Is Airbnb legal in Scottsdale?

Overview of Airbnb Regulations in Scottsdale, Arizona

Scottsdale, a vibrant tourist hotspot in Arizona, has implemented strict regulations for short-term rentals (STRs) to address community concerns such as noise, overcrowding, and other disturbances. These regulations, instituted under Ordinance 4655, require that all STR operators comply with specific licensing, taxation, and operational guidelines to ensure that their rental activities are responsible and aligned with community standards.

Licensing Requirements

1. City License: All short-term rental hosts must obtain an annual city license at a cost of $250 per property. Licenses must be secured prior to advertising or renting out units for stays of less than 30 days.

2. Transaction Privilege Tax (TPT): Operators must also obtain a TPT license from the Arizona Department of Revenue. This is required before applying for the Scottsdale license.

3. Emergency Contact: Hosts must designate a 24/7 emergency contact who can respond within one hour.

4. Insurance: A minimum of $500,000 in general liability insurance is necessary for each rental property.

5. Neighbor Notification: STR operators are required to inform adjacent property owners of their rental activities, providing relevant details including the city license number and emergency contact information.

Occupancy and Usage Limits

• Occupancy Cap: Rentals are restricted to a maximum of 6 adults (or 2 adults per bedroom, whichever is lower) plus minor children.
• Event Restrictions: STRs cannot be used for events that require permits, such as weddings or large parties.

Operational Guidelines

• City Notice: A city-mandated notice containing the rental license number, emergency contact information, and safety guidelines must be displayed inside the rental unit.
• Safety Codes: Properties must comply with all applicable building, fire, health, and safety codes, ensuring they are well-maintained and sanitized between guest stays.
• Parking Regulations: Hosts must provide at least one off-street parking space per bedroom, and advertising street parking is not permitted.

Taxation

In addition to the city license fee, STR hosts must collect and remit various taxes: - State TPT Tax: 5.5% - County Transient Lodging Tax: 1.77% - City Transient Occupancy Tax: 5% - City Hotel Tax: 2%

The total effective tax rate resulting from these requirements is 14.27%, to be collected from guests.

Enforcement and Compliance

Scottsdale has ramped up enforcement efforts surrounding STR regulations, resulting in significant citations for non-compliance. Hosts found in violation of city rules face fines starting at $500 for first offenses and escalating for repeated violations. The city has reported a substantial increase in monitoring short-term rentals, leading to better compliance and increased communication with neighborhood residents regarding disruptions.

Conclusion

While Scottsdale remains open to short-term rentals, prospective hosts must navigate a detailed regulatory landscape. The emphasis on compliance, neighbor notification, and operational restrictions highlight the city's commitment to balancing tourism and resident satisfaction. Those looking to establish profitable Airbnb listings here must prepare for an investment of time and resources to meet all legal and community requirements. Thorough research and adherence to these regulations will be crucial for success in Scottsdale's short-term rental market.