Attention Arizona Vacation Rental Home Owners!
The business of operating vacation rental homes has skyrocketed in the past five years, with these short-term rentals increasing in number by well over 500% since late 2014 – and occupancy rates for these vacation rental properties are at an all-time high! Business is definitely booming if you’re the owner of a vacation rental home.
Vacation rental properties – or their guests, rather – also provide a steady influx of new visitors to businesses in the areas surrounding these rentals. That equals greater success to those business -and more money into city and state sales tax coffers! There are even business (Moxie Girl, for example) dedicated to serving the vacation rental industry, boosting employment opportunity in the Valley!
Other Side-Effects of this Boom?
Yes…Complaints, unfortunately. Many permanent residents of nearby vacation rental properties – especially larger ones – tell tales of woe. Noise, trash and increased traffic have been among the most common complaints. To those living next to “party houses,” short-term rentals have become a nuisance – and residents have not been quiet in making their feelings known to officials.
New Law Affecting Vacation Rentals Signed by Gov. Ducey on May 21, 2019
As the operator of a vacation rental home in Arizona, you need to be aware of the new legal requirements that apply, state-wide. Most importantly, regardless of what city statutes and license regulations may apply, anyone in the vacation rental game in our state must have an Arizona sales tax license to operate legally.
The new law also states that rentals may not be used for weddings, banquets or other special events that would otherwise require a permit. Certain occupancy specifics are also affected by the new legislation. Rep. John Kavanaugh, R-Fountain Hills, sponsor of HB 2672, says this measure addresses and aims to eliminate the “party house” issues at the root of many complaints.
There are also a number of new rules regarding providing vacation rental home owner contact info to cities and towns, as well as changes to violation process policies. With fines for violations ranging from $250 to $1,500+, you’ll definitely want to stay on top of your admin (and enforcement) duties as the owner of your vacation rental!
But is the New Law Enough?
Many Valley residents say the new law, which goes into effect 90 days after the end of the legislative session ends, doesn’t go far enough in curbing the disruptions they have been experiencing due to neighboring vacation rental properties. When the bill was first introduced, it included a much longer list of restrictions than the final version, signed into law this week. Rep. Kavanaugh was concerned that if included in the final bill, it would either not get enough votes to pas – or face a veto by Gov. Doug Ducey. Ducey, in signing the bill stated “In Arizona, we respect the right to do what we want with our property without undue government interference. I am open to corrective action if this bill is applied too broadly.”
Most cities already have noise, parking and littering ordinances, but officials say these rules are tough to enforce in many cases – especially in the case of vacation rental properties. Many are hopeful, though, that the new law will at least help take care of the worst violators.
You can read HB 2672 HERE.
Need Help With Your Vacation Rental Home?
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