Based on the provided content, short-term rentals (STRs) are explicitly allowed in Phoenix (the core city of Central, AZ). The state law (Arizona Revised Statutes § 9-500.39) prevents cities from banning STRs, and Phoenix has established a permit system. The following guide provides a comprehensive, investor-focused overview of regulations, requirements, and processes.

1. Overview: Are STRs Allowed in Central, AZ?

Yes, short-term rentals are explicitly permitted in Phoenix (Central, AZ). The state legislature passed a law (ARS § 9-500.39) that preempts local governments from banning STRs. Cities like Phoenix can regulate them through permitting and safety requirements but cannot prohibit their operation. This creates a relatively predictable environment for STR investors, though compliance with local rules is mandatory.

2. How to Start a Short-Term Rental Business in Phoenix (Central, AZ)

Starting an STR in Phoenix involves a multi-step process with state, city, and county requirements. The sequence is critical.

1. Obtain an Arizona Transaction Privilege Tax (TPT) License: This is the foundational state tax license required before applying for any local permits. It allows you to collect and remit state and local transaction privilege taxes (similar to sales tax) on your rental income. Apply online via the Arizona Department of Revenue (ADOR) AZTaxes portal. The state rate is 5.6%, and local rates vary (e.g., Phoenix's combined rate is 8.6%).
2. Register the Property with the Maricopa County Assessor's Office: This is a state requirement under ARS § 33-1901 for all residential rental properties.
3. Apply for a Phoenix Short-Term Rental Permit: This is the core local authorization. Submit applications through the SHAPE PHX portal. The city must approve or deny the permit within 7 business days.
4. Complete Mandatory Neighbor Notification: Before operating, send a notice of intent via certified mail to specified neighbors and homeowners/neighborhood associations within a 600-foot radius. Provide an attestation of this compliance with your permit application.
5. Ensure Property Compliance: Verify the property meets all safety requirements (smoke/CO detectors, fire extinguisher) and zoning restrictions (e.g., no ADUs can be used as STRs).
6. List and Advertise: Display the Phoenix STR permit number prominently on every advertisement (listing). Maintain required notices within the property.

3. Required Documents, Permits, Licenses, and Guidelines

The core requirements are:

• State Level (Mandatory):
  • Arizona TPT License: Obtain via AZTaxes.gov. Essential for tax collection/remittance. See ADOR source.
  • Maricopa County Assessor Residential Rental Registration: Register the property as a rental. See ADOR guidance and County Assessor site.
• City of Phoenix Level (Mandatory for STR Operation):
  • Phoenix Short-Term Rental Permit: Apply via SHAPE PHX Portal. Fee: $250 (initial and renewal). Valid for 1 year. See Phoenix STR Registry source.
  • Completed Application Packets:
    • Review 1 Documents: Affidavit & Attestation, Description/Map of Safety Equipment, Owner's Designee Authorization. (Available on Phoenix site).
    • Review 2 Documents: Attestation of Compliance for Neighbor Notification. (Available on Phoenix site).
  • Proof of TPT License: Copy of the state license.
  • Proof of Liability Insurance: Minimum $500,000 aggregate coverage OR proof listing platform provides equal/greater coverage.
  • Contact Information: Owner, Owner's Designee (authorized agent), and 24/7 Emergency Contact details.
  • Compliance Statements: Acknowledgment of compliance with all laws.
• Operational Guidelines (Must Follow):
  • Neighborhood Notification: Send notice via certified mail per specified rules. Provide attestation.
  • Permit/License Display: Display permit number on ALL advertisements and a copy of the permit inside the property near the entrance.
  • Safety Equipment: Maintain functional smoke/CO detectors and fire extinguishers as mapped in your application.
  • Non-Residential Use Prohibited: Cannot be used for events, retail, etc.
  • Owner Response: Ensure owner/designee can respond to complaints/emergencies in a timely manner.
  • Posting Requirements: Post emergency contact and prohibited uses info inside the property.

