So what does SB 1350 do?
Prohibits a city, town or county from restricting the use or regulation of vacation rentals and short-term rentals
Allows the local government to determine regulations governing vacation and short-term rentals if the regulation is meant to protect public health and safety
Provides a mechanism to collect rental taxes and remit to the Arizona Department of Revenue
Creates more economic opportunity and inclusiveness, while protecting the private property rights of the homeowner.
What doesn’t SB 1350 do?
Does not prohibit Homeowner Association’s (HOAs) from banning the practice of vacation rentals and short-term rentals within their community.
However, the current law does stipulate that a unit owner may use the unit owner’s unit as a rental property unless prohibited in the declaration and shall use it in accordance with the declaration’s rental time period restrictions. Accordingly, if the CC&R’s do not prohibit or restrict the rental of a member or unit owner’s property, the property may be rented without restriction.
If an HOA seeks to prohibit or restrict rental properties, then the HOA may amend its CC&R’s to include such provisions, but doing so would statutorily require a higher vote count of the unit owners.
What does SB 1350 mean to Arizona REALTORS? It means that Arizona cities and towns can no longer ban short-term and vacation rentals.