Overview: Are Short-Term Rentals Allowed in Safford, AZ?

Yes, short-term rentals are explicitly allowed in Safford, AZ. However, they are regulated under Ordinance O23-010, which took effect on January 10, 2024. The city has established a comprehensive licensing and regulatory framework for vacation and short-term rentals while operating within the parameters set by Arizona state law (A.R.S. § 9-500.39).

Arizona state statute prohibits cities from denying owners the right to use their property as a vacation or short-term rental, but allows cities to regulate these properties to protect health, safety, and welfare.

How to Start a Short-Term Rental Business in Safford

Step 1: Property Assessment and Compliance

• Verify your property meets the definition of a short-term rental under Sec. 5.05.10
• Ensure the property is a single-family or 1-4 family dwelling, condominium, or cooperative unit
• Confirm the property is classified as transient public lodging establishment or owner-occupied residential home
• Ensure the property is not classified for property tax purposes under A.R.S. section 42-12001

Step 2: Obtain Required Licenses and Permits

• Apply for a City of Safford Business License (must be displayed on all advertisements)
• Comply with A.R.S. section 42-5005 Transaction privilege tax and municipal privilege tax requirements
• Display the license number prominently on each advertisement

Step 3: Prepare Required Documentation

• Compile all owner/contact information
• Establish emergency response protocols
• Review and acknowledge compliance requirements
• Complete required background check acknowledgments

Step 4: Ongoing Compliance Management

• Maintain emergency contact availability
• Monitor for verified violations
• Ensure tax compliance and renewals
• Keep current contact information on file with the city

Required Documents, Permits, Licenses, and Guidelines

Primary License

• City of Safford Business License for Vacation/Short-Term Rentals

Required Information for License Application (Sec. 5.05.20.A)

1. Owner Contact Information:

   • Name, address, phone number, and email address for owner or owner's designee
   • If owner is a business entity: name, address, email, and phone number of statutory agent

2. Property Information:

   • Address of the vacation rental or short-term rental
   • Proof of compliance with A.R.S. section 42-5005 (Transaction privilege tax and municipal privilege tax licenses)

3. Emergency Response:

   • Emergency point of contact for owner or owner's designee
   • Must be responsible for responding to complaints or emergencies in a timely manner
   • Available for in-person response if required by public safety personnel
   • Must provide phone and email availability 24/7

4. Legal Compliance:

   • Acknowledgement agreement to comply with all applicable laws, regulations, and ordinances
   • Statement acknowledging that neither owner nor owner's designee is a registered sex offender
   • Statement confirming no convictions for felonies resulting in death or serious physical injury
   • Statement confirming no convictions for felony use of deadly weapons in the past five years

5. Background Check Policy:

   • Statement determining if owner or online lodging marketplace will perform sex offender background checks of booking guests

Processing Timeline

• Business license must be issued or denied within seven business days of receipt of complete information

Display Requirements

• License must be displayed on each advertisement for the vacation rental or short-term rental

Specific Regulations for Short-Term Rentals in Safford, AZ

Prohibited Uses (Sec. 5.05)

The city explicitly prohibits using STR properties for:

• Housing sex offenders
• Operating or maintaining a sober living home
• Selling illegal drugs
• Liquor control violations
• Pornography, obscenity, nude or topless dancing
• Other adult-oriented businesses

License Denial Grounds (Sec. 5.05.20.C)

A license may be denied if:

1. Required information is not provided (Sec. 5.05.20.A, 1-7)
2. Owner has a suspended permit or license for the same property at time of application
3. Applicant provides false information
4. Owner or owner's designee is a registered sex offender or has qualifying felony convictions

License Revocation Grounds (Sec. 5.05.20.D)

A license may be revoked for up to twelve months for:

1. Three verified violations within twelve months (excluding aesthetic, solid waste, or parking violations not threatening public health and safety)
2. One serious violation including:
   • Felony offense by owner/designee at or near the property
   • Serious physical injury or wrongful death resulting from owner's/designee's conduct
   • Knowingly housing a sex offender or allowing prohibited activities
   • Allowing use for events requiring permits or for non-residential uses

Civil Penalties (Sec. 5.05.30.A)

Escalating penalties for verified violations within 12 months:

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

Additional Requirements

• Immediate cessation: Properties failing to apply for required licenses within 30 days of availability must cease operations
• Citation notification: City will attempt to notify owner/designee within seven business days of citations
• Single incident rule: Multiple violations from same response are treated as one violation for penalty purposes

State-Level Arizona Regulations

Arizona Revised Statutes § 9-500.39 provides the framework under which Safford operates:

• Cities cannot prohibit STRs but can regulate them
• Cities can require properties to meet fire and building codes
• Traffic control can be considered in approval/denial
• Cities can require adjacent property owner notification
• Permit fees cannot exceed $250
• Liability insurance requirements up to $500,000 per property
• Permit numbers must be displayed on advertisements

Special Event Limitations

Properties cannot be used for special events that would require separate permits or licenses under city ordinance or state law, including retail, restaurant, banquet space, or other commercial uses.

Tax Compliance

Owners must comply with Arizona's Model City Tax Code and are responsible for all applicable state and municipal taxes.

Contact Information for Local Authority in Charge of STRs

City of Safford Contact Information

Main Address: City of Safford PO Box 272 717 West Main Street Safford, AZ 85548

Phone: 928-432-4000

Website: www.cityofsafford.us/

Department Responsibilities

• Business License Applications: City Clerk's Office
• Code Enforcement: Building and Safety Department
• Tax Compliance: Finance Department
• Citation and Violations: Safford Police Department

Application and Licensing

• Applications processed through City Clerk's Office
• Business licenses processed within 7 business days
• License renewals and modifications handled by City Clerk

Emergency Response Requirements

Owners must designate and provide contact information for emergency response personnel available 24/7 to respond to compliance issues and emergencies.

Source Links

Primary Regulatory Documents

• Safford Ordinance O23-010: www.cityofsafford.us/DocumentCenter/View/6259/Ordinance-O23-010-Short-Term-Rentals
• 2023 Ordinances List: cityofsafford.us/881/2023-Ordinances

Background Information

• News Coverage of Ordinance: gilavalleycentral.net/safford-to-look-at-city-code-for-short-term-rental-properties/

Additional Resources

• Arizona Revised Statutes § 9-500.39: State preemption statute
• Arizona Revised Statutes § 42-5005: Transaction privilege tax requirements
• Arizona Revised Statutes § 42-5070: Transient lodging definition
• Arizona Revised Statutes § 42-12001: Property tax classification

Public Records and Hearings

• City Council Agendas and Minutes: www.cityofsafford.us/88/Agendas-Minutes
• Public Hearing Notices: Posted through City Clerk's Office

This guide is based on Safford Ordinance O23-010 and associated Arizona state statutes as of January 10, 2024. STR investors should verify current requirements with the City of Safford before making investment decisions.