Tempe, Arizona Short Term Rental Regulations Guide for Airbnb hosts

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

YES — Short-term rentals are explicitly allowed in Tempe, Arizona. The city has an active ordinance in effect that permits short-term rentals, provided operators comply with registration requirements and applicable regulations. Short-term rentals are defined as residential properties rented for periods of less than 30 days, including vacation rentals, single-family homes, apartments, condominiums, rooms for rent, and corporate housing.

What do Airbnb hosts actually earn in Tempe?

Tempe hosts earn a median $35,593/year with $170 ADR and 76% occupancy.

Top performers pull in $50,974+ per year.

See the full Tempe market breakdown

How to Start a Short-Term Rental Business in Tempe, AZ

Starting an STR business in Tempe follows a structured, four-step process:

Step 1: Obtain State Transaction Privilege Tax (TPT) License

All hosts must first obtain a state Transaction Privilege Sale Tax (TPT) license through the Arizona Department of Revenue. This can be completed online at AZTaxes.gov. Your TPT license number is mandatory for completing your short-term rental permit application.

Step 2: Notify Neighbors

Before submitting your STR application, you must notify your neighbors according to state requirements. This includes residents on the same apartment floor for multi-family properties. You'll need to attest to completing this step during the application process.

Step 3: Verify Property Registration with Maricopa County

Ensure your property is registered with the Maricopa County Assessor's Office as a rental property. Property management or ownership should provide proof/confirmation of this registration, which you'll need to attest to during the application.

Step 4: Complete City Registration Process

Finally, complete the short-term rental application through the City of Tempe's licensing system. Ensure you include all required documentation, including your TPT license number and neighbor notification confirmation.

Required Documents, Permits, Licenses, and Guidelines

City-Level Requirements

Tempe Short-Term Rental License

Required for each rental unit
Application processed through the City's licensing portal
Must be displayed or made available upon request

Transaction Privilege Tax (TPT) License

State-level license required for all STR operators
Obtained through Arizona Department of Revenue at AZTaxes.gov

Neighborhood Notification Proof

Documentation showing notification to adjacent neighbors
Required attestation during application process

County-Level Requirements

Maricopa County Assessor Registration

Required for all rental properties regardless of rental term
Failure to register results in a $1,000 fine from code enforcement
Registration must be current and maintained

Tax Obligations

Transaction Privilege Tax Rates for Short-Term Rentals:

1.8% to Tempe (Region Code TE, Business Code 44)
5.0% to Tempe (Region Code TE, Business Code 144)
7.27% to Maricopa County and State (Region Code MAR, Business Code 25)

Important Tax Notes:

Long-term residential rentals (30+ days) are no longer taxable as of January 1, 2025
Short-term rentals remain taxable
Online Lodging Marketplaces collect and pay TPT on your behalf for their bookings
Direct bookings must be filed and paid by the property owner
All TPT license holders must file monthly reports even with $0 liability

Specific Regulations for Short-Term Rentals

City of Tempe Regulations

Registration Requirement

Short-term rentals must register with the City of Tempe
Registration allows emergency contact and code violation communications
Properties must display license information as required

Occupancy Limits

In single-family districts, maximum of three (3) unrelated people can live together
This limit applies regardless of home size or number of bedrooms

Code Compliance

Must comply with Tempe's Nuisance and Property Enhancement Code
Requirements include designated parking only, no trash/debris in yards, pet cleanup
Must comply with Rental Housing Code

Alarm Ordinance

New or existing residential alarms must be registered through Tempe's Alarm Program
Police Department jurisdiction for alarm-related issues

State of Arizona Regulations

Arizona Residential Landlord and Tenant Act

Governs landlord-tenant relationships
Applies to STRs when applicable

Transaction Privilege Tax Requirements

All STR operators must hold valid TPT licenses
Monthly filing requirements regardless of activity level
Proper categorization as hotel/motel alternative for tax purposes

County-Level Regulations

Maricopa County Requirements

All rental properties must register with County Assessor
Ongoing registration maintenance required
Code enforcement penalties for non-compliance

Contact Information for Local Authorities

City of Tempe - Primary Contacts

Tax & License Department

Phone: 480-350-2955
Fax: 480-350-8659
Email: salestax@tempe.gov
Office Address: 20 E. 6th St., 3rd Floor, Tempe, AZ 85281
Mailing Address: P.O. Box 5002, Tempe, AZ 85280
Hours: Monday-Friday, 8am-5pm (excluding city holidays)

General City Information

Phone: 480-350-4311
Address: City Hall, 31 E. 5th St., Tempe, AZ 85281

Additional City Contacts

STR Licensing Help: license@tempe.gov
Police Department (noise complaints, etc.): 480-350-8311
Alarm Program: 480-350-8778

State and County Contacts

Arizona Department of Revenue (TPT Licensing)

Website: aztaxes.gov
For TPT license applications and questions

Maricopa County Assessor's Office

Website: mcassessor.maricopa.gov
For rental property registration

Support Resources

Landlord/Tenant Dispute Hotline: 602-256-3517

Source Pages and Additional Resources

Primary Government Sources

State Resources

County Resources

Industry Resources

Disclaimer: This guide is for informational purposes only. Always verify current regulations directly with the City of Tempe and consult with legal and tax professionals for compliance advice specific to your situation.

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Ask the AI Advisor about Tempe

Tempe, Arizona sits in the heart of Maricopa County in the central part of the state, just southeast of Phoenix. With a population of roughly 180,000 residents, the city carries the energetic, youthful character of a major college town thanks to the sprawling campus of Arizona State University, one of the largest public universities in the United States. Tempe is best known as a hub for Sun Devils athletics, lakeside recreation, and a lively dining and nightlife scene, and it serves as an easy gateway to the broader Phoenix metropolitan area, the surrounding Sonoran Desert, and the red-rock country further north. It lies only about ten miles east of downtown Phoenix, with Scottsdale just a few miles to the north and Phoenix Sky Harbor International Airport practically on its western edge.

A defining feature of the city is Tempe Town Lake, a roughly two-mile-long reservoir created along a section of the usually dry Salt River. The lake and its surrounding parks draw cyclists, joggers, paddleboarders, and kayakers, and they host community events throughout the year. It sits within minutes of nearly every neighborhood in the city and functions as both a recreational anchor and a scenic centerpiece.

Just a few miles west of Tempe, on the border with Phoenix, Papago Park offers a quick escape into classic Sonoran Desert scenery, with red sandstone buttes, short hiking trails, and iconic geological formations. The park is also home to two of the metro area's most-visited attractions, the Desert Botanical Garden and the Phoenix Zoo, both within roughly a fifteen-minute drive of central Tempe and a natural pairing for families and outdoor enthusiasts.

For visitors interested in regional character and Western history, Old Town Scottsdale lies only about ten minutes north and features a dense grid of adobe-style storefronts, art galleries, restaurants, and a well-preserved early-twentieth-century historic district. To the south of Tempe, South Mountain Park and Preserve, often cited as one of the largest municipal parks in the country, offers more than fifty miles of trails for hiking, mountain biking, and horseback riding, all within a short drive of the city.

Tempe's blend of walkable urban districts, a major university, professional and collegiate sports venues, and immediate access to desert recreation makes it a versatile base for short-term rental guests. Visitors can spend mornings on the trail, afternoons at the zoo or botanical garden, and evenings sampling restaurants and bars along Mill Avenue, with Phoenix Sky Harbor International Airport just minutes away for easy arrivals and departures.

Tempe, Arizona

Generally Investor Friendly

STR Regulations for Tempe, Arizona