Executive Summary

Yes, short-term rentals are explicitly allowed in Camp Verde, Arizona. In compliance with Arizona Senate Bill 1350, which prohibits municipalities from banning vacation rentals, Camp Verde has chosen to regulate rather than prohibit short-term rental operations. The town updated its building codes in 2018 to comply with state law and now actively encourages homeowners to register their properties and operate legitimate short-term rentals within the community.

Starting a Short-Term Rental Business in Camp Verde

Step-by-Step Process

1. Property Compliance Assessment

   • Ensure your property meets all health and safety standards
   • Install and maintain functional smoke alarms
   • Verify compliance with fire and building codes
   • Review your insurance policy to confirm adequate coverage for short-term rental operations

2. Business Registration

   • Obtain a business license from Camp Verde
   • Register with the Arizona Department of Revenue for Transaction Privilege Tax License
   • Apply for required permits (see licensing section below)

3. Neighbor Notification

   • Notify all single-family residential properties adjacent to and directly across the street from your rental property before offering it for rent for the first time
   • Maintain documentation of this notification

4. Operational Setup

   • Secure liability insurance with minimum $500,000 coverage
   • Establish emergency contact procedures
   • Create guest guidelines and house rules

Required Documents, Permits, and Licenses

Essential Documents

• Business License: Required from Camp Verde for legitimate operation
• Transaction Privilege Tax License: Required by Arizona state law to collect and remit state lodging tax
• Liability Insurance: Minimum $500,000 aggregate coverage required by Arizona state law
• Proof of Compliance Documentation: Evidence of meeting fire and building code requirements

Permit Application Requirements

Camp Verde may require the following information for local regulatory permits:

• Name, address, telephone number, and email address for owner or owner's agent
• Address of the vacation rental property
• Proof of compliance with Section 42-5005 (fire safety and building codes)
• Emergency contact information for owner/designee
• Acknowledgment of agreement to comply with all applicable laws
• Permit fees (not to exceed actual cost or $250, whichever is less)

Advertisement Requirements

• Display local regulatory permit/license number on all advertisements
• If no local permit required, display Transaction Privilege Tax License number on all advertisements

Specific Regulations and Requirements

Arizona State Law Requirements (SB 1350)

Health and Safety Compliance

• Properties must comply with all fire and building codes
• Properties must meet health and sanitation standards
• Transportation and traffic control regulations apply
• Solid and hazardous waste regulations must be followed

Zoning and Nuisance Regulations

• Properties must comply with existing use and zoning ordinances
• Noise regulations must be observed (applied uniformly to all properties)
• Property maintenance standards apply
• Nuisance ordinances must be adhered to

Emergency Contact Requirements

• Owner must provide emergency contact information for owner or designee
• Contact must be responsive to complaints/emergencies 24/7
• Failure to provide contact information results in $1,000 penalty per 30 days of non-compliance

Neighbor Notification (One-time Requirement)

• Must notify adjacent properties before first rental offering
• Notification must include permit/license number, rental address, and emergency contact information
• Owner must provide attestation of compliance to municipality

Operational Restrictions

• Cannot be used for housing sex offenders, sober living homes, illegal drug sales, liquor control violations, adult-oriented businesses
• Cannot be used for events requiring special permits/licenses
• Cannot be used for retail, restaurant, banquet space, or other commercial purposes

Camp Verde Specific Considerations

• Workshop Support: The town offers educational workshops and support for new short-term rental operators
• Free Advertising: Business license holders may receive complimentary town advertising
• Community Engagement: Town encourages early communication with neighbors
• Competitive Market: Strong mix of rustic cabins, modern homes, unique accommodations like yurts and tiny houses

Penalties and Enforcement

Civil Penalties for Violations

• First verified violation: Up to $500 or one night's rent (whichever greater)
• Second verified violation: Up to $1,000 or two nights' rent (whichever greater)
• Third and subsequent violations: Up to $3,500 or three nights' rent (whichever greater)

Permit Suspension

• Three verified violations within 12 months can result in permit suspension up to 12 months
• One serious violation (felony, serious injury, prohibited uses) can result in suspension

Operating Without Required Permits

• Must cease operations if applying for permit within 30 days of application availability
• $1,000 per month penalty for failure to apply after written notice

Property-Specific Restrictions

Important Note for Verde Ranch Estates: This manufactured home community has specific rules that prohibit short-term subletting and renting through platforms like VRBO, HomeAway, Airbnb, or similar services. This restriction applies specifically to this community and may exist in other manufactured home communities or planned developments within Camp Verde.

Contact Information

Camp Verde Town Administration

Primary Contacts from Workshop Attendees:

• Sebra Choe: Economic Development Specialist - Town of Camp Verde
• Carmen Howard: Community Development Representative - Town of Camp Verde
• Melinda Lee: Planning and Zoning Representative - Town of Camp Verde

For Specific Requirements Contact:

• Community Development Department
• Planning and Zoning Department
• Economic Development Department

Arizona State Resources

• Arizona Department of Revenue: For Transaction Privilege Tax License
• State lodging tax registration and remittance requirements

Investment Strategy Recommendations

Market Positioning

• Highlight proximity to Montezuma Castle National Monument and Out of Africa Wildlife Park
• Emphasize year-round attractions and outdoor activities
• Consider rural/rustic appeal while maintaining modern amenities

Essential Amenities

• High-speed Wi-Fi (increasingly important for remote workers)
• Fully equipped kitchens
• Outdoor amenities: grills, fire pits, patio seating
• Professional photography for listings
• Clear house rules and requirements specified upfront

Seasonal Considerations

• Peak Season: Late spring through summer (higher occupancy and rates)
• Off-Peak: Winter months (maintain steady visitor flow through year-round attractions)
• Year-round Demands: Montezuma Castle and Out of Africa provide consistent tourist flow

Important Resources and Links

• Primary Source: Camp Verde gives guidance on short-term vacation rentals - News article covering town workshops and regulations
• Arizona State Law: Arizona Statute 9-500.39 - Complete state regulations for short-term rentals
• Management Services: Summer Vacation Rental Management - Market overview and management services
• Community Rules: Verde Ranch Estates Rules - Example of manufactured home community restrictions

Investment Conclusion: Camp Verde presents a favorable environment for short-term rental investment, with explicit legal allowance under state law, supportive town administration, and growing market demand. Success requires proper licensing, community engagement, and adherence to both state health/safety requirements and local community standards. Investors should verify any specific community restrictions before purchase and maintain active communication with town officials for ongoing compliance.