Understanding Scottsdale Airbnb Laws, Rules, and Regulations
Are you confused about the Scottsdale Airbnb laws and regulations?
It can be challenging to navigate the legalities and determine what is required to own a short-term rental in Scottsdale, Arizona. Skipping these regulations can result in hefty fines and potentially shutting down your business — which, of course, means no rental income.
In this guide, we’ll explain the Scottsdale Airbnb rules simply and comprehensively to help you better understand the entire process. Let’s dive in!
Overview of Scottsdale’s Short-Term Rental Regulations
Short-term rentals, often called vacation rentals, differ from traditional long-term rentals by allowing stays under 30 days. To legally host short-term rentals in Scottsdale, you must follow the regulations to comply with both city and state laws.
Scottsdale Ordinance 4566 establishes the legal framework for short-term rentals so property owners and residents feel safe and protected. This process includes the following steps:
- Obtain a Transaction Privilege Sales Tax (TPT) license from the Arizona Department of Revenue (ADOR).
- Apply for a Scottsdale Short-Term Rental License, which has a $250 annual license fee.
- Notify neighbors around the rental property.
- Provide proof of insurance.
- Register the property with Maricopa County.
- Display the required short-term rental notice within the property.
Scottsdale Tax Obligations for Airbnb Hosts
Understanding your tax responsibilities as a property owner is crucial. The two main taxes are the Transaction Privilege Sales Tax (TPT), which is 1.75%, and the Transient Tax (bed tax), which is 5%.
Transaction Privilege Sales Tax
The TPT tax in Arizona is a 1.75% tax on corporations doing business in the state. Short-term rental owners must collect the tax from the guests and pay it monthly to the state.
To follow TPT rules, hosts in Arizona need a TPT license ($12) from the Arizona Department of Revenue (ADOR). You can apply online, mail in a form, or apply in person.
Transient Tax
Transient Tax, or “bed tax,” is an additional 5% fee on short-term rentals in Scottsdale that hosts must collect and pay. It’s designed to help local tourism and city projects.
Airbnb Licensing Requirements in Scottsdale
All short-term rental properties require an annual city license, which costs $250 each year per property. To apply for the license, you must complete one application per property and provide:
- The name, address, phone number, and email of the owner or owner’s agent.
- The address of the property.
- Proof of TPT license.
- Emergency contact information.
You can apply for your Scottsdale Short-Term Rental License at ScottsdaleAZ.gov.
Neighborhood Notification Requirements
Next, you must notify all single-family and multi-family homes directly and diagonally across the street from your property within 30 days of obtaining the Scottsdale short-term rental license.
Your Neighbor Notification letter must include:
- The property address.
- Contact information for a local point of contact in case of emergencies.
- Your Scottsdale license number.
The Neighbor Notification helps maintain a peaceful community and can address potential concerns before they arise. By giving neighbors the contact information and details about the rental, you build trust and reassure everyone that the property will be managed responsibly.
Proof of Insurance and Liability
Scottsdale’s ordinance also requires that every short-term rental property have liability coverage of at least $500,000. You must provide proof of this insurance to rent out your property legally. This guarantees that you and your guests are protected from accidents.
Maricopa County Requirements
In addition to city-level regulations, property owners must also follow county-level regulations.
For example, renting out a property before it is registered with the Maricopa County Assessor is illegal. Read up on Maricopa County’s rules for short-term rentals and complete any needed paperwork or tasks. This may involve getting more licenses, completing safety checks, or following other county rules.
Short-Term Rental Notice
Lastly, all short-term rental operators must display a notice informing guests about the local regulations, rules, and contact information.
This notice must be displayed within the rental property so all guests can easily access it. The notice is a guideline for guests and helps them understand their responsibilities, ensuring they follow local laws and regulations during their stay. As defined in the ordinance Sec. 18-175. (h):
“The following notice must be completed in 14-point or larger bold font, on a laminated or otherwise similarly shielded paper, and prominently displayed on the inside of the front door and the primary door to the backyard or a conspicuous location near each such door. The notice shall include information regarding the location of any fire or life safety equipment such as fire extinguishers and the City of Scottsdale nuisance waste disposal regulations.”
Additional Considerations for Scottsdale Airbnb Hosts
- Scottsdale requires specific safety measures, such as smoke detectors and fire extinguishers.
- For your guests’ peace of mind, consider safety features like fire escape plans and first-aid kits.
- Property owners who break any rules may be fined $500 for the first violation, $1,000 for the second offense, and $2,000, along with potential license suspension or revocation for the third violation within 12 months.
- HOA rules may restrict short-term rentals. Check with your specific HOA before turning a property into a vacation rental.
- Follow local parking regulations.
- Let guests know how to dispose of trash properly.
Get Trustworthy, Efficient Vacation Rental Management for Your Scottsdale Property with Stay With Style Scottsdale
You don’t want to invest in a short-term rental in Scottsdale only to have it shut down because you didn’t follow local rules and regulations.
Instead, rely on a professional property management company to help you abide by city and state regulations, submit required documentation and taxes, and manage and upkeep your property to provide a five-star guest experience. Learn more about our property management services with Stay With Style Scottsdale to get started!
