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Cave Creek

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Cave Creek, AZ

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STR Regulations for Cave Creek, Arizona

Overview: Are short‑term rentals allowed in Cave Creek, AZ?

Yes—short‑term rentals are allowed in Cave Creek, Arizona. The Town Council adopted a Short‑Term Rental Public Health & Safety Protections ordinance (Resolution R2023‑02 and Ordinance O2023‑02) on July 17, 2023, which took effect on November 6, 2023. Under Cave Creek’s definition, a short‑term rental means any rental/lease for fewer than 30 days. Hosts must obtain and maintain the required licenses and registrations, and comply with public health, safety, and tax collection obligations.

What constitutes a short‑term rental in Cave Creek:

  • Rental/lease periods of less than 30 days.

Source references:

What do Airbnb hosts actually earn in Cave Creek?

Cave Creek hosts earn a median $36,103/year with $322 ADR and 58% occupancy.

Top performers pull in $69,857+ per year.

See the full Cave Creek market breakdown

How to start a short‑term rental business in Cave Creek

Step 1 — State-level: Obtain an Arizona Transaction Privilege Tax (TPT) license

  • Apply for and maintain a TPT license from the Arizona Department of Revenue (ADOR). All STR operators must hold a valid TPT license before applying for the Town’s STR license.
  • TPT application and information: azdor.gov/transaction-privilege-tax-tpt
  • ADOR contact:
    • 1600 West Monroe Street, Phoenix, AZ 85007
    • Phone: (602) 255‑3381
    • Website: azdor.gov

Step 2 — County-level: Register the STR property with Maricopa County

Step 3 — Town-level: Obtain the Town of Cave Creek Annual Business License

  • File an Annual Business License and register each property as a “Short-Term Residential” rental with the Town of Cave Creek.
  • Annual Business License fee: $50 (one-time per year).
  • Business License information and application portal (CivicReview): app.civicreview.com/application/5a3be8528d90d9000fd506d2
  • Town general contact:
    • 37622 N. Cave Creek Road, Cave Creek, AZ 85331
    • Phone: (480) 488‑1400
    • Hours: Monday–Thursday, 7:00 a.m. to 5:00 p.m.
    • Town main website: www.cavecreekaz.gov

Step 4 — Town-level: Obtain the Short‑Term Rental (STR) Permit

Additional operational notes

  • Portal registration and payment: The Town’s preferred filing method is via the online portal at www.hoteltaxonline.com (refer to filing instructions for account creation and application steps).
  • License display and renewal: Keep all licenses current and readily available for inspection or guest review.
  • Public health & safety: The adopted ordinance emphasizes health, welfare, and quality of life protections. Comply with any safety-related postings, emergency contact, and local guidance.

Required documents, permits, licenses, and guidelines

Minimum document set for compliant STR operations in Cave Creek:

  • Arizona Transaction Privilege Tax (TPT) License (state).
  • Maricopa County Assessor registration for the STR property (county).
  • Town of Cave Creek Annual Business License (local), registered as a “Short-Term Residential.”
  • Town of Cave Creek STR license (local), one per property (annual).
  • Adherence to the Town’s public health and safety protections ordinance (R2023‑02 / O2023‑02).
  • Compliance with the Town Code (see Cave Creek Tax Code and municipal code).

Useful references:

Note on supporting documentation: The Town’s online filing instructions do not list required supporting documents as part of the portal workflow. However, depending on future policy updates or property-specific conditions, the Town may require proof of county registration, TPT license details, or safety documentation. Verify current requirements within the online portal and Document Center Index 107.

Specific regulations for STRs — City, County, and State

City of Cave Creek (local regulations)

  • STRs are permitted subject to licensing, annual fees, and ongoing compliance.
  • Definition: Rental/lease periods of less than 30 days.
  • Application and renewals: Conducted online; the Town uses Avenu Insights & Analytics as the administering agent.
  • Licensing:
    • Annual Business License fee: $50 (per business).
    • STR license fee: $250 per property (annual).
  • Penalties:
    • $1,000 penalty after the 30‑day grace period following written notice; additional $1,000 penalties every 30 days thereafter if not filed.
  • Complaints: Dedicated STR complaint hotline and online form operated by the Town (see Complaint Reporting below).

