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US: The Arizona House of Representatives has approved legislation that would give cities additional oversight of short-term rentals but stops short of allowing limits on how many properties can operate.
Lawmakers voted by a wide margin to pass HB 2429, which allows local governments to set limits on how many people can occupy homes and condominiums rented out on a short-term basis.
The measure would be the first time cities have been allowed to impose occupancy limits since Arizona restricted local regulation of short-term rentals, including those listed on Airbnb, in 2016.
The bill was introduced by Selina Bliss, who removed earlier proposals that would have allowed cities to cap the number of short-term rentals or require minimum distances between them.
Those provisions were dropped after opposition from the Arizona Association of Realtors and Airbnb.
Under the revised bill, overnight occupancy would be limited to two people per bedroom plus two additional occupants, excluding children.
The measure also makes it easier for cities to suspend short-term rental licences. Local governments would be able to suspend licences after three permit violations within 24 months, compared with the current 12-month window.
Licences could also be suspended for a single violation that poses a potential threat to public health or safety, including modifying a rental property without a required building permit or failing to fix unsafe or unsanitary conditions.
Supporters say the legislation targets repeat offenders without imposing broader restrictions on short-term rentals.
Bliss said the bill focuses on “repeat bad actors” while protecting property rights for homeowners who operate rentals responsibly.
The legislation now moves to the Arizona Senate.
Highlights:
- The Arizona House has approved a bill giving cities additional oversight of short-term rentals, including the ability to limit occupancy.
- The measure targets “repeat bad actors” but does not allow cities to cap the number or location of short-term rentals.
- Local governments would be able to suspend licences after three violations within 24 months.
- The bill marks the first time cities could impose occupancy limits since state restrictions on local short-term rental regulation were introduced in 2016.
- The legislation now moves to the Arizona Senate for consideration.
