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Navigating Short-Term & Mid-Term Rental Real Estate Rules in Scottsdale & Phoenix

By Stephen R. Mannenbach, J.D., MBA · Licensed Arizona REALTOR® (ADRE #SA713873000 · HomeSmart LLC) · Brokered by HomeSmart LLC · 6 min read

Executive Takeaway (BLUF)

Under Arizona SB 1168 and municipal ordinances in Scottsdale and Phoenix, cities cannot ban short-term rentals outright on single-family properties, but owners must obtain a municipal STR license, notify adjacent neighbors, carry $500,000+ liability coverage, and verify zero HOA CC&R lease-duration restrictions.

Scottsdale Annual STR License

$250 / Year per Property

Occupancy Cap (Scottsdale)

6 Adults + Children (Pre-Event Rules)

Peak Winter ADR Window

January – April (WM Open & Spring Training)

1. Why HOA CC&Rs Are the Real Gatekeeper

While Arizona state law protects property rights from municipal STR bans, private Homeowners Associations (HOAs) legally enforce minimum lease terms (30 days, 90 days, or 12 months). For short-term rental buyers, non-HOA neighborhoods in 85251, 85254, 85257, and 85018 are mandatory.

2. The 30-to-90 Day Mid-Term Corporate & Medical Rental Alternative

In HOA communities with 30-day minimum lease rules (such as near Mayo Clinic in 85259/85054 or Old Town condos), furnished 30-to-120 day executive, relocation, and insurance-displacement leases generate strong cash flow without short-term licensing friction.

Target Sale / Acquisition Price ($): $950,000Estimated Existing Mortgage Payoff ($): $410,000

Estimated Net Cash Proceeds at Closing

$473,975

• Est. Brokerage & MLS Marketing (5.0%): $47,500

• AZ Title, Escrow & Recording Fees: $9,025

• Seller Inspection / Closing Credit Buffer (1.0%): $9,500

Direct REALTOR® & Business Advisory Desk · HomeSmart LLC (ADRE #SA713873000)

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Prepared by our Licensed Arizona REALTOR® Desk (HomeSmart LLC · ADRE #SA713873000) for HomeDaddy AI clients.