Maricopa County (county-level requirement)

  • Property registration required by state law (A.R.S. §33‑1902).
  • Registration must be completed before leasing; it is illegal to rent prior to registration.

State of Arizona (state-level requirement)

  • TPT license is mandatory for STR operators.
  • State-level privacy and registration statutes (e.g., A.R.S. §33‑1902) underpin county registration duties.

Detailed references:

Important notes on unclear points

  • Occupancy limits, zoning restrictions, parking, advertising, noise, event hosting rules, and waste disposal: The provided sources do not state these as explicit local requirements. Investors should confirm any such rules directly with the Town of Cave Creek or review the complete Town Code (Document Center Index 107) for up‑to‑date provisions.

Contact information (authority in charge of STRs)

Town of Cave Creek (Business Licensing & STR program)

Administering agent for STR permits and payments (Avenu Insights & Analytics)

Arizona Department of Revenue (TPT)

Maricopa County Assessor (property registration)

Complaint reporting

Short‑Term Rental Complaint Hotline (Town of Cave Creek)

Complaint guidance

Links to source pages (for verification and ongoing updates)

Closing guidance for investors

  • Before leasing any property, confirm that you hold the required TPT license, have completed county registration, and have both the Annual Business License and the STR license for each property.
  • Monitor the Town’s STR License page and Document Center Index 107 for any updates to forms, fees, or requirements (e.g., safety or health documentation).
  • Retain copies of all licenses, registrations, and payment confirmations; display or provide as required for guests and inspectors.

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Cave Creek

Market Saturation Score

036912
High Saturation
10/ 12
months with declining YoY revenue
8–10 declining months: high saturation - supply likely outpacing demand.
View Full Cave Creek Market Analysis

Photos of Cave Creek

Overview of Cave Creek

Cave Creek is a small town in Maricopa County, Arizona, tucked into the northern foothills of the Sonoran Desert just northwest of Phoenix. With a population of roughly 5,000 to 6,000 residents, it has a distinctly rustic, Old West character that sets it apart from the sprawling suburbs of the Phoenix metro area. The town is best known for its frontier-town main street, its deep ties to ranching and horseback riding, and its proximity to some of the largest stretches of protected desert in the region. It serves as a gateway to the McDowell Sonoran Preserve, the Tonto National Forest, and the high-desert landscapes of the Transition Zone, where saguaro-studded lowlands give way to rugged granite hills. Cave Creek sits about 30 miles north of downtown Phoenix, a drive of roughly 45 minutes via Interstate 17 and Cave Creek Road, and it is closely linked to its neighboring community of Carefree, just to the east.

One of the most popular nearby draws is the McDowell Sonoran Preserve, a vast city of Scottsdale–managed conservation area that protects more than 30,000 acres of Sonoran Desert. Its trailheads near the Cave Creek and Carefree area offer everything from short interpretive loops to strenuous climbs up granite peaks, and several of the main access points lie within about a 10- to 15-minute drive of town. The preserve is a major reason outdoor-oriented visitors choose to base themselves in Cave Creek rather than closer to Phoenix.

Just north of town, the Spur Cross Ranch Conservation Area offers a quieter, more rugged alternative, with about 2,100 acres of desert, riparian cottonwood groves along Cave Creek, and trails that connect into the adjacent Tonto National Forest. It is roughly a 10-minute drive from the center of Cave Creek and is popular with hikers, mountain bikers, and horseback riders.

Cave Creek Regional Park, another Maricopa County property, sits a short drive to the southwest and adds picnic areas, a small lake, and additional trail networks to the mix. Together with the town’s own front-porch Western aesthetic, where saloons, saddle shops, and rodeo grounds sit alongside galleries and restaurants, these natural areas give visitors a way to experience the desert without ever straying far from the metro area.

The combination of genuine small-town character, year-round warm weather, and immediate access to hundreds of thousands of acres of preserved desert makes Cave Creek a natural fit for short-term rentals. Guests can spend the morning on a desert trail, the afternoon browsing a Western-themed downtown, and the evening dining under big desert skies, all while remaining within an easy drive of Phoenix, Scottsdale, and the wider Valley of the Sun.

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