Vacation Rentals & Short Term Rentals
Vacation rentals or Short term rentals are dwelling units offered 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, bed & breakfast, or other similar use is prohibited.
- All Vacation Rentals and Short term rentals have a Transaction Privilege Sales Tax and a Transient Tax liability. A Transaction Privilege Sales Tax license with the State of Arizona Department of Revenue is required. Be sure to list Scottsdale (SC) as a region code on your license. Please visit www.aztaxes.gov to register.
- All rental units, including vacation and short term rentals, shall be registered with Maricopa County, in accordance with ARS 33-1902.
A vacation or short-term rental is defined as a house, apartment or condo (dwelling unit) that is 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.
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 Home Owner Associations to regulate or restrict these types of uses.
Except in neighborhoods where Home Owner 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.
- Portions of a property, such as a single bedroom, can not be rented or offered for rent, the entire property must be rented;
- All dwelling units, including Vacation Rentals and Short-term rentals, shall have a maximum family size of 6 adults (and their related dependent children).li>
- Non-residential uses, including retail, restaurant, banquet space, event center, or other similar uses are prohibited.
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, Keyword “Taxes” on ScottsdaleAZ.gov or call 480-312-2400.
The City of Scottsdale imposes a 1.65% 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.
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 at Keyword “Rental” on ScottsdaleAZ.gov 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.
Please submit to Code Enforcement at ScottsdaleAZ.gov/EZ so that the city can work with the property owner or agent to get the property registered.
- The property owner should register their rental property as required by law. For more information on this requirement, please visit www.maricopa.gov/assessor
- If the property is within a Homeowners Association, know the rules and follow them.
- Ask rental guests to park in the designated rental driveway or in front of the rental house and not in a landscaped area. Make sure they don't block a neighbor’s driveway or use another resident's designated parking spot.
- Put your trash and recycling out in the appropriate receptacle (black versus mauve) on the designated days and times and maintain and clean any shared community spaces.
- Give neighbors notice before parties. If the rental is to have a large group of people over, it never hurts to give neighbors a heads up. This lets them determine if they’ll need to park elsewhere or move their cars for the night. It also alerts them that a number of ‘new’ people will be in the neighborhood. Consider inviting the neighbors to big parties. Doing so shows friendliness, and they may have a much better feeling about the gathering than if they weren't invited.
- Request rental guests to avoid all unnecessary noise from any source between the hours of 10 p.m. to 6 a.m. If a neighbor calls or comes over and asks you to quiet down, be friendly and apologize. Then quiet down.
- If there is an issue with a neighbor, go directly to that person and discuss it in a neighborly manner. If that does not help with the problem, contact the owner or agent name listed on the rental property registry, for the property in question.
- When everyone makes an effort to be a good neighbor by following proper etiquette, everyone will have a sense of well-being. Great neighborhoods are built on a sense of community not isolation.
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.
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 is not a party to nor can it enforce them or provide advice on how to implement them.
The Neighborhood Advisory Commission is a seven-member, City Council appointed, advisory commission of volunteer citizens dedicated to the preservation, improvement and revitalization of Scottsdale's neighborhoods.
The Commission is responsible for hearing and recording citizen comments on issues that affect neighborhoods, helping develop neighborhood policies and planning initiatives, and advising and making recommendations to City Council with regard to neighborhoods throughout Scottsdale.