Laws
April 12, 2024

Airbnb & Short Term Rental Laws and Regulations In Chandler - 2024

Steadily's blog cover page for information around landlord insurance.

Overview of Airbnb and Short-Term Rental Market in Chandler

Chandler, Arizona, has become a growing hub for short-term rentals, with platforms such as Airbnb and VRBO finding a strong market presence. The city's economic landscape has been positively influenced by the increasing number of visitors seeking vacation rentals, providing homeowners and investors with profitable opportunities.

Trends:

  • Increased investment in property for short-term rental purposes.
  • Growing number of tourists and business travelers choosing vacation rentals over traditional hotels.

Economic Benefits:

  • A boost to the local economy through spending by visitors in local businesses.
  • Additional revenue for property owners participating in the short-term rental market.

Rental Performance Data:
In Chandler, short-term rentals are experiencing an average occupancy rate of 34% alongside an average daily rate of $143, creating a notably competitive landscape for hosts and property managers in the area. This translates to a monthly revenue average of $10,809, reflecting the dynamic and bustling nature of the short-term rental market in Chandler.

The short-term rental market in Chandler meets diverse consumer needs with a range of properties available, from modest apartments to high-end homes, indicating a responsive and adaptable market.

Regulatory Measures:
Chandler has experienced regulatory changes with a focus on maintaining neighborhood integrity while supporting the economic gains from the short-term rental industry. All operators are required to obtain a transaction privilege tax license, adhering to the new laws aimed at benefiting both the community and the stakeholders in the vacation rental market.

Understanding Chandler's Short-Term Rental Legislation

Chandler's short-term rental legislation is informed by state laws and local city codes, requiring compliance with Senate Bill 1350 and House Bill 2672, alongside Chandler-specific regulations outlined in Chapter 22 of the Chandler City Code.

Senate Bill 1350 and House Bill 2672

Senate Bill 1350, enacted in 2016, laid the groundwork for short-term rental regulations in Arizona, thus affecting Chandler directly. It was designed to allow property owners the freedom to operate short-term rentals without overly restrictive local regulations. However, it mandated that they must adhere to licensing and tax collection requirements.

In response to issues arising from the initial bill, House Bill 2672 was introduced in 2019 to provide further clarity and stipulate additional responsibilities for short-term rental operators. This piece of legislation aimed to address community concerns relating to noise and safety by requiring contact information of the responsible party for each rental unit to be readily available.

Chandler City Code and Chapter 22 Ordinances

Chandler's approach to managing short-term rentals is also shaped by its city code, specifically Chapter 22. It requires that all short-term rental proprietors secure a registration, ensuring oversight in line with the city's standards for operation. According to the City of Chandler, each short-term rental property must complete an application process to obtain a necessary license.

These ordinances complement state legislation by ensuring local concerns are addressed. They facilitate a cooperative relationship between rental hosts and the city, aiming to strike a balance between the benefits of short-term rentals and the livability of neighborhoods. For detailed inquiries, hosts can reach out to the City of Chandler's Planning & Zoning Division.

Licensing Requirements and Application Process in Chandler

The City of Chandler enforces specific licensing requirements and processes for operating short-term rentals, which include the submission of an application and compliance with tax regulations. Understanding the nuances of these requirements is essential for prospective and current homeowners looking to embark on short-term rental ventures.

Short-Term Rental Application

In Chandler, prospective hosts must complete a short-term rental application to obtain the necessary license for legally operating their rental property. This application requires detailed information about the property, owner, and the operational plan of the rental. Applicants are obligated to ensure their rental property adheres to safety standards and neighborhood guidelines. These regulations are put in place to maintain community well-being.

Annual License Fee and Tax Regulations

Once the short-term rental application is approved, hosts are subject to an annual license fee. This fee varies based on the type and size of the short-term rental property. Additionally, Chandler has specific tax regulations regarding short-term rentals; hosts are responsible for collecting and remitting applicable taxes, including transient occupancy taxes. Compliance with these tax obligations is closely monitored and integral to maintaining a short-term rental license.

Taxation and Fees for Short-Term Rentals in Chandler

In Chandler, hosts of short-term rentals must navigate a series of tax obligations, including state and local taxes, licenses, and various fees. Proper compliance ensures legality and contributes to the city's fiscal health.

