Airbnb Rental Laws and Regulations in Phoenix, AZ

STR Defined

Arizona state law defines a short-term (Airbnb) rental property as any individually or collectively owned single-family or one-to-four-family house or dwelling unit or any unit or group of units in a condominium, cooperative or timeshare, that is also a transient¹ public lodging establishment or owner-occupied residential home offered for transient use if the accommodations are not classified for property taxation under section 42-12001.

• Primary website for Maricopa County (Arizona) STR Regulations

Arizona State Regulations

• Current Arizona state law House Bill 2672 prohibits cities or counties from restricting or regulating short-term rentals based on their classification, use, or occupancy.
  • With the exception of the protection of public health and safety; adopting and enforcing residential use and zoning ordinances, including ordinances related to noise, protection of the welfare, property maintenance and other nuisance issues.
• Short-term (Airbnb) rental operators must have a current transaction privilege tax license and display this license number on each advertisement for each accommodation the operator maintains. This includes online marketplace listings.
  • Failure to do so will result in a civil penalty of not more than $250 for the first offense.
  • A second offense and any subsequent offenses will result in a penalty of not more than $1,000. 
  • Verified violations ² will result in the department imposing a civil penalty of $500.
  • A second verified violation on the same property within a 12-month period will cause the department to impose a penalty of $1,000. 
  • A third offense and any subsequent offenses on the same property within the same 12-month period will incur a civil penalty of 50% of the gross monthly income of the property or $1,500. Whichever is greater
• A.R.S. §9-500.39 does not preclude the ability for Homeowner Associations to regulate or restrict these types of uses

Licensing Requirements & Fees

The owner of a short term rental must register the property with the City of Phoenix on a form or platform specified by the City of Phoenix.

• The current instructions to register can be found here.

Vacation rental registration must include the following information about the vacation rental:

1. Name of the property owner. If the property owner is a business entity, the name of the statutory agent.
2. Address of the vacation rental.
3. Phone number and email address of the property owner or property owner’s agent who has the authority and responsibility to respond to complaints in person, over the phone, or by email at any time of the day.

If there is any change in the information above, the owner must complete a new registration within 10 days.

The City will provide a vacation rental registration number for each vacation rental registered by a property owner. 

Taxes

• Phoenix requires owners and operators of hotels and certain property rentals to apply for a license.
  • A 3% tax of the gross income from the business activity of any hotel charging for lodging to any transient.
    • Consult Chapter 14 of the City Code to see if your listing falls subject to hotel and rental tax.
• Sales Tax
  • Phoenix assesses a sales tax on real property rentals
• Transient Lodging Tax of 2.3%
  • Not applicable to guests who are not “permanent residents” or guests who stay longer than 30 days. 
  • Typically collected by the hosting platform and remitted to the city of Phoenix. 

Resources:

Phoenix Municipal Codes: https://phoenix.municipal.codes/CC/14-445

Inspections

Short-term (Airbnb) rental properties must include the following statement in its listing offer or advertisement to rent the property both online and offline:

“””This property cannot be used for purposes identified in the City of Phoenix Ordinance Section 1 0-195(c). The City of Phoenix short-term registration number for this property is ___ _ 

Short term rental properties must also post the following notice in a visible and conspicuous place inside the rental property:

NOTICE: Using this property for following purposes are prohibited:

• Any nonresidential use.

• Holding a special event that requires a permit or license pursuant to a city or town ordinance or state law or rule

• Operating a retail business, restaurant, event center, banquet hall -2- Ordinance G-6653 or similar use

• Housing sex offenders

• Operating or maintaining a sober living home

• Selling liquor, illegal drugs or pornography

• Operating a nude or topless dancing

• Obscenity

• Adult-oriented business

• Other uses prohibited by A.R.S. 9-500.39′“”

Building and housing standards must meet Phoenix code on construction, design, and maintenance including regulations on habitability, health, and safety. 

• Certain regulations applicable to residential and non-residential uses may be relevant to your listing.
• City building codes can be found here.

Responsible Agent

• Arizona state law mandates that the owner of a short term rental must provide the city or town with the contact information for their “responsible agent”.
  • The responsible agent will be responsible for responding to complaints in a timely manner in person, over the phone, or by email at any time of day. 
  • A county must notify the department of revenue and the property owner of verified violations, when applicable to the specific county’s laws, regulations, and ordinances (as mentioned under Arizona State Regulations section below).
• The owner of the vacation rental must display the phone number and email address of the property owner or property owner’s agent who has authority and responsibility to respond to complaint in person, over the phone, by e-mail, or text at any time of the day. The information required under this paragraph must be displayed in a conspicuous place within 10 feet of the primary entrance inside of the vacation rental.

STR Management Considerations

• The short term rental may not be used for non-residential uses; special events, retail, restaurant, banquet space, or similar uses.
• When requested by a police officer, the owner or owner’s agent whose name appears on the vacation rental registration must be on the vacation rental premise, or be available over the phone or text, within 60 minutes after receiving the request. Failure for the owner or owner’s agent to be on the vacation rental premise, or be available on the phone or text, within 60 minutes after receiving the request by the police officer is a violation of this Article.
• Although Arizona state legislation prohibits the regulation or restriction of short term rentals throughout all cities and counties, HOAs may operate separately with their own rules, established by the tenant organizations.

Data Methodology

For this guide, we analyzed everything from public data sources, county assessor records, recently sold homes, data from the Bureau of Labor and Statistics, Airbnb data, and more. Chalet ran this data through machine learning models to derive the forecast models with the most accurate predictions.

Glossary

– ADR: Average Daily Rate

– Gross Yield = Median Revenue/Median Home Price

Thank you for reading. If you are interested in investing in Maricopa County, schedule a free consultation with one of our experts.

Disclaimer: Short-term rental regulations are in a constant state of change. The below resource is updated when possible, but it should not be taken as legal advice. It is critical that you consult with your local lawyer to ensure you are taking the necessary steps to keep your business safe and legal.