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.
