Neighborhood Disruption: The Debate Over Regulating Short-Term Rentals

Short-term rental properties like those listed on Airbnb and VRBO have become increasingly popular in recent years. Travelers enjoy the amenities and prices compared to hotels. And homeowners can make extra income renting out their properties. However, short-term rentals are disrupting some neighborhoods, especially in popular tourist destinations like Scottsdale, Arizona.

Complaints about loud parties, overcrowding, and disrespect for property are common. Neighbors don't want what they thought was a family home or quiet condo complex turned into a makeshift hotel or party house. Cities are scrambling to balance neighborhood livability with the economic benefits of short-term rentals.

Scottsdale resident Rob Murphy knows the pros and cons well. He previously rented out his Scottsdale property short-term but switched to long-term renters due to what he called "outliers" abusing the property. While most renters were fine, some were "unruly" and "just cause havoc," he said.

In response, the City of Scottsdale wants the Arizona Legislature to change state law to give cities more authority over short-term rentals. The city sent proposals to the Arizona League of Cities and Towns, which represents 90 local governments, to limit the number of short-term rentals and prevent too many in any one area.

Specifically, Scottsdale wants to cap the total number of short-term rentals citywide. It also wants to limit density by preventing short-term rentals from occupying more than a certain percentage of units within a subdivision or condo complex.

The city believes this will help maintain neighborhood character and prevent out-of-control party situations. Last year, Scottsdale already passed an ordinance requiring licenses, background checks, and fines for violations. But the city says more tools are needed.

However, advocates for short-term rentals say new restrictions go too far. Peter South, board member of Arizonans for Responsible Tourism, argues limits will hurt tourism and the economy. Short-term renters aren't just rowdy partiers, he says, but also families and responsible visitors.

South has a point. Tourism is a major economic driver, providing jobs and tax revenue. Visitors need lodging, and hotels don't meet all needs or preferences. Many homeowners rely on short-term rental income.

But cities do need tools to address clearly disruptive situations. A balanced approach is required. Reasonable density limits could prevent too many rentals concentrated in one area. Strict oversight and enforcement of existing noise and occupancy ordinances can penalize bad actors without punishing responsible owners.

The debate continues as the League of Arizona Cities and Towns holds a conference on August 29 to consider short-term rental proposals. Scottsdale and other cities hope their ideas will become part of the League's legislative agenda.

Wise policy will likely require compromise from both perspectives. Neighborhood integrity must be balanced with economic benefits. With constructive dialogue, cities can craft solutions that allow short-term rentals to thrive while keeping communities livable.