Tempe permits long-term ADU rentals without a city license. Short-term rentals (under 30 days) require an Arizona Department of Revenue transaction privilege tax license and a Tempe Short-Term Rental permit under City Code regulations adopted consistent with ARS 9-500.39. HB 2720 prohibits ADU-specific rental bans. ASU-area demand makes rentals common but Tempe enforces strict STR registration, local-contact, and notice rules.
Long-term ADU rentals (30 days or more) in Tempe require no city rental license. Property owners must register residential rentals with the Maricopa County Assessor under Arizona's residential rental property statute. ARS 9-1303 limits city authority to impose general rental registration on long-term rentals. For short-term rentals (under 30 days), Tempe requires a Short-Term Rental permit under Tempe City Code provisions adopted consistent with ARS 9-500.39 (Arizona's STR preemption statute originating in Senate Bill 1350 of 2016 and substantially amended by HB 2672 in 2022). Operators must obtain a TPT license from the Arizona Department of Revenue, designate a local emergency contact reachable within one hour, notify all adjacent property owners before operating, post the permit number in all listings, and remit TPT (combined state, Maricopa County, and Tempe rate) on every booking. HB 2720 prohibits Tempe from outright banning ADU rentals or imposing minimum-lease terms beyond what state law allows. Tempe enforces STR nuisance violations aggressively given the volume of ASU game-day and Mill Avenue district rental activity.
Operating an STR without a Tempe permit or Arizona TPT license triggers civil penalties, back-tax assessment by the Department of Revenue, and permit revocation. ARS 9-500.39 authorizes Tempe to suspend or revoke the STR permit for repeated nuisance, noise, or occupancy violations. HOA STR restrictions are enforceable through CC&R fines and civil action. Failure to provide the one-hour-response local contact is an independent violation.
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Side-by-side rule comparisons with other cities in Maricopa County.
See how other cities in Maricopa County handle adu rental restrictions.
See how Tempe's adu rental restrictions rules stack up against other locations.
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