Gilbert permits long-term ADU rentals without registration or licensing. HB 2720 prohibits Gilbert from imposing minimum-lease terms longer than 30 days or banning ADU rentals. Short-term ADU rentals (under 30 days) require Gilbert vacation rental registration under ARS 9-500.39 and remittance of Transaction Privilege Tax.
Arizona law strongly protects rental rights. ARS 9-1303 prevents cities from requiring general rental registration except for limited inspection purposes. For ADUs, HB 2720 (ARS 9-461.18) bars Gilbert from prohibiting ADU rentals or imposing minimum-lease terms beyond 30 days. Gilbert does not license long-term residential leases. Short-term rentals (under 30 consecutive days) are governed by ARS 9-500.39, which preempts most local STR bans but permits registration. Gilbert requires STR operators to register annually, post the registration number in the listing, designate a local emergency contact reachable within 1 hour, maintain liability insurance of at least $500,000, and remit Transaction Privilege Tax (combined rate roughly 8.3 percent). HOAs may restrict STRs through CC&Rs but cannot ban long-term rentals.
Unregistered STR operation in Gilbert carries civil penalties up to $1,000 per day under ARS 9-500.39 and the local Town Code. Unpaid Transaction Privilege Tax triggers Arizona Department of Revenue audit and collection. HOA CC&R violations are enforced through civil action and may include fines, liens, and injunctions.
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