Thinking about buying a home in Phoenix to use as a short-term rental? The numbers can look great, but the City’s rules are strict and the penalties add up fast if you miss a step. You want predictable income, low risk, and a permit that stays in good standing. In this guide, you’ll learn exactly how Phoenix’s STR permit works, what to prepare, and the pitfalls to avoid so you can launch and operate with confidence. Let’s dive in.
Phoenix STR rules at a glance
Phoenix requires a local STR permit for any rental of 30 days or less. The City converted its old registry to a permit program that began issuing on November 6, 2023. Planning & Development handles permits, and Neighborhood Services and Phoenix Police enforce complaints. See the official process and requirements on the City of Phoenix short-term rental permit page: City STR permit overview.
Arizona law sets the framework and limits what cities can do. Cities cannot ban STRs outright, but they can require permits, safety standards, neighbor notices, and insurance. Review the state statute that guides local rules: A.R.S. § 9-500.39.
Who needs a permit in Phoenix
If you offer stays of 30 days or less, you must have a City STR permit and a valid Arizona Transaction Privilege Tax (TPT) license before you list or host. The City must issue or deny a complete application within seven business days, and permits are annual. Details and links to apply are on the City STR permit overview.
Step-by-step: How to get permitted
- Confirm property eligibility. Check your HOA or condo rules, since private covenants can prohibit STRs even when the City allows them.
- Get your Arizona TPT license. You will need it for the City application and for tax filing. For rate updates and classifications, review the Arizona Department of Revenue updates: ADOR TPT rate update and ADOR prior update.
- Apply in SHAPE PHX and pay the $250 fee. The City will issue or deny a complete application within seven business days. Start with the City STR permit overview.
- Prepare the required documents:
- Affidavit and Attestation acknowledging compliance.
- Map showing smoke/CO detectors, fire extinguisher locations, and exits.
- Owner’s Designee Authorization if someone manages or responds for you.
- Attestation of neighbor notices sent by certified mail.
- Proof of Arizona TPT license.
- Evidence you updated your Maricopa County Assessor rental status.
- Emergency contact information and insurance evidence.
- Send certified neighbor notices. See the rules below.
- Post and advertise correctly. Inside the property, post a copy of the permit within 10 feet of the primary entrance. On every listing, include both your STR permit number and your TPT license number. The City code also requires platforms to verify permit numbers. Review the advertising and display rules here: Phoenix Municipal Code §10-201.
Neighbor notice rules
You must send a Notice of Intent by certified mail to abutting or adjacent properties and to any HOAs or registered neighborhood associations within 600 feet. For single-family homes, that includes properties on both sides and those behind, across the street, or diagonally across. For multifamily, it includes all units on the same floor. Keep your certified mail receipts and file the City attestation. Full details are on the City STR permit overview.
Operate by the rules
- Post safety equipment and maintain working smoke and CO detectors. Keep portable fire extinguishers where required and a labeled safety map on-site.
- Maintain a 24/7 emergency contact. The designee must be reachable and, in some cases, able to be on-site within City timelines.
- Use is residential lodging only. Events, retail, restaurants, or similar nonresidential uses are not allowed.
- ADUs have extra limits. Phoenix and state law restrict certain accessory dwelling units as STRs depending on dates and specific criteria. If you are counting on a casita, garage apartment, or other ADU, verify eligibility on the City STR permit overview before you buy.
Insurance expectations
Phoenix requires evidence of appropriate liability insurance for STR operations. Local guidance commonly references a $500,000 minimum for liability coverage or qualifying marketplace coverage. Confirm current language in the City application and consider reviewing this statewide resource on STR practices: CPCA STR guidance.
Taxes and the TPT license
- Every STR operator must hold an Arizona TPT license and file under the correct business classification for transient or online lodging. Phoenix requires proof of your TPT license in the STR permit application.
- Marketplaces often collect and remit, but you are still responsible for correct registration and reporting. Keep records in case of audit.
- Combined guest tax rates can change. ADOR has reported a combined rate for the transient lodging classification near 6.05% at times. Always verify your exact Phoenix region code and current rate in ADOR’s updates: ADOR TPT rate update.
