In what seems a never-ending mission, Scottsdale continues to look for ways to regulate short-term rentals.<\/p>\n
City leaders have repeatedly noted their hands are somewhat tied, as state laws limit powers of local municipalities over Airbnb\u2019s and other rentals.<\/p>\n
Even so, Scottsdale City Council onJune 23 approved an ordinance adding a formal definition of “event center” to the Scottsdale Revised Code.\u00a0<\/p>\n
\u201cThe change is intended to strengthen the city’s ability to enforce existing state and local prohibitions against using short-term rentals for nonresidential purposes,\u201d according to a city press release, \u201cincluding weddings, corporate gatherings, large parties and other commercial events.\u201d<\/p>\n
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.\u00a0<\/p>\n
\u201cThe Scottsdale Police Department perspective is that defining an ‘event center\u2019 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,\u201d Officer Aaron Bolin noted.<\/p>\n
How about a \u201cfor instance\u201d on the new city guidelines?<\/p>\n
On July 4, Sgt. Eric Bolles investigated a noise complaint in Old Town near 64th and Oak streets.<\/p>\n
\u201cIt was investigated and found to meet the criteria of an event center and a nuisance party,\u201d Bolin said.<\/p>\n
\u201cOne renter was cited for the nuisance party, and another renter will be cited for the event center violation.\u201d<\/p>\n
Bolin noted this is the same approach as the SPD\u2019s short-term rental task force has been using for the last 2 years.\u00a0<\/p>\n
\u201cIf we are called to a house that is hosting a nuisance event \u2013 which actually meets the definition of a nuisance party \u2013 and is also being used as an event center, then we may cite for both,\u201d he said.<\/p>\n
Bolin used an example of \u201c12 bachelorettes in the backyard causing a nuisance party, but it would not constitute an illegal use of the STR as an event center.\u00a0<\/p>\n
\u201cYou 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,\u201d he added.<\/p>\n
If the illegal use of the STR as an event center causes a nuisance, two citations are possible.<\/p>\n
“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.\u00a0<\/p>\n
He stressed state law is clear that short-term rentals cannot be used for nonresidential purposes.\u00a0<\/p>\n
\u201cBy defining what an event center is,\u201d the city attorney added, \u201cwe’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.”<\/p>\n
The city\u2019s website tracking short-term rentals shows Scottsdale Police responded to 77 \u201cnuisance calls\u201d at short-term rentals in June. This was done from 128 in March and 94 nuisance calls in April.<\/p>\n
Spring typically is the time when the Scottsdale Police Department fields most STR-related calls.<\/p>\n
Bolles and his officers logged 73 charges for STR violations in June.<\/p>\n
That followed a hectic month when Scottsdale officers didn\u2019t just write citations \u2013 they made nine arrests in two weeks after two shooting incidents at short-term rentals.<\/p>\n
In a press release in May, the city said it was going after \u201cbad actors\u201d on the STR scene.<\/p>\n
The subject line of the city\u2019s email:<\/p>\n
\u201cScottsdale cracks down on nuisance parties and illegal activity at short-term rentals.\u201d<\/p>\n
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.<\/p>\n
The total of STR-related fines assessed by courts in May was $32,000 \u2013 nearly doubling in June to more than $58,000.<\/p>\n
According to the city\u2019s website, courts have issued fines of over $860,000 for short-term rental violations since 2022, with most coming after mid-2024.<\/p>\n
On the flip side, Scottsdale regularly collects millions in short-term rental sales tax.<\/p>\n
Through May, the city\u2019s 2026 STR tax cut was around $8 million.<\/p>\n
That tracks to the $15 million Scottsdale received in short-term rental sales tax last year.<\/p>\n
The great majority of the 3,000 or so short-term rentals in Scottsdale pony up that revenue without causing any trouble.<\/p>\n
The new categorization \u201cevent center\u201d designation, City Manager Greg Caton believes, will help in \u201cprotecting residents’ quality of life while ensuring short-term rentals operate as intended under state law.\u00a0<\/p>\n
\u201cWhen properties cross the line from residential use to commercial event operations,\u201d he added, \u201cwe need the tools to respond effectively.”<\/p>\n
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