How Will AirBnB and Home Sharing Affect Your Neighborhood?

Regulated Home Sharing Begins in Arizona

A new law aimed at regulating short term rentals in Arizona through venues like Airbnb and others went into effect on January 1, 2017.  Arizona isn’t the first state to try to get a handle on how to regulate the sharing economy. Instead of taking a heavy-handed regulatory approach, the law is allowing open competition aimed at innovating and competing.  According  to Christopher Koopman, a senior research fellow at the Mercatus Center at George Mason University, this model of regulation has the potential to allow a windfall of tax revenue to the state and cities, although it is still too early to tell what to expect exactly.

Concerns About Legal Home Sharing

Executive Director Ken Strobeck of The League of Arizona Cities and Towns and Mark Stapp, Executive Director of the Masters of Real Estate Development program at ASU, shared some of the concerns that were taken into account as the law worked its way through the Legislature last year:

1. Homeowners are concerned that the quality of their neighborhoods will be negatively affected.  Residential neighborhoods will be turned into hotels and party houses.
2. A cluster of short term rentals in one area will change the land use which will change the feel of the neighborhood.
3. There has not been a study of crime rates in a neighborhood in relation to Airbnb and such short term rentals.
4. More strangers would be in the neighborhood.
5. Mark Stapp mentioned that it could impact the affordability of rental housing.

The cities that will be most impacted by the industry are those that have the highest tourist rates and attractions.  Sedona and Scottsdale had ordinances on the local books that prohibited short term rentals.  However, looking over the short term rental industry sites showed a large amount of activity in these cities anyway.  So, the aim is to recognize reality and impose at least minimal regulation.

Compromise in Legislation

As the law went through the Legislature there had to be a compromise.  The main concern is not ruining the character of neighborhoods.  The legislation includes ordinances that have the ability to make sure that the rentals are not a nuisance including regulations on noise, parking, the number of people allowed at the site as well as having a local contact number for the site and not just a phone number in San Francisco.

As far as tax revenues go, short term rentals have never been legally permitted so it is all a learning process.  The law requires that all participants be licensed.  It also requires Airbnb to paying the taxes to the state and not the homeowners.  The tax rate is comparable to transit lodging taxes, which are higher than retail tax.  However, there may be a trade off with more calls for public service and use of public works.  There is also a concern among conventional hotels and an impact to loss of bed tax.

Regulation by Individuals

Something to be aware of is that private regulations including deed restrictions have nothing to do with the state law and can allow individuals to group together to regulate the industry in their neighborhood.

Though there will always be concerns, the overall outlook very positive. Mark Stapp stated that he hasn’t seen anything negative about it and believes it is a good thing.  He says the industry will creative attractiveness to Arizona and attractiveness to the area is always a goal.

What Are Your Thoughts?

To listen to the entire radio interview and view the source click here:  http://kjzz.org/content/415887/new-home-sharing-law-takes-effect-arizona

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12411 E Troon Vista Drive Scottsdale, AZ 85255

$1,599,900

4 Beds

4 Baths

2,722 SqFt

Status Active

MLS # 6652528

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Price Type --

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104 W Night Glow Drive Phoenix, AZ 85085

$1,599,900

5 Beds

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4,454 SqFt

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Property Type Single Family Residence

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19717 E Country Meadows Drive Queen Creek, AZ 85142

$1,599,000

6 Beds

3.5 Baths

4,000 SqFt

Status Active

MLS # 6763246

Property Type Single Family Residence

Price Type --

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$1,599,000

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2.5 Baths

2,645 SqFt

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Property Type Single Family Residence

Price Type --

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6348 E Wildcat Drive Cave Creek, AZ 85331

$1,599,000

3 Beds

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2,054 SqFt

Status Active

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Property Type Single Family Residence

