By Brent Ruffner | Daily Independent
A new report shows short-term rentals are a boon to the Arizona economy despite some who say short vacation stays can lead to trouble with parties that get out of hand.
The report, from Tempe-based Rounds Consulting Group, stated the short-term rental industry supported about 75,500 jobs in 2021 from visitors spending money in the state. The industry generated $538.4 million in state, county and city tax revenues in 2021, the report said.
In Maricopa County, the short-term rental industry supported more than 41,000 jobs and produced an economic output locally of more than $3 billion, half of the entire state’s STR economic output, the report said.
But short-term rentals have not come without controversy.
In 2020, some residents of the Town of Paradise Valley and surrounding communities said they dealt with nuisance issues such as scantily-clad women, beer bottles and general unsafe conditions from short-term rental units in residential neighborhoods.
A 2016 legislative measure stripped local governments of their ability to regulate short-term and vacation rentals.
But Tom Savage, lobbyist for League of Arizona Cities and Towns, said there are five proposed bills in the 2022 Arizona Legislative Session trying to tackle the issue of short-term rentals. He said those bills could be consolidated into one. The bill total related to short-term rentals is as of Feb. 24.
“We’re supportive of these efforts for cities to have more tools to address short-term rentals,” Savage said.
In Phoenix, there is an ordinance that requires “owners of short-term or vacation rentals to register with the city and provide emergency and complaint contact information. The ordinance outlines vacation rental violations and reaffirms prohibited types of uses and introduces an enhanced penalty structure,” the city website said.
The website said in 2019, the Arizona Legislature authorized municipalities to create provisions for short-term vacation rentals.
Paradise Valley Councilor Julie Pace said the town is working to do its part to help cut down on nuisance behavior. She said some residents have complained because people have rented Airbnb homes to host loud parties.
Investors began buying up houses and renting them out during the past several years, Pace said.
“It’s a problem for us because we have large homes on large lots,” Pace said. “…(Some) became party houses really quickly.”
On Jan. 27, the Paradise Valley town council adopted a new ordinance “regarding nuisances, unruly gatherings, non-compliant short-term rentals” to help address the issue.
Pace said the ordinance enforces noise and trash violations to help restore local control to the municipality. The ordinance goes into effect on Feb. 26, she said.
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