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Arizona · A.R.S. §9-500.39Arizona short-term rentals: what a city can require from a buyer who plans to rent by the night

An Arizona city or town may not prohibit vacation rentals or short-term rentals, and may regulate them only as the statute allows (A.R.S. §9-500.39(A)–(B)). It may require the owner, before offering the rental, to give emergency contact information for someone who responds to complaints at any time, with a civil penalty of up to $1,000 for every 30 days of failure after 30 days' notice (§9-500.39(B)(4)). It may require a local permit or license, asking only for the owner's or agent's contact details, the rental address, proof of compliance with A.R.S. §42-5005 (the transaction privilege tax license), the emergency contact and an agreement to follow the law, for a fee no higher than the actual cost or $250, whichever is less (§9-500.39(B)(5)); the city must issue or deny it within seven business days and may deny only on listed grounds (§9-500.39(C)). Before the first rental the owner may have to notify the adjacent single-family homes and those directly and diagonally across the street, and attest to that notice (§9-500.39(B)(6)). The city may also require the permit or license number on every advertisement, liability insurance of at least $500,000 or listing through a platform with equal coverage, and, for a property with an accessory dwelling unit approved on or after September 14, 2024, that the owner live on the property (§9-500.39(B)(7)–(9)). A permit may be suspended for up to 12 months after three verified violations in 12 months or one serious violation (§9-500.39(D)).

The rules

  1. 1. No ban (§9-500.39(A))

    Cities and towns can't prohibit vacation or short-term rentals.

  2. 2. Permit (§9-500.39(B)(5), (C))

    Limited application, fee up to $250, decision in seven business days.

  3. 3. Contact and neighbors (§9-500.39(B)(4), (6))

    Emergency contact before renting; notice to adjacent and facing homes.

  4. 4. Ads and insurance (§9-500.39(B)(7)–(8))

    Permit number in every ad; $500,000 liability coverage.

  5. 5. ADU owner-occupancy (§9-500.39(B)(9))

    Owner lives on site if the ADU was approved on or after September 14, 2024.

What the TC can do

  • When the buyer plans a short-term rental, add the city permit, the TPT license and the emergency contact to post-closing tasks.
  • Ask whether the property has an accessory dwelling unit and when it was approved.
  • Remind the buyer that HOA documents can have their own rental rules – check the resale disclosure.

Questions about Arizona short-term rentals

Can an Arizona city ban Airbnb-style rentals?

No. A city or town may not prohibit vacation rentals or short-term rentals; it may regulate them only in the ways the statute lists (A.R.S. §9-500.39(A)–(B)).

How much can an Arizona city charge for a short-term rental permit?

No more than the actual cost of issuing it or $250, whichever is less, and it must issue or deny the permit within seven business days (A.R.S. §9-500.39(B)(5)(f), (C)).

Add the city permit, TPT license and emergency contact to the buyer's post-closing tasks in ClosingCode.

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Source: A.R.S. §9-500.39 (azleg.gov, read October 29, 2026).

General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage. This guide is not a substitute for the advice or services of an attorney.