Updated October 2026. Arizona cities can’t ban short-term rentals, but most large Valley cities now require a permit or license, emergency contact information, neighbor notice and proof of tax registration. Those rules come from A.R.S. 9-500.39. A long-term rental of 30 days or more has none of those city requirements. It does need registration with the county assessor, and the rules of the Residential Landlord and Tenant Act apply.

Your HOA’s CC&Rs can be stricter than any city. Here’s how the rules compare in 2026. It’s a general summary, not legal advice.

The statewide framework: A.R.S. 9-500.39

State law sets the outer limits for every city and town.

• Cities and towns may not prohibit vacation or short-term rentals.
• They may require a permit or license. The fee can’t exceed the actual cost of issuing it or $250, whichever is less, and the city must issue or deny it within seven business days.
• Owners must give the city an emergency contact who can respond to complaints at any time. Failing to do so can bring a penalty of up to $1,000 for every 30 days of noncompliance.
• Before renting for the first time, owners must notify adjacent single-family neighbors and those directly and diagonally across the street.
• Owners need at least $500,000 in liability coverage, or must list on a platform that provides equal or greater coverage.
• Listings must show the local permit number. Where there’s no local permit, they must show the TPT license number.
• Civil penalties for verified violations within 12 months rise from up to $500 (or one night’s rent, if greater) to up to $3,500 (or three nights’ rent). Three verified violations in 12 months, or one serious violation, can lead to a permit suspension of up to 12 months.

No state law changes to these rules were enacted in 2026. Bills such as SB 1076, which would have let towns under 70,000 people cap permits, weren’t enacted. Scottsdale and other cities say they will ask the Legislature for more authority in the next session.

City rules in the Phoenix metro

Phoenix

Every short-term rental in Phoenix needs a permit from the Planning and Development Department. The fee is $250 for the initial permit and for each renewal. Before applying, owners must send a notice of intent by certified mail to adjacent and facing neighbors. They must also notify registered HOAs and neighborhood associations within 600 feet. Applications go through the city’s SHAPE PHX portal. Owners need an Arizona TPT license and must update the property’s rental status with the Maricopa County Assessor. Starting April 4, 2026, owners using an accessory dwelling unit with a certificate of occupancy issued on or after September 14, 2024 must submit a notarized attestation that they live on the property. Our Phoenix property management page covers long-term rentals in the city.

Scottsdale

Since a 2022 ordinance, Scottsdale has required a license for each property rented for fewer than 30 days, with safety standards such as pool barriers and working smoke alarms. Scottsdale added two rules in 2026, according to Axios Phoenix (September 2026). A June ordinance bars using rentals as event venues for weddings or conferences, with a $1,000 fine. An August rule requires emergency contacts to answer around the clock and reach the property within an hour when public safety officials call, with a minimum $500 fine for being unreachable.

Mesa

Mesa City Code Chapter 5-15 has required a short-term rental license since February 1, 2023. The fee is $250 for the initial license and $250 per unit each year to renew. Renewals are due at least 45 days before expiration, and a license that lapses must be reapplied for as new. Owners must notify surrounding neighbors, show proof of a TPT license, and show at least $500,000 in liability coverage per unit at renewal.

Chandler

Chandler has required short-term rental owners to get a city license since August 1, 2023. Owners who don’t apply within 30 days of a city notice face civil penalties. Check the city’s licensing page for the current fee and application.

Other cities

Many other Valley and Pinal County cities have licensing rules of their own. Before you list a home anywhere, check that city’s website, since each city sets its own process within the state limits.

HOA rules can be stricter than city rules

A city can’t ban short-term rentals, but an HOA’s declaration often can restrict them. Arizona’s HOA rental statute, A.R.S. 33-1806.01, lets owners lease unless the declaration prohibits it, subject to any rental time period restrictions in the declaration. Some CC&Rs set minimum lease terms that rule out nightly rentals.

Limits on new restrictions apply too. In Kalway v. Calabria Ranch HOA (2022), the Arizona Supreme Court held that an amendment adding new restrictions must be a foreseeable refinement of the existing CC&Rs. That ruling raised doubts about amendments that ban short-term rentals in communities whose original documents didn’t address them. Read your current CC&Rs and any amendments before you buy or convert a home.

Taxes: short-term vs long-term

Since January 1, 2025, Arizona cities can’t charge transaction privilege tax on residential rentals of 30 days or more, and ADOR canceled rental-only licenses for long-term landlords. Short-term lodging of fewer than 30 days is still taxable. Owners need a TPT license and must keep it active while they rent. An online lodging marketplace collects and remits the tax on bookings made through it, but owners still report that income and are responsible for tax on direct bookings, according to ADOR’s short-term lodging page.

Long-term rental rules, for comparison

A home leased for 30 days or more doesn’t need a city short-term rental permit in these cities. It must be registered with the county assessor under A.R.S. 33-1902. Deposits are capped at one and one-half months’ rent (A.R.S. 33-1321), and evictions follow the Residential Landlord and Tenant Act. Some owners also pick a lease term that fits their HOA’s minimum. Our Arizona landlord-tenant law guide covers the rest of the long-term rules.

Choosing the long-term route

Property Plus USA manages long-term single-family rentals, not nightly rentals. If you’re moving a home from short-term to long-term use, we can price it, help with HOA registration, and handle leasing and screening. See our plans and pricing or call 480-586-3700 for a free rental analysis.

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