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Short-Term Rental Can Significantly Boost Income

By Christopher Combs | January 12, 2020

Question: We own a rental home in Scottsdale that is not in an HOA community. We have had a good tenant for the last two years who pays us $2,000 a month rent. We have been reading so much recently about short-term rentals in Scottsdale. If we refuse to renew the lease with our good tenant, and we convert this rental home to a short-term rental home, what are the advantages and disadvantages? What if the law is changed by Scottsdale to require minimum 6-month leases? Will we have lost our good tenant for nothing? Answer: The Arizona state legislature three years ago passed SB 1350 (now A.R.S § 9-500.39) that restricts Scottsdale and other towns and cities from regulating short-term rentals. Although the state legislature amended SB 1350 last year to basically allow towns and cities in Arizona to regulate short-term rentals used as “party houses,” no other significant…

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Constitutional Amendment Needed to Allow Regulation by Cities and Towns of Short-Term Rentals

By Christopher Combs | January 5, 2020

Question: In a recent column you said that if twelve Sedona homeowners wanted to prohibit Airbnb and VRBO short-term rentals in their small community of twelve homes, the twelve Sedona homeowners could form their own HOA to prohibit short-term rentals. In other words, if a group of homeowners already lives in an HOA community, or forms an HOA, the HOA can prohibit short-term rentals. If you don’t live in an HOA community, however, all of your neighbors can sell their homes to investors, and turn their homes into short-term rentals for up to 365 days a year. Why doesn’t our Arizona legislature do something to prevent a nice neighborhood from turning into a Motel 6? Answer: If you are opposed to short-term rentals in a community, the Arizona legislature is the problem, not the solution. In response to a Town of Sedona ordinance regulating short-term rentals in Sedona, the Arizona…

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