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Scottsdale City Council looks to add teeth to short-term rental regulations

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Officials at City Hall tell the Digital Free Press three ordinance changes will be presented for adoption at the Tuesday, May 6, public hearing (Photo: Arianna Grainey/DigitalFreePress)
Scottsdale City Council to consider 3 new measures at May 6 pubic hearing
Staff Reports | Digital Free Press

Scottsdale City Council Tuesday, May 6, is expected to consider amending city code provisions to improve the city’s ability to hold people accountable for noisy neighborhood gatherings, which often occur at short-term rental properties.

Officials at City Hall tell the Digital Free Press three ordinance changes will be presented for adoption at the Tuesday, May 6, public hearing. They speak to:

  • Promoters who use residential properties for nuisance parties will be defined and designated as a responsible party under city code, increasing the city’s ability to hold bad actors accountable for causing nuisance parties in neighborhoods.
  • Scottsdale police will be provided the authority to remove non-residents from a property after a nuisance party is declared, something that is not easily done under existing city code.
  • Minors will be specifically prohibited from renting a short-term rental property, allowing the city to better enforce violations when necessary.

As these ordinance changes were drafted, the city offered them for public feedback through its online community engagement platform. Nearly 2,200 residents responded indicating widespread support for the proposed changes.

Read the City Council report for yourself HERE.

These city ordinances would apply to all residential properties, not just to those offered for rent, City Hall leaders say.

However, the issue with nuisance parties is clearly more acute at short-term rental properties, numbers show.

Nuisance party calls for service in January-March 2024 increased 73% when compared to the same period one year ago. Of these, 48% are confirmed at short-term rental properties.

“Scottsdale neighborhoods have consistently expressed frustration with short-term rental properties that market themselves as party pads and host loud, late-night gatherings,” Scottsdale Mayor David Ortega said in a prepared statement. “No question, short-term rentals are both a nuisance and a hazard. We believe these ordinance changes will strengthen our ability to hold party promoters accountable.”

Of Note: Why can’t the city just ban problem properties and short-term rentals?

In 2017, state law eliminated the ability for local cities and towns including Scottsdale to regulate these types of rentals based solely on their classification or use. Since legislation has preempted cities and towns on this matter, the city cannot prohibit short-term rentals nor pass an ordinance that is more restrictive than state law. Any changes to the authority cities like Scottsdale have regarding short-term rentals would need to be made by the Arizona Legislature, City Hall leaders say.

“During the current legislative session, Scottsdale led a coalition of 90-plus Arizona municipalities which presented reasonable regulatory reforms to the Arizona Legislature, but the legislature did nothing,” Mayor Ortega said. “The Scottsdale City Council will continue to implement every possible tool allowable under state law – we established a local licensing program, created a Short-Term Rental Unit in the Scottsdale Police Department, and we have vigilant code inspectors to report problem properties.”

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