By Mark Carlisle | Daily Independent
The city of Phoenix is planning for how it can make sure short-term rentals are permitted with the city and how to enforce background checks designed to bar sex offenders from staying at the rentals.
The move comes after recent changes in state allowed cites to have more control over the businesses following a move by the state Legislature that essentially hamstrung municipalities from doing anything at all.
Council members on the Transportation, Infrastructure and Planning Subcommittee meeting in June advanced a new ordinance to align the city’s laws on short-term rentals with the new state law but also lamented the state Legislature continuing to providing little control to municipal governments. The ordinance will come before city council in September.
A new state law passed last year requires short-term rentals to apply for a permit with their local government. They will pay an annual fee set by the municipality capped at $250 and be subject to escalating fines for violations, which include things like illegal activities on the rental property, renting to sex offenders or police being called out to property.
As Phoenix moves to the new permitting system that other cities, such as Scottsdale, Paradise Valley and more have adopted, it will need to contact many short-term rentals that aren’t currently on the books.
Under the current registration system, Deputy City Manager Alan Stephenson said during last week’s subcommittee meeting there are 3,600 short-term rentals registered with the city. Susan Edwards, co-founder and president of the Arizona Neighborhood Alliance, told the subcommittee her group estimates there are 12,000 short-term rentals in the city.
State law also limits local governments’ control around short-term rentals. Stephenson noted permits for short-term rentals can only be denied if the applicant does not meet criteria; there is no discretionary denial.
Councilmember Debra Stark, chair of the subcommittee, said she saw a role for short-term rentals, but too many is not a good thing.
“Short-term rentals, while they can be a great way to vacation, but we have to have a balance,” Stark said. “And right now I think we’re in an affordable housing crisis, and I do think that short-term rentals do add to that problem.”
Checking for permits
Short-term rental owners have 30 days from notice of operation to apply for a permit with the city. The city must approve or deny the permit within seven days.
The problem city officials see is not knowing when that 30-day clock starts, fearing short-term rental owners will seek to fly under the city’s radar and avoid permit fees and oversight — the Arizona Neighborhood Alliance estimates more than 800 units are doing just that.
Stark and council members Laura Pastor and Ann O’Brien said they wanted to see the city proactively make note of short-term rentals rather than waiting for owners to self-report.
“I know that we’re limited by the state Legislature, but I do believe we should be more proactive than reactive,” O’Brien said.
For one way to be proactive, Stephenson said staff is working with the Phoenix Police Department to document when a call for service or complaint is believed to be at a short-term rental so that city staff can then check for a permit and begin the permitting process if needed.
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