Many people sell short term rentals in Scottsdale, AZ and advertise the rentals as completely turn-key. Many of those people have not actually operated a short term rental, AIRBNB or VRBO, and don’t fully understand the restrictions/limitations on both the listing websites (airbnb.com/vrbo.com), but also the rules set in place by the local municipalities.

No, the short term rental license or short term rental permit that is issued by the City of Scottsdale (or any other Arizona municipality) does not transfer when you buy a short term rental property. You will need to obtain a new short term rental license yourself.

If you are considering purchasing a fully turn-key airbnb, the most important things to consider is whether the property is a viable short term rental? Or is it a dud that someone’s trying to get rid of? Working with an experienced short term rental real estate agent is step one. (raises hand)

The vacation rental license permit, and new airbnb and vrbo listings you will need to set-up upon purchase are not difficult. The process to getting a license from the City of Scottsdale, or City of Phoenix, or any local Arizona municipality is generally similar.

Some considerations (this is based on City of Scottsdale process):

  • You will be required to show at least $500,000 of liability coverage on your homeowner’s insurance policy. If you are buying the home as a personal residence, or converting your personal residence into a short term rental, you will likely need a different policy than the one you originally purchased with the home. Be sure you have short term or transient coverage, many policies have that as an exclusion. I use American Modern Insurance for short term rental coverage at my properties in Scottsdale, Arizona.
  • You will be required to indicate how you are handling pool safety (a fence, alarms, etc)
  • You will need to notify your adjacent neighbors that you are appliyng for a short term rental permit, and sign an online affidavit that you completed this disclosure.
  • You will need a TPT license from the Arizona Depart of Revenue(ADOR). This will be the most confusing step- but don’t overthink it. If you are going the direct booking route, you will need to report and remit those taxes. If you are simply facilitating through AIRBNB, AIRBNB remits the taxes on your behalf and you just have to indicate as such to the ADOR. VRBO will also remit the taxes but if you use a third-party software, it can get a little convoluted.
  • You will need to provide an emergency contact number. In the City of Scottsdale, in the event of an emergency at your short term rental, one of the requirements(laws) is that if they call the emergency contact on your short term rental license, an authorized representative must arrive to the property within one hour. The cleaning company I use, “Well and Good Property Services,” offers this service for a small fee of $10 per month. Another perk to using them.
  • There are a handful of other minor requirements, none of which should raise alarm. These points above will be the most critical as you obtain your short term rental license.

Other considerations:

  • Be sure to post the short term rental license in your property, it can be downloaded from the portal on the local municipalities website (especially in the case of Scottsdale).
  • You will need a fire escape plan to be posted in your property as well.
  • Photograph the posting of these two notices in your property, for your records. Consider framing them in 8.5 x 11 so they are protected and presentable.

Francesca Stark and her team of associate agents are specialists in short term rental real estate in the Scottsdale, Arizona and Greater Phoenix metro areas. Please feel free to reach out to us at (480) 382 – 8514 or use the contact form on this website. Someone from our team will respond to your inquiry promptly. We don’t just sell short term rentals, we understand them.

More to read:
“Buying short term rentals in Arizona”
“How to design a successful AIRBNB“
“Can you AIRBNB a condo in Scottsdale?“
“Can you transfer reservations to a new host?“
“Can you transfer your airbnb listing?”