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 safety for their neighborhoods.
Hosts will post emergency contact information in their home and are required to respond to police inquiries within the hour if a situation should arise as 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 violations.
Lawmakers reviewed and modified the restriction last year, allowing city officials to enforce guidelines over Short Term Rental properties. This is a change from 2017 when the Arizona Legislature banned cities from regulating short-term rentals. As the Short Term Rental market grows, cities must also adapt to ensure safety for their neighborhoods which are now a mix of businesses and full-time residential properties.
Joining the Short Term Rental Market
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.
Give Proper a call today to receive a comprehensive quote and discuss the specific risks of Short Term Renting – (888) 631-6680!
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.