The City currently regulates short-term rentals (STRs), as found in Flagstaff City Code Chapter 3-12.  A short-term rental is a residential dwelling unit rented for 30 days or less. Current regulations are based on A.R.S. Section 9-500.39, as in effect prior to September 22, 2022. All STRs are required to register with the City and non-residential uses of STRs are prohibited.

During the spring of 2022, the state legislature passed SB1168 (vacation rentals; short-term rentals; enforcement). This piece of legislation outlines further regulations of vacation or short-term rentals that cities may impose, including the ability to create a license or permit to operate a STR, as well as defined criteria for when a city may deny or revoke a license or permit. The legislation also outlines allowable regulations related to notification, civil penalties and other areas.  Staff is seeking direction from Council on the whether the Council desires to adopt new allowable regulations. 

SB1168 is attached to this staff summary.