As of Jan. 8, vacation rental property owners in Scottsdale, Arizona are now subject to large fines if they fail to obtain a license for their short-term rental properties. The city of Scottsdale recently adopted an ordinance, following a state law that took effect in September of 2022, which requires all properties that can be rented for fewer than 30 days, including Airbnb and Vrbo listings, to be licensed.
Despite the city mailing out licensing notices to known short–term rental properties, as of Jan. 3, fewer than 900 of the city‘s estimated 5,000 listings have been licensed, according to Scottsdale officials. This could be due to the fact that many STR owners are out of state investors. As of Jan. 9, unlicensed properties will incur a minimum fine of $1,000 and subsequent fines of $1,000 every 30 days.
The state law was passed after years of negotiations between municipal governments and short–term rental industry leaders. Many city and town leaders complain that vacation rentals have caused a slew of problems, from nuisance complaints and safety issues to eating up the local housing supply.
VRBO is working with city officials to inform property owners, and managers, about the ordinance and the importance of obtaining a license. Arizonans for Responsible Tourism has taken additional steps to inform its members about the regulations and how they can become licensed.