Overview

Short-term rentals (rentals less than 30 days) are explicitly allowed in Scottsdale, AZ. In 2017, Arizona State Legislature enacted A.R.S. §9-500.39 which prevents cities like Scottsdale from regulating these rentals based solely on their classification or use. As a result, short-term rentals are permitted by-right in all residential districts, subject to specific safety, health, and notification requirements. However, state law significantly limits the city's regulatory authority over these properties.

How to Start a Short-Term Rental Business in Scottsdale

Starting a short-term rental business in Scottsdale requires following a specific five-step process:

Step 1: Obtain a Transaction Privilege Sales Tax (TPT) License

Before any other steps, you must obtain a TPT license from the Arizona Department of Revenue (ADOR). This license is required for each rental property in Scottsdale, and your TPT number will be needed for your Scottsdale rental license application.

Step 2: Apply for a Scottsdale Short-Term Rental License

After securing your TPT license, you must apply for an annual Scottsdale license ($250 per property) for each property you plan to rent short-term. The licensing portal opened November 28, 2022, and existing properties were required to be licensed by January 8, 2023. New properties must be licensed before being offered for rent.

Step 3: Notify Neighbors and Provide Proof of Insurance

Within 30 days of receiving your Scottsdale license, you must notify all adjacent residential properties (including those directly across the street and diagonally) of your short-term rental operation. The notification must include your license number, property address, and 24-hour emergency contact information. Scottsdale also requires liability insurance coverage of at least $500,000 (either directly or through an online lodging marketplace).

Step 4: Complete Maricopa County Requirements

All rental properties must be registered with Maricopa County as required by ARS 33-1902. It is illegal to rent a property before completing this registration.

Step 5: Generate and Display Required Short-Term Rental Notice

You must generate and display a required notice inside the front door and near the primary door to the backyard. The notice must be in 14-point or larger bold font, on laminated or similarly protected paper, and include information about fire extinguishers and nuisance waste disposal regulations.

Required Documents, Permits, Licenses, and Guidelines

City of Scottsdale Requirements:

Scottsdale Short-Term Rental License:

• Annual fee: $250 per property
• Application required for each property
• Must include:
  • TPT license number
  • Property address
  • Owner/agent contact information
  • Emergency contact details

Neighbor Notification Letter:

• Must include short-term rental license number
• Physical address of rental
• 24-hour emergency contact information

Liability Insurance:

• Minimum $500,000 coverage required
• Can be direct or through online lodging marketplace
• Proof must be maintained

Required In-Property Notice:

• Must be displayed on front door and backyard door
• 14-point or larger bold font
• Must include fire extinguisher location and waste disposal regulations

Pool Barrier Requirements:

• Scottsdale requires barrier protections for pools, hot tubs, or spas at short-term rentals
• Specific safety requirements apply

Maricopa County Requirements:

County Registration:

• All rental units must register with the county prior to occupancy
• Registration required by ARS 33-1902
• Must be completed before renting

State of Arizona Requirements:

Transaction Privilege Sales Tax (TPT) License:

• Required from Arizona Department of Revenue (ADOR)
• Application fee: $12
• Scottsdale region code: "SC"
• Monthly reporting required

Tax Obligations:

• Transaction Privilege Sales Tax: 1.75%
• Transient Tax (bed tax): 5%

Specific Regulations for Short-Term Rentals

City of Scottsdale Regulations:

1. Allowed by State Law: Short-term rentals are permitted by-right in all residential districts

2. Zoning Requirements:

   • All dwelling units and accessory guest houses must be rented together (cannot be rented independently)
   • Maximum family size: 6 adults (plus their dependent children)
   • Non-residential uses (retail, restaurant, banquet space, event center) are prohibited

3. Nuisance Parties Ordinance:

   • Property owners accountable for repeated unruly gatherings
   • Applies to all residences (long-term, short-term, or owner-occupied)
   • Nuisance party defined as social activity causing substantial neighborhood disturbance

4. Enforcement:

   • $500 first violation
   • $1,000 second offense
   • $2,000 third violation within 12 months (plus potential license suspension/revocation)

Maricopa County Regulations:

• Must register all rental properties with county assessor before occupancy
• Registration required by state law (ARS 33-1902)

State of Arizona Regulations:

1. ARS §9-500.39:

   • Prevents cities from regulating short-term rentals based solely on classification
   • Allows by-right operation in residential districts
   • Does not affect HOA restrictions

2. Transaction Privilege Sales Tax:

   • 1.75% tax on short-term rental income
   • Monthly filing required with ADOR

3. Transient Tax (Bed Tax):

   • 5% tax on short-term rentals
   • Collected by hosts and remitted to state
   • Half supports destination marketing; half supports tourism-related activities

Contact Information for Local Authority

City of Scottsdale:

Scottsdale Police Non-Emergency Line:

• Phone: 480-312-5000

Scottsdale Code Enforcement:

• Phone: 480-312-2546
• Online reporting: Scottsdale EZ (eservices.scottsdaleaz.gov/ez/Request/Submit)

Scottsdale Tax & License:

• Phone: 480-312-2400

Short-Term Rental Hotline:

• Phone: 480-312-7368
• Email: ShortTermRentalsHotline@ScottsdaleAZ.gov

Scottsdale General Contact:

• Phone: 480-312-3111
• TTY: 800-367-8939
• Address: 3939 N. Drinkwater Blvd, Scottsdale, AZ 85251

Maricopa County:

Maricopa County Assessor:

• Website: mcassessor.maricopa.gov

State of Arizona:

Arizona Department of Revenue:

• Website: aztaxes.gov

Links to Source Pages

Official Scottsdale Pages:

• Scottsdale Vacation and Short-Term Rentals
• Scottsdale STR Resource Center
• Scottsdale City Code Article IX
• Scottsdale Nuisance Parties Ordinance
• Scottsdale Short-Term Rental Licensing Portal
• Scottsdale Short-Term Rental License Application Guides

State and County Resources:

• Arizona Department of Revenue - TPT License
• Maricopa County Assessor Registration
• Arizona State Legislature - ARS 33-1902

Helpful Resources:

• Scottsdale TPT Filing Information
• Scottsdale Code Enforcement Online Portal
• Scottsdale STR Pool Barrier Requirements

This guide provides a comprehensive overview of the regulatory framework for short-term rentals in Scottsdale, AZ. As regulations can change, it's recommended to verify current requirements with the City of Scottsdale before beginning operations.