Updated 3/22/2021 

At the start of January, Phoenix implemented regulations for short-term rentals requiring hosts to register their rental properties with the city. The city hopes the new regulations will cut out party houses and ensure safe neighborhoods for locals and guests.  

Hosts are also required to post emergency contact information in their home and respond to police inquiries within the hour if a situation should arise at their rental. Fines will be delivered for violations of the ordinance: first-time violations could incur a $500 fine; $1,000 and $1,500 for second and third offenses 

Lawmakers reviewed and modified the restriction last year, allowing local government to enforce short-term rental regulations. This is a change from 2017 when the Arizona Legislature banned cities from regulating short-term rentalsUltimately, Phoenix is seeking to adapt to local short-term rental growth and ensure safety for their neighborhoods which are now a mix of businesses and full-time residential properties.  

Update: In an effort to crackdown on unruly short-term rentals, Arizona Senate Bill 1379 is working its way to the Senate floor after passing unanimously through the House in early February. This new bill would give Arizona city governments the authority to increase fines for violations. 

A second bill that could affect Sedona hosts, House Bill 2481, would enforce occupancy restrictions in a continuous attempt to eliminate party houses in residential areas. The City of Sedona’s short-term rental page shows the bill’s progress and updates hosts should be made aware of. 

Joining the Short Term Rental Market Despite Airbnb Laws

Hosts joining the Short Term Rental Market should consider the necessary steps to ensure success and the specific risks involved in the business. View the following recent article educating hosts as they enter the market: 4 Steps to Becoming a Professional Short-Term Rental Host.  

Hosts should begin by researching local regulations, such as those discussed above, for their own town or city. Many cities disperse fines if hosts do not comply with the regulations. Being educated on new or in process regulations could save from surprising obstacles later on.  

Hosts should make sure they have the correct insurance coverage for their business – coverage for building, contents, lost business income, and liability coverage (click here for a 5-mintue online quote). Traditional homeowner’s insurance policies exclude coverage for business activity. Considering this, hosts should do their research to obtain the correct coverage for their Short Term Rental.

Hosts should research technology to assist in running their business. Companies such as AutoHost complete guest screening on behalf of the host opening time for the host to focus on refining their business. Devices such as Flo (an automatic water shut-off valve) and NoiseAware (a noise monitoring system) will assist hosts in monitoring their properties to navigate potential damages or nuisance guests in real time.

Quote Your Short-Term Rental Today 

Interested in a policy to protect you and your business from liability and damage claims? Proper Insurance leads the Nation in short-term rental insurance, with over 50,000 policies written in all 50 states. Backed by Lloyd’s of London and exclusive endorsements from short-term rental leaders such as HomeAway and Vrbo, Proper Insurance is built on world-class insurance coverage. 

Are you curious as to the top claim in 2019? View our recent article here discussing the particular risks of Short Term Renting and what hosts should consider when joining the market in 2020.

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