Short-term rentals in Chandler, explained properly.

Every application, including a renewal, must be accompanied by a non-refundable annual license fee established by City Council resolution (22-3.4). If the license is denied, the paid fee is refunded. The first-year fee is prorated by the date of application: 100% from July 1 to September 30, 75% from October 1 to December 31, 50% from January 1 to March 31 and 25% from April 1 to June 30. The fee resolution or schedule hasn't been reviewed yet, so no dollar amount or effective date is given here.

The application must name the individual who will serve as the 24-hour emergency point-of-contact (22-3.2). When requested by a police officer, the owner or emergency point-of-contact must be on the premises or available by phone or text within sixty minutes (22-5.1), and must respond to other City-initiated inquiries within twenty-four hours (22-5.2). Changes to the contact information need prior written notice to the Director at least 10 days before the change (22-5.3). Failing to give the notice is a civil offense and can bring a civil penalty of up to $1,000 for every 30 days (22-5.4, 22-5.5).

Before offering a short-term rental for the first time, the owner or designee must give written notice, in the form the City requires, to each residential property adjacent, directly across, diagonally behind and across the street, and directly behind the rental. A street or alley does not remove the requirement, and the City may waive it where a major arterial street, freeway, canal, railroad or other geographic feature creates a reasonable buffer. For a multi-family building the notice goes to each unit on the same floor and the units directly above and below. The notice must give the rental's address and the emergency point-of-contact's name, address, email and 24-hour telephone number (22-6.1). Changes need additional notice no later than five days before the change (22-6.2). The notification must be complete before applying, and the application includes a signed attestation (22-6.3, 22-3.2).

The owner or owner's designee must display the license number issued by the City and the transaction privilege tax license number issued by the Arizona Department of Revenue on each advertisement for a short-term rental, including advertisements on an online lodging marketplace (22-7.1). A violation is a civil offense, and each advertisement in violation is a separate violation (22-7.2).

A notice listing the prohibited uses and stating the maximum occupancy of the residence must be posted in a conspicuous place in the rental (22-4.6). The name, phone number and email address of the owner (or designee) and the emergency point-of-contact must be displayed in a conspicuous place on an interior wall within three feet of the primary entrance (22-8.1). Each day the information is not displayed is a separate violation (22-8.2).

A short-term rental may not be rented, advertised or used for occupancies exceeding those allowed under Chapter 29 of the Code (22-4.3). The neighborhood preservation requirements in Chapter 30 and the residential parking requirements in Chapter 35 apply to a short-term rental (22-4.4, 22-4.5). We haven't reviewed Chapters 29, 30 and 35 yet, so no occupancy number, noise rule or parking count is given here.

The City may impose these civil penalties on an owner who causes, allows, facilitates, aids or abets a verified violation, or fails to perform a required act, at the same rental within the same 12-month period: up to $500 or up to one night's advertised rent, whichever is greater, for the first violation; up to $1,000 or up to two nights' rent, whichever is greater, for the second; and up to $3,500 or up to three nights' rent, whichever is greater, for a third and any later violation. Multiple violations from the same response to an incident count as one (22-10.D). Operating without a license can bring a civil penalty of up to $1,000 per month if the owner fails to apply within 30 days of written notice (22-3.9, 22-10.E). The City may also use civil citation, injunctive action, restitution and, for recidivist offenders, criminal prosecution (22-10.A).

The City may start an administrative process to suspend a license for up to twelve months for three verified violations of the chapter within a 12-month period (not counting aesthetic, solid waste or vehicle parking violations that are not also a serious threat to public health and safety), or for one verified violation that results in or constitutes a felony at or near the rental, a serious injury or wrongful death from knowing, intentional or reckless conduct, knowingly housing a sex offender or operating a sober living home, or knowingly allowing a special event that needs a permit or a retail, restaurant or banquet use. Other licenses held by the same owner may also be suspended if their continued operation poses a serious threat to public health and safety (22-9.1). A court may also suspend the property's use as a short-term rental for up to 12 months after a felony act causing death or serious injury (22-12). An appeal must be filed in writing within 10 calendar days of the decision letter and does not stay a suspension (22-11).

Applies to: Subject to change if state law is amended

A.R.S. § 9-500.39(A) bars Arizona cities and towns from prohibiting short-term rentals, and subsection (B) lists the only ways they may regulate them (health and safety rules, zoning and nuisance rules applied like other residential property, emergency contact, a local permit, neighbor notice, permit number in ads, insurance, and owner residency on some properties with an accessory dwelling unit). Permit caps and minimum-distance or spacing limits are not on that list, and the statute applies to cities of every size.

Short-term rental income (stays under 30 days) is subject to Arizona transaction privilege tax (TPT), so hosts need a TPT license from the Arizona Department of Revenue (a seasonal license can be chosen on AZTaxes.gov) and must include the TPT license number in any advertising for the rental. A city business license, where a city requires one, is separate from the TPT license.

Arizona's state transaction privilege tax rate on the transient lodging classification (A.R.S. § 42-5070) is 5.5%, set by A.R.S. § 42-5010(A)(2). County and city taxes are added on top and vary by location.

Hosts must file a TPT return for every period even if the property was not rented, filing a $0 return rather than skipping the filing.

Separately from tax licensing, every Arizona county requires residential rental properties to be registered with the County Assessor, and penalties can apply to rentals that are not registered. A.R.S. § 9-500.39(J) keeps this duty in place for short-term rental owners.