How do I start an Airbnb in Tempe?

Confirm City jurisdiction and property eligibility, obtain an Arizona TPT license and Maricopa County Assessor registration, secure qualifying liability coverage, apply for the annual Tempe license, name a 24-hour emergency contact, complete neighbor notice after approval, and configure tax filing before hosting.

What Tempe properties qualify for STR use?

A lawful residential property inside Tempe may qualify, but accessory dwelling unit timing and owner-residency rules, prohibited nonresidential uses, association restrictions, leases, financing, insurance, and the exact proposed operation can affect eligibility.

How do I obtain a Tempe STR license?

Gather the Arizona TPT license, County Assessor registration, owner and property details, 24-hour emergency-contact information, and proof of at least $500,000 in liability coverage. Submit a separate application and fee for each unit before advertising or renting it.

How do I confirm a Tempe STR is legal?

Verify the address is inside Tempe, the dwelling and any accessory unit are lawful, the planned stay length and use fit the City definition, the annual license is active, the license number appears in advertising, and private restrictions do not bar transient rental.

How should I evaluate Tempe STR locations?

Compare individual addresses using lawful use, private restrictions, parking, guest capacity, insurance, emergency-response logistics, tax treatment, operating costs, and property-specific comparable stays. Do not rely on unsupported neighborhood rankings or citywide performance averages.

What lodging taxes apply to Tempe STRs?

Tempe posts a 14.07% combined hotel and transient-lodging rate: 1.8% City hotel tax, 5% City additional hotel tax, and 7.27% State and County transient-lodging tax. Confirm current rates, taxable charges, and filing duties before each underwriting decision.

What costs should a Tempe STR budget include?

Model acquisition, financing, annual licensing, TPT administration, insurance, utilities, cleaning, repairs, platform and management charges, furnishings, guest screening, neighbor notice, parking and trash controls, safety equipment, and reserves for the exact property.

How do I assess Tempe STR profitability?

Build a property-specific operating model from defensible nightly-rate and booked-night assumptions, then subtract taxes, platform charges, management, cleaning, utilities, insurance, maintenance, financing, compliance costs, and reserves. Stress-test seasonality, tax changes, and platform collection gaps.

How do I calculate return on a Tempe STR property?

Calculate cash flow and return from the property’s actual purchase terms, setup costs, financing, taxes, insurance, operating expenses, licensing duties, and conservative revenue scenarios. Do not substitute unsupported citywide ROI, appreciation, revenue, or occupancy figures.

Who can help with Tempe STR questions?

Tempe Tax and License handles licensing, renewal, and notice questions at license@tempe.gov and 480-350-2955. Tempe Police non-emergency handles active nuisance-party reports at 480-350-8311. STR Search can help screen a property and operating plan, while the City remains the licensing authority.

Tempe, AZ Airbnb Guide

Decision point

Tempe STR Investment Decision

Tempe requires City licensing, State tax registration, neighbor notice, compliant operations, and property-specific diligence before launch

Confirm the property is inside Tempe city limits before relying on the City short-term-rental program.
Treat a residential rental of 29 days or less as short-term-rental use under the City program.
Confirm the dwelling, accessory dwelling unit status, and intended use qualify before acquisition or launch.
Review private covenants, condominium rules, leases, lender terms, and insurance because a City license does not override them.
Underwrite the address and proposed operation instead of unsupported citywide revenue, occupancy, appreciation, or return estimates.

Property eligibility

Tempe STR Property Eligibility

A lawful residential unit may require additional review when an accessory dwelling unit or private restriction affects the proposed rental

Verify City jurisdiction, lawful residential use, and the status of all structures on the parcel.
A property with an accessory dwelling unit constructed on or after December 20, 2024 may trigger an owner-residency requirement when used for short-term rental.
Confirm that the planned stay length is 29 days or less before applying the City short-term-rental rules.
Do not use the rental for prohibited nonresidential purposes such as a banquet space, event center, restaurant, or retail operation.
Check association rules, deed restrictions, leases, financing, and insurance for separate limits on transient use.

