Arizona HOA Laws

What You Need to Know About HOAs and Short-Term Rental Laws in Arizona

Short-term rentals are on the rise. Snowbirds migrate here in the winter. All seasons are ripe for outdoor escapades. Arizona attracts short-term renters year-round.  

The short-term rental landlord is no longer only the sophisticated commercial property investor. Even casual owners now routinely use electronic short-term rental listings to drive rental income into their pockets. Their neighbors bear the consequences of irregular traffic, late-night parties, sound ordinance violations, littering, and impolite parking…

It’s hectic! And we get lots of questions about it. Like…

Can HOAs Restrict Short-Term Rentals in Arizona?

The Arizona Planned Community Act and Condominium Act provide that Associations may only regulate short term rentals if the Declaration of Covenants, Conditions and Restrictions (“CC&Rs”) contains a restriction prohibiting rentals or providing that rentals must be of a certain duration. An example of a short-term rental restriction we often see is a provision that a property may not be leased for less than thirty (30) days.

If your CC&Rs are silent on rental restrictions, there are no rental restrictions. Rental restrictions may only be added to the CC&Rs by amendment.  Rentals may not simply be restricted by a rule or regulation passed by the Board. The restriction must be in the CC&Rs.

We Have Problem Renters. What Can We Do?

You need to answer a question first — do your CC&Rs have a written restriction against rentals?

            Yes, they do!

Your rental restriction might allow the Association to prohibit all rentals. It might only allow a restriction of short-term rentals. Either way, the Association can enforce the restriction. Check with your Association’s counsel on the best way to enforce your Association’s rental restriction before you take action!

            No! They Don’t!

Your Association will not be able to deal with the short-term renters with a rental restriction. Don’t worry! There are other options, which leads us into another question we get…

Who Cares? Can’t We Just Go After the Owner!?

Yes! The Owner is responsible for making sure the property is compliant with the CC&Rs and community rules. The Association may fine an Owner for noise complaints, loud parties, parking violations, misuse of the common area amenities, trash can violations, and any other community rule violations by the Owner or the Owner’s renters.

Can’t the City or State Do Something About It?

Probably not. Unless it is a serious problem.

In 2019, the Arizona Legislature passed a law providing that a city or municipality many only regulate a vacation or short-term rental for: (1) requiring the Owner provide contact information for responding to short-term rental complaints; (2) protecting public health and safety; (3) enforcing zoning ordinances; (4) preventing use of short-term rental as a sober living home, for selling illegal or controlled substances, or for pornography, obscenity, topless dancing, or other adult-oriented businesses or unauthorized uses.

If you are dealing with one of these issues, the Association should consider submitting a complaint to the appropriate regulatory entity. Otherwise, the Association is the last line of defense against short-term renter shenanigans.

Rental issues are often tricky or difficult to manage. The Association industry has a wealth of resources available to help you manage the situation professionally. All you need do is…

Find an Experienced HOA Attorney in Arizona

The Brown Law Group provides industry leading general counsel for planned communities and condominiums of all types throughout Arizona.  Our firm can assist with any issues related to short term rentals in your Association or assist with amendments to your CC&Rs.  Contact us today in our Phoenix office at 602-952-6925 or our Tucson office at 520-299-3377 to schedule an initial consultation.  You can also make an appointment on our contact us page.

The Brown Law Group provided this article for informational purposes only and it does not create an attorney-client relationship.