From Your Homeowner Liaison

By Sonja Perez, CAAM, CMCA SRCA Homeowner Liaison

SHORT TERM/VACATION RENTALS IN SCOTTSDALE RANCH

As we all know the winter months in Arizona is a popular destination for tourist with the City of Scottsdale being at the top of the list. Great events like the Barrett-Jackson, the Waste Management Open and Spring Training baseball, draw people here from all over the country and the world.

VRBO, Airbnb, and the multitude of companies like them has made it easier for homeowners to rent out their homes to strangers and popularized the practice as an alternative to hotels.

Scottsdale Ranch is no exception for people wanting to rent their homes during these lucrative times. Additionally, there are investors who have purchased property just for the short-term rental market.

The Scottsdale Ranch Board of Directors takes the violation of rental rules very seriously and has fined thousands of dollars to residents who chose not to comply with the rules. The Board is acutely aware of the issues that can come from short term rentals. Vacation rentals create a constant flow of strangers coming and going in SR neighborhoods that are family or retiree oriented. While many of the vacationers may be families, they are there to have a good time and do not have a vested interest in the neighborhood and can create noise nuisances and parking issues within the community.

The SR Board of Directors has created robust rules for restricting short term rentals within its single family home communities. While SRCA only has rental restriction jurisdiction over single family home rental, communities classified as condominium, cluster residential or townhomes have their own rules regarding vacation rentals.

Scottsdale Ranch Rules

TENANTS

(CC&Rs, Article IV, Section 3(b), Page 22) “No Owner may lease less than his entire Lot and the residential dwelling unit situated thereon. All leases shall be subject to the following restrictions: (i) All leases must be in writing and must provide that the terms of the lease are subject in all respects to the provisions of this

Declaration and the Association Rules and any State, County, or City Rules or Regulations regarding leasing of properties. (ii) (ii) All leases shall contain a requirement that any violation of this Declaration or the Association Rules, State, County, or

City Rules by the lessee or the other occupants shall be a default under the lease. (iii) (iii) There shall be no subleasing of residential dwelling units or assignments of leases. (iv) (iv) An Owner may not lease his Lot to more than one Single

Family at one time. Furthermore, an Owner may not enter into more than a total of two (2) leases for his Lot during any 365day period. Additionally, all leases must be for a minimum of a thirty (30) day term. No new lease may begin less than thirty (30) days after the start of the prior lease. No advertisement offering a lease or rental for less than thirty (30) days shall be allowed. All advertising shall limit leasing to only a Single

Family. (v) (v) Upon commencement of the lease term, the Owner shall submit a tenant registration form for each new tenant and each new lease, to the Association.

Scottsdale Ranch Fine Policy

WITHIN SUBDIVISIONS CLASSIFIED AS SINGLE FAMILY RESIDENTIAL:

RENTAL VIOLATION (LESS THAN ALL OF LOT, EXCEEDING NUMBER OF LEASES IN ANY 365 DAY PERIOD, OR NOT AS SINGLE-FAMILY RESIDENCE

No Courtesy Notice Required Violation Notice – amount being charged as rent, or minimum of $200 fine per day Subsequent Notices - amount being charged as rent, or minimum of $200 fine per day Continuing Violations - amount being charged as rent, or minimum of $200 fine per day

There is also restrictions and requirements on the state, county, and city level. In 2019 HB 2672 was passed and requires property owners renting out space through apps like Airbnb or VRBO to provide authorities with contact information in case of a complaint, like for excessive noise.

The bill also prohibits rentals for the purpose of holding a special event that would otherwise require a permit or license, or for using the building as a retail space, restaurant, or banquet hall.

PROPERTY OWNER REQUIREMENTS FOR SHORT TERM RENTALS

State

All Vacation Rentals and Short-term rentals have a Transaction Privilege Sales Tax and a Transient Tax liability. A Transaction Privilege Sales Tax license with the State of Arizona Department of Revenue is required.

County

All rental units, including vacation and short term rentals, shall file with Maricopa County, prior to being occupied, the information required by ARS 33-1902.

City

The owner of a vacation rental shall provide to the City of Scottsdale the name and contact information of a person designated as an emergency contact, as well as contact information for owner or owner’s designed for responding to complaints, in accordance with Section 18-150 of the City Code.

For more information, please check out the following websites.

www.azleg.gov Search HB2672 www.scottsdaleaz.gov Search vacation-short-term-rentals

If you suspect a property in your neighborhood is being used for short term rentals in violation of the Scottsdale Ranch rules, please contact me at 480-860-2022 or sperez@scottsdaleranch.org.