State and Local Taxes

Short-term rental hosts in Chandler are subject to state and local taxes which include state transaction privilege tax and any applicable city taxes. The tax rate can vary, and diligent adherence to these taxation laws is necessary for all rental proprietors. It's essential for hosts to account for these taxes within their rental prices to remain competitive and compliant.

Transaction Privilege Tax (TPT) License

Operating a short-term rental in Chandler mandates obtaining a Transaction Privilege Tax (TPT) License. This license allows the collection of taxes on behalf of the state and requires hosts to remit taxes collected from guests. Short-term rental hosts must apply through the Arizona Department of Revenue and ensure this license is renewed annually.

County Excise Tax and City Taxes

In addition to state-imposed taxes, short-term rental hosts may also be responsible for a county excise tax. Chandler also imposes its own city taxes that contribute to local projects and services. Hosts should verify their obligations for both county and city taxes to fully comply with local regulations.

Zoning Laws and Property Use Regulations in Chandler

In Chandler, Arizona, the zoning laws clearly delineate the spaces where residential and nonresidential activities may occur. Property use regulations enforce compliance with building and housing standards crucial for community safety and coherence.

Nonresidential Uses in Residential Areas

Chandler’s zoning regulations are tailored to ensure that residential neighborhoods maintain their character and are protected from the impacts of nonresidential uses. The City of Chandler's rules permit certain types of nonresidential activities within residential zones under strict guidelines to mitigate any potential nuisance to the neighborhood’s residents. These may include home-based businesses or short-term rentals, both of which must adhere to specific operational conditions.

Building and Housing Standards Compliance

Properties in Chandler engaged in short-term rental activities, like Airbnb, are expected to comply with local building and housing standards. This ensures safety, habitability, and compatibility with the neighborhood. Standards apply to structural integrity, sanitation, electrical safety, and fire safety. Non-compliant property owners may face penalties from the city, as it enforces regulations aimed at preserving the quality and safety of its communities.

Property owners in Chandler must familiarize themselves with these zoning and regulation details to integrate short-term rental ventures effectively and legally within the city.

Operating Guidelines for Short-term Rental Hosts in Chandler

When operating a short-term rental in Chandler, hosts are expected to adhere strictly to both local regulations and safety requirements. This includes the provision of up-to-date contact information and emergency contacts as part of the rental registration process.

Registration and Contact Information

Short-term rental hosts must register their property with the local authorities, ensuring compliance with the city’s specific regulations. Registration typically involves providing:

  • Host's full name and address
  • A detailed description of the rental property
  • Proof of ownership or legal control of the property

This information must be kept current, meaning any changes necessitate immediate update with the regulatory body.

Emergency Contact Information Submission

In addition to general contact details, hosts are required to submit emergency contact information. This must include:

  • A reachable phone number for a 24/7 contact
  • The name of a local individual responsible for addressing emergencies

Such measures ensure that there is a responsible party available at all times to handle any urgent issues that may arise during a guest's stay. It is crucial for the safety and well-being of guests and offers peace of mind to both the host and the local community.

Handling Violations and Dispute Resolution in Chandler

In Chandler, the approach to managing short-term rental violations combines community involvement with regulatory enforcement. The city has clear mechanisms in place for filing complaints, involving law enforcement, and imposing fines, fees, or civil penalties on those who fail to comply with the established ordinances.

Complaints and Police Involvement

When a short-term rental in Chandler violates local regulations, neighbors or community members can lodge complaints with city officials. Chandler Police Department may be involved when there is immediate need for intervention due to excessive noise, parties, or other disturbances. This police involvement is critical for addressing issues that pose a threat to public safety or peace.

Fines, Fees, and Civil Penalties

Chandler enforces its short-term rental laws through a schedule of fines and civil penalties. These are designed not only to punish non-compliance but also to deter future infractions:

  • First Offense: A warning or nominal fine may be issued.
  • Subsequent Offenses: Increasing fines may be levied, often scaling with the number of repeated violations.

These financial disincentives serve to maintain a fair marketplace and protect the interests of all stakeholders.

Penalty for Non-Compliance

A failure to adhere to Chandler's short-term rental regulations can lead to serious repercussions. Non-compliant property owners might face:

  • Suspension: An imposed temporary halt on their ability to rent the property.
  • Revocation: In severe cases, loss of license or permit to operate a short-term rental.

These penalties signal Chandler’s commitment to upholding its regulations and the importance of compliance for the well-being of the community.

