In what seems a never-ending mission, Scottsdale continues to look for ways to regulate short-term rentals.
City leaders have repeatedly noted their hands are somewhat tied, as state laws limit powers of local municipalities over Airbnb’s and other rentals.
Even so, Scottsdale City Council onJune 23 approved an ordinance adding a formal definition of “event center” to the Scottsdale Revised Code.
“The change is intended to strengthen the city’s ability to enforce existing state and local prohibitions against using short-term rentals for nonresidential purposes,” according to a city press release, “including weddings, corporate gatherings, large parties and other commercial events.”
While state statute prohibits short-term rentals from operating as banquet halls, event centers or similar commercial venues, neither state law nor Scottsdale’s city code previously defined what constitutes an event center, making enforcement more challenging.
“The Scottsdale Police Department perspective is that defining an ‘event center’ will assist officers responding to calls at short-term rentals by providing clear guidance on whether the reported concern at the STR property meets criteria for enforcement,” Officer Aaron Bolin noted.
How about a “for instance” on the new city guidelines?
On July 4, Sgt. Eric Bolles investigated a noise complaint in Old Town near 64th and Oak streets.
“It was investigated and found to meet the criteria of an event center and a nuisance party,” Bolin said.
“One renter was cited for the nuisance party, and another renter will be cited for the event center violation.”
Bolin noted this is the same approach as the SPD’s short-term rental task force has been using for the last 2 years.
“If we are called to a house that is hosting a nuisance event – which actually meets the definition of a nuisance party – and is also being used as an event center, then we may cite for both,” he said.
Bolin used an example of “12 bachelorettes in the backyard causing a nuisance party, but it would not constitute an illegal use of the STR as an event center.
“You could have 80 people using an STR for a wedding, not causing a nuisance, but it would be an illegal use of the STR as an event center,” he added.
If the illegal use of the STR as an event center causes a nuisance, two citations are possible.
“This ordinance gives us greater clarity and stronger footing when addressing properties that are operating more like commercial event venues than residential homes,” City Attorney Luis Santaella said.
He stressed state law is clear that short-term rentals cannot be used for nonresidential purposes.
“By defining what an event center is,” the city attorney added, “we’re providing clear expectations for property owners while strengthening our ability to protect neighborhoods from activities that were never intended to occur in residential areas.”
The city’s website tracking short-term rentals shows Scottsdale Police responded to 77 “nuisance calls” at short-term rentals in June. This was done from 128 in March and 94 nuisance calls in April.
Spring typically is the time when the Scottsdale Police Department fields most STR-related calls.
Bolles and his officers logged 73 charges for STR violations in June.
That followed a hectic month when Scottsdale officers didn’t just write citations – they made nine arrests in two weeks after two shooting incidents at short-term rentals.
In a press release in May, the city said it was going after “bad actors” on the STR scene.
The subject line of the city’s email:
“Scottsdale cracks down on nuisance parties and illegal activity at short-term rentals.”
Scottsdale issued 56 charges and citations related to short-term rental activity in May, including violations tied to nuisance parties, criminal investigations and licensing compliance.
The total of STR-related fines assessed by courts in May was $32,000 – nearly doubling in June to more than $58,000.
According to the city’s website, courts have issued fines of over $860,000 for short-term rental violations since 2022, with most coming after mid-2024.
On the flip side, Scottsdale regularly collects millions in short-term rental sales tax.
Through May, the city’s 2026 STR tax cut was around $8 million.
That tracks to the $15 million Scottsdale received in short-term rental sales tax last year.
The great majority of the 3,000 or so short-term rentals in Scottsdale pony up that revenue without causing any trouble.
The new categorization “event center” designation, City Manager Greg Caton believes, will help in “protecting residents’ quality of life while ensuring short-term rentals operate as intended under state law.
“When properties cross the line from residential use to commercial event operations,” he added, “we need the tools to respond effectively.”