(The Center Square)— Scottsdale, Arizona, officials have enlisted one of the state’s most powerful advocacy organizations in proposing numerous changes to crack down on short term rental properties.
Scottsdale, which is popular for tourism, is pushing for three changes at the state level backed by the League of Arizona Cities and Towns 2024 Legislative Agenda. The organization, headed by Yuma Mayor Douglas Nicholls, represents the state’s municipalities in lobbying for changes at the state level.
According to a news release from the city, the proposals include restricting how many short-term rentals can be allowed in an area, as well as density and separation regulations.
“Mayors throughout Arizona recite horror stories about negative impacts of STRs,” Scottsdale Mayor David Ortega said in a statement. “The undercutting of housing, shattered neighborhoods, blockage of pathways and undermining permanent resident population, which erode federal and state revenue sharing, are undeniable.”
Short-term rentals have become a popular option for investors, as platforms such as Airbnb have made it easy for people to stay at a property for vacation as opposed to a typical hotel.
State Sen. Christine Marsh and Rep. Laura Terech praised the proposals.
“It was a mistake for the Legislature to pre-empt and hamstring the ability of Arizona cities and towns to govern short-term rentals in our communities. Short-term rentals have their place, but our neighborhoods have paid a heavy price for lack of oversight as more and more of our housing stock is converted to unregulated short-term rentals,” the two Democrats said in a joint statement.
“These common-sense proposals, which the Legislature should codify, will restore an important aspect of local control to cut down on party houses and other abuses,” the lawmakers added.
Others say that the overall crackdown on short-term rentals by local governments in Arizona may pose a constitutional issue.
“So I have not specifically reviewed what Scottsdale is proposing. I’ve only heard about it, and it’s similar to efforts that have been tried in the recent past, which is, you know, capping the number of short-term rentals. I believe they have some kind of spacing proposal as well,” Tom Farley, a lobbyist for the Arizona Association of Realtors, told The Center Square Friday. “We’ve always opposed those things because they go against someone’s private property rights and uses of their property.”
He stressed that cities should address issues using current laws before infringing on property rights.
“If the cities have identified unique problems to short-term rentals, let’s address those, not just say, ‘We’re gonna take your rights away.’ We don’t believe it passes constitutional muster anyways, but nonetheless, these types of proposals keep coming up,” Farley said.
According to AirDNA, there are 7,103 active rentals in Scottsdale alone.
