PowerPoint Presentation

Short-Term Rentals
Rick St. John, Deputy City Manager

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We are seeking Council consensus on amending 
the code regulating short-term rentals

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In May 2022, Council added short-term rental 
regulations to Chapter 29.1 (Residential Rental 
Properties)
– Requirement to provide owner information
– Requirement to provide emergency contact 
information
– Requirement to comply with all laws
– Prohibited uses (commercial business, selling liquor, 
housing sex offenders)

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On September 24, 2022, State law was amended 
allowing cities and towns to;
• Require a STR owner obtain and maintain a permit or license to 
operate, and display the permit or license number on every 
advertisement used
• Impose a civil penalty of up to $1,000 against a STR owner, if 
the STR owner fails to provide the required STR contact 
information
• Fine STR owners for violations of City/Town regulations. The fines 
can be up to $3,500 for three violations within twelve months.
• Require STR owners have liability insurance of at least $500,000.

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Proposed addition for “penalties”
– $1,000 civil fine for every 30 days an STR owner fails to 
provide required contact information or obtain a permit or 
license
– Violations of code in a twelve-month period –
• First offense - $500 or one night’s rent, whichever is higher
• Second offense - $1,000 or two night’s rent, whichever is 
higher
• Third or any additional offense - $3,500 or three night’s 
rent, whichever is higher
– Multiple violations from the same single response equates to 
one violation for assessing penalties

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• If the City requires a permit or license, the City must 
adopt an ordinance outlining the process for an 
administrative suspension. 
• Reasons for a suspension;
– Owner or operator commits a felony on or near the property
– Wrongful death or serious injury resulting from owner or 
operator’s negligence
– Knowingly housing a sex offender
– Knowingly allowing the STR to be used for a special event that 
would otherwise require a separate permit or license

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City requirement and possible State action
– The City must notify the owner when a violation is 
cited on their property within seven business days, 
unless the property owner has not provided 
information
– Require at least $500,000 liability insurance
– AZ Dept of Revenue can suspend the STR owner’s 
transaction license if there are three violations of the 
City’s regulations in a twelve-month period

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Rearranging the language of the existing code
– Compliance with laws moves to the first section
– Contact information required
– Prohibitions
– Insurance requirement
– Penalties

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We are seeking Council consensus on amending 
the code regulating short-term rentals