Legal Matters & Taxes Airbnb Regulations by City Part 3 – Phoenix and Palm Springs by Nasser Mansur May 18, 2018February 2, 2022 by Nasser Mansur May 18, 2018February 2, 2022 If you’re interested in investing in a short-term rental property, then one of the first steps that you should make is to research the laws and regulations that might affect your short-term rental in the market that you want to invest in. For this reason, I have compiled for you a list of Airbnb regulations by city for the cities that, based on Mashvisor’s data, are among the top cities for investing in real estate in the US housing market 2018. To learn more about how we will help you make faster and smarter real estate investment decisions, click here. Disclaimer: this list of Airbnb regulations by city contains laws and regulations that can affect the performance of your short-term rentals, and the info provided was taken directly from Airbnb’s official website. I will be sharing a link to each city’s laws and regulations page on Airbnb’s website. This is part 3/3 of a series of Airbnb regulations by city which will include the following cities: Austin, TX, Nashville, TN, San Diego, CA, Orlando, FL, Kissimmee, FL, Las Vegas, NV, Phoenix, AZ, and Palm Springs, CA. Airbnb Regulations by City: Phoenix, AZ These laws & regulations are derived directly from Airbnb’s help center for the city of Phoenix, AZ: The Zoning Ordinance. The Zoning Ordinance governs land use in Phoenix. You should consult this to see if your listing is consistent with any zoning requirements or use definitions. Important terms include “bed and breakfast establishment,” “boarding house,” “commercial use,” “dwelling,” “dwelling unit,” “guesthouse,” “guestroom,” “hotel,” “residential purposes,” “residential use,” “rooming unit,” and “transient purposes.” The ordinance also regulates converting some dwelling units to a different use. Building and Housing Standards. Phoenix has rules and regulations specifying construction, design, and maintenance standards for buildings, including regulations on habitability, health, and safety. Certain regulations applicable to residential and non-residential uses may be relevant to your listing. Please refer to the City’s building codes here or contact the Planning & Development Department for more information. Hotel and Rental Taxes. Phoenix requires owners and operators of hotels and certain property rentals to apply for a license. You should consult Chapter 14 of the City Code to determine if these rules apply to your listing. Taxes. Phoenix assesses a sales tax on real property rentals and an additional transient lodging tax. Guests qualifying as a “permanent resident,” or guest stays of 30 days or more, are exempt from the transient lodging tax. Airbnb collects and remits these taxes in Phoenix; more information about that process is available here. The State of Arizona also assesses a transient lodging tax on guest stays of less than 30 days. More information about the state level tax can be found at the State’s government website. Please consult your County rules to determine if additional taxes may apply. Other Rules. It’s also important to understand and abide by other contracts or rules that bind you, such as leases, condo board or co-op rules, HOA rules, or rules established by tenant organizations. Please read your lease agreement and check with your landlord if applicable. Related: These Are the Best Cities for Airbnb Investment 2018 Airbnb Regulations by City: Palm Springs, CA These laws & regulations are derived directly from Airbnb’s help center for the city of Palm Springs, CA: Vacation Rental Ordinance and Regulations. Palm Springs has an ordinance and regulations that set out requirements related to registration, operational requirements, and procedures whether you use a third party to operate or manage your listing or you manage it yourself. Make sure you are familiar with and understand the ordinance and regulations fully and any changes that get incorporated from time to time. The City requires hosts to include their City Identification (ID) Number in their Airbnb listing and other advertisements. You can review the ordinance in Chapter 5.25 of the Palm Springs Municipal Code and can access the City’s short-term vacation rental toolkit which lists many of the requirements that individual operators and vacation rental agencies will need to incorporate into their operations. Transient Occupancy Tax. Palm Springs assesses transient lodging taxes on hotels, inns, vacation homes or houses, and other short-term rentals. Transient Occupancy Tax must be reported and paid to the City each month. More information about the transient occupancy tax is available at the City’s Vacation Rental TOT Information Transient Occupancy Tax (TOT) Permit and Vacation Rental Registration Certificate. Palm Springs requires vacation rental owner operators or agency operators to apply for and receive both a transient occupancy tax permit and a vacation rental registration certificate. You can access both applications on the City’s Vacation Rental Certificate Application and Renewal. Once registered with the City, you must include your four-digit City ID number on all advertising in the following format: “The City of Palm Springs ID #XXXX.” This must be in the property description area of the advertising. Building and Housing Safety Standards. Palm Springs enforces rules and regulations with respect to the habitability, health, and safety of short-term rental units. Safety inspections are required as a part of the application process for new and renewal operators. Please review the Vacation Rental and Homeshare Safety Inspection Form for more information. Related: The Ultimate Guide to the Airbnb Investment Property Other Rules. It’s also important to understand and abide by the City’s Governance and Communication rules other contracts or rules that bind you, such as condo board or HOA rules. The Palm Springs City Ordinance includes administrative fines and penalties for advertising and operating without a Registration Certificate, not posting City ID in all advertising, and operational violations. Key Points and Operational Requirements. If you are advertising or operating as a Vacation Rental or Homeshare in the City of Palm Springs, you must have a City-issued Registration Certificate and Transient Occupancy Tax Permit. The City defines a Vacation Rental as a unit utilized for occupancy twenty-eight (28) consecutive days or less and the owner is not present. A Homeshare is defined by the City as a bedroom(s) of a home offered for occupancy 28 consecutive days or less while the owner lives on-site and in the home throughout the guest stay. Occupancy is limited to two (2) adult guests overnight and one (1) vehicle per bedroom. For Vacation Rentals (not Homeshares), the total number of guest stays are limited to thirty-two (32) per calendar year with an additional four (4) guest stays during July, August, and September. This count is prorated for the first year a Registration Certificate is in effect. Palm Springs requires a “Responsible Person” over the age of twenty five (25) to sign a contract with the operator and requires that the operator perform a personal meet and greet of guests, explain the local rules and regulations, and obtain a signature of receipt of the Statement of Rules and Regulations/Good Neighbor Brochure. Continue Reading Airbnb Regulations by City: Airbnb Regulations by City Part 1 – Austin, Nashville, and San Diego Airbnb Regulations by City Part 2 – Orlando, Kissimmee, and Las Vegas To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here. Airbnb Regulations by City: Conclusion If you’re interested in an Airbnb investment property in any of these cities, and the laws and regulations of that city allow it, then it’s time for you to begin your search for the perfect Airbnb property to invest in. Make sure to use Mashvisor during your search to find properties that are for sale based on their projected performance and analytics in order to find properties that will generate the highest returns and help you achieve your investment goals easier and faster than ever before. Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL Austin TXKissimmee FLLas Vegas NVNashville TNOrlando FLPalm Springs CAPhoenix AZSan Diego CA 0 FacebookTwitterGoogle +PinterestLinkedin Nasser Mansur Nasser is an experienced content writer with a degree in English Language and Literature. He loves writing about all aspects of the real estate investing business with focus on market and property analysis and the best sources which every real estate investor needs in order to succeed. Previous Post Airbnb Regulations by City Part 2 – Orlando, Kissimmee, and Las Vegas Next Post Las Vegas Real Estate Market 2018: Is Now a Good Time to Invest? Related Posts US Housing Market 2018: Highest and Lowest Property Tax Rates by State The Tax Benefits of Real Estate Investments 7 Real Estate Tax Benefits to Take Advantage Of How to Check Property Tax History Before Buying Reverse 1031 Exchange: How Does It Work for Real Estate? Your Real Estate Investment Guide to Airbnb Rental Properties: Where Is Airbnb Legal? 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