Scottsdale, AZ Rental Regulations FAQ 2025

Written by: Sanjin Hadziomerovic

Comprehensive FAQs for Short-Term Rental (STR) Regulations in Scottsdale, AZ

Investing in short-term rental (STR) properties requires an in-depth understanding of local regulations. Below is a comprehensive list of frequently asked questions (FAQs) for STR operators and investors to help you navigate the rules in Scottsdale, AZ and stay compliant while maximizing profitability.

1. What is considered a short-term rental in Scottsdale, AZ?

A vacation or short-term rental is any single-family or one-to-four-family house, dwelling unit, or any unit in a condominium, cooperative, or timeshare that is offered for rent for fewer than 30 days to transient guests. These may be in single-family or multi-family housing. Nonresidential uses—such as retail, banquet space, event centers, or other similar uses—are excluded (Scottsdale City Code Article IX) scottsdaleaz.gov

2. Do I need a permit to operate a short-term rental in Scottsdale, AZ?

Yes. Every property offered for rent less than 30 days must obtain an annual City of Scottsdale Short-Term/Vacation Rental License (fee $250 per property) through the Scottsdale Licensing Portal. You must also have:

• A valid Transaction Privilege Sales Tax (TPT) License from the Arizona Department of Revenue for each rental property (used on your STR license application).
• Proof of liability insurance covering at least $500,000 per occurrence—either held directly or via an online lodging marketplace—and a completed Neighbor Notification & Liability Insurance Compliance Attestationwithin 30 days of licensure or whenever your contact information changes (Neighbor Notification & Liability Insurance Compliance Attestation) scottsdaleaz.gov
• Registration with Maricopa County (per ARS 33-1902) before renting your property.
  Licenses issued after January 8, 2023, must comply with all Scottsdale STR ordinance requirements before offering the property for rent (Scottsdale Licensing Portal Opening) scottsdaleaz.gov

3. What are the zoning laws for STRs in Scottsdale, AZ?

Short-term rentals are allowed by right in all residential zoning districts under state law (A.R.S. § 9-500.39) unless restricted by private Homeowner Association (HOA) rules. Key zoning requirements include:

• Dwelling unity unity: All primary dwelling units and any accessory guest houses on the same property must be rented together and cannot be offered independently.
• Maximum family size: No more than six adults (plus their dependent children) may occupy any single dwelling unit (Scottsdale STR Q&A) scottsdaleaz.gov
• Nonresidential uses prohibited: Retail, restaurant, banquet space, event centers, and similar uses are not permitted as part of an STR.

4. Are there occupancy limits for short-term rentals in Scottsdale, AZ?

Yes. Scottsdale’s STR ordinance limits occupancy to no more than six adults (and their dependent children) per dwelling unit. This limit applies regardless of unit size or bedroom count (Scottsdale STR Q&A) scottsdaleaz.gov

5. What taxes are short-term rental hosts required to pay in Scottsdale, AZ?

All STR hosts must collect and remit:

• Transaction Privilege (Sales) Tax: Scottsdale imposes a 1.75 % TPT rate on all STR gross receipts. You must obtain a TPT license from the Arizona Department of Revenue and list “Scottsdale (SC)” as your region code. Revenues fund City services such as police, fire, parks, libraries, and streets.
• Transient (Bed) Tax: Scottsdale imposes a 5 % Transient Tax on lodging revenues. Half of this revenue goes toward destination marketing; the remainder is allocated to tourism events, capital projects, and other eligible uses per City ordinance.
• State and County Taxes: You remain responsible for filing state and county taxes (e.g., Maricopa County lodging fees) if not collected by a platform.
  These taxes are distinct from Maricopa County’s registration under ARS 33-1902. It is the property owner’s responsibility to secure and maintain all relevant tax licenses before operating an STR. scottsdaleaz.govscottsdaleaz.gov

6. What are the safety and health requirements for STR properties in Scottsdale, AZ?

Scottsdale’s STR ordinance includes several health and safety mandates:

• Pool Barrier Requirements: Any property with a pool, hot tub, or spa must install barriers that meet or exceed S.R.C. § 18-175(g), S.R.C. § 31-16, and the International Swimming Pool and Spa Code (Chapter 31, Article XIII). Fences must be a minimum of 60 inches tall and non-climbable; gates must lock at 54 inches; spas/hot tubs located outside the main pool barrier need a lockable cover. If an audible alarm is used instead of a barrier, all doors and windows with direct pool access must have audible alarms (Short Term Rental Pool Barriers) scottsdaleaz.gov
• Neighbor Notification & Liability Insurance: Within 30 days of licensure (and whenever contact info changes), you must notify adjacent single-family properties and all units on the same floor in multi-family buildings of your emergency contact details, STR license number, property address, and proof of liability coverage (minimum $500,000 coverage).
• Fire/Life Safety Posting: You must generate and prominently display a Short‐Term Rental Notice—providing locations of smoke detectors, fire extinguishers, and relevant City nuisance/waste regulations—inside all primary doors in 14-point or larger bold font.
  Compliance with all applicable building, plumbing, mechanical, fire prevention, and zoning codes enforced by Scottsdale’s Code Enforcement Division is required.

