Short Term Rentals: Arizona Supreme Court Issues New Ruling Protecting Them

By: PROVIDENT LAW, SCOTTSDALE ARIZONA

The Supreme Court of Arizona recently handed down a landmark decision that effectively prevents HOAs from restricting short term rentals in the vast majority of communities.  In 2016, Governor Ducey signed into law SB1350 which authorized short term rentals in the State of Arizona.  Per SB1350 (codified at A.R.S. §9-500.39) short term rentals are legal in Arizona and the state, county, and local municipalities may not  take any action to restrict short term rentals.

What is a Short Term Rental?

“Short term rental” is defined by the statute as “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.”

Rental period durations for short term rentals often range anywhere from twelve months to one night.

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