Who doesn’t know Las Vegas? A city of glitz and glamour, it’s a favorite playground of the rich and famous. With the massive amount of entertainment and recreation options for everyone across the financial spectrum, it’s not a surprise that Sin City is at the forefront of the nation’s tourism industry. Revenues from this sector are more than enough to keep the entire state’s economy afloat. As such, residents benefit from the tax-friendly atmosphere: no income taxes to pay and lower property taxes than the average.
The tax breaks and the thriving tourism industry are just some of the advantages of owning property in Las Vegas. There’s plenty more, especially if you’re looking to buy stunning mansions and other luxury vacation homes in Las Vegas to use as rentals.
Note, too, that it pays to know where to find the right property to invest in for maximum profit. This guide explores the top Las Vegas neighborhoods that are home to potential candidates for your next (or first) luxury vacation rental. You will also get to know more benefits of investing in mansions in these Las Vegas luxury neighborhoods, as well as other useful information that will help you in this endeavor.
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THE PERKS OF INVESTING IN VACATION HOMES IN LAS VEGAS
It’s hard to deny the allure of Las Vegas: on one hand, you have this huge cluster of entertainment venues packaged in a dazzling rainbow of neon lights on The Strip. On the other hand, you have the natural beauty of the Mojave beckoning the avid nature explorer. This study in contrasts reaches out to a diverse population of travelers who may want to enjoy both at the same time – all the more reason to find a slice of luxury in Sin City to add to your investment portfolio.
See how investing in a big luxury mansion with a pool in Las Vegas could do for your financial goals.
Tax benefits and ROI considerations
For all of the state’s visible grandeur, often embodied by big luxury mansions with pools and other upscale amenities, Las Vegas boasts an investor-friendly atmosphere thanks to the low imposition of taxes on property owners. To illustrate, Nevada’s real estate tax rate of 0.6% is considerably lower than the U.S. national average of 1.07%. The current 3% cap on a property tax bill for luxury homes in Las Vegas – whether they’re primary residences, vacation homes, or short-term rentals – limits potential annual tax increases.
Moreover, with Nevada not imposing income tax on its residents, investors have more money in their pockets to use for the financial nuances of maintaining their luxury vacation homes for rent in Las Vegas.
Investors also have the opportunity to ride on the wave of lucrative gains from their Las Vegas properties, especially with the consistent 25% growth year-over-year in home values in the state. Appreciation of the neighborhoods over the past decade has equally grown by as much as 212.88%.
High rental income potential
Owning luxury homes in Las Vegas’ most prominent neighborhoods allows for long-term profit from rising home values. But if these homes were purchased for turning into high-end vacation rentals, you may immediately accumulate steady earnings in the short term from the passive income derived from these rentals.
For example, a luxury rental space on the lower end of the pricing spectrum could gain around $535 a night. This rental space would be a big mansion with a pool, five to six bedrooms, a jacuzzi, a pool table, and a state-of-the-art entertainment center.
Meanwhile, on the higher end of the price range, a massive Las Vegas mansion that can accommodate 17 guests could fetch as much as $3,900 a night. These properties come with cabanas with TVs, video game rooms, a virtual reality system, and a terrace that provides panoramic desert vistas.
These examples are just the tip of the iceberg of the kind of revenues that investors could expect to reap. Recent reports have noticed a significant increase in the rent price of luxury vacation homes in Las Vegas. Newer properties have been charging rental fees of $20,000 to $60,000 a month. In fact, a 10,600-square-foot villa in the Las Vegas neighborhood of Summerlin boasting six bedrooms, six baths, a four-car garage, a movie room, a gym, and a basketball court rents out for around $50,000 a month.
Steady demand and tourism growth
The market for luxury vacation homes in Las Vegas for rent remains resilient and will be poised for more growth. This comes in the face of higher home mortgages that have boxed out prospective homeowners from buying their dream home in Sin City. Instead, they are going for the next best option: renting a luxury home with a complete package of desirable amenities. These tenants, mostly millennials, want a more fluid yet entertaining lifestyle that Las Vegas could provide without being tied down by maintenance costs, mortgages, and other worries that homeowners usually wrestle with.
