Navigating Legal Compliance for Short-Term Rentals in Scottsdale, Arizona

In the dynamic city of Scottsdale, Arizona, the surge in popularity of vacation rentals and short-term accommodations has brought with it a host of legal obligations that property owners must carefully navigate. In this comprehensive exploration, we’ll delve into key requirements, focusing on Neighbor Notification, Maricopa County Assessor Registration, the Mandatory Short-Term Rental Notice, and important details to include in the notice posted on the property.

Neighbor Notification: Bridging Bonds with the Community

Scottsdale prioritizes community engagement and safety, evident in the robust Neighbor Notification requirements for short-term rental properties. Owners engaging in vacation rentals must inform nearby residential properties within thirty (30) days of obtaining a Scottsdale rental license.

All single-family residential properties adjacent to, directly and diagonally across the street from the property, or in a multi-family residential building, all units on the same building floor, must be notified. Information such as the short-term rental license number, the property’s physical address, and the contact information for an emergency point of contact available 24/7, must be included. Any changes to this information prompt an additional notification within fifteen (15) days.

Post-neighbor notification, property owners are required to complete a Neighbor Notification and Liability Insurance Compliance Attestation. Scottsdale mandates liability coverage of at least $500,000.00 for every short-term rental property, obtained either directly or through an online lodging marketplace.

Maricopa County Assessor Registration: A Formal Affair

For properties exclusively used for residential leasing or renting, registration with the Maricopa County Assessor’s Office as Residential Real Property is obligatory. Property owners must submit a detailed Registration Form, including information such as the owner’s name, address, and contact details (both for individual and entity owners), the property’s street address and APN, and the year the building was constructed.

Any changes to the provided information must be promptly updated within ten (10) days. For property owners residing outside of Arizona, designating a statutory agent living in the state to accept legal service on their behalf is mandatory, with the County Assessor determining the appropriate method for agent designation.

Required Short-Term Rental Notice: Prioritizing Safety and Compliance

Ensuring the safety and well-being of occupants and neighbors is paramount in Scottsdale’s short-term rental regulations. Property owners must display a notice on laminated or similarly shielded paper on the inside of the property’s front door and the primary door to the backyard, or in a conspicuous location near each such door.

This notice should provide information on the location of fire or life safety equipment, including fire extinguishers. Additionally, it should outline the City of Scottsdale’s nuisance waste disposal regulations, promoting responsible waste management within the community.

Use of the Property: Comprehending Essential Information

Within the required notice posted on the property, it is imperative to include details that enhance the occupant’s understanding of crucial elements. This includes information on the nearest fire extinguisher, emergency exits, and adherence to the City of Scottsdale’s waste disposal regulations. Additionally, property owners must communicate certain restrictions and prohibitions to ensure compliance and maintain the community’s integrity.

Certain uses of short-term rental properties are strictly prohibited, and violators may be subject to substantial penalties. These include:

  • Any commercial, industrial, manufacturing, or other non-residential purpose.
  • Operating a retail business, restaurant, event center, banquet center, or similar use.
  • Housing sex offenders.
  • Operating or maintaining a structured sober living home.
  • Selling liquor, controlled substances, or pornography.
  • Operating any adult-oriented business, including nude and topless dancing.
  • Any uses prohibited under A.R.S. § 9-500.39, or federal, state, or local law.
  • Any use that constitutes a substantial disturbance of the quiet enjoyment, peace, health, safety, or general welfare of private or public property through a nuisance party or unruly gathering. This includes but is not limited to, excessive noise or traffic, obstruction of public streets by crowds or vehicles, public drunkenness, the service of alcohol to minors, fights, disturbances of the peace, litter, spirituous liquor served to, or in the possession of, or consumed by any minor, or where illegal drugs are in the possession of, or consumed by, any person.

Unless the City expressly permits such use in writing, the use of this property for any of the following purposes is strictly prohibited:

  • For a special event that would otherwise require a permit or license pursuant to city ordinance, or a state law or rule.
  • Operating a retail business, restaurant, event center, banquet space, or similar use.

By clearly communicating these restrictions within the property, owners contribute to maintaining a safe and harmonious community, ensuring that all occupants are aware of and adhere to the guidelines set forth by the City of Scottsdale.

Seeking Professional Guidance

Successfully navigating the legal landscape of short-term rentals in Scottsdale requires meticulous attention to Neighbor Notification, Maricopa County Assessor Registration, the Required Short-Term Rental Notice, and the essential information within that notice. Given the complexities of municipal code compliance and the importance of adhering to local regulations, property owners are strongly encouraged to seek professional guidance.

By enlisting the experience of Fowler St. Clair, property owners can confidently address any legal challenges that may arise, ensuring their compliance with all relevant regulations while safeguarding the interests of both hosts and the local community. With a commitment to excellence and a deep understanding of Arizona real estate law, Fowler St. Clair stands ready to assist property owners in achieving a harmonious balance between their short-term rental ventures and the legal framework that governs them.