Excessive and problematic short-term rentals (STRs) have been a hot-button issue in Arizona for a while now, but no more so than in Scottsdale (read our coverage here). As the regional center of tourism, many come from out-of-state to party and have little concern about the people around them. And while many municipalities recognize the problem, rarely can they do too much about it, and it would seem as though some citizens have had enough of the inaction.
In a bold example of citizens banding together and taking matters into their own hands, Scottsdalians have recently started saying “enough is enough”. While the actions aren’t particularly aggressive, they are indicative of a bubbling undercurrent of discontent. They are publicly making their stances known: that STRs hurt communities.
So why isn’t the city being more responsive? Well, it’s complicated. After significant lobbying at the state level by short-term rental operators such as AirBNB, state law had completely tied the hands of municipalities, not allowing them to make any more restrictive rules to better cater to the needs of the community. However as complaints piled up and residents’ anger mounted, legislators at the State Capitol finally listened.
In 2022, state law easened its grip of control on the issue and allowed municipalities to create some of their own restrictions, and Scottsdale and Paradise Valley were amongst the first in line to do so. While Paradise Valley went a bit draconian on it in a clear desire to push out any STR operators and were knocked down by then-Attorney General Brnovich, Scottsdale took a more sustainable (and legal) route, mandating the need for registrations and responsiveness in case there are issues.
While it may or may not have had the explicit aim of reducing the number of STRs in the city, new regulations have done precisely that. In just one year the number of STRs has dropped 20%. How much of that is because operators dropped out because of unprofitability because of a glut of properties, how much a result of not wanting to deal with the increased oversight, or both can’t be precisely parsed out. Regardless, it doesn’t seem as though this is enough according to residents.
Perhaps hope is on the way for frustrated residents however. A new mayor and three new city councilmembers demonstrate the electorate’s belief that leadership was not listening to them. Minimizing the impact of STRs was part of the campaign promises from a number of these new leaders. Will they follow through on their promises? These frustrated residents likely won’t allow them to forget it if they don’t.