Tourism will also continue to drive the entry of upper-scale renters looking for places to stay in Las Vegas luxury neighborhoods. Many of them are drawn to everything Las Vegas offers, including high-profile sports events like the Formula 1 Las Vegas Grand Prix and packed concerts like those recently held by Beyoncé and U2. Then, of course, there are the resorts and casinos on The Strip that have been consistently strong tourist magnets. Some may choose to stay in the swanky hotels in and around the area. Still, those who want a place where luxury, flexibility, and privacy come together prefer to rent these high-end vacation homes in the posh neighborhoods of Las Vegas.
A diversified asset portfolio
Real estate has always been lauded for its capacity to weather any economic shift due to its strength as a tangible asset. Wise investors add this to their portfolio as a hedge against more volatile assets like stocks and bonds. But when you have a property investment like a rental or office for rent, not only do you have in your hands a remarkably stable asset but you also reward yourself with a steady income stream from rent payments. Plus, if your property is in one of the neighborhoods in Las Vegas that offer luxury and proximity to the city’s attractions, then you’re assured of a long line of potential tenants all year round. Brimstone and fire on the economic front may rain down and affect your other financial assets but with a diverse portfolio that includes your Las Vegas real estate investment, you have a saving grace.
NEIGHBORHOODS FOR THE PERFECT LAS VEGAS LUXURY VACATION INVESTMENT
Las Vegas teems with vast opportunities for profits from real estate but it still matters to make informed choices on where to place your investment. Among its many neighborhoods, some offer a more luxurious lifestyle than others and some are closer to the attractions that define Sin City. These are just some of the things to consider when looking for your real estate investment in this renowned Nevada city.
To help you out, here are some of the best neighborhoods in and around Las Vegas to seek out for your luxury vacation rental.
Summerlin
This master-planned community is located near one of Las Vegas’s most popular natural attractions: the Red Rock Canyon National Conservation Area. It is the top-ranking neighborhood to live in Las Vegas, according to Niche.com. Properties here consist of grand estates, high-rise luxury condos, and opulent single-family homes. Those renting luxury vacation rentals in Summerlin also benefit from easy access to a range of amenities, including shopping and dining options, beautiful parks, and, most importantly, the Las Vegas Strip.
Within Summerlin are smaller communities that truly define luxury in the desert:
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THE RIDGES. This gated community is located high up in the mountains with 24/7 security detail. Those wanting to see the glow of The Strip and the rest of the city at night while savoring the utmost privacy and exclusivity will enjoy staying here for their Las Vegas vacation getaway.
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QUEENSRIDGE. Homes in this posh neighborhood sport elegant English, Italian, and French architecture for that classic, Old-World feel.
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SOUTHERN HIGHLANDS. Get connected with nature in this beautiful Summerlin neighborhood while enjoying the lap of luxury. Luxury homes in the area are located near the nature trails leading to the mountains in Las Vegas’ outskirts, allowing guests to get active and explore the outdoors.
Henderson
While Henderson is another city found south of Las Vegas, the two urban centers are only around 20 miles apart from each other. Guests will gravitate to the luxury vacation homes found here and the short distances they will traverse to get to the tourist hubs and other offerings of Las Vegas. Henderson is only 15 minutes away from The Strip and is home to a booming business community and thriving industrial sector in its midst, making the city a great place for work and leisure. Guests and their families are bound to value the combination of seclusion, safety, and high-end lifestyle that Henderson provides.
Just like Summerlin, Henderson also has a cluster of high-end neighborhoods that ensure a luxurious vacation experience:
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ASCAYA. An established gated community within Henderson, Ascaya is known for its exclusivity, grand estates, and tranquil vibe. It’s a perfect vacation destination for those who prefer a quiet retreat from the urban din.
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MACDONALD HIGHLANDS. Guests may have a clear view of the gorgeous Las Vegas skyline from this gated community’s vantage point. Apart from having easy access to the Las Vegas Strip, golf enthusiasts may enjoy a game or two at the championship golf course found here.
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CANYON GATE. This is another luxurious gated community within Henderson that allows guests with an active lifestyle to indulge in their favorite sports apart from experiencing the sights and sounds of Las Vegas, thanks to the tennis courts and golf courses found here.
