Scottsdale, AZ Airbnb & Short-Term Rental Regulations [2026 Guide]
Everything you need to know about operating a legal short-term rental in Scottsdale, Arizona. Complete guide to Ordinance 4566, licensing, taxes, and compliance requirements updated for 2026.
Scottsdale is one of Arizona's premier vacation destinations, known for its world-class golf courses, luxury resorts, and vibrant dining scene. The city has embraced short-term rentals while implementing regulations to protect neighborhood quality of life. Understanding Ordinance 4566 and related requirements is essential for operating a compliant STR in Scottsdale.
Regulation Overview
Scottsdale's short-term rental regulations are governed by City Ordinance No. 4566, which requires licensing for any property rented for less than 30 consecutive days. The ordinance was adopted in response to state legislation that granted localities more regulatory authority while preventing outright bans.
Key Regulatory Bodies
- City of Scottsdale Planning & Development: Issues STR licenses and enforces Ordinance 4566
- Arizona Department of Revenue: Administers Transaction Privilege Tax (TPT) licensing
- Scottsdale Code Enforcement: Investigates complaints and enforces violations
- Maricopa County Assessor: Property records and assessment
License Requirements
Operating a short-term rental in Scottsdale requires obtaining both a City of Scottsdale STR License and an Arizona TPT License. The licensing process includes several documentation and compliance requirements.
City of Scottsdale STR License
Submit application through the City of Scottsdale online portal
Proof of Transaction Privilege Tax license from Arizona DOR
Proof of at least $500,000 in liability coverage
Designate 24/7 emergency contact who can respond within 1 hour
$250 annual fee per property
Arizona TPT License
Before obtaining your Scottsdale STR license, you must register with the Arizona Department of Revenue for a Transaction Privilege Tax (TPT) license:
- Register online at AZTaxes.gov
- No fee for TPT license registration
- Required for tax collection and remittance
- Must be obtained before applying for city license
Ordinance 4566 Details
City Ordinance No. 4566 is the primary regulatory framework for short-term rentals in Scottsdale. Understanding its key provisions is essential for compliance.
Key Provisions
| Requirement | Details |
|---|---|
| License Required | All properties rented for less than 30 days must be licensed |
| Annual Fee | $250 per property, per year |
| Insurance Minimum | $500,000 liability coverage required |
| Occupancy Limit | 6 adults max, or 2 per bedroom (whichever is lower) |
| Emergency Contact | 24/7 contact who can respond within 1 hour |
| Neighbor Notification | Required within 30 days of license issuance |
| Signage | STR Notice in 14-point bold font, laminated |
| Events Prohibited | No permitted events (weddings, large parties) |
Insurance Requirements
Scottsdale's ordinance requires every short-term rental to maintain liability coverage of at least $500,000. This insurance requirement can be satisfied through:
- Commercial Liability Policy: Standalone STR insurance policy
- Umbrella Policy: Personal umbrella extending coverage to rental activities
- Platform Protection: Airbnb Host Protection Insurance or similar marketplace coverage
- Landlord Policy: Special landlord policy with STR endorsement
Zoning & HOA Rules
Unlike many cities, Arizona state law prevents municipalities from prohibiting short-term rentals through zoning. However, HOA restrictions and certain operational limits still apply.
Arizona State Law Protection
Arizona Senate Bill 1350 (2016) prevents cities from banning vacation rentals in residential areas. This means:
- STRs cannot be prohibited based on zoning classification
- Cities can regulate health, safety, and operational requirements
- Licensing and taxation requirements are permitted
- Nuisance and noise regulations can be enforced
HOA Restrictions
While the city cannot ban STRs, homeowners associations (HOAs) may impose their own restrictions:
- Some HOAs prohibit rentals under 30 days entirely
- Others require minimum rental periods (e.g., 7 days, 30 days)
- Additional guest rules and parking restrictions may apply
- Fines and enforcement by HOA are separate from city enforcement
TPT & Lodging Taxes
Scottsdale STR operators must collect and remit multiple layers of Transaction Privilege Tax (TPT) and lodging taxes. The combined tax burden is approximately 16% of the gross rental amount.
| Tax Type | Rate | Authority |
|---|---|---|
| Arizona State TPT | 5.6% | Arizona DOR |
| Maricopa County TPT | 0.7% | Arizona DOR |
| City of Scottsdale TPT | 1.7% | City of Scottsdale |
| Transient Lodging Tax | 5.0% | City of Scottsdale |
| Additional Hotel Tax | 3.0% | City of Scottsdale |
| Total | ~16% | - |
2025 Tax Changes
Important changes took effect in 2025:
- Long-Term Rental Exemption: As of January 1, 2025, residential rentals of 30+ consecutive days are no longer subject to city TPT
- Short-Term Rentals: Rentals under 30 days remain fully taxable with the transient lodging tax
- Rate Change: City of Scottsdale TPT rate adjusted to 1.7% effective July 1, 2025 (Proposition 490)
Platform Tax Collection
Airbnb, VRBO, and most major platforms collect and remit Arizona state and local taxes on behalf of hosts. However:
- You must still register for a TPT license with Arizona DOR
- File zero-dollar returns if all rentals are through tax-collecting platforms
- Collect and remit taxes on direct bookings outside platforms
- Maintain records for potential audits
Hosting Limits & Rules
Scottsdale imposes specific operational requirements on STR hosts to maintain neighborhood quality of life and ensure guest safety.
