License Required for Short Term Rentals in Scottsdale

By
Real Estate Agent with Value Added Service, 602-620-2699 SA5376460000

Effective January 8, 2023, short term rentals in Scottsdale now require a privilege tax number and a license.  Every rental home is required to be registered as a rental in Maricopa County, but each city sets their own regulations regarding short term rental homes.  

 

Short term rentals in the Phoenix Metro have received more press lately as some of these are located within Homeowner Association neighborhoods. HOA's have their own sets of regulations.  Several HOA's have attempted to block short term rentals for a variety of reasons.  Mostly nuisance, parking, and extended parties in short term rentals.  

 

Therefore, if you own a home in any city, not just Scottsdale, and it is being used as as short term rental home, you'll first have to register it with Maricopa County.  Check with the city in which your home is located as to specific regulations by city.

 

If your home is in the City of Scottsdale, you'll need to comply with the new ordinance and obtain a license.    But first, you must obtain a Transaction Privilege Sales Tax from the IRS.

 

You'll also be required to carry additional liability insurance of $500,000 or more.  The licensing process will limit the number of guests to 6 adults but may include minor children over and above 6 people.  The requirement also includes notifying your neighbors with your contact information for communication purposes.  Posting the notice on the insides of a front and back door is also required in 14 point font.  And a short term rental home can be used as a "venue."    So if you're planning on hosting a bachelorette party in a home in Scottsdale, keep the number under 6 adults and obey the rules posted below. 

 

For more information, check out these publications by the City of Scottsdale

Scottsdale Good Neighbor

Scottsdale Landlord Information

 

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Comments (16)

Shayne Stone
HomeSmart - Fulshear, TX
"Your Rock Solid Choice Realtor"

Interesting post Jan Green - Scottsdale, AZ never really thought about short term rentals. I guess that's because we don't live in a tourist area. 

Jan 06, 2023 06:59 PM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

We have a lot of short term rentals here - in certain towns, you need a permit to be able to do so although I suspect there are many who don't have one...

Jan 07, 2023 04:33 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Jan... normally, I'm not one for additional bureaucratic "stuff," but in this case, I'd be supportive of this particular law. We've had issues in Charlotte with short term rentals that have been less than pleasant. Many of our HOA's have now put the kibosh on them (including my own community). That, I also support.

Jan 07, 2023 04:48 AM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

From chaos comes order and the way investors are buying properties to just rent them with little regard for the communities a bit of governing is appropriate. As long as it is not just a way to get more revenues

Jan 07, 2023 06:48 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

WOW! Short Term Lease! Privilege Tax # and License! Registration requirements! Regulations! Liability! Penalties! There is a lot stewing on the front and back burnes in government agencies and departments in various counties in AZ! 

Jan 07, 2023 07:20 AM
Mark Don McInnes, Sandpoint-Idaho
Sandpoint Realty LLC - Sandpoint, ID
North Idaho Real Estate - 208-255.6227

We have had issues with short term rentals in the North Idaho area as well.  If some restrictions are not mandated property values are jeopardized.  Living next to one can be nothing short of a nightmare.  mdm 

Jan 07, 2023 07:31 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Much different scenario versus a regular unfurnished rental Shayne Stone !  We've had extreme situations for rentals.  This past November, a child drowned in a pool of a short term rental.  So very sad.  Thank you for commenting!

Jan 07, 2023 09:11 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

I'm sure there are a lot of them that get by with it Kat Palmiotti !  Here in Scottsdale, we have 5000 short term rentals.  At last count, less than 1/3rd have complied.  This will be interesting!

Jan 07, 2023 09:12 AM
Leanne Smith

I heard the compliance number last night. Several thoughts come to mind all go back to overreaching of government balanced against the safety of citizens.

Jan 10, 2023 04:24 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Revenue is the least of concerns Ed Silva .  Neighbors are tired of all night parties with no accountability. Since Scottsdale is such a tourist destination year round, this type of regulation was inevitable.  There are companies that scheduled annual events in some of the homes and it's a disaster for neighbors.  

Jan 07, 2023 09:14 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Maricopa County requires registration only Patricia Feager, MBA, CRS, GRI,MRP , it's the cities that are cracking down due to homeowner complaints. Some of the stories have been unreal with all night parties and no one could reach a homeowner to crack down.  Now the new licensing requires owner information be shared with neighbors who can notify a homeowner if things get rowdy.  We have 5000 short term rentals in Scottsdale!   This past November, a child drowned in a backyard pool at a short term rental. 

Jan 07, 2023 09:16 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Exactly what happens Mark Don McInnes, Sandpoint-Idaho !  And with 5000 short term rentals, it's imperative that they be managed.  Some are owned by corporrations with no one person to contact if things go wild!  Accountability is one of the biggest reasons for licensing as they have to notify neighbors of a contact person when things get nuts!  Thank you for commenting!

Jan 07, 2023 09:18 AM
Roy Kelley
Retired - Gaithersburg, MD

An interesting requirement and good advice to share.

Have a productive January.

Jan 07, 2023 10:49 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thank y ou Roy Kelley !  I'm working on it!

Jan 07, 2023 11:00 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Hi Jan- I can see why this is happening and not just in your area.  Like Nina Hollander, Broker I'm not fond of more licenses, regulations, and red tape but I certainly understand the reasoning. I consulted on a condo in Boca Raton and because of its ideal location, the HOA only allowed on short term rental every two years. 

Jan 07, 2023 02:15 PM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Looks like there are many hoops to jump through and a price to pay, Jan but is good information for those who wish to take it on. Would not want a party house next to mine, especially in close living conditions!

Jan 07, 2023 05:56 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

That makes a lot of sense.  The neighbors probably don't want the interruption of that peaceful beach view Kathy Streib !   

Yes, more hoops, but with 5000 short term rentals, people booking them for company parties, it was getting out of hand Wanda Kubat-Nerdin - Wanda Can! .  One former neighbor reached out to me as the home around the corner had constant parties.   Homes are too close together for that stuff!   Thank you for commenting! 

Jan 09, 2023 03:12 PM