Chandler Short Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short Term Rental Business in Chandler

The city of Chandler, Arizona has implemented new rules and regulations for short-term rentals (STRs) such as Airbnb and Vrbo properties in recent years. As the popularity of vacation rentals has grown, many cities across the country have grappled with how to balance the benefits of this emerging industry with concerns about housing affordability, neighborhood character, and public safety.

In Chandler, the regulatory landscape for short-term rentals has evolved significantly since 2020. As of that year, vacation rental hosts are required to apply for a city transaction privilege tax (TPT) license and register contact information with the city. This initial step aimed to ensure that STR operators were properly registered and paying applicable taxes.

Additionally, under the 2020 rules, owners and managers must arrive on-site within an hour if called by police or code enforcers to address any issues or complaints. This provision helps to ensure that STR hosts are responsive and accountable for activity at their properties.

While these early regulations set the stage for oversight of short-term rentals in Chandler, the city has continued to refine its approach in subsequent years. The evolving nature of STR regulations underscores the importance for hosts and investors to stay informed about the latest requirements and to work closely with local officials to ensure compliance.

Short Term Rental Licensing Requirement in Chandler

One of the most significant recent changes to Chandler's short-term rental landscape is the introduction of a licensing requirement. Effective August 1, 2023, all short-term rental owners and operators in the city will be required to obtain a license from the city.

This licensing process aims to provide a more comprehensive framework for regulating STRs and ensuring that all operators are meeting the necessary standards. Failure to apply for a license within 30 days of receiving notice will result in civil penalties, emphasizing the importance of timely compliance.

The cost of licensing is structured as an annual fee, with the initial amount prorated quarterly based on the business start date. Depending on when a host begins operating, the fee ranges from 25-100% of the full annual amount. This graduated fee structure aims to avoid unduly burdening new STR businesses while still ensuring that all operators contribute to the costs of administration and enforcement.

Obtaining a short-term rental license is a crucial step for anyone looking to start or continue operating an STR in Chandler. By working through the licensing process, hosts can ensure that they are meeting all of the city's requirements and laying the groundwork for a successful and compliant business.

Required Documents for Chandler Short Term Rentals

To apply for a short-term rental license in Chandler, hosts must complete a short-term rental application for each property location. This application process helps the city gather key information about STR operators and their properties.In addition to the application itself, owners are also required to notify neighbors around and adjacent to the rental property before beginning operations. This notification requirement aims to promote transparency and give nearby residents an opportunity to raise any concerns or ask questions about the STR.

To facilitate this notification process, the city provides a sample notification form and resources to help hosts locate neighbor addresses. By proactively communicating with neighbors and addressing any issues that may arise, STR operators can help to build positive relationships within the community.

Gathering the necessary documents and completing the notification process may require some upfront time and effort for hosts. However, these steps are essential for operating a licensed and compliant short-term rental business in Chandler.

Chandler Short Term Rental Taxes

In addition to licensing requirements, short-term rentals in Chandler are also subject to taxation. STRs are taxed under Arizona's Transaction Privilege Tax (TPT) system, falling under the state's Transient Lodging classification and the city's Hotel classification.

The total tax rate for short-term rentals in Chandler is 11.67%, consisting of a 7.27% state rate and a 4.40% city Hotel/Motel rate. Hosts are responsible for adding this tax to guest bills and filing regular TPT returns with the city.Navigating the tax requirements for STRs can be complex, particularly for hosts who are new to the industry. However, failing to properly collect and remit taxes can result in significant penalties and legal issues down the line.

To ensure compliance with Chandler's tax rules, hosts should carefully review the city's guidance and consider seeking the advice of a tax professional. By staying on top of tax obligations, STR operators can avoid costly mistakes and maintain a positive relationship with local authorities.

Chandler-wide Short Term Rental Rules

Beyond licensing and taxation, Chandler has also implemented a range of other rules and restrictions for short-term rentals. These regulations aim to strike a balance between allowing STRs to operate while also preserving the character and safety of residential neighborhoods.

One key provision of Chandler's short-term rental ordinance is a prohibition on using STR properties for nonresidential purposes like events. This rule aims to prevent STRs from being used as party houses or venues that could disrupt neighbors and strain city resources.

Operators are also required to display emergency contact information and respond to any complaints received by the police department in a timely manner. This ensures that hosts are reachable and accountable if issues arise at their properties.

Additionally, the ordinance includes provisions for notifying nearby residents about STRs. By keeping neighbors informed and responding promptly to any concerns, hosts can help to maintain positive community relations.

Complying with these various rules and restrictions requires careful planning and ongoing attention from STR hosts. However, by operating in a responsible and neighborly manner, hosts can minimize the risk of complaints or enforcement actions and build a successful short-term rental business in Chandler.

Does Chandler strictly enforce STR rules?

The level of enforcement for short-term rental regulations can vary significantly from city to city. Some municipalities take a hands-off approach, while others devote significant resources to monitoring and penalizing noncompliant STRs.

Based on discussions in real estate investing communities like Bigger Pockets, Chandler appears to be somewhat strict in enforcing its short-term rental regulations compared to other cities. The city has taken steps to actively identify and address STRs that are operating without proper licensing or in violation of other rules.

However, this does not mean that it is impossible to operate a short-term rental in Chandler. Many hosts continue to run successful STR businesses in the city while complying with all applicable regulations.

As of June 2020, city data indicated that only about 100 out of 591 identified vacation rentals were properly licensed. This suggests that while Chandler is making efforts to enforce its rules, there is still work to be done in bringing all STRs into compliance.

