Arizona lawmakers renew push to rein in short-term rentals
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A new legislative session means a new effort to curb short-term rentals and their impacts on Arizona neighborhoods — and a renewed campaign to quash any such limitations.
Why it matters: Critics of Airbnb and similar operations say the proliferation of vacation rentals in certain neighborhoods has created nuisances for local homeowners and diminished the housing supply, further elevating prices.
The big picture: The annual fight over short-term rentals boils down to balancing property rights — those of owners wanting to cash in on the money-making opportunity of short-term rentals and those who believe vacation rentals diminish the quality of life for other homeowners.
Catch up quick: Former Gov. Doug Ducey signed legislation in 2016 preempting cities' ability to regulate or restrict short-term rentals.
- After problems arose, he signed a bill in 2022 allowing cities to require licensing and penalize owners for health, safety, noise, nuisance and other violations.
- Other legislative attempts to allow cities more oversight have been unsuccessful.
The latest: The League of Arizona Cities and Towns is hoping to build bipartisan support for a package of short-term rental reforms targeting bad-acting hosts and overrun tourism hot spots.
The first measure, which Senate Majority Leader John Kavanagh (R-Fountain Hills) will sponsor, would expand on the 2022 law making it easier for cities to yank licenses from short-term rentals with repeat issues.
- Currently, cities can intervene only if properties receive three adjudicated violations in a single year. Cities have found it takes about six months on average to adjudicate a violation, so they've been unable to stop nuisance rentals, league legislative director Tom Savage said.
- The bill would extend the time frame to better allow cities to intervene.
The other bill, helmed by Rep. Selina Bliss (R-Prescott), would allow cities to cap the number of vacation rentals in their boundaries and require a "buffer" between properties, Savage said.
- He said the bill was designed to alleviate pressure on tourism-heavy cities like Sedona, Cottonwood and Jerome.
- Nick Ponder, the league's lobbyist, said existing short-term rentals wouldn't be affected by the cap or buffer, but he warned that without a limit, the market will "continue to grow."
The other side: Lauren Bouton, the policy lead for Airbnb, told Axios "it would be a mistake for legislators to not seek input from everyday hosts as they look toward future policymaking," which is now the case.
- She added that the company has taken significant steps to root out party homes.
- Per the company's data, Airbnb hosts contributed $3.5 billion economic impact in Arizona in 2024.
What we're watching: Gov. Katie Hobbs in her State of the State address pitched a $3.50 nightly fee on short-term rentals, going toward a new Arizona Affordability Fund that would help people pay for utilities and lower energy costs.
- The fee would require a two-thirds supermajority — an uphill battle in the Republican-controlled Legislature.