Scottsdale residents speak out as 'short term rentals' begin to take a toll on the community

Scottsdale, Arizona: As short-term rental properties continue to increase in Scottsdale neighborhoods, residents are voicing their frustration, calling for stricter regulations to preserve their quality of life and safety.  In a neighborhood near Old Town Scottsdale, yard signs have appeared outside homes, displaying a clear message: 'Homes, Not Hotels'.

Residents in the Peaceful Valley neighborhood told ABC 15 their primary concern is how these rentals impact their community’s safety and character. According to local homeowner Meg Davis, who displays one of the signs in her yard, the rental boom is "ruining our neighborhood". The area now has approximately 20 vacation rentals, which neighbors claim disrupt the local peace with loud parties nearly every weekend.

One resident even took steps to board up her windows after golf balls, allegedly from rental property guests, began flying into her yard, posing a risk to her family. “It’s disturbing the peace. It really kind of ruins your night,” she told ABC 15.

Aside from noise and safety concerns, neighbors say the influx of rentals has also brought an uptick in crime. Over the past few years, residents have reported theft, trespassing, and even drug use linked to short-term rental properties, forcing them to call local law enforcement more frequently.

“You just don’t feel safe because you never know who these people are,” one resident shared.

Local authorities say these short-term rental issues stem in part from a 2016 state law, Senate Bill 1350, which prohibited Arizona cities and towns from restricting residents’ ability to use their properties as vacation rentals. Many Scottsdale residents argue this legislation has taken away their community's ability to manage local zoning and residential standards.

What is Senate Bill 1350?

Senate Bill 1350 (SB1350), enacted in Arizona in 2016, significantly impacted the regulation of short-term rentals (STRs) within the state. Signed into law by Governor Doug Ducey, SB1350 prohibits cities and towns from banning or restricting STRs, such as those offered through platforms like Airbnb.

Specifically, SB1350 preempts local municipal authority by stating that a city or town may not "prohibit vacation rentals or short-term rentals, restrict the use of vacation rentals or short-term rentals, or regulate vacation rentals or short-term rentals based solely on their classification, use, or occupancy".

This means that, under SB1350, local governments cannot enforce zoning laws or other regulations that specifically target STRs.

The bill does allow for certain exceptions where local regulation is permitted, particularly concerning public health and safety issues. For instance, municipalities can enforce regulations related to fire and building codes, health and sanitation, and traffic control, as long as these regulations are applied uniformly and are not solely aimed at STRs.

“We’re trying to get regulations in place,” Scottsdale city manager Jim Thompson told ABC 15, explaining the city’s ongoing advocacy for changes that would allow local governments more control over short-term rentals.

In response to these concerns, Scottsdale Police Department established a dedicated unit for addressing issues arising from vacation rentals. During the 2023-2024 fiscal year, this unit issued 738 citations related to short-term rental violations, emphasizing the need for local oversight.

The city manager and many residents believe that a robust zoning ordinance could alleviate these issues, promoting a balance between tourism and the preservation of Scottsdale’s residential character.