City Council Work Session

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Meeting Date: 05/09/2023  
From: Sarah Langley, Public Affairs Director

Short-term Rentals License Update
Staff is seeking direction from Council on the draft short-term rental license ordinance.
The City currently regulates short-term rentals (STRs), as found in Flagstaff City Code Chapter 3-12. A short-term rental is a residential dwelling unit rented for less than 30 days. Current regulations are based on A.R.S. Section 9-500.39, as in effect prior to September 22, 2022. All STRs are required to register with the City and non-residential uses of STRs are prohibited.

During the spring of 2022, the state legislature passed SB1168 (vacation rentals; short-term rentals; enforcement). This legislation allows limited regulation of vacation or short-term rentals, including the ability to create a license or permit to operate an STR, as well as defined criteria for when a city may deny or revoke a license or permit. The legislation also outlines allowable regulations related to neighbor notification, emergency contacts, civil penalties, and other areas. Staff has drafted an ordinance to create a short-term rental licensing system based on Council and public input and is seeking Council direction.

The City is not able to regulate STRs except to the extent allowed by state law, and state legislators should be contacted if changes in the law are desired.
The draft ordinance is attached to this staff summary.
Draft ordinance


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