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Short-Term Rental Regulations
in Tempe, AZ

Last verified: 2026-05-14 · Report an update

Zoning & Conditions

Short-term rentals (less than 30 days) require a $500,000 liability insurance policy and a valid Arizona Transaction Privilege Tax (TPT) license. Owners must provide written notification to adjacent neighbors including the license number and a 24-hour emergency contact who must respond to public safety dispatches within 30 minutes.

How to Obtain a Permit

1. Obtain an Arizona TPT license and register the property with the Maricopa County Assessor. 2. Submit an online application via the Tempe Accela portal with proof of $500,000 liability insurance and the $250 annual fee. 3. Upon issuance, provide written notification to adjacent neighbors and display the license number on all advertisements.

Regulatory Updates — Tempe

Proposed and recent legislation

PassedSeptember 2024

$500,000 Liability Insurance Requirement Strictly Enforced

Tempe began verifying $500,000 liability insurance certificates at permit application and renewal, rejecting policies that covered less than the required minimum or that excluded short-term rental activity.

PassedMay 2024

Neighbor Notification Documentation Requirement Added

Tempe updated its STR permit process to require documentation of annual neighbor notification, including proof of delivery to all adjacent properties, rather than accepting operator self-certification.

PassedJanuary 2024

TPT License Verification at Permit Renewal

Tempe added Arizona TPT license verification as a required step in the STR permit renewal process, cross-referencing with state tax records to confirm active license status and correct business classification.

Official Resources

Official Tempe STR regulation source

Local Resources & Advocacy

Vacation Rental Management Association (VRMA)National

National trade association providing advocacy and compliance resources for vacation rental professionals in the Phoenix metro area including Tempe.

Arizona Association of RealtorsStatewide

Statewide real estate association monitoring Tempe's STR insurance and notification requirements and supporting Arizona's ARS 9-500.39 preemption framework.

Tempe Tourism OfficeLocal

Local destination marketing organization tracking STR accommodation supply and its contribution to Tempe's visitor capacity for ASU events, spring training, and year-round tourism.

Frequently Asked Questions

Are Airbnbs legal in Tempe, AZ?
Airbnb listings are allowed in Tempe, AZ, but with restrictions. Short-term rentals (less than 30 days) require a $500,000 liability insurance policy and a valid Arizona Transaction Privilege Tax (TPT) license. Owners must provide written notification to adjacent neighbors including the license number and a 24-hour emergency contact who must respond to public safety dispatches within 30 minutes. A permit is required before you can host. These rules apply to all short-term rental platforms (Airbnb, Vrbo, Booking.com, etc.) — not just Airbnb specifically. See the official source linked on this page for full requirements. Last verified 2026-05-14.
Are short-term rentals allowed in Tempe, AZ?
Short-term rentals (less than 30 days) require a $500,000 liability insurance policy and a valid Arizona Transaction Privilege Tax (TPT) license. Owners must provide written notification to adjacent neighbors including the license number and a 24-hour emergency contact who must respond to public safety dispatches within 30 minutes.
Is a permit required to operate a short-term rental in Tempe?
Yes, a permit is required to operate a short-term rental in Tempe. 1. Obtain an Arizona TPT license and register the property with the Maricopa County Assessor. 2. Submit an online application via the Tempe Accela portal with proof of $500,000 liability insurance and the $250 annual fee. 3. Upon issuance, provide written notification to adjacent neighbors and display the license number on all advertisements.
How do I get a short-term rental permit in Tempe?
1. Obtain an Arizona TPT license and register the property with the Maricopa County Assessor. 2. Submit an online application via the Tempe Accela portal with proof of $500,000 liability insurance and the $250 annual fee. 3. Upon issuance, provide written notification to adjacent neighbors and display the license number on all advertisements.
Is Vrbo legal in Tempe, AZ?
Vrbo is permitted in Tempe, AZ under the same restrictions that apply to Airbnb — local rules govern the rental itself, not the specific platform. You must hold a valid permit before hosting on Vrbo. Last verified 2026-05-14.
What taxes do short-term rental hosts pay in Tempe?
Short-term rental hosts in Tempe are typically responsible for lodging, occupancy, and applicable sales taxes — these usually apply even where hosting is allowed without a permit. Rates and remittance rules vary by jurisdiction (state, county, and city can each levy a share); confirm the current rates with the official source linked on this page. Platforms such as Airbnb and Vrbo collect some taxes automatically, but the host remains liable for any not collected on their behalf.
What is the latest short-term rental ordinance change in Tempe?
The most recent tracked change in Tempe is "$500,000 Liability Insurance Requirement Strictly Enforced" (2024-09-01, status: passed). Tempe began verifying $500,000 liability insurance certificates at permit application and renewal, rejecting policies that covered less than the required minimum or that excluded short-term rental activity. See the regulatory updates section on this page for the full history.
Can Tempe ban short-term rentals?
No. Arizona's ARS 9-500.39 prevents Tempe from prohibiting STRs. The city can require insurance, tax licenses, neighbor notification, and safety compliance — but cannot ban STRs based on zone or property type.
What liability insurance do I need for my Tempe STR?
You must carry a minimum of $500,000 in liability insurance covering short-term rental activity. Standard homeowner's policies often exclude STR use — confirm with your insurer that your policy explicitly covers vacation rental guests and meets the $500,000 minimum. Submit the certificate at permit application and renewal.
What does the annual neighbor notification requirement involve?
You must notify all adjacent property owners in writing each year and provide proof of delivery (such as certified mail receipts) to Tempe. This is separate from Arizona's neighbor notification requirement under state law — check which applies or if both are needed.
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Disclaimer

This information is for general reference only and may not reflect the most current regulations. STR regulations change frequently. Always verify requirements with official local government sources before operating a short-term rental.

Last verified: 2026-05-14 · Suggest a correction