For hosts looking to start or continue operating in Chandler, it is crucial to prioritize compliance with all local regulations. By obtaining necessary licenses, paying applicable taxes, and following operational rules, hosts can minimize the risk of enforcement action and build a sustainable business.

At the same time, the regulatory landscape for STRs is constantly evolving, both in Chandler and across the country. Hosts should stay informed about any changes to local rules and be prepared to adapt their businesses as needed to remain in compliance.

How to Start a Short Term Rental Business in Chandler

Starting a short-term rental business in Chandler requires careful planning and attention to a range of legal and logistical considerations. Here are some key steps for hosts looking to get started:

• Review Chandler's short-term rental ordinance and zoning requirements: Before investing in an STR property or listing an existing home, it is crucial to thoroughly review all applicable city rules and regulations. This includes zoning restrictions that may limit where STRs can operate.
• Apply for a city transaction privilege tax (TPT) license: All STR operators in Chandler must obtain a TPT license from the city. This involves submitting an application and paying the associated fee.
• Complete the short-term rental license application for each property: As of August 2023, Chandler requires all STRs to be licensed. Hosts must submit a separate application for each rental property they plan to operate.
• Notify neighbors around and adjacent to the rental property: Before beginning STR operations, hosts are required to notify nearby residents. The city provides resources to help with this notification process.
• Ensure the property meets all safety and occupancy requirements: STRs in Chandler must meet various safety standards, such as having working smoke detectors and fire extinguishers. Hosts should carefully review all requirements and make any necessary upgrades or repairs.
• Set up the rental listing on platforms like Airbnb or Vrbo: Once the property is licensed and ready for guests, hosts can create listings on popular STR booking platforms. This involves providing detailed descriptions, photos, and pricing information.
• Comply with ongoing licensing, tax, and operational rules: Operating an STR in Chandler is an ongoing responsibility. Hosts must renew licenses as required, file regular tax returns, and ensure that their properties continue to meet all city standards.

By following these steps and staying informed about any changes to local regulations, hosts can build a successful and compliant short-term rental business in Chandler. While the process may seem daunting at first, many hosts find that the rewards of STR ownership outweigh the initial challenges.

Who to contact in Chandler about Short Term Rental Regulations and Zoning?

For hosts with questions about Chandler's short-term rental requirements or zoning rules, the city provides several resources and points of contact.

The main contact information for STR inquiries is:

City of Chandler
175 S. Arizona Ave.
Chandler, AZ 85225
Phone: (480) 782-2220
Website: https://www.chandleraz.gov/business/tax-and-license/short-term-rental

The city's website includes detailed information about STR licensing, taxation, and other requirements. Hosts can also find application forms, sample notification letters, and other helpful resources.

For zoning questions or concerns, hosts can contact the city's Planning Division:

City of Chandler Planning Division
215 E. Buffalo St.
Chandler, AZ 85225
Phone: (480) 782-3050
Email: planning@chandleraz.gov
Website: https://www.chandleraz.gov/government/departments/development-services/planning-and-zoning

The Planning Division can provide information about zoning districts where STRs are allowed, as well as any specific restrictions or requirements that may apply in certain areas of the city.

By reaching out to these city contacts and utilizing the available online resources, hosts can get the information and guidance they need to operate a compliant STR business in Chandler. Building positive relationships with city staff can also be valuable for navigating any challenges or changes that may arise over time.

What do Airbnb hosts in Chandler on Reddit and Bigger Pockets think about local regulations?

Online forums and communities like Reddit and Bigger Pockets can be valuable resources for STR hosts looking to connect with others and share experiences about local regulations and market conditions.

On the Bigger Pockets forums, one prospective host asked about the current state of the Chandler STR market in September 2022. While no replies directly addressed the regulatory environment, the post itself suggests that some investors are still actively considering or pursuing STR opportunities in the city.

This interest persists despite the evolving regulatory landscape, indicating that some hosts still see potential for profitable STR operations in Chandler. However, the lack of detailed responses may also reflect uncertainty or caution among investors as they navigate the changing rules.

In the Phoenix subreddit, which includes discussions relevant to the wider metro area, a few recent threads have focused specifically on Chandler's STR ordinance changes:

• "Chandler Council to vote on requiring licenses for short-term rentals" (March 2023) - https://www.reddit.com/r/phoenix/comments/11o8dqx/chandler_council_to_vote_on_requiring_licenses/
• "Chandler approves new short-term rental rules" (April 2023) - https://www.reddit.com/r/phoenix/comments/12cju8x/chandler_approves_new_shortterm_rental_rules/

The comments in these threads suggest a mix of reactions to Chandler's efforts to more tightly regulate vacation rentals. Some posters express support for the city's attempts to rein in STRs and address community concerns, while others worry about the impact on property rights and the local economy.

The general sentiment seems to be that Chandler is taking concrete steps to assert more control over the STR market, but the full effects of these changes may not be clear until the latest licensing requirements take effect in late 2023.

For hosts active in Chandler or considering investing in the area, these online discussions underscore the importance of staying engaged with local policy developments and connecting with other operators to share experiences and strategies. While the regulatory environment may present some challenges, many hosts remain optimistic about the potential for successful STR businesses in the city.

As the STR industry continues to evolve, both in Chandler and across the country, hosts who are proactive, compliant, and community-minded will be best positioned to thrive in the long run. By working collaboratively with city officials, neighbors, and fellow hosts, STR operators can help to build a sustainable and mutually beneficial short-term rental ecosystem in Chandler.