By Will Hamburg/Associate Broker/Investor
Update: The hearing in the House Land, Agriculture, and Rural Affairs (LARA) Committee that was on February 14, 2022, passed 10-1 in favor of House Bill 2711. Keep a lookout for future updates on this bill by bookmarking our site and checking back tomorrow.
Sedona AZ –A new amendment to the Arizona House Bill 2711 could stop investors from doing short-term rentals in Sedona.
House Bill 2711 (HB2711), is a bill that was originally introduced by Representative Becky Nutt, (R) and passed the Arizona House of Representatives in 2021. The bill proposes to impose restrictions on short-term rentals with cities and towns that have a population of fewer than 17,000 people.
Today a new amendment is trying to sneak through that you need to be aware of.
Sponsored by Representative Brenda Barton (R), a new amendment is scheduled for a hearing in the House Land, Agriculture, and Rural Affairs (LARA) Committee Monday, Feb. 14, 2022, at 2 p.m. This bill will provide more authority for small, rural communities to regulate short-term rentals.
What the bill says:
HB 2711 allows a city or town with a population of less than 17,000:
- To require a short-term rental owner to maintain a permit or license issued by the city or town.
- To limit the number of short-term rentals based on a percentage of total residentially zoned buildings or structures in the city/town (no specific percentage referenced).
- Regulate short-term rentals in the same manner as transient lodging activities for public health and safety, not through taxes.
Currently, the bill that already passed includes:
- Requires homeowners to obtain a short-term lodging license.
- To require that all monies collected from permitting, licensing, and fees go exclusively to the city or town to offset administrative costs associated with regulating short-term rentals.
- Requires that a local emergency contact is on file.
- Restricts short-term rentals from conducting any type of commercial business such as weddings and events.
What it means for cities that support short-term rentals:
The amendment could greatly affect tourism communities where homeowners rent out their homes on a weekly basis during high seasons, like music festivals, film festivals, mountain bike events, skiing and snowboarding events, etc.
In Arizona, communities like Sedona, Flagstaff, Prescott Valley, and Payson would be affected the most.
Regardless of where you stand with vacation rentals, blanket legislation changes like this are NOT the way to solve the problem.
A better solution may be to follow the highly successful In Deed law that Vail, Colorado has been implementing for some time now.
The Vail InDEED was, “created to incentivize homeowners and real estate buyers/sellers to deed restrict their property to help the Town meet the 2027 Housing Strategic Plan goal of acquiring an additional 1,000 deed-restricted units by the year 2027 and helps to reach the goal of maintaining and sustaining homes for residents within the community.”
The property must be occupied as a primary residence by individuals who work a minimum of 30 hours per week in Eagle County.
Modeling the Vail InDeed program would be a much better solution to actually create quantifiable solutions and incentives for homeowners and investors to purchase property for local workers and families.
How you can help:
1.) Don’t react emotionally and rant about how big of a problem short-term rentals are. Take time to learn more about the Vail InDeed program and how it works. Speak with a local realtor, investor, or property manager to hear both sides of the story.
2.) Do something about it! If you are for or against it then participate in your local meetings discussing how to solve these issues. Speak with your local legislators and be intentional about who you vote for.
3.) Share this article and ask your network what they think. Get a conversation going
4.) Contact your local legislators!
If you are planning to buy an investment property someday or already own one, you can contact your local representative in Arizona and let them know how the bill would affect you and your business.
