Important Update! 2022 Arizona bills that impact Short Term Rentals

Recently Arizona bills have passed in the house, that impact short term rentals. These bills are in the early stages. Meaning, they are not yet law and many of them likely will NOT become law. In order to become law, they have a long way to go, and eventually, they need to be signed and approved by the Arizona governor and then pass through a final period period where they can be challenged.

The following is the quick and dirty summary of the short term rental bills that are in motion. I eliminated redundant elements in this summary, so some of these bills have redundant cross-over requirements.

HB2711 passed February 14th. It requires a business license, and limits the number of short-term rentals based on the percentage of total residential units in town.

SB1168 passed February 15th. It requires a minimum of a $500,000 liability insurance policy.

HB2234 passed February 15th. It more clearly defines what the penalties are to landlords for tenant violations, such as noise complaints. Also adds vague penalties for not providing owner contact information.

$500 penalty or one night’s rent, the first verified violation (whichever is greater)

$1,000 or two nights rent, for the second violation (whichever is greater)

$3,500 for three nights rent for the third violation

HB2663 passed February 16th. It changes the zoning of STR’s towards commercial. It also requires a minimum of two night stays, and stiffer penalties to homeowners for tenant noise violations.

HB2625 passed February 16th. It requires the owner or contact designee to post contact info on a sign on-site, less than 2′ x 2′, as well as provide their contact info to all homeowners within 300 feet of the property.

Those are the bills in motion as of February 19th, 2022.

How does a past bill become law?

As of right now, none of the above-mentioned bills have passed a floor vote and they haven’t moved across the aisle for a second vote, which among other things is what’s required.

After the second vote, they still need to be approved and signed by the governor. The governor can veto or approve and sign. Also, if any bills are amended, they have to be voted on again- and so on. Anything that gets a green stamp all across the board must be then approved and signed by the governor.

Then, there’s a 90-day stretch where a bill can be legally challenged. This can send it back to the drawing board.

Realtor Perspective

From a realtor perspective as well as a legal perspective, many of these bills are unconstitutional, and they disregard basic rights such as our right to privacy. Some of these bills treat investors more like criminals and less like business owners and operators.

A Sedona Local’s Perspective

Up until about two years ago, there were not enough rentable beds in Sedona for visitors, especially around holidays and busy seasons. Some visitors would have to stay one or two towns away, and required to stay in hotels, whether they wanted to or not. Thanks to short term rentals, there are enough beds in Sedona and visitors are empowered to choose exactly what accommodations they want. This is really important as the Sedona industry is tourism.

We need to bring tourists/visitors to town and give them a nice place to stay. Hotels and resorts have not been sufficient over the years. Now we have enough beds and farm more price and comfort options than before.

There are areas such as Scotsdale, where noise violations and parties are a MAJOR problem. In these areas, stiffer violations and more oversight would be quite helpful, to the neighbors.

What’s Next For STR's in Sedona?

Whatever the end result of these bills, as well as future bills, there is a substantial need for short term rentals in Sedona so the short term rental opportunity for investors will continue.

I’m going to continue to monitor these bills as well as other influencing factors, for short term rentals and other Sedona cash flow investors.