Phoenix, Arizona allows non-owner occupied short-term rentals (STRs) but has implemented regulations to govern their operation. As of January 15, 2024, all STR operators in Phoenix must obtain a permit from the city3. This applies to both owner-occupied and non-owner occupied properties.Key regulations for non-owner occupied STRs in Phoenix include:

1. Registration and Permitting: Operators must register with the city and obtain a STR permit, which costs $250 for initial application and renewal3.
2. Insurance: Maintain liability insurance coverage of at least $500,000 per property1.
3. Display of Permit: The STR permit/license number must be displayed on all advertisements for the rental3.
4. Neighbor Notification: Operators must inform adjacent properties of their intent to operate an STR3.
5. Prohibited Uses: STRs cannot be used for large events like parties or weddings1.
6. Penalties: Violations can result in fines ranging from $500 for the first offense to $3,500 for the third offense1.
7. Taxes: STR operators must pay a combined tax rate of 12.57% for all state, county, and city taxes5.

Phoenix's regulations are considered relatively host-friendly compared to other major U.S. cities, as they do not restrict non-owner occupied STRs6. However, operators must comply with all city ordinances to avoid penalties and potential permit suspension13