Surprise Short Term Rental Regulation: A Guide For Airbnb Hosts

What are short term rental (Airbnb, VRBO) regulations in Surprise, Arizona?

On April 11, 2023, Surprise City Council adopted an ordinance regulating short-term rentals and requiring them to become registered with the City.

According to the Surprise municipal code, it is unlawful to rent or offer to rent a short-term or vacation rental without having first obtained a valid short-term or vacation rental license issued by the City.

The municipal code does not specify required documents for registration. However, hosts would likely need to provide contact information, proof of ownership or permission from the property owner, and a business license.

There are no specific taxes mentioned for short-term rentals in Surprise. However, hosts must comply with all applicable state and local sales, hotel, and other taxes.

Arizona does not have statewide regulations specific to short-term rentals. Local jurisdictions like Surprise have authority to regulate short-term rentals with ordinances and zoning codes.

Starting a Short Term Rental Business in Surprise

To launch a successful short-term rental business in Surprise, follow these steps:

1. Obtain a valid short-term or vacation rental license from the city, as it is unlawful to rent or offer to rent a short-term or vacation rental without one2.

2. Secure a license for the transaction privilege tax, which is required for residential rentals in Surprise3.

3. Understand and adhere to other contracts or rules that bind you, such as leases, condo boards, co-op rules, HOA rules, or rules established by tenant organizations3.

By following these guidelines and ensuring compliance with local regulations, you can establish a strong foundation for your short-term rental business in Surprise, Arizona.

Short Term Rental Licensing Requirement in Surprise

In Surprise, Arizona, individuals looking to engage in short-term or vacation rentals must adhere to specific licensing requirements. According to the Surprise municipal code, it is unlawful to rent or offer to rent a short-term or vacation rental without first obtaining a valid short-term or vacation rental license1. The requirements for obtaining a short-term rental license in Surprise typically include:

• Valid short-term or vacation rental license
• License for the transaction privilege tax
• Contact information
• Proof of ownership or permission from the property owner
• Business license

Additionally, hosts must ensure compliance with all applicable state and local sales, hotel, and other taxes3. It is also crucial to understand and abide by other contracts or rules that bind the individual, such as leases, condo boards, co-op rules, HOA rules, or rules established by tenant organizations2.

Required Documents for Surprise Short Term Rentals

In Surprise, Arizona, the required documents for short-term rentals include:

• A valid short-term or vacation rental license, which is necessary for operating a short-term rental property legally1.
• Proof of ownership or permission from the property owner, ensuring that the host has the right to rent out the property3.
• A business license, which is required for operating a business from the property3.

These documents are essential for compliance with local regulations and ensure that hosts can legally operate their short-term rental properties in Surprise.

Surprise Short Term Rental Taxes

Here's a breakdown of the taxes and fees associated with short-term rentals in Surprise:

• Arizona Transaction Privilege Tax (TPT): The income from short-term rental stays is subject to Arizona transaction privilege tax. The combined rate is 13.99% for the State/County and City of Surprise3.
• City of Surprise License Fee: On June 6, 2023, the Surprise City Council adopted a statutory maximum fee of $250 per license for short-term rentals2.
• Exemptions: If you have less than two residential rentals within the state and no commercial rental properties, you are not deemed to be in the rental business and are therefore exempt from the tax4.

Remember to collect and report the appropriate taxes to avoid penalties and fines.

Arizona wide Short Term Rental Rules

In Arizona, short-term residential rentals, which are lodging rental stays for less than 30 days, are subject to the state's transaction privilege tax (TPT) 1. This tax applies to all income received from the rental of the property and is considered taxable income. The TPT rate for residential rentals in the City of Surprise is 2.2% 3. Additionally, the state does not have specific regulations governing short-term rentals, allowing local jurisdictions like Surprise to establish their own ordinances4.

It is important to note that each property owner in the City of Surprise must have a tax license, regardless of the minimum number of rentals. If the property is rented out for short-term or vacation rentals (less than 30 days), it falls into the hotel/motel/transient lodging classification, and the combined TPT rate is 13.99% for the State and City of Surprise3.

For further assistance and to ensure compliance with TPT regulations, rental owners and property management companies can attend workshops offered by the Arizona Department of Revenue1. This information is crucial for individuals considering or already involved in short-term rental activities in Surprise, Arizona.

Does Surprise strictly enforce STR rules?

Surprise, Arizona has recently adopted an ordinance regulating short-term rentals and requiring them to become registered with the city. Hosts would need to provide contact information, proof of ownership or permission from the property owner, and a business license.

It is unlawful to rent or offer to rent a short-term or vacation rental without having first obtained a valid short-term or vacation rental license. While Surprise does not have specific short-term rental regulations at the city level, hosts are required to comply with the state's laws and regulations, such as registering for a Transaction Privilege Tax (TPT) license and paying applicable taxes on rental income.

Managing an Airbnb in Surprise can be challenging for hosts due to the competition and the need to maintain a high level of guest communication and marketing to maximize occupancy rates and income while ensuring a positive guest experience.

How to Start a Short Term Rental Business in Surprise?

Starting a short-term rental business in Surprise, Arizona, involves a few simple steps. Follow this process to ensure you comply with local regulations:

1. Obtain a short-term or vacation rental license: You must obtain a valid license from the city. It is unlawful to rent or offer to rent a short-term or vacation rental without having first obtained a valid license3.

2. Obtain a license for the transaction privilege tax: This license is required for residential rentals in Surprise, which are taxable at 2.2% for the City of Surprise. The State or County does not tax residential rentals1.

3. Understand and abide by other contracts or rules: Be aware of and adhere to any contracts or rules that bind you, such as leases, condo boards, co-op rules, HOA rules, or rules established by tenant organizations1.

By following these steps, you can successfully establish and operate a short-term rental business in Surprise, Arizona.

Who to contact in Surprise about Short Term Rental Regulations and Zoning

Contact the City of Surprise Community Development Department:Phone: 623-222-3000
Email: comdev@surpriseaz.gov

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

There is limited discussion of Surprise's short-term rental regulations on Reddit and Bigger Pockets. A few hosts mentioned the recent adoption of the ordinance requiring registration and that enforcement going forward is uncertain. Overall hosts do not seem concerned about the Surprise regulations compared to other cities in Arizona.