Short-Term Rentals Continue To Cause Confusion

Question One: In a recent column you said that a short-term rental in Scottsdale is getting “up to $20,000 per month.” That seems irresponsible to say the least. I take exception to you promoting the success of short-term rentals because these short-term rentals are such a problem here in Sedona, and I have never, nor will I ever, manage them. Our local community is suffering because of the recent state law SB 1350 prohibiting Sedona and other local communities from regulating short-term rentals.

Answer: Thank you for your comments. Other readers, however, think that I am opposed to short-term rentals. Whether you believe short-terms rentals are wonderful or horrible, everyone agrees that there should at least be some regulation, e.g., minimizing the noise and trash of “party houses.” The question then is who should do this regulation? The federal government? The state legislature? Or local communities? Bottom line: Why should the Arizona legislature not allow local communities in Arizona as diverse as Sedona, Yuma, and Safford regulate short-term rentals?

Question Two: We own a cabin in the White Mountains which we personally use, plus we do VRBO short-term rentals of the cabin. We recently received a notice from the HOA board of directors that there will be a $25 management fee for every short-term rental of our cabin. Is this $25 management fee enforceable without any notice to us?

Answer: Probably. You need to review the CC&Rs, and any rules and regulations for your community, to determine if there is any authority for this $25 management fee.

Note: Although the recent state law SB 1350 generally prohibits local communities such as Sedona and Scottsdale from regulating short-term rentals, this SB 1350 does not apply to HOAs.

Question Three: In a recent column you said that an HOA can prohibit short-term rentals. I live in a Scottsdale condominium community which is now about 50% short-term rentals and our HOA board of directors says that we cannot prohibit short-term rentals. Please clarify.

Answer: The original CC&Rs for a condominium community can prohibit short-term rentals. Your original CC&Rs recorded years ago, however, probably do not prohibit short-term rentals. Under A.R.S. §33-1227 (D), any amendment to the CC&Rs now restricting the “use” of a condominium, e.g., prohibiting short-term rentals, requires unanimous consent. Inasmuch as 50% of your condominium community is already short-term rentals, that ain’t happening!

Note: Unlike a condominium community, a planned community of homes can amend their CC&Rs at any time to prohibit short-term rentals.