Scottsdale implementing mandatory permit, license for short-term rentals

The new license requirements include notifying neighbors you are operating a short-term rental, obtaining a sales tax license and displaying rental information.
Published: Jan. 9, 2023 at 5:23 PM MST
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SCOTTSDALE, AZ (3TV/CBS 5) -- Scottsdale is a hotspot for Airbnb’s & other short-term vacation rentals. Now, just ahead of the Super Bowl & WM Phoenix Open, a new mandatory permit system is in place. Starting Monday, the owners of all short-term rentals need a new license to operate in Scottsdale. Those who don’t comply face steep fines.

There have been shootings, crimes, and even deaths at some rentals. Many people who live in Scottsdale have been asking for help, saying their neighborhoods are now unsafe. However, residents think the permit system is a solid first step in getting help. “The purpose of the registration is to benefit everybody. We have had some tragic deaths, some illegal activity, some dangerous situations in these thousands of short-term rentals,” said Councilwoman Solange Whitehead.

The city of Scottsdale now requires an official registration and license for short-term rentals. “This is a simple registration so that we know who these people are, we can identify the properties, and can reach out in emergency situations,” Whitehead said.

The registration fee is $250. The problem? Currently, only about 1,800 properties out of the 5,000 eligible properties have applied. Whitehead says those who fail to comply could face a $1,000 fine. “At least the registration, provided people follow the rules which they are not going to rush to do it seems, you have an idea of where they are,” said Susan Edwards with Arizona Neighborhood Alliance. She believes registration is a good first step. “Registration is something, but unfortunately, it’s not going to solve the problem,” Edwards adds.

But she hopes the state of Arizona does more to crack down on short-term rentals. “It’s destroying neighborhoods in Scottsdale. There are relatively few areas where there are majority homeowners or residents left. You don’t have a neighborhood; you don’t have neighbors. If you have a problem or any kind of a crisis, who do you go to to get help because there’s nobody there,” Edwards explained.

The new license requirements include notifying neighbors around your property that you are operating a short-term rental, obtaining a sales tax license and displaying a short rental notice with safety information. If you live in Scottsdale and are aware of a short-term property that is not licensed, you can go to the city’s website and submit a complaint.