Vacation and short-term rentals are dwelling units that are rented for a term less than 30 days. In the past, vacation and short-term rentals in Arizona have enjoyed little regulation from towns and cities. In fact, in 2016 Arizona legislature passed a law that prohibited towns and cities from prohibiting and restricting the use or regulating vacation and short-term rentals. However, in 2019, Arizona House Bill 2672 updated the vacation and short-term rental laws and gave towns and cities more freedom to regulate these types of rentals. Now many municipalities have created city codes and ordinances regulating vacation and short-term rentals within their boundaries. Be sure to follow the rules of the municipality in which your vacation or short-term rental is located.
According to A.R.S § 42-5042, all vacation and short-term rentals must register with the Arizona Department of Revenue and obtain a Transaction Privilege Sales Tax Number (TPT). Once the TPT is obtained, you must list the TPT license number on each advertisement for the rental. Additionally, A.R.S. § 33-1902 requires all residential rental units to file with the assessor in the county where the rental is located. Find a list of all information required to be filed here.
State law also requires owners of vacation or short-term rentals to register an emergency contact with the city where it is located. According to the City of Phoenix ordinance G-6653, the registration must include:
- The name of the property owner
- Address of the rental
- Phone number and email address of the property owner or property owner’s agent
After registering, you will be provided a rental registration number for each vacation or short-term rental. You are also required to complete a new registration if there is any change in your registration information.
According to the Scottsdale City Code Section 18-150, an owner must provide the name and contact information of the emergency contact, as well as the owner’s contact information. The emergency contact must respond in-person to the property within one hour of notification in the event of an emergency.
According to Sedona City Code Chapter 5.25, an owner of a vacation or short-term rental must register an emergency contact with the city, including the name, address, email, and phone number. The emergency contact must be available 24 hours per day, seven days per week.
If you are unsure about whether or not your short-term rental meets the requirements to operate, we recommend contacting an Arizona business lawyer for assistance. Because of the different requirements at state, county, and city level, it’s important to make sure your business interests are protected.