🎯 STRisker: Bulletin - Arizona
Arizona Senate Bill Targets ADU Short-Term Rentals
Arizona Bill Could Rein In ADU Rentals
Picture this: you build a small unit in your backyard, hoping to help with Arizona’s housing crunch. But instead of housing a local family, it’s rented out to vacationers. That’s the scenario Senate Bill 1105 is trying to change.
Sen. John Kavanagh wants ADUs—accessory dwelling units—to stay focused on affordable housing. His bill would give cities and counties the power to stop them from being used as short‑term rentals.
Kavanagh says ADUs shouldn’t pop up as hotels in single‑family neighborhoods. “These units should be used for affordable housing and not hotel profits,” he said.
The move comes after Kavanagh opposed House Bill 2720 in 2024. While HB 2720 made it easier to build ADUs in larger cities, it did not specify that units be limited to long-term occupancy. Kavanagh said that gap created the potential for ADUs to operate as short-term rentals, which SB 1105 seeks to address.
Arizona’s housing shortage is no secret. A recent report shows the state faces a permanent deficit, with new projects stuck in permitting for more than 300 days. Kavanagh believes cutting regulatory costs and opening more land for housing could help.
But he’s not overly optimistic. “SB 1105 will probably fail,” he admitted. Many property owners see short‑term rentals as a win.
If enacted, SB 1105 would provide municipalities with the ability to regulate ADU use in alignment with local housing priorities, balancing the interests of homeowners, communities, and the housing market.
Arizona bill seeks to restrict ADUs as short-term rentals (The Center Square) – A new bill would limit how Arizonans can use additional dwelling units on their property. Senate Majority Leader John Kavanagh, R-Fountain Hills, recently pre-filed Senate B...https://t.co/wbx08UG1gw
— The Black Chronicle (@BlackChron) January 19, 2026
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