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In Arizona, state law provides that cities and towns cannot prohibit the operation of short-term rentals. This law has caused frustration for many neighbors who believe nearby short-term rental properties constitute a nuisance due to the constant inflow and outflow of new tenants who may be more inclined to make noise, party, and cause nuisance-type issues in the surrounding neighborhood. Many people refer to short-term rentals as “party houses.” Last year a man was identified in a deadly shooting at a Chandler Airbnb house. https://www.azfamily.com/news/pd-man-identified-in-deadly-shooting-at-chandler-airbnb-house-party/article_9a5026ea-9051-11e9-aefe-3bd60ecdea6f.html.

Although cities and towns cannot prohibit short-term rentals, homeowner associations can, and generally accomplish this result through amending the Covenants, Conditions, and Restrictions. And, even cities and towns can still regulate short-term rentals. Last year, Governor Ducey signed an amendment into law that provided more leeway to cities and towns to regulate these rentals.

The new changes to the Chandler regulations stem from this recent amendment and are designed to further crack down on, and regulate, short-term rentals in Chandler. Almost 600 short-term rentals exist in Chandler and less than 20% of them are registered and taxed. These rentals are now required to be registered and pay transaction privilege taxes under the new regulations. Chandler short-term rental properties are also prohibited from being used for nonresidential purposes. Fines can also be issued for violations of the new regulations.

The new regulations are expected to bring in significant additional revenue to the City. Many people believe this is appropriate inasmuch as city police spend a lot of time fielding complaints regarding short-term rentals. This has occurred in Chandler, like most locations that have short-term rental properties, on many occasions, and the difficulty in handling these complaints, among other things, is what spurred Chandler to make the change.

Thus, not only is registration expected to bring in more revenue, but it is also expected to make it easier for police to handle a complaint if a neighbor complains about a short-term rental property. There has been an uptick in complaints against short-term rental property owners in Chandler, and overall, many Chandler residents are welcoming the changes and additional restrictions. With that being said, the new regulations are being introduced at a time when Arizona is still suffering from the pandemic, with the short-term rental industry state-wide attempting to rebound from the significant blow it suffered earlier this year from vacationers cancelling their vacations for fear of catching Covid-19.

If you have any questions, you can contact Ben at 602-533-2840 or email him at ben@mandglawgroup.com.

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