Flagstaff considers adopting short-term rental regulations

FLAGSTAFF — A proposed ordinance to regulate short-term rentals in Flagstaff would include an annual licensing fee and other rules for operation.

Dozens of people at City Hall in person were joined by more than 50 attendees online Monday night to learn more details.

Many residents expressed concerns about the current lack of restrictions, which they say has resulted in a proliferation of short-term rentals and potential code violations such as excessive noise, trash and parking.

Other residents and rental property owners spoke about past experiences with harassment and unwarranted complaints from neighbors unhappy with the fact that a property is operating as a short-term rental.

Flagstaff's proposed regulations are similar to those in an ordinance recently adopted in Lake Havasu City, which went into effect March 1.

Under the proposed ordinance, the city would create a formal licensing system for short-term rental properties that includes a fee not to exceed $250. The ordinance also outlines rules and requirements for property owners, including establishing a 24-hour emergency point of contact for the rental property and notifying neighbors that the property is operating as a short-term rental.

The ordinance would also prohibit individuals with some felony convictions from obtaining a short-term rental license.

A property's emergency point of contact does not have to respond to an emergency in person but needs to be in contact with local police by phone or text within an hour of getting a call — an important detail for many of Flagstaff's short-term rental owners who live out of state.

Operating a short-term rental without a license would result in a $1,000 fine per month.

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Sticking points for many rental property owners are cities potentially requiring a specific amount of liability insurance or the completion of sex offender background checks for all guests. Those points are not included in Flagstaff's proposed ordinance.

Flagstaff is proposing the ordinance is in response to Senate Bill 1168, which then-Gov. Doug Ducey signed into law in July. While cities and towns are prohibited from limiting the number or density of short-term rentals, the law does allow municipalities to require a license to operate a short-term rental within their boundaries.

The Flagstaff City Council will continue to collect feedback as members consider the proposal. A vote could occur in June. If the ordinance is adopted, it would be scheduled to go into effect in the fall.

Contact northern Arizona reporter Lacey Latch at LLatch@gannett.com or on social media @laceylatch.

Coverage of northern Arizona on azcentral.com and in The Arizona Republic is funded by the nonprofit Report for America and a grant from the Vitalyst Health Foundation in association with The Arizona Republic.

This article originally appeared on Arizona Republic: Flagstaff considers short-term rental regulations