Short-term rentals in Lake Havasu City, explained properly.

An application may be denied for failure to pay the required, nonrefundable permit fee (5.20.025(D)(2)), and the permit is issued or denied within 7 business days of a complete application and fee (5.20.025(C)). The fee schedule hasn't been reviewed yet, so no amount is shown.

All permits are valid for a period of 1 year from the date of issuance (5.20.025(F)). A permit may not be renewed if there are causes for denial, suspension, revocation or other sanctions under the chapter (5.20.025(G)). On expiration, a complete application and the fees are required to continue operating (5.20.025(H)).

The City form, signed by the applicant, must give: the physical address; the owner's name, address and telephone (and the legal name and statutory agent of an entity); each designee; the full name, address and 24-hour telephone of the emergency point of contact; proof of a valid transaction privilege tax license; acknowledgment of the duty to comply with the law, including that the owner and each designee is not a registered sex offender and has not been convicted of listed felonies within the past 5 years; attestation of the neighbor notification; and evidence of liability insurance of at least $500,000 in the aggregate, or that each rental transaction is booked through a platform providing equal or greater primary liability coverage (5.20.025(B)). The information is made publicly available.

A vacation rental application may be denied for: failure to provide the required owner, address, tax license, emergency contact and compliance information; failure to pay the nonrefundable fee; a suspended permit for the same vacation rental at the time of application; false information; or an owner or designee who is a registered sex offender or has been convicted within the past 5 years of a felony that resulted in death or serious physical injury or of a felony use of a deadly weapon (5.20.025(D)).

The contact's details go to the City on a form signed under penalty of perjury before the property is used, and a new form is due within 14 calendar days of a change of owner, agent, designee, contact or other material information (5.20.040). A timely response means telephone contact with the occupants within 30 minutes of a call, in-person contact within 45 minutes if phone contact is not made, a report back to the City within 45 minutes of each City call, and, if public safety personnel require it, an in-person response within 30 minutes (5.20.050(F)). Failure to respond to City calls is a violation (5.20.050(G)).

Before offering a vacation rental for the first time, the owner or designee must notify all single-family residential properties adjacent to, directly and diagonally across the street from the rental, and all multifamily units on the same floor, with the permit number, address and emergency contact information. Notice to all owners or residents of single-family properties and lots within 300 feet of the property line also meets the requirement (5.20.050(K)). The owner gives the City an attestation of compliance with the permit number, the addresses notified and the manner of notice, repeats the notice when the contact information changes, and provides an attestation within 10 calendar days of a City request (5.20.050(K)(1)-(3)).

The owner or designee must display the local regulatory permit number on each advertisement for a vacation rental (5.20.050(L)). The owner must also maintain a current transaction privilege tax license from the Arizona Department of Revenue and list its number on each advertisement, including online marketplace postings, in accordance with A.R.S. § 42-5042 (5.20.050(J)).

All vacation rentals must maintain liability insurance appropriate to cover the vacation rental in the aggregate of at least $500,000, or advertise and offer each vacation rental through an online lodging marketplace that provides equal or greater insurance coverage (5.20.050(M)). Evidence is part of the permit application (5.20.025(B)(8)).

Owners must install and maintain working smoke and CO alarms, maintained annually as required by NFPA 72, and keep inspection and maintenance records for the Fire Marshal; install, maintain and inspect a portable multi-purpose fire extinguisher in any kitchen area, on each floor and within 20 feet of every outdoor fire feature, fire pit, patio heater or fireplace; and post a map showing egress routes, fire equipment locations, the full property address, 911 and owner contact information (5.20.050(P)(1)). Rentals must meet the minimum habitable-structure standards, including occupancy limits, in the City Code, the International Property Maintenance Code and the Zoning Code, and the City may require an inspection if it has reason for concern (5.20.050(P)).

Before occupancy or during check-in the owner must describe the rules for use as a vacation rental, including parking, noise and amplified sound, trash collection schedules, and event and non-residential use restrictions, give the booking guest a written copy acknowledged at booking, and keep a record of compliance (5.20.050(N)). A notice in 14-point or larger bold font, on laminated or similarly shielded paper, must be posted inside the front door and the primary door to the backyard, or in a conspicuous place near each door, listing the emergency contact and the prohibited uses (5.20.050(O)).

A vacation rental may not be rented, advertised or used for housing sex offenders, operating a sober living home, selling illegal drugs, liquor or pornography, or obscenity, nude or topless dancing and other adult-oriented activities (5.20.050(Q), following A.R.S. § 9-500.39). It also may not be used for nonresidential uses, including a special event that would otherwise require a permit or license, or for a retail, restaurant, banquet space, event center or similar use (5.20.050(I)). The posted notice states that the City may expressly permit such a use in writing (5.20.050(O)).

The owner and emergency point of contact must ensure occupants do not create unreasonable noise disturbances, engage in disorderly conduct or violate the City Code or state law (5.20.050(C)), that noise does not exceed the levels in Chapter 9.30 (5.20.050(E)), and that trash and refuse are not left stored within public view except in proper containers no more than 12 hours before collection, as described in Title 14 (5.20.050(D)). Chapter 9.30 and Title 14 themselves haven't been reviewed yet, so no decibel limits or collection days are shown.

The owner shall comply with all provisions of the city Tax Code concerning transient occupancy taxes (5.20.050(H)). We haven't reviewed that tax code yet, so the City rate and a combined total with the Arizona state rate are not shown on this page.

The owner is responsible for compliance with all applicable codes on fire, building, health and safety and all other relevant laws (5.20.050(A)). The chapter's requirements are in addition to any license, permit or fee required under any other provision of the code (5.20.070), and the chapter's regulations are in addition to other City codes (5.20.010(A)).

Causing, permitting or aiding a violation, or failing to perform a required act, is a class one misdemeanor and a civil offense with a fine of at least $500 (5.20.060(B)). A civil penalty applies per owner for verified violations at the same rental in a 12-month period: $500 or one night's advertised rent, whichever is greater, for the first; $1,000 or 2 nights' rent for the second; and $3,500 or 3 nights' rent for the third and later (5.20.060(C)). Multiple violations from one incident count as one (5.20.060(D)). A civil penalty of $1,000 applies for every 30 days the owner fails to provide required contact information (5.20.060(H)), and $1,000 per month for failing to apply for a permit within 30 days after written notice (5.20.060(J)). A rental without an active permit must immediately cease operations (5.20.060(I)). These penalties are cumulative (5.20.060(A)).

A permit may be suspended for up to 12 months for three verified violations in a 12-month period (not counting an aesthetic, solid waste or parking violation that is 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 by the owner or designee, a serious physical injury or wrongful death from knowing, intentional or reckless conduct of the owner or designee, knowingly housing a sex offender or operating a sober living facility or adult-oriented use, or knowingly allowing a special event or retail, restaurant or banquet use (5.20.060(F)). A court may also suspend a property's use as a vacation rental for up to 12 months after a qualifying felony (5.20.060(G)). A suspended permit is a ground to deny a new application for the same rental (5.20.025(D)(3)).

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.