🎯 STRisker: Bulletin - Arizona

Compromise in Arizona’s STR Debate: New rules target problem rentals, but housing concerns remain

🎯 STRisker: Bulletin - Arizona
A Deep Dive into Your Area’s STR Updates — Helping You Navigate the Ever-Changing Rental Landscape.

Arizona Inches Toward STR Reform

Photo by visitarizona.com

Arizona’s long-running battle over short-term rentals took a small step forward this week, as Rep. Selina Bliss (R-Prescott) advanced a compromise bill through the House Commerce Committee. While her original proposal to let cities cap the number of new Airbnbs failed amid industry opposition, the amended bill introduces modest new rules that give municipalities some authority back.

The bill, passed 8–2 in committee, 👪 limits occupancy to two adults per bedroom plus two more, excluding children. 📒 Cities could suspend licenses after three violations in 24 months, 🚑 act immediately on serious health and safety issues, 🖨️ deny permits for unpaid fines, and 🔍 require renter background checks for sex offender status.

House Bill 2429 aims to regulate vacation rentals
House Bill 2429 aims to regulate short-term rentals in Arizona, allowing local governments to limit licenses and establish minimum distances between units.

Bliss said the compromise was necessary to get industry players like Airbnb and the Realtors Association on board. “This is something versus nothing,” she told colleagues, noting that without concessions her bill would not have received a hearing.

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Local leaders in Sedona and other tourist towns remain skeptical. With as many as 25% of Sedona’s homes now used as STRs, lobbyist Kathy Senseman said the bill does little to address housing shortages or the displacement of workers. “It unfortunately does nothing to address the problems we have in rural Arizona,” she said.

Sedona's Short-Term Rentals

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Industry representatives praised the compromise for targeting “bad actors” without infringing on property rights. Airbnb reiterated its stance that it will fight caps or distance rules, framing the debate as a matter of constitutional rights.

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For cities overwhelmed by STR growth, the bill may feel like a half-measure. But Bliss sees it as opening the door “an inch” toward restoring local control. The full House will now decide whether these incremental reforms are enough to balance tourism with community needs.

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