Overview

Short-term rentals ARE ALLOWED in Williams, Arizona, but they are strictly regulated under City Ordinance 989. The city has established a comprehensive framework for short-term vacation rentals that requires registration, licensing, regular inspections, and compliance with operational standards. All short-term vacation rentals must be registered annually with the city, maintain valid business and tax licenses, and undergo fire safety inspections.

Starting a Short-Term Rental Business in Williams

To establish a short-term rental operation in Williams, follow these essential steps:

1. Property Requirements: Ensure your property is located within Williams city limits and is zoned for residential use
2. Registration Application: Submit an annual registration application to the City of Williams
3. Licensing: Obtain a City of Williams Business License and Arizona Transaction Privilege Tax (TPT) license
4. Inspections: Complete initial Fire Safety Inspection
5. Local Contact: Designate a 24/7 local contact person available for emergencies
6. Compliance Setup: Ensure property meets all building, health, and safety codes

Required Documents, Permits, and Licenses

Primary Registration Requirements

• Short-term Vacation Rental Registration Certificate (annual renewal required)
• City of Williams Business License
• Arizona Transaction Privilege Tax (TPT) License (either city or state-issued)

Application Information Required

• Property address and legal description
• Owner information (name, address, telephone)
• Agent/representative information (if applicable)
• Local Contact Person: Must provide 24-hour contact information and demonstrate ability to respond within 30 minutes by phone and 60 minutes in-person
• Number of bedrooms and overnight occupancy limits
• Evidence of business license and TPT license

Key Documentation

• Evidence of property ownership
• "Good Neighbor Brochure" acknowledgment
• Written rental agreements (maintained for minimum 2 years)
• Emergency contact information posting requirements

Specific Regulations

Occupancy Limits

Williams imposes strict occupancy limits based on bedroom count:

• 0 bedrooms: 2 occupants
• 1 bedroom: 4 occupants
• 2 bedrooms: 6 occupants
• 3 bedrooms: 8 occupants
• 4 bedrooms: 10 occupants
• 5 bedrooms: 12 occupants
• 6 bedrooms: 14 occupants

Formula: 2 persons (13+ years) plus 2 additional persons (13+ years) per bedroom

Operational Requirements

Local Contact Person Duties:

• Available 24/7 during rental periods
• Must respond to complaints within 30 minutes (phone) and 60 minutes (in-person)
• Responsible for managing tenant behavior and noise
• Must ensure trash disposal compliance
• Cannot be expected to act as peace officer or place themselves in risky situations

Property Standards:

• Must maintain compliance with all building codes
• Fire safety inspection required initially and annually
• Property posting requirements include registration certificate and operational conditions
• No violation of deed restrictions or CC&Rs allowed

Guest Management Requirements:

• Written rental agreements mandatory before occupancy
• Guest must provide government-issued identification
• Responsible person designated for compliance
• Required acknowledgment of occupancy limits, trash disposal, and noise restrictions

Prohibited Activities

• Events requiring special permits (weddings, banquets, commercial activities)
• Noise level violations
• Disorderly conduct
• Violations of city code or state law

Fees Structure

Registration Fees

• Initial Registration: $95.00 (due at application)
• Annual Registration: $35.00 (due January 1 each year)

Inspection Fees

• Initial Fire Safety Inspection: $65.00 (due at application)
• Annual Fire Safety Inspection: $65.00 (due January 1 each year)

Important: Properties cannot operate until fire safety inspection is completed and fees paid.

Additional Tax Obligations

• Must comply with City Model Tax Code regarding transient occupancy taxes
• TPT license required for tax collection and remittance

Enforcement and Penalties

Violation Consequences

• Misdemeanor charges for each day of violation
• Suspension or revocation of registration certificate for 3+ violations in 12-month period
• Citation authority for city officials
• Compliance periods may be shortened based on violation severity

Appeal Process

• Registration certificate denials may be appealed in writing to the City Manager
• Due process rights maintained for all enforcement actions

City and State Regulatory Framework

Municipal Regulations (Williams)

All regulations outlined above are established under Williams Municipal Code Chapter 117, governed by the Mayor and City Council. The City Manager has administrative authority over registration and enforcement.

State Requirements

• Arizona Transaction Privilege Tax licensing through Arizona Department of Revenue
• Compliance with state health and safety regulations
• State landlord-tenant law compliance for eviction procedures

Contact Information

Primary Authority

City of Williams

• Website: williamsaz.gov/doing_business
• Address: Williams, AZ (municipal offices)
• General Inquiries: Contact City Hall for Business Licensing Department

Additional Resources

Northern Arizona Association of REALTORS®

• Address: 1515 E. Cedar Ave, Suite #C4, Flagstaff, AZ 86004
• Phone: 928.779.4303
• Email: naarflag@nazrealtor.com
• Website: nazrealtor.com

Coconino County Community Development

• Website: coconino.az.gov/communitydevelopment

Important Links and Source Documents

1. Williams STR Ordinance 989: 2022 Proposed Ordinance

2. Northern Arizona Regional STR Comparison Guide: Short-Term Rental Ordinance Guide

3. Williams Business Licensing Portal: williamsaz.gov/doing_business

4. Flagstaff STR Information: flagstaff.az.gov/4535/Short-Term-Rentals (for regional comparison)

Critical Compliance Notes

• Registration must be renewed annually with any material change reported within 14 days
• Fire safety inspections are mandatory before operation and annually thereafter
• Local contact person requirements are strictly enforced with response time mandates
• Neighbor notification requirements exist for designated contact information
• Transaction Privilege Tax compliance is required for all STR operations
• Property deed restrictions may further limit or prohibit STR operations - verify before purchase

This regulatory framework positions Williams as a well-regulated STR market with clear compliance requirements, making it suitable for legitimate operators committed to community standards while maintaining neighborhood integrity.