Sedona deed restriction program aims to protect homes from becoming short-term rentals

SEDONA, AZ (3TV/CBS 5) - The beauty of the red rocks and opportune outdoor adventure draws people from all over to Sedona. While it’s good for the local economy, city officials said they’re constantly getting complaints about short-term rentals.

Although there’s an application process for renters, Sedona housing manager Shannon Boone said right now, the city of Sedona can’t limit the number or location of short-term rentals. “We have a lot of residents who are really concerned about the way short-term rentals have impacted their neighborhoods. Essentially turning neighborhoods into little resorts or hotels where you don’t really have neighbors or a sense of community anymore.”

Just under 10,000 people live in Sedona, and according to data from AirDNA, nearly 3,400 properties are listed on short-term rental sites. This leaves a lot of people to make tough decisions about their homes. “Especially for our seniors, who may want to sell their homes and downsize or something like that, a lot of times we’ll hear them say, ‘I would feel guilty to sell my house because I don’t want to do that to my neighbors it’ll turn into a short-term rental,” Boone said.

That’s why the city is offering a workaround. They are allowing homeowners to block their home from ever becoming a short-term rental with their new deed restriction program. “So the initial restriction is for 40 years, but that renews anytime the house is sold or changes ownership,” Boone said. “So it could essentially be a permanent restriction.”

All residents have to do is show proof of homeownership, and the city will help complete the process and provide counseling on how it could impact home value. “So hopefully, this will enable our residents to take back control of their neighborhoods and make sure their homes are available for people who want to live and work here,” Boone said. She says 30 people have reached out so far, 10 of them are in the process, and 4 already have their deed restrictions. For more information on how to apply, you can visit their website here.

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