Governor Doug Ducey recently signed Arizona House Bill 2672 regarding short term/vacation rental properties.
Homeowners renting or thinking of renting a home on popular websites like Airbnb or VBRO should be aware of this bill becoming law in August.
Effective August 27, 2019, HB 2672 adds Arizona Revised Statute 42-5042 detailing a few requirements vacation or short-term rental owners will need to adhere to or risk being fined for non-compliance. https://www.azcentral.com/story/news/politics/legislature/2019/05/21/arizona-law-crack-down-short-term-rental-party-houses-airbnb-vrbo/3761624002/
First, all advertisements for short term rental properties (defined as stays less than 30 days), must list the transaction privilege tax license number associated with the property address. This TPT license number must be called out in bold on all advertisement to rent the home.
Second, property owners before offering to rent the vacation or short-term rental must provide city or town with contact information for the owner or the owner’s designee who is responsible for responding to complaints, like for excessive noise, promptly at any time of the day.
Fines can range from $250 to $1500 or more.
With the proliferation of Airbnb type rentals, cities, towns and now HOA’s are struggling to “keep the peace.” Many cities are trying to find a balance between respecting property owners rights for those that wish to rent their homes short-term and those “permanent” homeowners that often complain of excessive noise, loud parties, cars, and people coming in and out of their neighborhoods.
Many HOA’s are starting to adopt amendments to their Covenants, Conditions, and Restrictions (CC&R’s) to a minimum rental period of 30 days.
For second or seasonal homeowners renting or considering renting your property for vacation or short-term rental stays less than 30 days, you need to do the following:
1) Check your condo or HOA covenants, conditions & restrictions (CC&R’s) to determine if short-term rentals are allowed.
2) Ensure you have proper insurance coverage on your property. Most homeowner insurance policies will not cover damages sustained to property or injuries that may happen while renters are occupying the home. Make sure proper insurance and liability coverage on the house is set up before allowing a renter to move in.
3) Research your town or cities requirement to have a business license. Some consider the act of renting out your home like a business and thus require a business license.