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Tempe Short Term Rental Regulation: A Guide For Airbnb Hosts

Tempe, Arizona

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What are short term rental (Airbnb, VRBO) regulations in Tempe, Arizona?

If you're planning to start a short-term rental business in Tempe, Arizona, it's important to be aware of the regulations in place. As of March 6, 2023, owners of short-term rental properties in Tempe will be required to obtain a business license and pay an annual $250 fee. They'll also need to provide emergency contact information to nearby residences and comply with neighbor notification requirements.

Additionally, owners must obtain at least $500,000 in liability coverage and provide proof of registration with the Maricopa County Assessor. All short-term rental owners in Arizona are required to hold a Transaction Privilege Tax (TPT) license to operate. Failure to comply with these regulations can result in fines and license suspension for up to 12 months124.Tempe has been actively enforcing its short-term rental regulations, requiring owners to obtain a license and pay associated fees.

The city's move to implement new rules, including background checks and licensing requirements, indicates a strict approach to regulating short-term rentals. While some hosts may operate despite the rules, the city's efforts to enhance regulation suggest that it may not be as Airbnb-friendly as other cities23.To start a short-term rental business in Tempe, you'll need to obtain a Tempe Short-Term Rental License, a Transaction Privilege Tax (TPT) license, and at least $500,000 in liability coverage. You'll also need to provide emergency contact information to nearby residences and comply with neighbor notification requirements1.

Starting a Short Term Rental Business in Tempe

To start a short-term rental (STR) business in Tempe, Arizona, follow these steps:

  • Obtain a Tempe Short-Term Rental License: Tempe residents looking to own and maintain a short-term rental (stays of 29 days or less) are required to apply and pay for a Tempe Short-Term Rental License4.
  • Obtain a Transaction Privilege Tax (TPT) license: All short-term rental owners in Arizona, including those in Tempe, are required to hold a TPT license to operate1.
  • Register with the Maricopa County Assessor: All rentals of any length are required to register with the Maricopa County Assessor's office1.
  • Provide emergency contact information: Owners of short-term rental properties in Tempe must provide emergency contact information to nearby residences2.
  • Comply with neighbor notification requirements: Tempe requires short-term rental operators to notify the City if they have sold the property or if they no longer use it as an STR5.
  • Maintain compliance: Tempe Tax & License uses technology to identify properties advertised on online lodging platforms like Airbnb and HomeAway for lodging. They actively monitor these properties and may issue penalties for non-compliance4.
  • Pay the annual $250 fee: Beginning March 6, owners of short-term rental properties in Tempe must obtain a business license and pay an annual $250 fee2.

Short Term Rental Licensing Requirement in Tempe

Starting March 6, 2023, owners of short-term rental properties in Tempe are required to obtain a business license and pay an annual $250 fee for each property or unit they intend to rent out1.

This new regulation aims to cut down on loud parties at Airbnbs and have a better system for tracking complaints1. In addition to the business license, owners must also:

  • Provide emergency contact information to nearby residences1.
  • Conduct sex offender background checks on anyone booking the rental1.
  • Register their short-term rental with the City of Tempe2.
  • Obtain a Transaction Privilege Tax (TPT) license, which is a state requirement for operating a short-term rental4.
  • Ensure the rental is registered with the Maricopa County Assessor4.
  • Obtain at least $500,000 in liability coverage4.

Failure to comply with these regulations may result in fines and penalties3. To obtain a Tempe Short-Term Rental License, property owners must follow these steps:

  • Apply for a Tempe Short-Term Rental License3.
  • Pay the annual $250 fee for each rental unit3.
  • Provide emergency contact information for each short-term rental located in Tempe3.
  • Comply with neighbor notification requirements4.

