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Phoenix cracks down on short-term rentals with new ordinance

City Council voted Wednesday to change city code, allowing for additional short-term rental regulations
Posted at 10:32 PM, Sep 20, 2023
and last updated 2023-09-21 01:32:52-04

PHOENIX — The city of Phoenix is taking steps to crack down on short-term rentals. Many people believe it is long overdue.

"It's really unacceptable," said Alexia Shonteff, a north Phoenix resident who lives down the street from a short-term rental. "It's almost every single weekend, they have these huge people coming in, and there's a DJ. There's party going on, they have the lights, and there are neighbors in that area."

The Phoenix City Council is aware of those concerns. That is part of the reason they voted Wednesday to change the city code, allowing for additional regulations through a short-term rental permit process.

Some of the requirements include registering with the Maricopa County Assessor's Office, notifying their neighbors of their intent to operate a short-term rental and requiring criminal background checks. Another part of the process includes the city working with online platforms to verify listings.

"It requires that online platforms such as Airbnb or VRBO verify that, they verify that any short-term rental being offered for rent in the City of Phoenix is in compliance with the city of Phoenix. So, it will have a permit number," said Kate Bauer, co-founder of Arizona Neighborhood Alliance.

There are also three levels of civil penalties for violations and in the worst-case scenario, a short-term rental operator could ultimately have their permit suspended. The city's Planning and Development Department will manage the submittal and approval process, while the Neighborhood Services Department will oversee permit enforcement and violations. The Phoenix Police Department will also be involved, where an officer can identify calls for service at short-term rentals and notify the city.

Regardless, there are still some concerns.

"Given our challenges with staffing and so forth, we don't have an army to go out and enforce these rules. Obviously, a lot of the problems we encounter are at two in the morning," said Councilmember Jim Waring.

Ric Kenworthy, owner of Travli Hospitality, has invested in multiple short-term rental properties and believes a balance needs to be found to ensure they can stick around.

"If you go back to the way it started, they are vacation rentals. One of the things we focus on as often as possible as a management company is creating experiences. I don't think Arizona as a whole on a tourism level has enough when it comes to hotels," said Kenworthy.