Arizona is home to exhilarating canyons which include the Grand Canyon, monuments, national parks, and forests in the state. It is best known for its weather and geography. More so, it is the sixth-largest state, sharing a border with New Mexico, Utah, and Colorado.
According to Arizona’s tourism, 32.1 million people visited in 2020 making it a great opportunity to expand or grow your Airbnb rental business. Additionally, based on AirDna stats, the average daily rate is $158 with an occupancy rate of 71% and a revenue of $2,203.
With that in mind, Arizona is a lucrative market and understanding the laws and regulations is of utmost importance. In a nutshell, the article will guide you through:
Any legally permitted individually or collectively owned:
Offered for transient use if the accommodations are not classified for property taxation under section 42-12001 for less than thirty consecutive days, wherein guests pay a fee are considered as a short-term rental.
Though, it does not include units that are used for any nonresidential use which includes retail, restaurant, banquet space, event center, or any similar use.
Yes! A vacation rental is required to be registered with the City of Phoenix with the help of a user guide that must include the following information:
Also, take note, each vacation rental registered by the owner, the City of Phoenix will provide a registration number, however, if there is any change in the information given above, a new vacation rental registration must be submitted within 10 days by the owner.
Uses of the property for the following purpose are prohibited:
“This property cannot be used for purposes identified in the City of Phoenix Ordinance Section 10-195(c). The City of Phoenix short-term registration number for this property is _____________”
The City’s new regulations are imposed to cut out party houses and ensure safe neighborhoods for both locals and guests. Be aware that hosts are required to post emergency contact info at their homes and respond to police inquiries if needed within the hour.
Any vacation rental owner who violates any provision of the Article or fails to perform any act or duty required will be subjected to fines within the 12-month period as follows:
In Arizona, guests who book Airbnb listings for 29 nights and shorter are subject to, as part of their reservations, the following:
Transaction Privilege Tax - 5.5% of the listing price including cleaning fee will be charged.
County Excise Tax - Tax rates vary depending on the county. Ideally, 0.28%- 6.5% of the listing price including any cleaning fee.
Local Transient Occupancy Taxes - One or more of the following local transient occupancy taxes may apply: Transaction Privilege Tax, Transient Lodging Tax, Bed Tax, or Hotel-Motel Tax. The local transient occupancy tax varies by city, typically, 1.5%- 6.0% of the listing including any cleaning fee.
Take note, regardless of the length of stay, Transaction Privilege Tax applies to all reservations. For more information, visit the Arizona Department of Revenue Transaction Privilege Tax website and the Arizona Department of Revenue Online Lodging Marketplace (OLM) Factsheet.
There are rules and regulations stipulating construction, design, and maintenance standards for buildings which can be referred to the City’s Building Codes for detailed information, including regulations, health, and safety.
Note that residential and non-residential uses that may be relevant to your listing may be applicable to certain regulations. For more information, contact the Planning & Development Department.
Be aware of other contracts or rules that bind you, such as:
It is also important to read and understand the lease agreement as well as abide by them. More so, if it is applicable, check with your landlord.