STR Frequently Asked Questions

What is a short-term rental?

A short-term rental refers to the rental of part or all of any legally permitted dwelling unit for fewer than 30 consecutive days.

What is the legal definition of a short-term vacation rental?

"Vacation rental" or "short-term rental" means any individually or collectively owned single-family or one-to-four family house or dwelling unit or any unit or group of units in a condominium, cooperative or timeshare, that is also a transient public lodging establishment or owner-occupied residential home offered for transient use if the accommodations are not classified for property taxation under section 42-12001. Vacation rental and short-term rental do not include a unit that is used for any nonresidential use, including retail, restaurant, banquet space, event center or another similar use. - A.R.S. §9-500.39

What can be used as a short-term rental?

Single-family houses
1 to 4 unit houses (duplexes, etc.)
Condominiums, townhouses, cooperatives or timeshares
Individual rooms within any of above
Guest houses, casitas, mother-in-law quarters

What cannot be used as a vacation rental?

Structures not approved as a dwelling unit
Unsafe structures (garage, shed, etc.) that do not meet health and safety standards
Campers, tents, RV’s

Property Owner Questions

Can I use my property as a short-term rental?

You need to determine the zoning of the property and if it is an approved structure. Call Community Development 928-213-2606 for assistance. If there is a homeowners association (HOA), check the HOA rules to determine if short-term rentals are permitted. The city does not enforce HOA rules.

What do I need to do if I want to start renting my property as a short-term rental?

Contact the State of Arizona Department of Revenue (aztaxes.gov) and apply for a Transaction Privilege License from the State of Arizona.
Register your rental here

Do I need to pay sales tax on short-term rentals?

Yes, you will need to collect state/county and city taxes. Short-term rentals are required to remit transaction privilege tax at the same rate as a hotel (transient occupancy tax).

How do I get a Transaction Privilege Tax License?

Visit to the Arizona Department of Revenue's website and apply for a license.

What is the tax rate for short rentals?

For current tax rates visit ADOR or view the City Tax Rate Chart.

If I only rent my home out a few days or weeks a year, do I still need a transaction privilege tax license and to pay taxes?

Yes

If I only rent out a room in my house, do I still need a transaction privilege tax license and to pay taxes?

Yes

AirBnb remits taxes on my behalf. Is it still necessary to obtain a TPT license?

Yes. Learn more about Online Marketplace Requirements.

What are some ways I can encourage my renters to be good neighbors?

If the property is within a Homeowners Association, know the rules and follow them.

Property owners should educate rental guests of the local rules and regulations such as but not limited to nuisances/noise control, trash and recycling, parking regulations, or events that should not take place at a non-residential property.
Ask rental guests to park in the designated rental driveway or in front of the rental house and not in a landscaped area. Make sure they don’t block a neighbor’s driveway or use another resident’s designated parking spot.
Put your trash and recycling out in the appropriate receptacle on the designated days and times and maintain and clean any shared community spaces.

What is required for the neighbor notification?

Prior to offering for rent, STR owners are required to provide adjacent properties with the following information:

STR license number.
Address of STR.
Name, address, email address, and phone number of 24 hour emergency point of contact.

Neighbor's Questions

What if I have a complaint or concern about a vacation rental in my neighborhood?

In an emergency dial 911
Incident hotline: 928-714-7951
Online complaint form: here
Code compliance: 928-213-2104
Police non-emergency Flagstaff Police Department at (928) 774-1414

What do I do if my neighbor’s guests are parking in front of my house?

If vehicles are obstructing traffic or illegally parked call Flagstaff Police. For general complaints, call the incident hotline or submit website form.

Can a home be used as a short-term rental if there is a homeowners association (HOA)?

If the HOA rules allow for rentals of less than 30 days, then STRs are likely allowed – check the HOA rules. The city does not enforce or have copies of HOA rules.