In 2022, the Arizona Legislature passed Senate Bill 1168 which authorized cities and towns to create a limited permit/license process to further regulate Short-Term Rentals (STRs). In September 2023, Phoenix City Council approved a text amendment to the Short-Term Rental Ordinance, which altered the existing ordinance from a registration requirement to a permitting requirement and went into effect on November 6, 2023.
Summary of Changes
- New STR ordinance replaces existing STR registration with limited STR permit process.
- All STR properties must obtain a STR permit from the Planning and Development Department.
- City must issue or deny permit within 7 days
- Owner may appeal denial, non-renewal or suspension
- Prohibits the use of an Accessory Dwelling Unit (ADU) as an STR.
- Non-residential and other uses are prohibited by A.R.S. 9-500.39.
- Enhanced civil penalties.