Northern Arizona Mayors Seek Local Control Over Short-Term Rental Rules

Arizona Mayors Call for Local Authority Over Short-Term Rentals Amid Growing Concerns

In northern Arizona, the rising tide of short-term rental properties has sparked a call for legislative change. Several mayors in the region are urging state lawmakers to restore local control over these rentals, hoping to tailor regulations that better fit their communities’ needs.

Back in 2016, a law signed by then-Governor Doug Ducey stripped cities of the power to regulate vacation rentals, leading to a proliferation of short-term rental properties, particularly in tourist-heavy areas. At a recent forum, mayors from northern Arizona counties lamented the law’s impact, citing challenges in workforce recruitment, education, and housing affordability.

“Our residents have property rights just like the owners of those mini-hotels, and yet the state legislators turned a blind eye to the very folks that came to Arizona and invested in a home,” emphasized Sedona Mayor Scott Jablow. He noted that the surge in short-term rentals has not only disrupted the community but also hindered growth in sectors like healthcare and education.

Meanwhile, Lake Havasu City Mayor Cal Sheehy pointed to his city’s longstanding history with vacation rentals, advocating for local management to strike a harmonious balance. “When we had that control, we were able to carefully balance the impacts of short-term rentals, and having neighbors in neighborhoods, and allowing our neighbors to be able to sleep at night,” Sheehy reflected.

In Prescott, Mayor Phil Goode reported a significant 60% rise in short-term rental properties, contributing $25 million to the local economy. However, this growth has diverted public safety resources to address complaints about noise and trash, which he finds concerning. “I think it’s valuable to have some of that income generation … but at a certain point they start to become problematic,” Goode remarked.

The mayors’ efforts to curb the expansion of short-term rentals faced a setback when several proposed bills were not reviewed in the current legislative session. Despite this, the conversation around local control continues, with real estate broker Christy Walker providing an alternative perspective. Walker argues that restricting rentals could harm city revenue, and highlights the benefits short-term rentals bring to some neighborhoods.

Walker shared her personal experience, noting that converting a problematic long-term rental into a short-term one brought relief to her community. “We have neighbors now that thank us for changing it. … They appreciate the fact that it’s just a simple house where families come to enjoy a few days to relax and enjoy a vacation,” she shared.