Penalties and enforcement
Phoenix uses an escalating fine schedule for court-adjudicated violations. Minimum fines start at $500 for a first violation, $1,000 for a second, and $3,500 for a third. A permit can be suspended for 12 months after three court-adjudicated violations within 12 months or after certain serious criminal convictions on the property. Platforms must verify permit status, and advertising an unpermitted listing creates liability. Review the display and platform duties in Phoenix Municipal Code §10-201 and the City’s enforcement notes on the City STR permit overview.
If police, fire, or code officers need your designee, that person must be available and may need to respond on-site under certain conditions. Not responding can trigger penalties. The City’s page provides department contacts for questions and complaints.
Common pitfalls to avoid
- Operating without a permit or with a lapsed permit.
- Missing certified neighbor notices or failing to file the City attestation.
- Omitting the permit and TPT numbers on listings.
- Not maintaining liability coverage or assuming platform policies are primary.
- Skipping ADOR registration or misreporting TPT classifications.
- Overlooking HOA or condo prohibitions that still apply even if the City permits STRs.
Quick compliance checklist
- Verify zoning realities and all HOA or condo rules.
- Obtain your Arizona TPT license and confirm the correct Phoenix region code and current rate in ADOR updates: ADOR TPT rate update.
- Apply for the Phoenix STR permit and pay the $250 fee; expect a decision within seven business days for a complete application. Start here: City STR permit overview.
- Prepare required documents, including safety map, designee form, neighbor notice attestation, Assessor update, insurance evidence, and TPT proof.
- Send certified notices to abutting neighbors and any HOAs or registered neighborhood associations within 600 feet, then keep receipts.
- Post the permit inside within 10 feet of the main entrance and include your permit and TPT numbers on every listing: Phoenix Municipal Code §10-201.
- Maintain safety gear, inspection logs, and a 24/7 emergency contact. Confirm response ability if required.
- Track and resolve complaints quickly. Three court-adjudicated violations within 12 months can lead to a 12-month suspension.
Invest with a compliance-first lens
When you buy with an STR strategy in Phoenix, property selection and due diligence are everything. You want a home that fits City rules, aligns with HOA policies, and has the layout and safety features to pass permitting on the first try. A smart plan protects your revenue and keeps your permit in good standing.
If you want help sourcing STR-viable homes and assessing HOA and ADU considerations before you offer, connect with Lauren Inglese. You’ll get clear guidance and a smooth path from offer to compliant operations.
Whether you are a first-time buyer or a seasoned investor, navigating the current inventory of Phoenix homes for sale requires local expertise. Trust your next big move to a dedicated partner. Reach out to Phoenix real estate agent Lauren Inglese today to schedule a focused, one-on-one consultation about your specific real estate goals.
FAQs
Do I need a permit to run an Airbnb in Phoenix?
- Yes. Phoenix requires a local STR permit and a valid Arizona TPT license before you list or host. Start with the City’s instructions here: City STR permit overview.
How much does the Phoenix STR permit cost and how long does it take?
- The permit costs $250 and the City issues or denies a complete application within seven business days. See the process on the City STR permit overview.
Are ADUs like casitas allowed as short-term rentals in Phoenix?
- Not always. Phoenix and state law place restrictions on using certain ADUs as STRs based on specific criteria, so verify eligibility on the City STR permit overview before relying on ADU income.
What taxes apply to Phoenix short-term rentals and who remits them?
- You must hold an Arizona TPT license and ensure transient lodging taxes are reported and remitted. Marketplaces may collect, but you are responsible for accurate registration and filings. Check current rates and guidance in ADOR updates: ADOR TPT rate update.
What are the penalties if I operate without a permit or break the rules in Phoenix?
- Minimum fines start at $500 for a first violation, $1,000 for a second, and $3,500 for a third, and three court-adjudicated violations within 12 months can trigger a 12-month suspension. See details on the City STR permit overview.
What must be shown on my listing and posted on-site in Phoenix?
- Every advertisement must include your STR permit number and TPT license number, and you must post a copy of the permit inside within 10 feet of the primary entrance. See the rules in Phoenix Municipal Code §10-201.
