If you’re planning to dip your toes into the short-term rental game in beautiful Sedona, you’ve come to the right place. Sedona’s truly enchanting red rock landscapes make it a perfect spot for you to share your property with guests who are looking for that magical desert experience.However, before you start dreaming about all that extra money in your pocket, it’s important to get familiar with the Sedona short-term rental regulations. In this blog post, we've broken down Sedona's short-term rental laws into easy-to-digest bites.

Don't see the form to download our short-term rental agreement? Click here.

What is considered a short-term rental in Sedona?

Sedona's short-term rental laws define these rentals as a temporary stay. The following types of properties can be used as short-term rentals:

• Single-family homes
• One- to four-unit houses (Like duplexes)
• Condominiums, townhouses, cooperatives
• Individual rooms within any of the above property types
• Guest houses (casitas, mother-in-law suites, etc.)

Any short-term rentals within these property types must be booked for fewer than 30 consecutive days.

Requirements for operating a short-term rental in Sedona

Sedona short-term rental regulations require all of the following to be in place for legal operation.

Transaction Privilege Tax License

To legally operate a short-term rental in Sedona, you must obtain a Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue. This license allows you to collect and remit the applicable taxes on your rental income. You'll also hear the TPT referred to as the "sales tax" for short-term rentals in Arizona as a whole. You can apply in person at a department of revenue office or by mail. A small fee is required, typically around $12.

Permit

To operate a short-term rental in Sedona, hosts must obtain a valid short-term rental permit from the city of Sedona. Applicants are required to provide the following information to obtain the permit:

• The physical address of the property
• The name and contact information of the owner
• The name and contact information of any designees
• Emergency contact information
• Proof of a Transaction Privilege Tax license
• Formal acknowledgment from the owner to comply with all rules and regulations surrounding short-term rentals in Sedona
• A nonrefundable fee (subject to change; typically more than $200)

Permit posting

All hosts are required to clearly display their short-term rental permit numbers on any advertisements for their property. Additionally, the permit must be displayed at the property itself.

Owner and emergency contact information

Owners of short-term rentals in Sedona need to provide accurate and up-to-date emergency contact information to the city. This includes designating a point of contact who can respond quickly. "Quickly" is defined by the city as within 60 minutes for emergencies and within 24 hours for nonemergencies, via phone, email, or in person. Any changes to this contact information should be reported to the city within 10 days.

Safety and compliance

Hosts must guarantee that their properties meet the minimum standards for habitable structures as established in the city code. These standards cover essential aspects such as sanitation, structural integrity, and fire safety. If the city has concerns about compliance with these standards, it may require an inspection of the property to confirm that all of the regulations are being followed.Additionally, it is strictly prohibited to use a short-term rental to house registered sex offenders. 24 hours before check-in, the host must complete a background check on the guest. However, if the online booking platform the host uses to rent out their property does this for them, that can count as well. Be sure to double-check with your specific booking platforms to see if they meet this requirement.

Trash management

Trash cans should be placed at the curb no earlier than noon the day before pickup and must be removed from the street by 11:59 p.m. on the day of pickup. All trash should be bagged and securely tied, except for clean recyclables, and must be fully contained within the trash can with the lid properly closed. Failure to follow these regulations can result in fines.

Insurance

The owner must have $500,000 in liability insurance to cover the short-term rental. The city can ask for proof of this insurance at any time, and you must present it within 10 days.

Neighbor notification

Before listing a short-term rental in Sedona, owners are required to notify neighbors who are directly next to, across from, or diagonally across from the property. The notification must be in writing (either sent via certified mail or hand-delivered) and should include details such as the rental’s permit number, its address, and the contact information for a 24-hour emergency point of contact. If any of this information changes, updated notifications must be sent within five days.

Other things to know about Sedona short-term rental regulations

Zoning

Unlike many other cities, there are currently no zoning restrictions on short-term rentals in Sedona. However, it's important to stay up to date on Sedona Airbnb laws in case this rule changes.

Homeowners associations

If your property is in a homeowners association (HOA), there may be additional regulations around operating your short-term rental.

Deed restrictions

Homeowners have the option to place a voluntary deed restriction on their property, preventing it from being used as a short-term rental for 49 years. This restriction transfers with the sale of the property. However, if the property is the owner’s primary residence, the restriction can permit the short-term rental of a portion of the property.

Penalities

Violations of the short-term rental regulations can result in both civil and criminal penalties. A minimum fine of $500 is imposed for the first offense, increasing for repeated violations within a 12-month period, with penalties reaching up to $3,500 or more, depending on the severity and circumstances.Additional penalties may include fines of up to $1,000 per month for failure to obtain a required short-term rental permit or provide required emergency contact information. Online lodging platforms can also be fined up to $2,500 per day for noncompliance, with removal requests for certain listings.

FAQS about Sedona Airbnb laws

Let's dive into the most frequently asked questions about Sedona short-term rental laws.

Are Airbnbs allowed in Sedona?

Yes, Airbnbs are allowed in Sedona. However, they must comply with certain regulations and obtain necessary permits before operating as a short-term rental.

How much is a short-term rental permit in Sedona?

A short-term rental permit in Sedona typically costs between $200 and $250. However, this is subject to change.

What is the law for short-term rental units in Arizona?

The law for short-term rental units in Arizona falls under the jurisdiction of local governments. Each city or town may have its own regulations and requirements for short-term rentals. However, all rentals in Arizona are required to have a Transaction Privilege Tax license.

Are parties allowed at short-term rentals in Sedona?

No. Special events of any kind are banned from short-term rentals in Sedona.

Manage your Sedona vacation rental with Lodgify

Managing a short-term rental in the "New Age Capital” requires staying up-to-date with Sedona short-term rental laws and ensuring your property meets all necessary requirements. From obtaining permits to complying with tax regulations, the process can seem overwhelming, adding to the already stressful job of managing a vacation rental.Lodgify supports hosts with the operational side of short-term rental management. From building a professional direct booking website to syncing your calendars and messages across major platforms, our tools help you stay organized and save time. With smoother day-to-day management, you can focus on delivering a great guest experience. Start your free trial with Lodgify today!

Don't see the form to download our vacation rental agreement? Click here.