4. Specific Regulations (City, County, State)

• State (ARS § 9-500.39):
  • Preemption: Cities cannot ban STRs.
  • Allowed Regulations: Health/Safety (fire, building, health codes), Zoning/Nuisance (noise, property maintenance), Prohibited Uses (sex offender housing, sober living homes, illegal activities, adult-oriented businesses, special events).
  • Local Permits: Cities can require a local permit/license (like Phoenix does).
  • Permit Application: City can only deny for specific reasons (incomplete info, false info, fee non-payment, suspended permit, sex offender/felony history).
  • Permit Renewal: City must issue/deny renewal within 7 days.
  • Suspension: City can suspend permits for verified violations (3 minor in 12 months or 1 serious crime/violence) for up to 12 months.
  • Penalties: Tiered civil penalties (min $500, up to $3,500) for violations, plus potential monthly fines ($1,000) for operating without a required permit after notice.
  • Liability Insurance: Must have $500k aggregate coverage OR use an OLM providing equal/greater coverage.
  • Owner Residency for ADUs: If the property contains an ADU issued a Certificate of Occupancy/Completion on or after September 14, 2024, the STR owner must reside on the property. ADUs with CO/CC before this date are exempt.
  • Notification: Requires owner to notify adjacent properties before offering for rent for the first time.
  • Advertisement Display: Requires displaying the permit/license number on ads.
  • Background Checks: Requires sex offender background checks on guests (unless waived via OLM).
• City of Phoenix (Code § 10-195 & Ordinance G-7156):
  • Permit Requirement: Explicitly prohibits renting or offering an STR without a current, valid Phoenix permit (§ 10-195).
  • ADU Prohibition: Explicitly prohibits using an Accessory Dwelling Unit (ADU) as an STR.
  • Enhanced Penalties: Phoenix enforces the state-mandated tiered penalty structure for violations.
  • Neighbor Notification Radius: Mandatory notice radius of 600 feet, including registered HOAs/Neighborhood Associations within that radius. Stronger requirement than basic state law.
  • Enforcement: Lead agency is the Neighborhood Services Department (NSD). Complaints filed via their portal or email (blight@phoenix.gov).
• County (Maricopa):
  • Residential Rental Registration: Mandatory registration of all residential rental properties with the Assessor's Office. (Source).

5. Contact Information

• Phoenix Short-Term Rental Program:
  • Email: vacation.rental@phoenix.gov
  • Phone: (602) 534-9723
  • Website: Phoenix STR Registry | SHAPE PHX Portal (Permits)
• Phoenix Neighborhood Services Department (Code Enforcement):
  • Complaint Filing: Phoenix At Your Service Portal
  • Email: blight@phoenix.gov
• Arizona Department of Revenue (TPT Licensing):
  • Phone: (602) 716-RENT(7368)
  • Email: See ADOR Contact Page
  • Website: AZTaxes.gov (Apply/Renew TPT)
• Maricopa County Assessor (Rental Registration):
  • Website: Maricopa County Assessor

6. Source Links

• Arizona State Legislature - ARS § 9-500.39: https://www.azleg.gov/ars/9/00500-39.htm
• Phoenix STR Registry (City Permits & Info): https://www.phoenix.gov/administration/departments/pdd/registration-licensing/short-term-rental-registry.html
• Phoenix STR Permit Application Portal: https://shapephx.phoenix.gov/s/
• Phoenix City Code § 10-195 (Permit Requirement): https://phoenix.municipal.codes/CC/10-195
• Arizona Department of Revenue - Short-Term Lodging: https://azdor.gov/business/transaction-privilege-tax/short-term-lodging
• Arizona Department of Revenue - Apply for TPT License: https://azdor.gov/business/transaction-privilege-tax/tpt-license/applying-tpt-license (Embedded in above page link)
• Maricopa County Assessor: https://mcassessor.maricopa.gov/

Important Note: This guide is based solely on the provided content and focuses specifically on Phoenix (Central, AZ). Always verify the latest regulations directly with the state and city authorities listed above before making investment decisions.