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🏗️ Accessory Structures/ADU Rental Restrictions

ADU Rental Restrictions: Phoenix vs Tempe

How do adu rental restrictions rules compare between Phoenix, AZ and Tempe, AZ?

Phoenix has fewer restrictions than Tempe.

Phoenix, AZ

Maricopa County

Few Restrictions

Phoenix permits long-term ADU rentals without registration or licensing. Short-term ADU rentals (under 30 days) require a state vacation rental license under ARS 9-500.39 and Phoenix STR registration. HB 2928 (2025) prohibits Phoenix from banning ADU rentals or imposing minimum-lease terms.

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Tempe, AZ

Maricopa County

Some Restrictions

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.

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Key Facts Comparison

FactPhoenixTempe
Long-TermNo registration requiredNo city registration required
STR StatuteARS §9-500.39-
TPT Rate12.57% combined-
Local Contact1-hour response required1-hour response required
STR State Statute-ARS 9-500.39 (SB 1350 / HB 2672)
Neighbor Notice-Required before operating
TPT License-Required for STR
ADU-Specific Ban-Preempted by HB 2720

Highlighted rows indicate differences between cities.

Phoenix FAQ

Can I rent my Phoenix ADU on Airbnb?

Yes, with state vacation rental license and Phoenix STR registration. Operators must designate a local emergency contact, post the registration number, and remit TPT. HOA CC&Rs may further restrict STR use.

Does Phoenix require a rental license for long-term ADU rentals?

No. Phoenix does not require rental registration or licensing for long-term residential leases (30+ days). ARS 9-1303 limits city authority to require general rental registration. HB 2928 prohibits ADU-specific rental restrictions.

Tempe FAQ

Can I rent my Tempe ADU on Airbnb?

Yes, with a Tempe Short-Term Rental permit, an Arizona TPT license, a designated local emergency contact reachable within one hour, and prior notice to adjacent property owners. Operators must remit TPT on every booking and post the permit number in listings. Check your HOA CC&Rs - some Tempe HOAs further restrict STRs.

Does Tempe require a rental license for long-term ADU rentals?

No city rental license is required for stays of 30 days or more. Long-term rentals must be registered with the Maricopa County Assessor under Arizona's residential rental property statute. ARS 9-1303 limits city authority to require general rental registration on long-term rentals.

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