AIRBNB & SHORT-TERM RENTAL RULES

Scottsdale

,
Arizona

Can you run an Airbnb or do rental arbitrage here? What the city requires: permits, taxes, safety rules and enforcement.

Updated
Oct 2, 2026
||
Map showing the city
Our rating
Mixed
ARBITRAGE VERDICT

Yellow light: allowed with a license, but the fines are steep

Arizona law bars Scottsdale from banning short-term rentals, or regulating them by use or occupancy,[1] so you can scale here. But every unit needs its own $250 city license,[2] commercial events are banned,[3] and running without a license costs at least $1,000 per violation.[2]

Our verdict, based on the sources at the end of this guide.

AT A GLANCE
Non-owner-occupied
Allowed
State law bars city rules based on use or occupancy[1]
Who holds the permit
The owner
The owner applies and can name a designee[2], so work it out with your landlord
City permit
$250 a year
For each property, and each renewal[2]
Permit cap
None
The code sets no limit and state law bars bans[1, 2]
Lodging taxes
13.97%
7.27% state and county, 1.70% city, 5.00% city bed tax[4, 5]
Stays of 30+ days
No license
The city license covers stays under 30 days[3]

Arizona law bars Scottsdale from banning short-term rentals or regulating them by use or occupancy,[1] so the city focuses on safety, registration and tax.[6] You need a $250 city license for every unit,[2] a state TPT license and a Maricopa County registration.[7] Commercial events are banned, and a June 2026 ordinance now defines event center to make that easier to enforce.[8]

01

Key requirements

State TPT license

Get a transaction privilege tax (TPT) license from the Arizona Department of Revenue first, and list Scottsdale as your region code.[7] The city application asks for proof of a valid TPT license,[2] and the state says you can't offer a rental without one.[9]

City license

Get an annual city license for each property.[2] It costs $250, the fee is non-refundable, and the license can't be transferred to another location or person.[2] The city issues it within seven business days of a complete application unless grounds for denial exist.[2]

Per-unit rule

A separate license is required for each house or dwelling unit.[2] A dwelling and its accessory guest house must be rented together, not separately.[6]

County registration

Register each rental with Maricopa County before anyone stays.[7] It's illegal to rent a property before it's registered.[7] The Assessor says owners who don't live in Arizona must name a statutory agent who does.[10]

Neighbor notice

Before you offer the rental for the first time, notify every single-family home next to, directly across from and diagonally across the street.[2] The written notice includes the license number, the address and the emergency contact's name, address and 24-hour phone number.[2] The city's owner page says to send it within 30 days of getting your license.[7]

02

Operational and safety standards

Events and non-residential use

A short-term rental can't be used for retail, a restaurant, an event center, banquet space or any other non-residential use, or for a special event that would need a permit or license.[2] A June 2026 ordinance defines an event center as property hosting organized gatherings with a commercial purpose, such as weddings, banquets and corporate events.[8]

Occupancy and guests

The limit is a single family of one to six adults and their related dependent children.[2] You can't rent to a minor.[2]

Emergency contact

Name a real person as your 24-hour emergency contact.[2] When police, fire or other public safety staff respond to the property, that person must get there within one hour.[2]

Insurance and background checks

Carry at least $500,000 in liability insurance for each rental unless the booking platform provides that coverage, and send proof to the city within 30 days of getting your license.[2] Run a sex offender check on the person booking at least 24 hours before every stay and keep a copy for 12 months.[2] State law waives that check if the platform runs it.[1]

Safety and signage

Keep working smoke alarms, post a floor plan with exit routes and fire equipment, and follow the pool barrier rules if guests can use a pool.[2] Post the city notice in 14-point or larger bold type on laminated or shielded paper inside the front door and the primary backyard door.[2]

03

Tax obligations

State and county

Short-term lodging under 30 days is taxed as transient lodging.[5] The state's October 2026 rate table lists 7.27% for transient lodging in Maricopa County, which combines the state rate and the county excise tax.[4]

City tax

Scottsdale adds a 1.70% privilege tax and a 5.00% transient tax.[4, 5] With the state and county rate, that's 13.97% in total.[4, 5]

Booking platforms

Booking sites must register with the state and pay tax on the bookings made through them.[9] You still need your own TPT license, and if you book only through a platform you must still file a return showing those receipts with a deduction.[9]