Additional Considerations for Hosts and Investors in Chandler

When navigating the terrain of short-term rentals in Chandler, hosts and real estate investors must weigh the implications of insurance and liability, along with seeking Airbnb friendly policies that align with their investment strategies.

Short-Term Rental Insurance and Liability

For hosts, it is critical to secure short-term rental insurance that goes beyond traditional homeowners' policies. This specific type of insurance can offer coverage for property damages, lost income, and liability claims, which are not typically covered under standard insurance policies. Liability concerns are paramount, as guests can encounter accidents on the property, leaving the host responsible. Thus, hosts must ensure their policy includes adequate liability coverage to safeguard against potential lawsuits.

Real Estate Investment and Airbnb Friendly Policies

Real estate investors must meticulously research local regulations in Chandler, as they often vary and can significantly impact the profitability of an Airbnb venture. Regulations may include but are not limited to zoning laws, licensing requirements, and occupancy limits. An investor should look for areas with Airbnb friendly policies that support short-term rentals, aiming to minimize legal hurdles and maximize return on investment. By prioritizing real estate with favorable short-term rental regulations, investors can better position themselves for a successful and compliant operation in the competitive market.

Resources and Support for Compliance in Chandler

Airbnb hosts in Chandler can navigate Short Term Rental (STR) compliance with support from state and local departments. These entities provide resources to simplify adherence to regulations.

Arizona Department of Revenue Services

The Arizona Department of Revenue (ADOR) is a crucial resource for short-term rental hosts seeking to understand tax obligations. ADOR offers a comprehensive guide designed to assist with tax compliance, including the transaction privilege tax (TPT). Hosts can find forms, filing instructions, and contact information for further assistance on their website. It's imperative for landlords to utilize these resources to ensure taxes are accurately collected and remitted.

Chandler Departmental Support

For city-specific guidance, the City of Chandler provides departmental support to STR hosts. This local support includes clear instructions on city ordinances related to short-term rentals, permitting processes, and compliance checks. Individuals may access a range of contact options for one-on-one assistance or to address any inquiries regarding municipal regulations and standards. Utilizing these services helps hosts align their operations with the city's expectations, fostering a legally compliant STR environment in Chandler.

Frequently Asked Questions

The city of Chandler has specific requirements and regulations for the operation of short-term rentals. Property owners and potential investors should familiarize themselves with these to ensure lawful management of their rental properties.

What are the requirements for operating a short-term rental in Chandler, Arizona?

To operate a short-term rental in Chandler, one must follow city zoning laws and may need to maintain records of all transactions. All short-term rentals must not create a nuisance to the neighborhood.

Are hosts required to obtain a permit or license for short-term rentals in Chandler, AZ?

Yes, hosts are required to complete a short-term rental application and obtain a license from the City of Chandler to legally operate within the city limits.

How does Chandler, AZ enforce short-term rental regulations?

Enforcement of regulations is carried out by Chandler city officials who can take necessary action against properties violating city ordinances, such as causing public nuisance or failing to comply with safety requirements.

What taxes are applicable to short-term rental properties in Chandler, Arizona?

Short-term rental property owners in Chandler are expected to pay state transaction privilege tax and any other applicable city taxes. Rates can vary, but owners must stay current on tax obligations.

Can a homeowner's association in Chandler, AZ restrict the use of properties for short-term rentals?

Homeowner's associations (HOAs) in Chandler may have the authority to set specific rules that restrict or govern the use of properties for short-term rentals, depending on their bylaws.

What are the penalties for non-compliance with Chandler's short-term rental laws?

Penalties can include fines, suspension of the short-term rental license, and potentially other legal actions if property owners do not adhere to the Chandler Short Term Rental Regulation. It is vital for owners to understand and follow these laws to avoid such penalties.

Download your free resource

Table of Contents

Get coverage in minutes

One of America's best-rated landlord insurance services. No hidden cancellation fees. Competitive rates nationwide.

Get a quote
Get Appointed

Delight your clients with one of America's best-rated landlord insurance services nationwide.

Apply Today

Video Library

View all videos

Other Resources

Get coverage in minutes

No hidden cancellation fees. Competitive rates nationwide.

    Thank you! Your submission has been received!
    Oops! Something went wrong while submitting the form.

    Get Appointed

    Become a Steadily appointed agent and start selling one of America's best-rated landlord insurance services.