The State of Arizona regulates short term rentals (STR) or vacation rentals in the City of Tempe. Tempe has established an ordinance requiring property owners to register their STR with the City. This registration enables the City to contact homeowners and their representatives in the case of an emergency or code violation. The following is a complete guideline for Tempe’s short term rental regulations so that anyone can be a responsible host when using platforms like Airbnb, VRBO, and other similar services. This rundown should give you a good start in understanding your local laws.
Short Term Vacation Rentals
Short term or vacation rentals in the City of Tempe are properties rented to transient occupants for less than 30 days. They include single-family homes, apartments, condominiums, corporate housing, or rooms for rent. Short term rentals are subject to Transaction Privilege Tax (TPT or sales tax). They are an alternative to hotels and motels but taxed the same. Moreover, STRs are commonly advertised on online listing platforms like Airbnb and HomeAway for lodging. Tempe law requires homeowners to register their short term vacation rental with the City. STRs are for residential purposes only and not commercial purposes.
Short Term Rental Registration
According to the City of Tempe’s code, all short term rental properties must be registered. Registration is free of charge.
Update Short Term Rental Registration
Tempe requires short term rental operators to provide the City with updated emergency contact information.
Update Registration on Short Term Rental
Remove Short Term Rental Registration
Short term rental operators in Tempe must notify the City if they have sold the property, or if they no longer use it as an STR.
If a new owner purchases the property and intends to continue operating it as a short term rental, they must submit a new registration with the City.
Remove Registration on Short Term Rental
Taxes
Short term rentals, like hotels and motels, must collect Transaction Privilege Tax (TPT). The gross income from the business activity of operating a hotel charges for accommodation or lodging space given to individuals for less than thirty days.
The Total TPT rate is 14.07% for a short term rental. Property owners can apply, file, and pay TPT at AZTaxes.gov.
Other Regulations
As a responsible host, you must comprehend and abide by other vacation rental rules and regulations that bind you. These include leases, community rules, HOA rules, or other guidelines set up by tenant associations. Feel free to reach out to your landlord, housing authority, or community council to find out more. To get more information about other short term rental regulations, you can also visit Tempe’s official website or contact us.