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Several cities to regulate short-term rentals like Airbnb, VRBO

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TEMPE, AZ — More cities are now working on new regulations for short-term rentals such as Airbnb and VRBO. They’re not doing them just because of parties, but for other safety reasons, too.

Over the weekend, a group of unknown individuals fired multiple shots into a Tempe neighborhood near Hardy and University drives. Police say they came from a house party at an Airbnb. The short-term rental company says it banned parties over the summer and the host of the house did not know the renter held a party.

No one was hurt in the incident, and police have not arrested anyone. However, the city said it is working on getting a meeting together for the community to discuss their concerns.

“We’re aware that things like this could happen and we want to do everything we can at our power to prevent situations like this and clearly prevent them going into the future,” said Mayor Corey Woods of Tempe.

The City of Tempe is asking community members for feedback regarding regulations for short-term rentals starting November 3. Woods said the regulations for short-term rental homes have been in talks since even before the incident over the weekend.

“The concern really became, you know from residents, ‘Is there anything the City Council can do to sort of tighten up some of these ordinances to provide a little bit more comfort when it comes to public safety and frankly just quality of life?’” Woods said.

The City of Tempe isn’t the only place in the Valley that is planning for changes. The City of Mesa and Scottsdale worked on their own ordinances.

Tempe’s ordinance would go into place in March, whereas Mesa’s will take effect February 1 and Scottsdale's later this month.

A City of Mesa spokesperson told ABC15 that the Super Bowl was partially why it went to regulating short-term rentals. The other factors include safety and parking concerns in some neighborhoods.

These three cities have similar regulations coming:

-Requiring sex-offender background checks; the City of Tempe said it may require other people staying on property to get background checks

-Notify neighbors of the short-term rental

-Requiring owners to have the minimum liability insurance of $500,000

-Establishing an emergency contact

-Get a $250 annual permit; the City of Mesa is taking public input for the price of the fee

“I think a license makes sense so that way, you know, cause it costs city money to deal with renters that want to be there illegally, that want a squat, that want to try and throw a party and, we want to get those out, those people out right away,” said Andrew Millett, an Airbnb host in Tempe.

Millett tells ABC15 he thinks the new requirements are appropriate for short-term rentals.

“I feel like we have a responsibility to be good neighbors if we want to. If we want this to be sustainable and be a long-term thing,” he said.

Amy Mills, who owns multiple short-term rentals across the Valley, said she always tries to be a good neighbor with her rentals. She usually goes and talks with neighbors next to the property.

When she heard about the party and shooting in Tempe, she felt it put a bad light on short-term rental owners.

“It’s very upsetting. When I turn on the news and I see that, I know it’s going to be a bad reflection on me, even though I would never let something, the front end of it where it was already known as a party house, I would not let that be known,” she said.

Mills believes some of the new requirements will be good, though, she believes some of them are stricter than when someone buys a house or has a long-term rental. She thinks more regulations will deter people from wanting to go into the business.

“I think, already, there’s a lot to it and it can be overwhelming for someone who doesn’t have the experience,” she said. “It’s a lot to take on all at once and learn. I think this is going to intimidate people from jumping in.”

While none of her rental properties are in any of the cities that have regulations, she believes more rules could be coming.

“If suddenly all of that’s happening in others, and gets shifted over, it’s going to be the same. I hope we can find a nice balance to it. The things the short-term rentals were meant for in the beginning, the sharing of their vacation home, families being able to get affordable housing that has a kitchen… It was a really wonderful thing to start and they need to squash the party side of it,” she said.