30-day leases

The extra transient tax doesn't apply if the lease or prepaid rent covers at least 30 days from the start.[5]

04

Enforcement

No license

Operating without a license is a civil offense with a fine of at least $1,000 per violation, and the court can't suspend any of it.[2] If you ignore a written notice to apply, the city adds a $1,000 penalty for every 30 days.[2]

Verified violations

Penalties for verified violations in a 12-month period are up to $500 or one night's rent, whichever is greater, for the first, up to $1,000 or two nights' rent for the second, and up to $3,500 or three nights' rent for the third and later ones.[2]

Suspensions

The city starts suspension for three verified violations in 12 months, or for one serious violation such as a felony at the property or hosting a special event that needs a permit or license.[2] A final suspension lasts one year, which a hearing officer can cut to six months.[2] State law caps suspensions at 12 months.[1]

Missed steps

Failing to show your license number in ads, carry insurance or notify neighbors costs at least $500, and skipping the sex offender check or renting to a minor costs at least $1,000.[2] A court can cut the ad, insurance and notice fines to $100 once you comply.[2]

Bottom line for arbitrage

Mixed
|Our take

You can scale here. Budget for the license, insurance and strict enforcement on every unit.

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        Sources

        The bracketed numbers in this guide point here. All sources checked
        Oct 2, 2026
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        General information, not legal advice. Rules change often, so confirm with the city before you sign a lease.
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        More guides in this state

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        Mixed
        A.R.S. 9-500.39, Vacation rentals and short-term rentals | Arizona Legislature | https://www.azleg.gov/ars/9/00500-39.htm Scottsdale Revised Code, Chapter 18, Article IX: Vacation Rentals and Short-Term Rentals | City of Scottsdale (Municode) | https://library.municode.com/az/scottsdale/codes/code_of_ordinances?nodeId=REVISED_CODEVO1_CH18PUNUPRMA_ARTIXVARESHRMRE Vacation and Short-Term Rentals | City of Scottsdale | https://www.scottsdaleaz.gov/codes-and-ordinances/vacation-and-short-term-rentals Arizona State, County and City Transaction Privilege and Other Tax Rate Tables, effective Oct 1, 2026 | Arizona Department of Revenue | https://azdor.gov/sites/default/files/document/TPT_RATETABLE_10012026.pdf Hotel/Motel, Scottsdale Privilege and Use Tax (July 2025) | City of Scottsdale | https://www.scottsdaleaz.gov/docs/default-source/scottsdaleaz/taxes/hotel-motel.pdf?sfvrsn=daeb9596_1 Information about Vacation/Short-Term Rentals | City of Scottsdale | https://www.scottsdaleaz.gov/codes-and-ordinances/vacation-and-short-term-rentals/information-about-vacation-short-term-rentals Information for Owners and Operators | City of Scottsdale | https://www.scottsdaleaz.gov/codes-and-ordinances/vacation-and-short-term-rentals/information-for-owners-and-operators Scottsdale closes enforcement gap on commercial events at short-term rentals (news release, Jun 29, 2026) | City of Scottsdale | https://www.scottsdaleaz.gov/scottsdale-news/details/scottsdale-closes-enforcement-gap-on-commercial-events-at-short-term-rentals Online Lodging Marketplace | Arizona Department of Revenue | https://azdor.gov/business/transaction-privilege-tax/online-lodging-marketplace Rental Registration FAQ | Maricopa County Assessor | https://www.mcassessor.maricopa.gov/faq/rental_registration/
        State law bars the city from banning short-term rentals[1] The code sets no cap on how many licenses the city issues[2] The city issues a license within seven business days of a complete application[2] Stays of 30 days or more need no city license[3]
        A $250 license for every unit, every year[2] Fines of at least $500 or $1,000 for many missed steps[2] No commercial events, and a special event can cost you the license for a year[2] Your emergency contact must reach the property within one hour[2]
        Agree who is the owner on the license and who is the 24-hour contact, since the contact must reach the property within one hour.[2] Put the no-events rule in your listing and house rules, and cap guests at six adults.[2, 8] Budget $250 a year per unit and at least $500,000 in liability coverage.[2] Register the rental with Maricopa County before the first guest stays.[7]
        Oct 2, 2026
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