This week, the city of Tempe will begin asking community members their views about possible local regulations for short-term rental properties that would be among the strictest in the state if enacted.

The Tempe City Council directed at its Oct. 27 Work Study Session that city staff conduct a public input process on a draft ordinance to change city code, according to a news release from the city. If eventually passed by the council, owners of short-term rental properties would need to:

• Require an annual $250 regulatory permit
• Provide proof of a valid sales tax license and evidence the rental is registered with the Maricopa County Assessor’s Office
• Notify all residential properties adjacent to, directly, and diagonally across the property of their emergency contact information. Responses to complaints would be required from the property owner within one hour for complaints for which police is dispatched or 24 hours for non-emergency complaints. 
• Maintain liability insurance of at least $500,000
• Conduct a sex offender background check for every person who books a rental – and possibly all those staying on the property.
• Require the display of the local regulatory permit or license number on advertisements

Proposed penalties for violations include: 

• Suspension of a license for a period of up to 12 months for three verified violations of the city code within a 12 month period or one verified violation, which could be a felony offense committed at the property, physical injury, wrongful death, sexual offenses, using the property for an event that would otherwise require a permit and more
• Impose a civil penalty of up to $1,000 per month against the owner if the owner or owner’s designee fails to apply for a regulatory permit or license within 30 days after receiving written notice of the failure to comply.
• Impose a civil penalty, based on a scale from the number of violations from $500 to $3,500.

There will be several opportunities for residents to give feedback. 

From Nov. 3 to Nov. 30, any community member can visit tempe.gov/forum to take an online survey about the proposed regulations. 

Two public meetings also will take place: a virtual meeting at noon on Monday, Nov. 14, and an in-person meeting at 6 p.m. on Wednesday, Nov. 16, at Escalante Multi-Generational Center, 2150 E Orange St. In addition, there will be two public hearings on the ordinance at the Tempe City Council Regular Council Meetings on Dec. 15 and Jan. 5.

The move comes after a shooting that occurred at an Airbnb rental property over the weekend.

Several shots were fired outside a northwest Tempe neighborhood home that was being used as a short-term rental in the early morning hours of Oct. 29. No one was injured, according to a police. A large party was being held at the location. Two people were arrested for unrelated charges. The incident is under investigation by the Tempe Police Department. For questions, or if you have information about the incident, contact Tempe Police at 480-350-8311. Tempe Police will be coordinating a neighborhood meeting for residents who wish to discuss the incident and safety concerns. Details are forthcoming.

The Arizona Legislature previously pre-empted cities and towns from prohibiting short-term rentals within their borders under threat of withheld state-shared revenues, which communities rely on and are entitled to under state law. Recently, the Arizona State Legislature passed Senate Bill 1168, which gave additional tools, but not total regulatory control to cities. Until this time, cities had few tools other than to maintain a registry of short-term rental properties, which Tempe did establish.

“We are taking every available step to protect our neighborhoods and preserve their character,” said Mayor Corey Woods. “Cities and towns need the ability to govern at the most suitable local level, but historically our hands have been tied in our efforts to protect neighborhoods. If we are allowed, I would be supportive of regulations that go even further than our proposed ordinance, but this will be a positive step in the right direction if passed.”