PHOENIX — A growing number of Valley cities are either considering or have adopted new licensing regulations for short-term rentals.
The move comes after the state legislature passed a law allowing them to do it.
Local leaders say short-term rentals diminish housing affordability and disrupt neighborhoods with noisy parties which in one case in Tempe, led to a gun battle.
In 2016, Governor Doug Ducey signed into law a ban prohibiting municipalities from restricting short-term rentals.
"The Republicans drank the Kool-Aid because it was de-regulation which we love. Democrats like it because empty nesters struggling financially with an empty bedroom could pick up extra cash." State Representative John Kavanagh (R) Scottsdale/Fountain Hills District 23 said.
Kavanagh was one of only a few lawmakers who opposed the 2016 bill.
There are not many mom-and-pop's cashing in on Arizona's short-term rental business as the owners of many homes live out of state.
In November, Amy Mills who owns several short-term rental properties in the Valley told ABC 15 that she tries to be a good neighbor and encourages others to do the same.
"They need to knock on their neighbor's doors to begin with and say hey, make sure they have a contact phone number. If there is a problem contact me." she said.
During the recent legislative session, lawmakers passed a bill allowing cities to conduct sex offender background checks and license short-term rentals.
Owners need liability insurance, provide contact information, and can be subjected to fines and license revocation if they are cited three times in 12 for health and safety violations.
The short-term rental industry did not oppose the bill.
"I don't think people have any business in a residential area creating these decentralized horizontal hotels. But now that they're here, I'm hoping we can get a handle on them," said Representative Kavanagh.
As cities consider reasserting some control over short-term rentals, Kavanagh says it will take at least a year before anyone knows if the licensing rules really work.
On Thursday, Scottsdale announced owners have until January 8 to license short-term rental properties. Each property must have its own license and must comply with several safety, health and neighbor notification requirements.
The city has notified all known short-term/vacation rental properties about the licensing requirement via direct mail. However, as of Dec. 14, only 530 of an estimated 5,000 properties in Scottsdale have applied for or received their Scottsdale license.