Occupancy Limits
- Maximum Adults: 6 adults, or 2 adults per bedroom, whichever is lower
- Children: Minor children in addition to adult limit
- Events: STRs cannot be used for permitted events (weddings, large parties)
- Day Visitors: Excessive day visitors may constitute a nuisance violation
Required Signage
Scottsdale requires specific signage to be displayed at all STR properties:
- Short-Term Rental Notice generated through Scottsdale City website
- Must be in 14-point bold font
- Must be laminated for durability
- Posted in a conspicuous location visible to guests
Emergency Contact Requirements
- 24/7 Availability: Emergency contact must be available around the clock
- Response Time: Must be able to respond to property within 1 hour
- Local Presence: Contact should be local to Scottsdale area
- Authority: Must have authority to address issues and make decisions
Neighbor Notification Requirements
Ordinance 4566 requires STR operators to notify neighboring properties about their rental operation. This requirement helps maintain community relations and provides neighbors with contact information.
Notification Requirements
- Timing: Within 30 days of receiving your Scottsdale license
- Updates: Notify again whenever contact information changes
Who Must Be Notified
For single-family residential properties:
- All properties adjacent to your property
- Properties directly across the street
- Properties diagonally across from your property
For multi-family residential buildings:
- All units on the same building floor as your unit
Required Information in Notice
Your City of Scottsdale STR license number
Physical address of the short-term rental property
Name, address, and 24-hour telephone number of your emergency contact
Penalties & Enforcement
Scottsdale enforces its STR regulations strictly. The city maintains a dedicated hotline for reporting violations and actively monitors booking platforms for unlicensed rentals.
Violation Penalties
| Violation Type | Penalty | Additional Consequences |
|---|---|---|
| Operating without license | $1,000 per violation | Required to cease operations |
| Insurance non-compliance | $500 - $1,000 | License suspension |
| Exceeding occupancy limits | $250 - $500 | License review |
| Missing neighbor notification | $250 - $500 | Required compliance |
| Noise/nuisance violations | $100 - $500 | Repeated violations lead to license revocation |
| Tax non-compliance | Back taxes + penalties | State enforcement action |
Enforcement Methods
- Platform Monitoring: City tracks listings on Airbnb, VRBO, and other platforms
- Complaint Hotline: Dedicated hotline at ShortTermRentalsHotline@ScottsdaleAZ.gov
- Neighbor Reports: Code enforcement responds to neighbor complaints
- Proactive Inspections: Compliance checks on licensed properties
2026 Regulatory Updates
Scottsdale's STR landscape may see significant changes in 2026 due to potential state legislation. Here are the key developments to monitor:
Potential State Legislation
Arizona is approaching the 10-year mark since the Legislature prevented local governments from banning short-term rentals. City leaders are hoping for updates to the law:
- Density Caps: Proposed legislation would allow cities to cap the number of STR licenses in oversaturated areas
- Total License Limits: Cities may be able to limit the total number of licenses issued
- Minimum Distance Requirements: Potential rules on spacing between STR properties
- Local Control: League of Arizona Cities and Towns is actively proposing legislation
Current 2026 Requirements
- License Renewal: Annual renewal of Scottsdale STR license required
- Insurance Verification: Updated proof of $500,000 liability coverage at renewal
- Contact Updates: Any changes to emergency contact must be reported promptly
- Neighbor Re-notification: Required if contact information changes
Best Practices for 2026
- Monitor Arizona Legislature for potential STR legislation during 2026 session
- Maintain excellent neighbor relations to prevent complaints
- Keep all documentation current and accessible
- Consider joining local STR advocacy groups for updates
Frequently Asked Questions
Yes, Scottsdale requires all short-term rental operators to obtain a City of Scottsdale Short-Term Rental License under Ordinance 4566 before advertising or renting their property. The annual license fee is $250 per property. Additionally, you must obtain a Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue. Operating without a license can result in fines of $1,000 per violation.
Scottsdale's Ordinance 4566 requires all short-term rental properties to maintain liability insurance coverage of at least $500,000. This can be obtained directly through a commercial policy or through an online lodging marketplace like Airbnb's Host Protection Insurance. Proof of insurance must be maintained and available for inspection.
Scottsdale STR operators must collect and remit multiple taxes totaling approximately 16% of the rental amount: 5.6% Arizona State TPT, 0.7% Maricopa County TPT, 1.7% City of Scottsdale TPT, 5.0% Transient Lodging Tax, and 3.0% Additional Hotel Tax. Airbnb and VRBO collect most of these taxes automatically, but hosts must still register with the Arizona Department of Revenue.
Scottsdale limits short-term rental occupancy to a maximum of 6 adults, or 2 adults per bedroom, whichever is lower, plus minor children. Additionally, STRs cannot be used for events that require permits, such as weddings or large parties. These limits are strictly enforced to maintain neighborhood quality of life.
Operating an unlicensed short-term rental in Scottsdale can result in fines of $1,000 per violation. The city actively monitors STR listings and tracks unlicensed rentals. Repeat violations can lead to loss of the Scottsdale license and additional penalties. The city maintains a hotline specifically for reporting unlicensed STR activity.
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