Short-Term Rental Regulations in Flagstaff, AZ

Flagstaff, Arizona, with its proximity to natural wonders like the Grand Canyon and its own vibrant cultural and outdoor scene, is a hotspot for tourists seeking both adventure and relaxation.

For property owners, Airbnb and other short-term rentals (STRs) offer a promising revenue stream. However, successfully managing an STR in Flagstaff requires a clear understanding of the local regulations. This guide is designed to help Airbnb hosts navigate these regulations effectively, ensuring legal compliance and a successful rental operation.

Overview of Short-Term Rental Regulations in Flagstaff

Flagstaff has implemented regulations that govern the operation of short-term rentals to balance the benefits of tourism with the needs and quality of life of local residents. Here are the key regulatory aspects that Airbnb hosts need to consider:

Licensing and Registration

1. No Special Licensing Required: Unlike many other cities, Flagstaff does not require a special license for operating an STR. However, all STRs must be registered with the city to ensure they meet zoning and safety requirements.
2. Compliance with Zoning Laws: It’s crucial for hosts to ensure that their property complies with local zoning laws, which may restrict the use of properties in certain areas for short-term rentals.

Tax Compliance

Airbnb hosts in Flagstaff are required to collect and remit state, county, and city taxes on rental income. This includes the Arizona transaction privilege tax and a Flagstaff bed tax. Hosts can opt to manage tax collection themselves or use Airbnb’s automated system, which collects and remits taxes on hosts’ behalf.

Safety and Health Standards

1. Health and Safety Inspections: While the city does not mandate regular inspections, properties used as STRs must adhere to basic health and safety standards. This includes having working smoke and carbon monoxide detectors, fire extinguishers, and ensuring that all electrical and plumbing systems are up to code.
2. Insurance Requirements: While not mandated by the city, it is highly recommended that hosts obtain adequate insurance to cover liabilities associated with short-term rentals.