Are Vacation Rentals Allowed in Arizona?

By Alice Nichols

If you’re planning a trip to Arizona, you may be wondering if vacation rentals are allowed in the state. The short answer is yes, vacation rentals are allowed in Arizona. However, there are some regulations and laws that govern vacation rentals that you should be aware of before booking your stay.

What Are Vacation Rentals?

Before we dive into the regulations surrounding vacation rentals in Arizona, let’s define what they are. A vacation rental is a property that is rented out to visitors on a short-term basis, usually for a few days or weeks at a time. Vacation rentals can include apartments, condos, houses, and other types of properties.

Regulations for Vacation Rentals in Arizona

While vacation rentals are allowed in Arizona, there are some regulations that property owners must follow. These regulations vary depending on where the property is located within the state.

One regulation that applies to all vacation rentals in Arizona is the requirement to obtain a transaction privilege tax (TPT) license from the Arizona Department of Revenue. This license allows property owners to collect and remit taxes on rental income.

In addition to obtaining a TPT license, many cities and counties within Arizona have their own regulations regarding vacation rentals. For example, some cities require property owners to obtain a permit before renting out their property as a vacation rental. Other cities have restrictions on how many people can occupy a vacation rental at one time or how long guests can stay.

Phoenix Regulations

If you’re planning on staying in Phoenix, there are some specific regulations you should be aware of. In 2019, Phoenix passed an ordinance that requires all vacation rental properties to obtain a permit from the city before accepting guests.

The permit process involves an inspection of the property to ensure it meets safety standards and compliance with city code requirements. Property owners must also provide contact information for guests and agree to comply with noise regulations and other rules.

Sedona Regulations

Sedona has some unique regulations for vacation rentals. In order to rent out a property as a vacation rental in Sedona, the property must be located in a commercial zone or have received a conditional use permit from the city.

Additionally, Sedona restricts the number of vacation rental properties in certain neighborhoods and requires property owners to obtain a permit from the city before accepting guests.

Benefits of Vacation Rentals

Despite the regulations surrounding vacation rentals in Arizona, they can be a great option for travelers. Vacation rentals often provide more space and privacy than traditional hotels, and can be a cost-effective option for families or groups traveling together.

Additionally, many vacation rentals come equipped with full kitchens, which can save travelers money on dining out. And because vacation rentals are often located in residential areas, guests can get a more authentic experience of what it’s like to live in Arizona.

Conclusion

Vacation rentals are allowed in Arizona, but there are regulations that property owners must follow. If you’re planning on staying in a vacation rental during your trip to Arizona, make sure you’re familiar with the regulations that apply to your specific location. And remember that despite these regulations, vacation rentals can provide a unique and enjoyable experience for travelers.