Short Term Rental owner - (US, AZ) city is now imposing new regulations. Grandfathered or lawsuit?

[Kristian150]

Hello all, 

Looking for someone that might have been in the same situation. 

Our city of Oro Valley just voted and implemented what Scottsdale, AZ recently implemented. Please see below in bold which are our biggest concerns. 

Has anyone ever had success with legal advise or assistance with AirBNB? 

• Must apply and have an STR license with OV (there will be an unknown fee)
• Must have your TPT license (and collect/remit taxes)
• Property must be registered with Pima County Assessor's office as a rental (vs primary residence)
• Must maintain $500k+ for homeowners insurance
• Cannot host more than 6 adults and their related children
• Main house and guest house cannot be rented separately
• Must notify all surrounding neighbors via certified mail
• Must have a 24-hour emergency contact on file with the city who can be on premises within 1 hour for emergencies, or 24 hours for non emergencies
• Must have emergency contact person's info posted within 10 feet of main entrance to house
• Within 24 hours of recieving a booking, you must perform a sex offender background check on each guest in the party. A copy of this check must remain on file in your records for 12 months and be produced if requested. Airbnb and VRBO don't do this, so you will have to.
• License can be suspended and fines can be imposed if you break these laws.
• If a non-compliant rental is suspected, it can be reported via OV's website.

[Kitty-and-Creek0]

@Kristian150 

I can tell this came as a shock to you, as it has to so many people, already. Take a deep breath, count to ten, and make your plan. Been there, done that, still alive and doing business!

This is the same here in our rural county in California. It is such a relief to be legal, and to be well protected. We did a public hearing and were inspected by all the health and safety agencies and departments. Fire, water quality, sewage, roads, evacuation, parking, neighbors, occupancy limits, parties, events, noise concerns - all those and more were taken care of by the process. Yes, a business insurance policy for your STR is necessary and mandated for us as well. Collecting and remitting TOT (bed tax) is appropriate, and when you do so, you will be participating in what is necessary for your community services. Host Compliance is not a new tool, and it is being used by more and more governments, all of which are in need of support with those taxes.

Please do not feel that this is unusual or awful. It is a necessary part of running a legitimate business in a community. It is necessary for public safety. We as hosts are in the not so unique position of responsibility - for the health and safety - even for the lives - of our guests. 

A number of locals here were upset when this change happened.  As it turned out, it was not awful, just new and therefore intimidating. 

You can do this -  please let me know how you are doing, and best wishes!

[Kristian150]

Thank you for chiming in. We will take it as it comes 🙂 

[Helen3]

Hello @Kristian150 

Sorry to hear you have concerns with these regulations.

Having had a quick glance at the ones you have highlighted, most of the regulations you have highlighted in bold seem sensible to me in terms of you as the business owner having a local co-host available. Restrictions on numbers of guests again seem sensible and your listing wouldn't exceed the six adult/six kids maximum.

I am not sure how you check sex offenders in your area can you do that with the local police.

I don't think you can rely on Airbnb as a marketing channel to provide you with legal advice. Is there a group of local hosts who can work together to influence the legislation.

[Kitty-and-Creek0]

@Kristian150 @Helen3 

There is a website that will tell you all the registered sex offenders. Online info abounds!

[Dawn241]

AZRT- Arizonans for responsible tourism- offers support and information to help you navigate the new regulations.