Is Airbnb legal in Tempe?

In Tempe, Arizona, individuals looking to operate an Airbnb or similar short-term rental must comply with specific regulations and steps to ensure legal operation. Here’s a concise overview of the requirements:

1. Obtain a Transaction Privilege Sales Tax (TPT) License: All hosts are required to secure a TPT license from the state of Arizona before they can apply for a short-term rental permit. This involves creating an account and applying online through the AZTaxes portal.

2. Notify Neighbors: Prior to submitting the short-term rental application, hosts must inform neighboring residents, especially those on the same apartment floor, about their intention to operate a short-term rental. Proof of this notification must be included in the application process.

3. Verify Property Registration: Hosts need to ensure that the property is officially registered as a rental property with the Maricopa County Assessor. Documentation confirming this registration will be necessary during the application.

4. Complete the Short-Term Rental Application: After securing the necessary elements, hosts can complete the official short-term rental application found on the City of Tempe's website. All required documentation, including the TPT license number and neighbor notification evidence, must accompany the application.

5. Tax Compliance: While Airbnb collects lodging taxes statewide for hosts in Arizona, it is essential for hosts to obtain their TPT license to stay compliant with local tax regulations.

For further inquiries or assistance, prospective hosts are encouraged to reach out to the City of Tempe’s licensing department. Emphasizing the importance of understanding local laws and regulations will contribute to a responsible and compliant hosting experience.