Is Airbnb legal in Phoenix?

In Phoenix, Arizona, short-term rentals are legal but are subject to specific regulations established by the city's Short-Term Vacation Rental Ordinance, which went into effect in January 2020. Here are the key points for prospective Airbnb hosts:

1. Registration and Licensing: Hosts must register their short-term rental properties with the city of Phoenix, obtain a city permit, and secure a Transaction Privilege Sale Tax (TPT) license from the Arizona Department of Revenue. Additionally, all rental properties need to be registered with the Maricopa County Assessor’s Office.

2. Application Process: There is a permit application fee of $250. The city is required to approve or deny applications within seven days. Once obtained, the permit must be displayed at the property.

3. Compliance Requirements: Hosts are responsible for ensuring compliance with local ordinances, which include providing contact information for emergencies and health and safety standards. They must also conduct background checks on renters.

4. Prohibited Uses: The ordinance prohibits certain uses for short-term rentals, including operating as a commercial business, hosting events requiring a special permit, housing registered sex offenders, and more.

5. Notifications: New regulations require hosts to notify nearby residences and homeowners' associations (within 600 feet) of their intent to operate a short-term rental, including details about the property and an emergency contact.

6. Penalties for Violations: Noncompliance can lead to significant penalties, including fines up to $1,000 per month for unregistered properties and escalating civil penalties for violations, alongside potential suspension of permits for repeated violations.

7. Current Landscape: As of September 2023, there were nearly 4,000 registered short-term rentals in Phoenix, although this number may be understated according to local residents.

These regulations are aimed at ensuring that short-term rentals do not negatively impact the quality of life for permanent residents, addressing concerns over noise and other disturbances while balancing the rights of property owners to operate rental businesses.