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New short-term rental rules are now in effect

Posted 1/31/23

Fountain Hills is a destination for many people. People who want to live here come for the scenery, active lifestyle, small-town feel, proximity to Scottsdale and Phoenix, and many other reasons. …

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New short-term rental rules are now in effect

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Fountain Hills is a destination for many people. People who want to live here come for the scenery, active lifestyle, small-town feel, proximity to Scottsdale and Phoenix, and many other reasons. Those who visit are attracted by many of the same reasons, including the beautiful winter weather.

Like other cities in the area, Fountain Hills is a destination for its golf courses, proximity to seasonal events like Spring Training, Waste Management Open, and this year, the Super Bowl. With the advent of online hosting platforms for the short-term lodging market, Fountain Hills is experiencing substantial growth in rental properties.

Town Council adopted new regulations, Municipal Town Code Article 8-6 Vacation Rentals, to help protect the community and the property owners, as well. New rules go into effect today, Feb. 1, 2023, for people who own homes used as short-term vacation rental properties. The goal is to protect neighborhood investments, housing values, and community safety.

In Fountain Hills, all rental properties are subject to tax regardless of the number of rental units owned. Property owners must have a TPT license and pay tax if leasing or renting real property located within the Town of Fountain Hills. Additionally, Maricopa County requires all residential properties used as rental property to be registered with the county.

The goal of the updated regulations is to ensure that property owners are responsible for their property and tenants to protect the quiet enjoyment of the neighborhoods; reduce impacts on neighbors; make visitor stays pleasant for guests and neighbors alike; decrease or eliminate unruly behavior, and support the responsive hosts and property owners.

Some of the basic requirements for short-term vacation rentals in the new ordinance are an annual fee of $250 per property, emergency contact information, prohibited uses, neighborhood notification before the rental of a unit/home, advertising requirements, posting on the property, insurance, background checks, permit suspension, enhanced penalties, appeal process, judicial relief, and severability. Additionally, there is a provision to allow the Town to inspect properties to ensure compliance with the ordinance or any provision of Town building, fire, or zoning codes.

For information and resources on the steps needed to comply with rental home property ownership, visit the Town’s website at fountainhillsaz.gov/Rentals.