SCOTTSDALE, AZ — Hundreds of short-term rental properties throughout Scottsdale can be attractions for visitors on vacation, but they are causing headaches for some people who live in the area.
Signs that read “Homes, Not Hotels” are popping up in a neighborhood near Old Town Scottsdale.
“This is a new one that I got,” Meg Dingmann of Scottsdale, said.
Another sign in her yard sends a message about short-term rentals, reading: “Short Term Rentals Ruin Neighborhoods.”
“My neighborhood has small, modest homes. Used to be, you know, perfect starter homes for beginning families, small families," Dingmann said. “Now there's at least 20 short-term rentals in this neighborhood. They stand empty most of the time, and they're owned by investors.”
“People talk about the housing shortage,” Dingmann said. “Well, maybe there's not a housing shortage. There's just a housing availability shortage.”
City records show there are about 20 short-term rental properties in the neighborhood called Peaceful Valley, but Dingmann is not the only neighbor who feels they are disturbing the peace.
“It only takes one to really kind of ruin your day, literally, and night,” John Washington said.
These homeowners say that beside their homes, many of which have stayed within the same families for decades, rental properties now bring noise and big parties every weekend. They say one neighbor regularly deals with golf balls flying into her yard.
“She's had to board up her windows because she's afraid the balls are going to break her windows, and she doesn't have a lot of money to repair that if that should happen,” Dingmann said.
Washington also has privacy concerns.
“We have in this neighborhood a deed restriction, prohibition against structures that are taller than two stories,” he said. “We're always concerned when we see new construction underway.”
Washington says builders push the limits on height restrictions, and he fears rooftop patios or high windows will limit privacy for neighbors around those new structures.
Crime is also a concern.
Homeowners say in the past few years, neighbors have called police to report theft, escorts, and illegal drug use at some of the short-term rentals.
“You don't feel safe, because you just don't know who these people are,” Dingmann said.
They say the problems all started with 2016 state legislation that states cities and towns may not prohibit vacation rentals or short-term rentals.
“[Senate Bill] 1350 is the legislation that preempted our local ordinance. And we're trying to get more restrictions in place, or I should say back in place, rather than just being a free-for-all,” Washington said.
Scottsdale’s Assistant City Manager Brent Stockwell tells ABC15 in a statement:“Under state law, the city cannot prohibit short-term rentals. They are allowed in apartments, condominiums and townhomes, and single-family neighborhoods, unless they are prohibited through a private agreement, such as deed restrictions.”
Stockwell says the city continues to work on legislation to address negative consequences associated with short-term rentals alongside other Arizona cities and towns.
“The city continues to advocate for a return of short-term rental regulations to the city of Scottsdale, where it was before it was taken away by the State Legislature,” Stockwell said.
Detailed information about the short-term rentals in Scottsdale is on the city’s website and in a Good Neighbor Guide. There are details on both sites about what actions residents can take if they are having an issue with a short-term rental in their neighborhood.
Stockwell reminds the public that activities that are legal at a private residence are also legal at a short-term rental. Those include gatherings, yard games, swimming, playing music at a reasonable level, smoking tobacco or marijuana, and drinking alcohol. Someone renting a property can invite guests to park on the street unless there are private restrictions in place.
Similarly, short-term rentals, like private residences, are not allowed to be used for nuisance parties, unlawful gatherings, or other criminal activity.
Additional city data shows that short-term rental stays have dropped 5.7% since Fiscal Year 2022/2023. That year there were 274,300 stays in Scottsdale, compared to 258,700 stays in FY 2023/24.
There was also a 20% decrease in licensed short-term rental properties over the past year: in June of 2024, Scottsdale had 3,060 licensed units, compared to 3,852 licensed units in June of 2023.
Although short-term stays in Scottsdale are down, they still brought in tax revenue of $15.6 million in FY 2023/24. That increased nearly 7% from the previous year when the city collected $16.6 million. Comparatively, motels and resorts brought in $43.7 million.
In addition to regular patrols, Scottsdale police have also created a special united dedicated to short-term rentals. Police issued 738 charges related to these properties in FY 2023/24. That is up 30%, from just 25 charges during the previous year.
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Over Labor Day weekend, Scottsdale police responded to 21 calls related to loud music or parties at these rental properties. Three people were cited from three different incidents. One was for allowing a nuisance party, another was for underage liquor violation and permitting a nuisance party, and the third was for false reporting or failure to obey a police officer.
The short-term rental companies that ABC15 reached out to have not yet provided comment.
Airbnb, which is not tied to any of the claims made by homeowners but is operating in Scottsdale, has a global party ban policy. It prohibits disruptive and unauthorized parties in Airbnb listings, and guests who violate the policies could face account suspension or removal from the platform.
As of 2023, Airbnb reported a more than 50% decrease in the rate of party reports globally since the introduction of the party ban in 2020.
Also starting in 2020, Airbnb implemented anti-party systems in certain areas at certain times of the year that can typically lead to disruptive parties. For example on Halloween last year, roughly 1,000 people were deterred from booking an entire home in Arizona due to those protections.
A Neighborhood Support Line from Airbnb lets neighbors speak directly to the company if they have an urgent concern about a property in their community.
The short-term rental platform Vrbo says guests planning an event must ensure the property allows events before booking.
The company says there is a detailed House Rules section for each property.
Vrbo notes they have policies in place to protect their hosts, properties, and the surrounding community from unauthorized or disruptive gatherings. Guests who break house rules or policies may not be able to book on the site in the future.
