1. Short-Term Rental Definition

First, you want to make sure you fall into the category of a short-term rental: any property rented out for less than 30 consecutive nights.

2. Required Licenses

Second, you'll need to apply for 2 licenses for each property that you are renting out:

• • Apply for a Transaction Privilege Sales Tax (TPT) license from the Arizona Department of Revenue.
  • ○ You'll need your TPT number to complete the following license application.
• • Apply for a Short-Term Rental License.
  • ○ You need to apply for a license for each property you are renting out.
  • ○ The cost is $250 and must be renewed every year.

3. The Neighbor Notification Letter

After you've obtained your License, you need to let your neighbors know within 30 days of receiving your Scottsdale license

• a. How to let them know? Writing them and sending it electronically, by United States Mail, or hand delivering.
• b. What needs to be included in the notice? The letter must include:
  • i. the short-term rental license number
  • ii. the physical address of the short-term rental
  • iii. the name, address, and twenty-four (24) hour telephone number of the emergency point of contact for the rental.
• c. Which neighbors need to know? All properties adjacent to, and across the street (directly, and diagonally in both directions) from, your short-term rental property. In the case of a multi-family residential building, the owner or owner's designee is required to notify all units on the same building floor as the short-term rental unit. (Adjacent means the condition of being near to or close to but not necessarily having a common dividing line. Therefore, two (2) properties which are separated only by a street or alley shall be considered adjacent to one another.)

4. Liability Insurance

Every short-term/vacation rental property you have in Scottsdale must be insured with liability coverage of at least $500,000 (either directly or through an online marketplace). You need to show proof of insurance by filling out the Neighbor Notification and Liability Insurance Compliance Attestation.

5. County Registration

Register your property with Maricopa County Assessor. It's illegal to rent it before it's registered with Maricopa County.

6. Required Notice Display

Register and display the Required Short Term Rental Notice on a 14-point (or larger), and bold, font; laminated; displayed by the front door and back door.

7. Other Important Information

• • Noise and Nuisance Ordinances

  Scottsdale enforces strict noise ordinances and nuisance regulations. Property owners are responsible for guest behavior.

• • Occupancy Limits

  While there's no fixed limit, occupancy should follow fire safety codes and not disrupt neighborhood peace.

• • Prohibited Uses

  Rentals cannot be used for special events, parties, or large gatherings that violate zoning codes or disturb neighbors.

• • Violation Penalties

  The city may issue fines or suspend permits for repeated violations or failure to comply with regulations.

Make sure you keep thorough records of all your bookings in case you're audited, and always read the information listed on the City of Scottsdale's website to stay up to date on all regulations. If things change, you probably won't be alerted, so it's up to you to stay informed.