Arizona is friendly to rental investors: no statewide rent control, and a state law that stops cities from banning short-term rentals outright.
What is different in Arizona
- State law bars cities from banning short-term rentals, but since 2022 cities can require permits or licenses and an emergency contact, and can penalize repeat violations.
- Scottsdale, Phoenix and other cities now require a short-term rental license; check before you count booking income.
- Hosts need a state transaction privilege tax license and collect lodging taxes on short-term stays.
- Arizona law prohibits local rent control, and the Residential Landlord and Tenant Act sets the rules for long-term leases.
- HOAs can still restrict rentals, so read the CC&Rs before you buy in a planned community.
Questions
Does Arizona allow short-term rentals?
Yes. Cities can’t ban them, but they can require a permit or license and enforce rules, and HOAs can restrict them. See also: Mortgage loans in Arizona.
Can I get a DSCR loan for a Scottsdale short-term rental?
Yes, with a short-term rental DSCR program that counts booking income, once the property has, or can get, its city license.
Which lenders do DSCR loans in Arizona?
Many DSCR lenders lend statewide. I compare several, since their rules on short-term rental income and minimum ratios differ.
Related
- DSCR investor loans
- DSCR vs hard money loans
- Condotel & short-term rental loans
- DSCR calculator
- Short-term rental DSCR calculator
Investment property loans in other states: California, Florida, Ohio. All of Arizona: mortgage loans in Arizona.