Required Documents for Tempe Short Term Rentals

To operate a short-term rental (STR) in Tempe, Arizona, owners must comply with specific requirements and obtain the necessary licenses and permits. These include:

  • Tempe Short-Term Rental License: This license is required for each short-term rental property or unit in Tempe. The annual license fee is $250 per property or unit1.
  • Transaction Privilege Tax (TPT) License: All short-term rental owners in Arizona, including those in Tempe, are required to hold a TPT license to operate. This license is necessary for collecting and remitting transaction privilege tax on the rental income2.
  • Maricopa County Rental Registration: All rentals of any length are required to register with the Maricopa County Assessor's office2.
  • Liability Coverage: Owners must provide at least $500,000 in liability coverage for their short-term rental properties1.
  • Emergency Contact Information: Owners must provide emergency contact information for each short-term rental located in Tempe1.
  • Neighbor Notification: Owners must notify neighbors in writing about the short-term rental and provide them with the license number and emergency contact information1.

Failure to obtain the required licenses and permits can result in penalties, including license suspension for up to 12 months for verified violations of the short-term rental ordinance1.

It is essential for short-term rental owners in Tempe to comply with these regulations to ensure a smooth and legal operation of their properties.

Tempe Short Term Rental Taxes

If you are planning to operate a short-term rental business in Tempe, Arizona, it is important to understand the tax requirements. Short-term rentals, including vacation rentals, are subject to Transaction Privilege Tax (TPT) or sales tax, which is the same tax that hotels and motels collect. The total TPT rate for short-term rentals in Tempe is 14.07% 1.To operate a short-term rental business in Tempe, owners must obtain a Tempe Short-Term Rental License and a TPT license.

They must also pay an annual $250 license fee for each property or unit they intend to rent out. Additionally, owners must provide proof of a valid sales tax license and evidence that the rental is registered with the Maricopa County Assessor. Failure to obtain a Short-Term Rental License for each Short-Term Rental located in Tempe carries a penalty fee4.All short-term residential rental property owners must obtain a Tempe Short-Term Rental License for each rental unit. They must also register the rental property with the Maricopa County Assessor. Short-term rentals are taxable, and owners are required to obtain a TPT license.

The gross income from the business activity of operating a short-term rental is required by law to be filed and paid at AZTaxes.gov3.Tempe law requires homeowners to register their short-term vacation rental with the City. STRs are for residential purposes only and not commercial purposes. Short-term rental operators in Tempe must notify the City if they have sold the property, or if they no longer use it as an STR. If a new owner purchases the property and intends to continue operating it as a short-term rental, they must submit a new registration with the City1.

To report nuisance parties, call the Tempe Police non-emergency number 480-350-8311. Officers will be dispatched to investigate and, if warranted, issue Nuisance Party notifications. Short-term rental owners are required to license their property each year with the City of Tempe and provide the proper emergency contact information.

They should also be respectful of their neighbors by letting them know about their short-term rental and being mindful of the noise their guests may be emitting. Additionally, they should require their guests to park legally and courteously, place and remove trash barrels at the proper times, and ensure there is no trash left on the property or on the streets2.

In conclusion, Tempe, Arizona has specific regulations for short-term rentals, including licensing requirements and fees, to govern the operation of short-term rentals within its jurisdiction. Owners must comply with these regulations to avoid penalties and ensure the smooth operation of their business.

Arizona wide Short Term Rental Rules

In the state of Arizona, including the city of Tempe, short-term vacation rentals are regulated under specific ordinances. These rentals encompass various properties, such as single-family homes, apartments, condominiums, corporate housing, or rooms for rent, and are typically advertised on online platforms like Airbnb and HomeAway. They are subject to the Transaction Privilege Tax (TPT) or sales tax, similar to hotels and motels.

Property owners are required to collect TPT, with the total rate being 14.07% for short-term rentals. Additionally, property owners must register their short-term vacation rentals with the city, and the registration is free of charge. The properties are to be used for residential purposes only and not for commercial purposes.

Furthermore, owners must notify the city if they sell the property or cease using it as a short-term rental, and new owners intending to continue operating it as a short-term rental must submit a new registration with the city134.

