Licensing For Short-Term/Vacation Rental Properties Opens Nov. 28

Scottsdale Ordinance 4655 was adopted unanimously by the City Council in October, requiring rental property owners/operators to obtain a Scottsdale license for each property and comply with several safety, health and neighbor notification requirements.

Under the ordinance, short-term/vacation rental owners must obtain and maintain an annual city license for each property. Scottsdale’s licensing portal will open Nov. 28, 2022, and owners of existing short-term/vacation rental properties must obtain licenses by Jan. 8, 2023. New short-term/vacation rental properties must also comply with ordinance requirements and be licensed before being offered for rent in Scottsdale. The annual license fee is $250 per property; fees will go 100 percent to cover costs associated with licensing vacation and short-term rentals.

All Scottsdale short-term/vacation rental properties with active listings will receive a letter from the City of Scottsdale notifying them of the new requirements and directing them to apply for a license via the city’s online portal.  However, failure to receive a letter does not alleviate an owner’s responsibility to obtain a license or comply with other ordinance and legal requirements.

In addition to being licensed, all short-term/vacation rental property operators must carry liability insurance and conduct sex offender background checks on booking guests. The ordinance contains specific requirements for notifying neighbors before a vacation rental is offered for the first time or anytime the contact information changes.

Additionally, properties must be cleaned between each stay, have working smoke alarms and regular pest control. Properties that have pools, spas or hot tubs must comply with the city’s barrier requirements by May 23, 2023 (six months from the effective date of the ordinance).

Non-residential uses remain prohibited, e.g., a property can’t be used to host an event. An emergency contact who can respond to issues at a property within one hour remains a requirement as well.

• Review the requirements and apply for a Scottsdale rental property license at ScottsdaleAZ.gov, search “short-term rental.”

Scottsdale’s ordinance complies with Arizona Senate Bill 1168 passed by the legislature and signed by the governor in July, and reflects the full authority granted to cities under state law.

Visit ScottsdaleAZ.gov and search “short-term rental” to learn more about the city, county and state requirements for short-term/vacation rental properties, apply for a license, and find resources for neighborhoods.