Scottsdale City Council passes short term rental laws, mayor stokes fear

May 13—Good fences, Robert Frost wrote, make good neighbors.

But not with short-term rentals, some Scottsdale residents would snidely add.

Indeed, rather than the soothing poetry of "A Mending Wall," Scottsdale City Council is attempting to muscle up by amending a law.

Even so, several of Scottsdale's elected officials grumbled they are pretty much caught between a rock and a loud place: The rock being state law, which permits homeowners to rent their dwellings — without saying much about noise produced by the ready-to-rumble renters swarming party destinations like Scottsdale.

Rather than walling off the party crowd, city officials hope tweaking Scottsdale's laws will help the cause.

The residents who have been calling police to report repeated disturbances in their formerly-sleepy neighborhoods might take comfort in last week's council meeting — unless they focus on Mayor David Ortega's doom-and-gloom commentary.

In what Assistant Manager Brent Stockwell described as key changes, amendments add "promoters as a responsible party for nuisance parties," ban minors from renting STRs and give police the power "to remove non-residents from a property after a nuisance party is declared."

Casting a dark cloud on Stockwell's mostly sunny presentation, Ortega assailed a bill winding its way through the Legislature "which would double — double — the number of short-term rentals in Scottsdale."

The State Senate two days later — on a 17-11 vote — passed a measure over stiff opposition by Arizona's municipalities requiring large cities like Scottsdale to allow single-family homeowners to build so-called accessory dwelling units, commonly called casitas.

The measure does not forbid their use as short-term rentals. It now has returned to the House for reconciliation.

STR amendments

At its May 6 meeting, a unanimous vote by City Council approved amending Scottsdale Revised Code "concerning nuisance parties and unlawful gatherings" and "concerning vacation rentals and short-term rentals."

The latter is often reduced to STR, referencing the Airbnb/VRBO model that has become a moneymaker for thousands of Scottsdale residents — and a nuisance for many of their neighbors.

While the great majority of the city's 4,000 short-term rentals host quiet, respectful guests, rowdy renters in Old Town and south Scottsdale were so regularly rude they inspired Scottsdale Police to form a special squad.

"Nuisance party calls and citations are on the rise in 2024," Stockwell informed Council. He said there were 228 nuisance party calls in March, "an increase from 157 in February, and a 51% increase from March 2023."

More than half (129) of the complaints came from STRs.

Contrary to the claims of some who say calling the cops on renters doesn't do anything, Stockwell said police have issued 156 nuisance citations this year — "nearly three times the 58 written in 2023.

"The significant increase in enforcement continues to be attributed to having dedicated staff working collaboratively to find and investigate violations," Stockwell noted.

Those who wish STRs would dry up so that they could get their old neighborhoods back may take a glimmer of hope in Stockwell's report.

He said estimates put Scottsdale short-term rentals just under 4,000, "down from the peak of 4,453 in March 2023 ... Every month since has seen a decrease in the number of live properties."

The city is in an interesting position: It must respond to complaints of its residents — yet continues to rake in millions from the Airbnb crowd.

According to Stockwell, in February alone, the city received $1.7 million from short-term rental taxes.

Since July 1, the city collected $11.4 million in STR taxes, up 7.3% compared to the previous year.

William Brooks, Stockwell's assistant, reminded Scottsdale's elected officials they provided city staff feedback and requests on STRs at a November study session.

"We continue to be careful to be compliant with state laws on all ordinance changes that are necessary to protect public health," Brooks noted.

"And we also have considered enforceability as a key concern of these ordinance amendments."

Councilwoman Betty Janik, for one, liked what she was hearing from Brooks and Stockwell.

"I want the citizens to know that we are listening to them," she stressed. "I routinely get complaints about short-term rental behavior.

"I think this is a very, very big step in the right direction, to make sure that everything is appropriate when we have short term rentals in our community, knowing that we are one of the top in the country for the number of short term rentals."

Living in Old Town, Councilman Barry Graham said he is "surrounded by" noisy STRs.

He said he often lodges complaints — inside his home.

"Ask my wife," he said. "I'm complaining to her about noisy STRs all the time."