These regulations aim to ensure that short-term rentals are operated responsibly and in compliance with the law. They also serve to address concerns such as noise disturbances and the impact of transient occupants on residential neighborhoods. By adhering to these rules, property owners contribute to the maintenance of a harmonious relationship with the local community and the sustainable development of the short-term rental industry in Arizona.

Does Tempe strictly enforce STR rules?

Tempe has taken a firm stance on enforcing short-term rental (STR) rules, with the implementation of new regulations requiring owners to obtain a business license, pay an annual fee, and conduct sex offender background checks on renters14. These changes, effective from March 6, 2023, are aimed at giving the city more control over short-term rentals, reducing disruptive incidents, and enhancing the tracking of complaints1.

The city's proactive approach and the imposition of fines for non-compliance indicate a strict enforcement of the regulations.In comparison to other cities, Tempe's STR regulations may not be as Airbnb-friendly, as they include stringent requirements and potential penalties for violations. While some hosts may still operate despite the rules, the city's efforts to enhance regulation suggest that the environment for Airbnb and similar platforms may be more closely monitored and regulated in Tempe24.

The overall sentiment from the available sources and the city's actions indicates that the local regulations are being strictly enforced, potentially impacting the operations of Airbnb hosts in Tempe.

How to Start a Short Term Rental Business in Tempe?

To start a short-term rental business in Tempe, Arizona, owners must adhere to specific regulations and obtain the necessary licenses and permits. Here are the steps to get started:

  • Obtain a Tempe Short-Term Rental License: Owners looking to own and maintain a short-term rental (stays of 29 days or less) in Tempe are required to apply for a Tempe Short-Term Rental License for each rental unit they own or manage. The license must be renewed annually, and failure to obtain it may result in penalty fees4.
  • Acquire a Transaction Privilege Tax (TPT) License: All short-term rental owners in Arizona are required to hold a TPT license to operate. This license is essential for collecting and remitting transaction privilege tax on the rental income5.
  • Comply with City Regulations: Owners must ensure compliance with city regulations, including providing emergency contact information to nearby residences, conducting sex offender background checks on guests, and notifying the city if the property is sold or no longer used as a short-term rental23.
  • Be Mindful of Nuisance Party Regulations: Owners should be aware of Tempe City Code TCC5-32, which defines a Nuisance Party and includes regulations related to noise, parking, trash, and other aspects that could lead to fines for violations1.
  • Maintain Proper Documentation: It is essential to maintain proper documentation, including the Tempe Short-Term Rental License, TPT license, and any other relevant permits or registrations.

By following these steps and ensuring full compliance with the regulations, owners can establish and maintain a short-term rental business in Tempe, Arizona.

Who to contact in Tempe about Short Term Rental Regulations and Zoning?

For questions on Tempe's short term rental license, contact the Tax & License Division at 480-350-2955 or trladmin@tempe.gov.For zoning and land use regulations, contact the Planning & Zoning Division at 480-350-4311 or zoning@tempe.gov.

What do Airbnb hosts in Tempe on Reddit and Bigger Pockets think about local regulations?

Airbnb hosts in Tempe have expressed mixed sentiments about the local regulations. Some have welcomed the city's efforts to implement new rules, including the requirement for a business license and an annual fee, as they believe it will help in curbing issues such as loud parties and tracking complaints3.

However, others have raised concerns about the potential impact of these regulations on their operations and the additional administrative burden they may face in ensuring compliance with the new requirements3.The move by Tempe to mandate background checks for guests and require emergency contact information to be provided to nearby residences has sparked discussions among Airbnb hosts. While some view these measures as necessary for ensuring the safety and well-being of the community, others have expressed apprehension about the practicality and implications of such stringent regulations on their short-term rental businesses3.

Overall, the introduction of these new regulations has prompted a range of reactions from Airbnb hosts in Tempe, with some acknowledging the potential benefits for community safety and quality of life, while others are navigating the challenges and uncertainties associated with the evolving regulatory landscape3.

⚡️
Reveal your property’s rental profitability

Buy this property and list it on Airbnb.