You can email Representative Barton and also reach out to all members of the House LARA Committee:
- Chairman Tim Dunn firstname.lastname@example.org (602) 926-4139
- Vice-Chairman Joel John email@example.com (602) 926-3276
- Rep. Brenda Barton firstname.lastname@example.org (602) 926-3421
- Rep. David Cook email@example.com (602) 926-5162
- Rep. Lupe Diaz firstname.lastname@example.org (602) 926-4852
- Rep. Gail Griffin email@example.com (602) 926-5895
- Rep. Jasmine Blackwater-Nygren firstname.lastname@example.org (602) 926-3069
- Rep. Andrew Dalessandro email@example.com (602) 926-5342
- Rep. Mitzi Epstein firstname.lastname@example.org (602) 926-4870
- Rep. Brian Fernandez email@example.com (602) 926-3098
- Rep. Lorenzo Sierra firstname.lastname@example.org (602) 926-3211
Tell them about Vail’s InDEED program and let them know you oppose blanket legislation like today’s HB 2711 and its amendments. Let’s work together to ensure fair laws for small towns and big cities alike.
This is important to ALL Arizona residents, no matter where you live!
Will, you’re a Sedona realtor aren’t you? You have your own pony in this race, don’t you? You try living next to one of these short term vacation rentals. They’re loud, messy and NOT well regulated. We’re the ones at the mercy of the county sheriff to do anything about the noise and parking issues. l read that new bill. It sounds just fine with me. Those vacation business need to be regulated & everyone needs to be licensed, like all business. Or do you not agree with that? That’s the American way!!!
It is your opinion that the Vail InDEED is a better solution. Expecting a voluntary deed restriction from homeowners who are leaving the area to make any difference makes no sense. Sedona currently has 13% BnBs or STRS. Adding 1,000 deed-restricted properties will not add any regulation or prevent more STRs. If we magically had all 1,000 of these deed-restricted homes overnight what would change here?
In this current climate, why would 1,000 homeowners voluntarily decrease the resale value of their property?
A house on Sanborn recently sold for 1.8 million. I think the owner would rather get that 1.8 million than take what it is worth if it could not be a commercial property. Volunteer, to take less than $1,000,000.? This sounds like wishful thinking.
Most residents support the regulation of STRs and believe this law is necessary to preserve the community.
HB 2711 allows a city or town with a population of less than 17,000:
To require a short-term rental owner to maintain a permit or license issued by the city or town. This sounds like a great idea and one that is necessary; all businesses have business licenses!
To limit the number of short-term rentals based on a percentage of total residentially zoned buildings or structures in the city/town (no specific percentage referenced). This would decrease the free for all of the investors buying up every home and outbidding real people who are trying to live here.
Regulate short-term rentals in the same manner as transient lodging activities for public health and safety, not through taxes. Again, this is the right thing to do. Having public welfare safeguards makes sense, why should these houses be exempt from the rules? Large corporations are buying up homes and getting into the BnB game, they can follow the safety regulations as all hotels and motels do.
Obviously, the person paying the mortgage/taxes/etc has the say as to who stays in their home or not. When Airbnb began, it was mostly people renting out IUD/guest house/spare rooms on a platform that just about guaranteed a screened guest and prompt payment. The fact of the matter is that Sedona is an expensive place to live and side gigs are a necessity to be able to afford to live here. Further, homes that have Airbnb guest have improved their appearance over the years with new paint, roofs and landscaping (noticeable difference in my area). It seems that it is the investors who purchase homes/land in Sedona to build/create a home hotels in once quiet residential neighborhoods.These investors have no skin in the game when it comes to what it takes to make a livable community – they are only here to cash in on a steady flow of tourist, riding Sedona’s shirttails all the way to the bank with very little law or restrictions stopping them. It’s true – they own the home – and they have a right to what every other private property owner is afforded under SB1350. Good for them. Bad for anyone who wishes to live in the same city they work in.
Sedona has a very top-heavy City Administration for a town with less than 10,000 full-time residents. Perhaps the short-term rental office could actually be a rental platform in direct competition with Airbnb. Create a website that will do everything that Airbnb does, but better. It will be better because the city will profit. All monies earned could fund rent assistance for those working in Sedona – bridging the gap between what is affordable and what the homeowner would get if rented thru short-term rentals. It certainly would give the city a new way of looking at short term rentals. Beat them at their own game.
Defund the Sedona Chamber permanently now.