Local Municipalities Revising Short-Term Rental Rules

By Melissa Rosequist | Scottsdale Independent

This holiday season, get your short-term rental owner the perfect gift — a license to operate within the city of Scottsdale.

Scottsdale’s Assistant Manager Brent Stockwell joked about the timing of the city’s new short-term rental licensing ordinance going into effect — Dec. 24 — during a recent meeting going over the ins-and-outs of the draft municipal law.

Both Scottsdale and the Town of Paradise Valley have discussed potential policy changes within their respective municipalities as the newest rules around short-term rental properties is now applicable.

Members of the Scottsdale City Council discussed city code amendments to short-term rental properties Sept. 20, while the Paradise Valley Town Council discussed the same topic Sept. 22.

The resurgence in short-term rental policy changes comes after the Arizona State Legislature approved a new law last spring, Senate Bill 1168, giving municipalities more guardrails to regulate the properties. SB 1168 became effective Sept. 24.

There are thousands of short-term rentals in the Scottsdale and Paradise Valley areas, which have created ongoing issues for neighbors and officials since 2017 when Senate Bill 1350 was first passed. SB 1350 opened the door for short-term rental properties to be open anywhere in Arizona, with little oversight or regulation.

After years of legislating and lobbying by municipalities and residents, the Legislature tightened some of the rules in spring 2022 when it passed SB 1168, such as giving cities and towns the ability to license — and revoke those licenses — the properties.

Both Scottsdale and Paradise Valley staff are in the midst of drafting ordinance amendments so their council’s can approve the changes on a local level.

On Sept. 22, Paradise Valley Town Attorney Andrew McGuire brought forward a question for council related to notifying neighbors of short-term rental properties as town staff is working on the draft ordinance update to be voted on by council in the coming months. Town Manager Jill Keimach said the town is aiming to have this ordinance become effective in November, pending council approval.

In Scottsdale, on Sept. 20, Assistant Town Manager Brent Stockwell asked council for feedback on the city’s respective ordinance. Scottsdale’s ordinance is expected to go into effect in December.

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