and maintenance to dealing with those middle-of-the-night phone calls, there is always something that needs to be handled, and if you are working full-time or just aren’t interested in overextending yourself, your rental will fail.
Hiring a property management company means you are handing over the ties that bind and freeing yourself, enabling you to live your life unencumbered as your rental property continues to work to make your financial future bright.
Why Choose Sedona.Org for Your Vacation Property Management Needs?
Just as there are millions of vacationers looking for rentals and thousands of properties available for rent, there are probably an equal number of vacation property management companies seeking your business. And because we know you need to do your research before signing on the dotted line, we’ve listed these reasons that choosing Sedona.Org is the right choice for you and your property.
No One Knows the Market Better
We’ve spent many years researching the vacation rental market, exploring the best neighborhoods, following the fluctuations in pricing rentals, and of course, studying the laws, rules, and regulations for operating a vacation rental. And because the market is a fluid one, the research never ends.
Just because the average price today may be between $360 and $500 per night, it doesn’t mean that we won’t wake up tomorrow and discover that it is now between $500 and $750 per night. We want to make sure that you are charging the Goldilocks amount (the just right price) every day, because we know that it would be throwing away your money if we didn’t.
Additionally, when it comes to rules, regulations, and taxes, you have to know that THAT is always changing, and it is imperative that we know all the changes as they happen to ensure your property is up to date on everything. The constant research we do aids in the process of keeping your property rented.
No One Knows the Area Better
Owning a rental property is more than costs, designs, cleanliness, and upkeep; your guests want a more personal experience, one that may also include concierge services. As we have stated before, we don’t just work here, we live here, we play here, and we are passionate about sharing our knowledge of the area with the travelers who check in and out of the rentals we manage every day.
It is fun for us to be able to point out that while Elote is a restaurant that is ideal for a romantic night out, families on a budget may prefer the more down-to-earth prices of Café Jose, and when we share this info, we aren’t just reading something off the internet, we’ve dined at both restaurants! We love our hometown, and we share our love with anyone who wants to listen, and quite often it is the guests who are most excited about doing the listening.
We Are the Voice on the Other End of the Line in an Emergency
Observing regular business hours is all well and good, but emergencies can’t be scheduled, and when the entry code to the door isn’t working for your guest after staying out at the bars until closing, do you really want their distress call to go to voicemail to be handled during regular business hours?
Storms seem to be stronger at night, causing more damage, and if a tree limb goes through a window, it isn’t fair to expect your guests to wait until 9AM to get it fixed. Emergencies are called emergencies for a reason, and your guests, all guests everywhere, want a live voice on the other end of the line when one arises, and we are quite thrilled to be that voice.
Our Teams Are Trustworthy and Proven
At the end of the day, it takes a team to run a successful business, and yes, that includes your vacation rental property. Could you do everything all by yourself? Possibly, if you have the time, computer knowledge, photography skills, and of course, maintenance and housekeeping skills, which if you do, we are properly awed and respect that you can very likely handle the running of your rental all on your own.
But most mortals do not have all of those talents and skills, and hiring a good team can make all the difference in the outcome of your investment venture. We have housekeeping, maintenance, and design teams that keep the process going smoothly and when you hire us for your team, you have access to all the trustworthy individuals we have hired over the years. Our teams trust us, and we trust our teams to go above and beyond when it comes to maintaining your property.
Call Us Today and Discover All That We Can Do for You
The vacation rental property market is a cutthroat one, but you have an ace in your pocket when you partner with Sedona.Org. We don’t consider ourselves successful until you are a success, and we will work harder to make your investor dreams come true than any other company in the area. Give us a call today and let’s sit down and discuss all the things you want from your property management company and all the things we do for our owners.
If your investment goals lead you from the red rocks to the coast, Luxury Coastal Vacations provides premier management in Fort Morgan, Gulf Shores, Orange Beach, and Perdido Key. Experience the same expert care for your beachfront property when you buy a Gulf Coast property.
