Thinking about hosting your Scottsdale home as a short-term rental? The rules are clear, the penalties are real, and a few smart steps upfront can save you time and stress. You want to welcome guests with confidence, protect your property, and keep good standing with the city and your neighbors. This guide gives you the essentials: what counts as a short-term rental, how licensing works, taxes to plan for, and a ready-to-use owner checklist. Let’s dive in.

What counts as a short-term rental

Scottsdale defines a short-term or vacation rental as a residential dwelling rented for fewer than 30 days. State law limits cities from banning short-term rentals by use, but Scottsdale sets licensing, safety, and nuisance rules within those limits. You can review the city’s definitions and program details on Scottsdale’s vacation rental page. City vacation and short-term rental overview

If you rent for 30 or more consecutive days, different tax rules apply. As of Jan 1, 2025, residential rentals of 30+ days are not subject to city Transaction Privilege Tax (TPT), while stays under 30 days remain taxable as transient lodging. ADOR residential rental guidelines

Scottsdale license: what you need

Scottsdale requires an annual short-term rental license for each property offered for stays under 30 days. The fee is $250 per property. You must have an Arizona TPT license to apply, and the city will ask for your TPT number in the application. Scottsdale business and regulatory licenses

Core operating rules to follow

• Insurance: Maintain at least $500,000 in liability coverage, either through your own policy or one provided by an online lodging marketplace. City vacation and short-term rental overview
• Neighbor notice: Within 30 days of licensing, notify adjacent and diagonal neighbors (or same-floor units) with your license number, property address, and 24-hour emergency contact. Complete the city’s attestation after you send notices. City vacation and short-term rental overview
• Emergency contact: List a 24/7 contact who can arrive on-site within one hour when public safety officials call. Failing to respond or arrive can result in fines. City announcement on new rules
• Posting and safety: Create a Short Term Rental Notice in 14-point bold font and post it near the front door and primary backyard door. Include emergency contact info, safety equipment locations, and city rules. Keep smoke detectors working, provide an exit map, and follow pool/spa barrier rules. City vacation and short-term rental overview
• Occupancy and use limits: Rent all units on the parcel together. Maximum occupancy is six adults plus related dependent children. No events or commercial uses. City vacation and short-term rental overview
• Background checks: No later than 24 hours before each stay, check the national sex offender public website for the booking guest. Violations carry steep fines. City announcement on new rules

Application steps

1. Obtain your Arizona TPT license. 2) Apply for Scottsdale’s short-term rental license online. 3) Complete neighbor notice and insurance attestations. 4) Register your property with Maricopa County. 5) Post the required notice and keep contact information current. City application and step-by-step guide

Penalties to know

Operating without a license can lead to escalating penalties, including a $1,000 penalty for every 30-day period you fail to apply after you are required to do so. Separate fines apply to safety and nuisance violations, including failure to respond within the one-hour window. Scottsdale business and regulatory licenses | City announcement on new rules

Taxes and TPT: how to handle it

Short-term stays under 30 days are taxable as transient lodging in Arizona. You need an Arizona TPT license to collect and remit unless your bookings occur through an online lodging marketplace that remits on your behalf. Even then, you often must still file returns and use deduction code 775 for amounts remitted by the platform. ADOR short-term lodging guidance | ADOR online lodging marketplace guidance

If you book a mix of short and long stays, report each transaction according to the length of stay. The Jan 1, 2025 change removed city TPT for 30+ day residential rentals, but it does not change taxability for stays under 30 days. ADOR residential rental guidelines

County registration: do not skip this

Arizona law requires owners of residential rental property to register with the Maricopa County Assessor before occupancy. If you live out of state, you must list a statutory agent. Update your registration within 10 days of any change. Renting without this filing is unlawful. A.R.S. § 33-1902

HOA and lease restrictions

Even when city rules allow short-term rentals, your HOA can still restrict or prohibit them. Review your CC&Rs and obtain any required approvals before you list your property. City vacation and short-term rental overview

Enforcement and risk management

Scottsdale enforces nuisance party and unlawful gathering ordinances, with escalating civil penalties for repeat issues. Police and code enforcement can intervene when a nuisance party is declared, and owners can be cited if they fail to meet the one-hour response requirement. Nuisance and enforcement coverage

Many penalties require a “verified” violation through admission or a hearing. Keep solid records: neighbor notices, insurance proof, background-check logs, cleaning and pest-control receipts, and response logs to complaints. These documents help you defend or mitigate if a citation is issued. Nuisance and enforcement coverage

Scottsdale short-term rental owner checklist

1. Decide your stay length strategy.

• If you host under 30 days, short-term rules and transient taxes apply. For 30+ days, review ADOR’s 2025 tax change.

2. Get your Arizona TPT license.

• Register at AZTaxes.gov, choose the correct business codes, and list Scottsdale on your account.

3. Register your property with Maricopa County.

• File with the Assessor under A.R.S. § 33-1902 before occupancy, and update within 10 days of changes.

4. Apply for the Scottsdale STR license.

• Have your TPT number, proof of insurance, parcel number, and contact details ready. Pay the $250 fee.

5. Maintain at least $500,000 liability insurance.

• Keep proof on file. If relying on platform coverage, get written confirmation.

6. Complete neighbor notification within 30 days.

• Notify adjacent and diagonal neighbors and complete the city’s attestation. Keep proof of delivery.

7. Designate a 24/7 emergency contact.

• Ensure they can arrive on-site within one hour. Publish the contact in your listing and on the in-home notice.

8. Post the required Short Term Rental Notice.

• Use 14-point bold font and display near the front and primary backyard doors with all required details.

9. Implement safety and house rules.

• Test smoke detectors, provide an exit map, follow pool/spa barrier rules, set occupancy limits, and add a clear guest conduct policy.

10. Run pre-stay background checks.

• Check the national sex offender website no later than 24 hours before each stay and keep a record of the check.

11. Set up tax filing and records.

• Confirm what your platform remits. File TPT returns and use the proper deduction for platform-collected tax. Keep receipts and booking logs.

12. Keep licenses and attestations current.

• Update contact info promptly and retain all compliance documents.

13. Build an enforcement response plan.

• Log complaint responses, guest communications, and remedial steps in case a violation is verified.

14. Confirm HOA and lease restrictions.

• Review CC&Rs and secure any needed approvals before listing.

Ready to buy a Scottsdale property to host or optimize the one you own? Get local guidance on neighborhoods, revenue potential, and resale strategy with The Kallay Group.

FAQs

Do I need both a Scottsdale license and an Arizona TPT license?

• Yes. Scottsdale requires an annual city license per short-term rental, and ADOR requires a TPT license to handle taxes on stays under 30 days. Scottsdale licensing overview | ADOR short-term lodging guidance

Will my booking platform handle all Scottsdale taxes for me?

• Many online lodging marketplaces remit taxes on platform bookings, but you should confirm coverage in writing and still file ADOR returns using the proper deduction when applicable. ADOR online lodging marketplace guidance

What happens if guests throw a large party at my Scottsdale rental?

• Scottsdale enforces nuisance party rules with escalating civil penalties; owners can also be cited if the emergency contact fails to respond and arrive within one hour. Nuisance and enforcement coverage

If I only rent for 30+ days, do I still owe city tax?

• As of Jan 1, 2025, residential rentals of 30 or more consecutive days are not subject to city TPT, but stays under 30 days remain taxable; county registration rules still apply. ADOR residential rental guidelines

What is the maximum occupancy for a Scottsdale short-term rental?

• Scottsdale limits occupancy to six adults plus related dependent children, and all units on the parcel must be rented together. City vacation and short-term rental overview