Do I need a permit for a short-term rental in Phoenix?

Yes. Every short-term rental needs a City of Phoenix permit, $250 initially and at each renewal, and an Arizona TPT license.

Can a renter apply for the Phoenix permit?

The application is made by the owner or someone the owner authorizes in writing, so a renter needs the landlord's written authorization.

Do I have to notify neighbors?

Yes. Phoenix requires notice of intent by certified mail to adjacent neighbors.

Can I list an ADU or host events?

No. Accessory dwelling units can't be used as short-term rentals, and non-residential uses such as events are prohibited under state law.

Is Rental Arbitrage Legal in Phoenix, AZ?

Permit required

Allowed with a city permit. Every short-term rental needs a City of Phoenix permit ($250 for each permit, initial and renewal) and an Arizona TPT license. The city issues or denies a permit within 7 days of receiving all documents. The owner applies, or someone the owner authorizes in writing. An accessory dwelling unit can be a short-term rental only if the owner lives on site.

Can a renter do rental arbitrage here? Only in limited areas. Renters can only operate in certain zones, or with a special approval. Confirm the exact property qualifies before you sign.

Researched by RentalArbitrage AdminReviewed by RentalArbitrage AdminLast verified: October 2026

Requirements

City short-term rental permit: $250 initial and renewal fee, non-refundable, applied for in the SHAPE PHX customer portal
Arizona TPT license from the Department of Revenue
Updated rental status with the Maricopa County Assessor's Office
Affidavit and attestation, a map of safety equipment, and an attestation that neighbors were notified
Notice of intent by certified mail to adjacent single-family properties (across the street and diagonal) and to registered HOAs and neighborhood associations within 600 feet
Owner's designee authorization if someone else applies for the owner
The permit number on every advertisement

Restrictions

An accessory dwelling unit can be used as a short-term rental only if the owner lives on site; from April 4, 2026 the owner needs a notarized attestation and proof of address
Non-residential uses such as events are prohibited under state law
Court-adjudicated violations cost at least $500 or one night's rent for a first violation, $1,000 or two nights' rent for a second, and $3,500 or three nights' rent for a third; a permit can be suspended for 12 months after a third violation or a felony conviction

Taxes and Fees

An Arizona transaction privilege tax (TPT) license from the Department of Revenue is required to get the permit

Official permit or registration page

Next Step

Legal is one half of the decision. The other half is whether the deal earns enough to be worth the risk.

Run the numbers for Phoenix, AZ See the Phoenix, AZ market

Sources

Frequently Asked Questions

Do I Need a Permit for a Short-Term Rental in Phoenix?: Yes. Every short-term rental needs a City of Phoenix permit, $250 initially and at each renewal, and an Arizona TPT license.
Can a Renter Apply for the Phoenix Permit?: The application is made by the owner or someone the owner authorizes in writing, so a renter needs the landlord's written authorization.
Do I Have to Notify Neighbors?: Yes. Phoenix requires notice of intent by certified mail to adjacent neighbors.
Can I List an ADU or Host Events?: No. Accessory dwelling units can't be used as short-term rentals, and non-residential uses such as events are prohibited under state law.