Currently Article 6 of the City's Land Development Code states that "Rentals of single-family dwellings for periods less than 30 consecutive days is prohibited."

The City has experienced a rapid increase in the use of private homes for short-term rentals due largely to real estate companies and property managers advertising short-term home rentals over the internet.

Private homes as short-term rentals are being used by homeowners looking for investment income and provide an attractive alternative to local resorts and hotels.

According to City staff, over 150 short-term rental properties are currently being offered over the internet under the keywords "Sedona Vacation Rentals."  These advertisements offer detailed photographs, pricing, occupancy policies as well as online rental agreements in direct violation of the City's ordinance.

The City's code enforcement staff has received numerous complaints from homeowners about the noise, high turnover in occupancy, increased traffic, and the general interference with the peaceful enjoyment of their neighborhood that these short-term home rentals have created.

The City of Sedona has several ways to handle these situations that include filing a criminal complaint that could give rise to a $2,500 fine or 6 months in jail.

Unfortunately, prosecution is difficult because most short-term rental situations involve out-of-state renters and hearsay evidence that is hard to prove.

The City staff recently contacted the Arizona Department of Real Estate to seek their assistance in cautioning property management firms that their real estate license could be impacted by violating a local city ordinance.

To give the ordinance greater teeth, the City is considering amending and broadening its current ordinance to include any enterprise that solicits or facilitates short-term rentals in violation of the City code, not just the homeowners themselves.

On the other side, the City realizes that short-term rentals likely attract tourists to Sedona who spend taxable dollars on meals, entertainment and the like; and many of these tourists may not be able to afford a local resort or hotel for multiple weeks.

Consequently, the City might consider allowing short-term home rentals but place them on an equal footing with local resorts and hotels by regulating them. This could include charging an occupancy tax, requiring sufficient parking, inspections, and the like.

If the City eliminates the current ordinance entirely, it will be up to local homeowners' associations to police their neighborhoods; and homeowners will have to rely on other City ordinances like excessive noise in order to enforce their complaints.

[Home Page] [News Home Page] [Back to Community Page]