Information about Vacation & Short-Term Rentals

Vacation rentals or Short-term rentals are dwelling units for a rental term of less than 30 days to transient guests. They are considered the same as traditional dwelling units and are allowed by-right in all residential districts, subject to the following:

• All Dwelling units and any accessory guest houses must be rented or offered for rent together and may not be rented or offered for rent independently.
• All Dwelling units, including Vacation Rentals and Short-term rentals shall have a maximum family size of 6 adults (and their related dependent children).
• Non-residential uses, including retail, restaurant, banquet space, event center, or other similar use is prohibited.

Short-Term Rentals in Your Neighborhood

What is a vacation or short-term rental?

Vacation rental or short-term rental means any individually or collectively owned single-family or one-to-four-family house or dwelling unit or any unit or group of units in a condominium, cooperative or residential home offered for transient use (offered for rent for less than thirty days.) These types of rentals can be found in both single family and multi-family housing throughout Scottsdale.

Vacation rental and short-term rental do not include a unit that is used for any nonresidential use, including retail, restaurant, banquet space, event center or another similar use.

Are vacation or short-term rentals allowed in Scottsdale?

In 2017, Arizona State Legislature enacted A.R.S. §9-500.39 which eliminates the ability for local cities and towns including Scottsdale to regulate these types of rentals based solely on their classification or use. Consequently, these rentals are allowed, by state law, in Scottsdale. However, A.R.S. §9-500.39 does not preclude the ability for Homeowner Associations to regulate or restrict these types of uses.

Are vacation or short-term rentals allowed in every neighborhood?

Except in neighborhoods where Homeowner Associations restrict or regulate these types of rentals, vacation or short-term rentals are allowed by-right in all residential neighborhoods in Scottsdale, subject to the following:

• All dwelling units and any accessory guest houses must be rented or offered for rent together and may not be rented or offered for rent independently of one another.
• All dwelling units, including Vacation Rentals and Short-term rentals, shall have a maximum family size of 6 adults (and their related dependent children).
• Non-residential uses, including retail, restaurant, banquet space, event center, or other similar uses are prohibited.
• All rental units, including vacation and short term rentals, must be registered with Maricopa County, in accordance with ARS 33-1902.
• The owner of a vacation rental must provide to the City of Scottsdale the name and contact information of a person designated as an emergency contact, as well as contact information for owner owners designed for responding to complaints.

Do vacation or short-term rentals pay tax to the city?

Yes. All vacation and short-term rentals in Scottsdale are required to pay both Transaction Privilege Sales Tax and a Transient Tax (commonly referred to as a bed tax) – both of which are collected by the State of Arizona. In order to engage in, or continue a property rental business, a Transaction Privilege (Sales) Tax license with the State of Arizona Department of Revenue is required. It is the property owner's responsibility to make an application and obtain a license with the Arizona Department of Revenue. For more information on this requirement, visit ScottsdaleAZ.gov and search “Taxes” or call 480-312-2400.

Where does this tax go?

The City of Scottsdale imposes a 1.75% Transaction Privilege "sales" tax. Privilege tax revenues are used to finance the cost of various City services including but not limited to police, fire, parks, libraries, and streets.

Half of the revenue derived from the five percent Transient Tax imposed on properties used as a vacation or short-term rental is used for destination marketing to promote tourism in Scottsdale, and the remaining half is divided among tourism-related event support, research, capital projects, and other eligible uses as determined by city ordinance and state law.

How do I know if a property in my neighborhood is used as a vacation or short-term rental?

Arizona state law requires that an owner of any type of residential rental property register with the Maricopa County Assessor's Office. The city maintains this information in the Short-Term Rental Resource Center application. Please recognize that this rental property registry is for all types of rentals and does not distinguish between long term and short term or vacation rentals.

What if a rental property does not have contact information but I am aware of rental activity?

Please submit to Code Enforcement at ScottsdaleAZ.gov/EZ so that the city can work with the property owner or agent to ensure the contact information is collected per City Code requirements.

How can vacation or short-term rental operators and renters be good neighbors?

Scottsdale has developed the Good Neighbor Guide for Short-term/Vacation Rental Property Owners and Managers (PDF) to as a helpful guide for owners and managers of short-term and vacation rental properties in Scottsdale to help them understand the city's regulations and manage their property in a way that is least disruptive to neighborhoods.

In addition, the city has created the Good Neighbor Guide for Scottsdale Visitors (PDF) for people staying at short-term/vacation rental properties in Scottsdale, and requests that owners/operators provide this guide at rental properties:

What are the city's responsibilities with vacation or short-term rentals?

The City's ability to regulate vacation or short-term rentals is limited to protecting the public health and safety in accordance with Arizona law as well as to ensure that property owners register their rentals and the appropriate tax is collected for this type of commerce.

If the city can't regulate short-term rentals, can my neighborhood prohibit them privately?

Neighborhoods may be able to regulate short-term rentals through voluntary private agreements made between neighbors. These agreements, commonly referred to as private deed restrictions, are regulations that the City s not a party to nor can it enforce them or provide advice on how to implement them.