Scottsdale & Phoenix Short-Term Rental (STR) Licensing, SB 1168 & Cost Segregation Guide
Bottom Line Up Front (Stephen R. Mannenbach, ADRE #SA713873000): Operating a legal Short-Term Rental in Scottsdale (85251, 85254, 85255) or Phoenix (85018, 85016) requires verifying zero HOA/CC&R lease restrictions, obtaining an annual municipal STR permit under Arizona SB 1168, maintaining an Arizona TPT tax license, and carrying $500,000+ in statutory liability coverage.
1. Municipal STR Permits & Neighbor Notification
Both the City of Scottsdale and City of Phoenix mandate 24/7 emergency point-of-contact registration, neighbor notification within 300 feet, and strict compliance with noise and occupancy ordinances.
2. The 100-Hour STR Material Participation Tax Shield
When average guest stays are 7 days or less and the owner logs 100+ hours of material participation (more than any cleaner or manager), engineered 5-year, 7-year, and 15-year MACRS cost segregation depreciation can offset active income.