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**ASSUMABLE LOAN $700,000 - 2.875% FIXED RATE** Experience the epitome of equestrian luxury at this show stopping horse property in the highly sought after zip code 85331. -Four stall broodmare and/or stallion barn w/cameras. -Three 12x30 matted stalls w/runs. -Four 10x30 stalls w/runs. All with automatic waters. -Custom tack room w/ AC & refrigerator. -80x120 Outdoor arena w/lights & sprinklers. -60' Round pen. -Five paddocks, two w/full irrigation. A detached, air-conditioned garage/workshop provides ample project space, while slab parking accommodates RVs, horse trailers, and/ or multiple cars. Step inside to discover a beautifully renovated kitchen and bathrooms featuring high-end finishes & modern fixtures. For comfort and efficiency, the home is equipped with solar. The cozy living area, complete with a wood-burning stove, creates a perfect retreat on cooler evenings. Outdoor living is effortless here, with inviting spa swimming pool, perimeter fencing for a small dog, citrus trees, automatic irrigation, security cameras and alfresco dining areas. Proximity to Cave Creek's top-rated schools, Dynamite Arena, Scottsdale, and the quaint Western town of Cave Creek ensures convenience and a rich local culture. Enjoy nearby golf, hiking, outdoor activities, and quick access to TSMC and the Loop 101. Living here is about becoming part of a vibrant, friendly community surrounded by the serene beauty of the Arizona landscape. Don't miss out on this unique property & experience the best of Cave Creek living!

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34599 N 99th Way Scottsdale, AZ 85262

$1,599,000

3 Beds

3.5 Baths

2,840 SqFt

Status Active

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Property Type Single Family Residence

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3498 N Morningside Road Apache Junction, AZ 85119

New

$1,599,000

4 Beds

4.5 Baths

2,828 SqFt

Status Active

MLS # 6786444

Property Type Single Family Residence

Price Type --

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$1,599,000

4 Beds

3 Baths

3,167 SqFt

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Property Type Single Family Residence

Price Type --

Open with Gourmet Kitchen, extensive upgrades and no steps! Enter to gorgeous wood planked ceiling, wooden beams, granite counters, large island, Bosch stainless appliances, gas cooktop. Great Room features stacked stone gas fireplace, wet bar, wine chiller & VIEWS. 2 New 18 SEER Trane A/Cs, Silicone Roof foam coated 5 yrs ago w/recent re-seal,all new skylights; New Water Softener, 2 water heaters, Re-circ pump. New plumbing fixtures, screens, satin nickel door hardware, outlets, switches, dimmers. 2.5 car garage w/cabs, new panel w/240V outlet for Golf Cart outlet/EV. New Pavers at entry & 3 large courtyards. Bfast patio & primary bedroom have direct Mountain view. 2 primary suites. White Shutters. 2 community pools & heated spas nearby. $43,000 high end recent Furnishings included

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160 Pinon Valley Drive Sedona, AZ 86351

$1,599,000

3 Beds

3.5 Baths

2,352 SqFt

Status Active

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Property Type Single Family Residence

Price Type --

Pull into your private retreat situated in a cul de sac at the end of a private road and NO HOA!! Sea of pavers allow for plenty of parking for guests as well as RV parking on side of home with 220 plugin. Plenty of room for entertaining in great room with 18+foot ceilings and views of Courthouse Butte. Chefs kitchen with oversized Monogram gas range and large built-in fridge. The 3 bedrooms all have their own full bathrooms. Outdoor entertaining with a front courtyard and rooftop walk deck with views of Courthouse Butte. On the rear patio enjoy evenings in front of a wood-burning fireplace underneath a large separate covered patio.

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12540 E Mercer Lane Scottsdale, AZ 85259

$1,599,000

5 Beds

3 Baths

3,356 SqFt

Status Active

MLS # 6754259

Property Type Single Family Residence

Price Type --

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12418 E Troon Vista Drive Scottsdale, AZ 85255

$1,599,000

3 Beds

3 Baths

2,224 SqFt

Status Active

MLS # 6750353

Property Type Townhouse

Price Type --

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8301 E San Salvador Drive Scottsdale, AZ 85258

$1,599,000

4 Beds

2.5 Baths

2,556 SqFt

Status Active

MLS # 6760645

Property Type Single Family Residence

Price Type --

Welcome to your dream home in the desirable McCormick Ranch neighborhood! This stunning remodel boasts hardwood floors and a vaulted ceiling with striking wood beams, creating an inviting atmosphere. Enjoy the warmth of the fireplace in the spacious living area, which seamlessly connects to the upgraded kitchen featuring Thor appliances and an oversized range—perfect for culinary enthusiasts. The accordion slider and new windows, both with a lifetime warranty, flood the home with natural light. Step outside to a beautifully refinished Pebble Tec pool surrounded by cool decking, and entertain with ease at the built-in BBQ. The newly landscaped front and backyards enhance curb appeal, complemented by a modern smooth stucco finish and a striking black iron front door. Luxurious marble countertops throughout add a touch of elegance. Don't miss your chance to own this exquisite property!

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