Surprise, AZ Accessory Structures: ADU Rental Restrictions (2026)

Long-term rental of an ADU in Surprise is fully preempted from local restriction under ARS § 9-461.18. The city cannot prohibit separately leased rental of the main dwelling and ADU, cannot impose owner-occupancy as a condition for long-term rentals, and cannot require any preexisting relationship between owner and occupant. Long-term is defined statutorily as 90 days or longer or month-to-month. Short-term rentals (under 30 days) are governed by the Arizona vacation rental preemption at ARS § 9-500.39 (commonly cited as the STR statute amended by SB 1168 in 2022). Under that statute Arizona cities cannot prohibit STRs but may require annual permit registration, contact-information posting, transaction privilege tax (TPT) compliance, and enforcement of health, sanitation, fire, and parking standards. SB 1168 strengthened municipal authority by allowing penalties for repeat nuisance violations and permit suspension. Surprise maintains an STR registration program through Community Development. For ADUs specifically constructed on or after September 14, 2024, Surprise may also require owner occupancy as a condition of STR use under the ARS § 9-461.18 carveout. Arizona TPT and local transient occupancy taxes apply to all stays under 30 days. HOAs in Sun City Grand (The Grand), Sun Village, Marley Park, and similar age-restricted or master-planned communities frequently prohibit STRs through CC&Rs, which state law does not preempt.