7. How are noise and nuisance complaints handled in Scottsdale, AZ?

Under Scottsdale’s Nuisance Parties & Unlawful Gatherings ordinance (S.R.C. § 18-121), property owners are accountable for repeated unruly gatherings or parties. This ordinance applies to all private residences, including STRs. Code Enforcement responds to complaints within two business days. When disruptive activity (e.g., excessive noise, illegal parking) occurs at an STR, neighbors should file a complaint at ScottsdaleAZ.gov/EZ. Owners are encouraged to adopt clear guest conduct policies, monitor occupancy, and provide a dedicated local emergency contact to mitigate complaints. scottsdaleaz.gov

8. Can I manage multiple short-term rental properties in Scottsdale, AZ?

Yes. Each property must hold its own City STR license ($250 annually), TPT license, and Maricopa County registration. For every address:

1. Obtain or maintain a valid TPT license from ADOR.
2. Apply for the Scottsdale STR license and complete neighbor notification/insurance attestation.
3. Register with Maricopa County per ARS 33-1902.
   There is no limit on the number of properties you may license, provided each meets the ordinance’s requirements. scottsdaleaz.gov

9. What are the penalties for non-compliance with STR regulations in Scottsdale, AZ?

Penalties for non-compliance are enforced under Scottsdale’s general Code Enforcement and business licensing rules. Violations may lead to:

• Fines and penalties assessed per day until corrected.
• Suspension or revocation of your STR license, resulting in removal from platforms and inability to rent.
• Criminal citations for repeated or egregious breaches (e.g., hosting unlawful gatherings).
  Owners should remain current with all licensing, insurance, and safety postings to avoid enforcement actions. scottsdaleaz.gov

10. Are there any updates or changes to STR regulations I should be aware of in Scottsdale, AZ?

Key updates include:

• January 8, 2023: Deadline for all existing STR properties to obtain Scottsdale licenses via the newly launched Licensing Portal (opened November 28, 2022).
• July 2021: Recommendations from Scottsdale’s Short-Term Rental Working Group were unanimously adopted, strengthening neighborhood notification, insurance, and pool barrier requirements.
  All owners should reference the latest City Code Article IX and consult the Licensing Portal for any process changes or fee adjustments. scottsdaleaz.govscottsdaleaz.gov

11. Can I self-manage my short-term rental in Scottsdale, AZ?

Yes. You may self-manage an STR provided you designate a local owner or local agent as the 24-hour emergency contact in your license application. No third-party property management company is required under Scottsdale’s ordinance. scottsdaleaz.gov

12. What are the insurance requirements for short-term rentals in Scottsdale, AZ?

Every STR must maintain liability coverage of at least $500,000 per occurrence, either held directly or maintained via an online lodging marketplace. Proof of coverage must accompany your neighbor notification attestation. While the City does not require additional insurance types, best practice is to also carry property damage coverage and consider supplemental liability (e.g., host protection) to safeguard against guest injuries or third-party claims. scottsdaleaz.gov

13. Are there any local rules regarding hosting platforms in Scottsdale, AZ?

State law (A.R.S. § 9-500.39) prevents Scottsdale from directly regulating short-term rental platforms. However, your platform (Airbnb, VRBO, etc.) must collect and remit state and local TPT and Transient Tax on your behalf if it offers a collection service. It is your responsibility to ensure proof of tax remittance is available upon request. scottsdaleaz.gov

14. What are the inspection requirements for STRs in Scottsdale, AZ?

There is no routine, city-wide STR inspection program. However, to secure your STR license you must:

• Submit documentation confirming your property meets all pool barrier standards (if applicable).
• Complete the Neighbor Notification & Liability Insurance Compliance Attestation within 30 days of licensure.
• Display the required Short-Term Rental Notice at all primary entrances (showing fire/life-safety equipment locations).
  Failure to comply with any of these steps can delay or prevent license issuance. scottsdaleaz.govscottsdaleaz.gov

15. Are there any neighborhood-specific restrictions for STRs in Scottsdale, AZ?

HOAs and private deed restrictions may restrict or prohibit STR use. Scottsdale does not enforce private deed restrictions but does require that all HOA rules be observed by property owners. If you suspect an HOA restriction, consult your association’s governing documents before licensing. scottsdaleaz.gov

16. Is there a cap on the number of STR permits issued in Scottsdale, AZ?

No. Scottsdale imposes no numerical cap on the total number of STR licenses. Any qualifying property meeting all ordinance requirements may be licensed. scottsdaleaz.gov

17. What parking requirements exist for STRs in Scottsdale, AZ?

STR properties must adhere to the off-street parking standards of their zoning district as outlined in Scottsdale’s Zoning Ordinance. There are no additional or STR-specific parking mandates; comply with your residential district’s required minimum number of parking spaces. scottsdaleaz.gov