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GREEN VALLEY. This large master-planned community has all the elements of a quiet suburb but still offers a range of modern conveniences from retail hubs and food spots to well-maintained parks. Its popularity as a preferred location for luxury vacation rentals manifests in the growing listings of vacation home rentals advertised on platforms like Airbnb.
North Las Vegas
North Las Vegas may have a peaceful suburban feel but it is also pegged as one of the fast-growing areas in the city. It has all the comforts of home, the convenience of business centers, luxury properties with steadily rising values, and the neighborliness of a well-lived-in community.
MAXIMIZING RETURNS AND MANAGING LUXURY VACATION INVESTMENTS
Setting an investment budget
Before purchasing a luxury property in Las Vegas to use as a rental, the first thing to assess is its quality. Measure how good it looks versus the amount of repairs it may require and what it could cost you. Then, because this is a luxury property, study the types of upgrades to put your money in to make your investment more competitive and make it stand out.
Maintenance costs, including upkeep, security, and the potential need for a property manager, are other factors you would have to consider.
Once you have researched and weighed your options, you could then set your budget. Do note that this is an investment – a venue for earning income. That said, you need to ensure that your budget will allow your money to keep on rolling while putting in more funds for investing in its maintenance and improvement. You could approach a reliable local real estate agent with expertise in handling transactions for luxury vacation homes to be used as rentals in Las Vegas to help you with setting a budget and finding the perfect real estate investment here.
Market trends and property values
Recent market trends in Las Vegas show more buyers going for luxury homes with modern styles and unbeatable resort-style amenities to match. Must-have features for a luxury vacation home here include:
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Smart home technology from state-of-the-art security systems to voice-activated assistants that ensure convenience, comfort, and security.
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Sleek, clean-cut designs with floor-to-ceiling windows and an open floor layout that allow for better ventilation in the desert climate, a seamless integration between the indoors and outdoors, more natural light coming in, and the chance to marvel at the beauty of Las Vegas even from the comfort of home.
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Homes catering to niches. Some buyers and potential tenants have their respective tastes and may want the peaceful surroundings offered by homes in The Ridges, the suburban feel of homes in Green Valley, the opportunity to maintain an active lifestyle in Canyon Gate and MacDonald Highlands, or the proximity to The Strip offered by homes in Ascaya.
Property values of luxury vacation homes in Las Vegas that have these appealing features are bound to rise, especially with the attention they get from potential buyers and investors.
Marketing and property investment strategies
There are several ways to capitalize on the fame and prominence of Las Vegas to draw in tenants to your prized luxury vacation rental. You could focus on the tourism highlights of the city, with casinos, gaming centers, high-class shopping malls, and unforgettable entertainment only within a few minutes’ drive from the property. There is also the chance to spot and possibly interact with a celebrity or two.
And, since Las Vegas is never idle, the events and activities happening here from concerts to business conferences should also serve as an inviting factor to entice tenants to stay in your vacation rental.
A third point of marketing is Las Vegas’ accessibility and connectivity. The properties you will be renting out are located close to the best attractions the city could offer. Getting to these places won’t take an hour, given the well-plotted-out network of roads and highways and the efficient public transport system in these Las Vegas neighborhoods.
Guest experience
This is where your property should outshine the competition because experience is the lifeblood and standard of measurement that sets Las Vegas living apart from others. This means that every piece of furniture, color, and décor in your place should evoke that high-end feel and never-say-die excitement that the city is known for.
Affluent vacationers looking at Las Vegas luxury homes for rent will want to take the posh lifestyle that they are used to with them and find a place that will afford them the same level of upscale living to feel right at home. They’ll be happy to know that luxury home rentals in Las Vegas will equate to that upscale lifestyle and even offer more.
FIND YOUR NEXT BEST PROPERTY INVESTMENT IN LAS VEGAS WITH ANTHONY ROMEO
With so many things to factor in when selecting a luxury property to convert into a rental in Las Vegas, hiring a local expert to help you in this endeavor is a wise step to take. I’m Anthony Romeo, your expert Realtor for Las Vegas and other luxury communities in the Silver State. Let me be your able guide as you search for the best investment among the luxury vacation homes in Las Vegas. Contact me at 702.353.6759 or send me an email here.