This article is part of an ongoing series of reports on the state of short-term rentals (STRs) in the United States. You can view our other reports here.
As people continue to migrate away from big cities, Arizona is quickly becoming one of the most popular states for those looking to relocate. This is thanks in part to its near-constant sunshine and natural wonders like the Grand Canyon and the red rocks of Sedona.
According to a recent Forbes article, Arizona is one of four states that have experienced the biggest jumps in rental prices and the housing market. This influx of new residents has created a fast-growing industry for short-term rentals (STRs) in Arizona.
Take a peek at how 10 Arizona communities are managing their STRs.
Football fans, rejoice. Glendale will be home to the Super Bowl LVII in early 2023. Sports’ biggest night typically brings in more than 100,000 visitors from out of town who all need a place to stay for a few days. To help keep the noise to a minimum, owners of Glendale STRs are required to provide their contact information to the municipality in case law enforcement needs to attend to the property for an emergency or noise disturbance.
Following the recent passage of SB1168 in July, the city of Mesa began a new phase to help manage its STRs that benefits both the community and STR owners. STR owners are required to inform neighbors that the property will be used for short-term rentals. Owners are also required to obtain minimum liability insurance for each STR they own within city limits to ensure they’re protected in the case of a legal incident.
Gilbert has spent some time in recent months trying to determine the best solution to manage STRs effectively. City officials contacted almost 30 homeowner associations (HOAs) to determine what regulations were in place regarding maintaining orderly STRs. Nearly every HOA either had zero rules to enforce STRs in their community or does not regularly enforce the regulations they had. As a result, Gilbert started looking into outside vendors specializing in STR compliance to help stay ahead of growing community concerns.
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Considered the gateway to the Grand Canyon, Williams offers plenty of restaurants, shops, and historical museums to tourists looking for something to do before heading on an outdoor adventure. To accommodate those tourists, Williams has tasked STR owners to register their STR and pay fees to cover the processing and maintenance of STR records. These fees go toward preserving the “public health, safety, and welfare” of Williams.
Navajo County recently passed a new ordinance that could bring a rush of new STRs across county lines. The ordinance allows residents to build a detached guest house on their property to be used as an STR so long as they receive a simple approval by the planning committee. Previously, this process took months, and now it can take as little as a week.
Chandler, home to one of the largest tech headquarters in the state, requires STR owners to register each one of their properties they are using as STRs.
Peoria has been looking to streamline STR management in recent months. A new ordinance passed earlier this year requires all STRs register to be in compliance with the city, prompting officials to look for an outside vendor to help maintain STR records.
In addition to requiring STRs to be registered with the county assessor, Queen Creek has laid out its rules about how STRs are taxed within its city limits. Each STR is taxed according to the State Transient Lodging classification, which is 5.25%.
The city of Page requires each owner of an STR – considered a vacation home rental (VHR) in their city ordinances – to obtain a permit to operate in its jurisdiction. STR owners are charged an annual fee to help cover processing costs.
The beautiful community of Pinetop-Lakeside is home to many second homes. As a result, many of these homes operate as STRs when not in use by the primary owner. Community sentiment, as seen in letters to the editor, requests a more hands-on approach when it comes to regulating STRs by HOAs and the city.
What’s Next for Arizona’s STR Market?
As 2022 comes to a close and municipalities look ahead to 2023, it is critical to have a plan in place to manage STRs–without adding more to your plate.
By leveraging a comprehensive software suite that manages everything from compliance to registration to community complaints, municipalities can stay on top of the STRs within their community seamlessly.
Learn more about how your community can get ahead in 2023 with an industry-leading STR solution.