Licensing

Tempe STR License Application

Each short-term-rental unit requires its own annual Tempe license before it is advertised or rented

Obtain an Arizona Transaction Privilege Tax license and register the property with the Maricopa County Assessor before submitting the City application.
Provide the property address, owner information, TPT license, assessor registration, and a 24-hour emergency-contact name, address, and telephone number.
Show at least $500,000 in liability coverage or qualifying primary liability coverage supplied through the booking platform.
Pay the posted $250 annual fee, reduced to $187.50 for a license issued July 1 or later.
Place the Tempe license number on every advertisement after approval and do not advertise or rent before the license is issued.

Renewal and notice

Tempe Renewal and Neighbor Notice

Tempe licenses renew annually, and approved operators must notify nearby residential properties

Renew by the City deadline each year and confirm the current expiration date on the license record.
After approval, notify owners or residents of adjacent, directly opposite, and diagonally opposite residential properties.
For a multi-residence building, notify owners or residents of units on the same floor as the licensed rental.
Include the Tempe license number and emergency-contact information in the notice.
Send a completed copy of the neighbor notification to license@tempe.gov and retain compliance records.

Operating rules

Tempe Guest, Safety, and Nuisance Rules

The emergency contact, booking-screening records, nuisance controls, parking, and property upkeep remain operating responsibilities

Maintain a 24-hour emergency contact who can respond within 30 minutes when public-safety personnel are dispatched and within 24 hours for a non-emergency complaint.
Complete the required sex-offender background check on the booking guest within 24 hours before check-in, unless the online lodging marketplace performs it.
Retain the booking-screening record for 12 months after the booking date when the operator conducts the check.
Require legal and courteous guest parking, timely trash-container handling, litter removal, and maintained landscaping.
Prevent nuisance parties, excessive noise, blocked streets, public drunkenness, fights, underage alcohol service, and other disturbances.

Taxes and filing

Tempe TPT and Lodging Taxes

Tempe treats short-term rentals as hotel and motel lodging and requires State transaction-privilege-tax registration

Obtain the Arizona TPT license through AZTaxes.gov and list the Tempe location and applicable lodging classifications.
Use the City-posted combined lodging rate of 14.07% as a starting point, consisting of 1.8% Tempe hotel tax, 5% additional hotel tax, and 7.27% State and County transient-lodging tax.
Confirm the current rate, taxable base, deductions, and filing frequency with Arizona and Tempe before accepting bookings.
Reconcile platform-collected taxes against the operator’s returns instead of assuming every required amount was remitted.
Keep booking, gross-receipt, exemption, platform, and payment records that support each filed return.

Compliance

Tempe Complaints and Enforcement

Unlicensed operation, missing contact information, verified violations, and nuisance parties can produce material penalties or suspension

Operating without the required license can carry a civil penalty of up to $1,000 per month.
Failure to provide required emergency-contact information can carry an additional penalty of up to $1,000 per month.
Verified violations within a 12-month period can escalate from $500 or one night’s rent to $3,500 or three nights’ rent, whichever is greater.
A Tempe short-term-rental license may be suspended for up to 12 months under the City’s published enforcement standards.
Nuisance-party fines are posted at $250 for a first offense, $1,000 for a second, and $1,500 for a third offense.

Property analysis

Tempe Property-Level Underwriting

A City license does not establish revenue, operating margin, insurability, or private-use rights

Model purchase price, financing, property taxes, insurance, utilities, cleaning, repairs, platform costs, management, and reserves.
Use property-specific comparable stays and conservative booked-night assumptions instead of unsupported citywide earnings claims.
Price licensing, TPT administration, neighbor notice, safety, guest screening, parking, trash, and emergency-response obligations.
Obtain written insurance confirmation for short-term-rental use and the proposed guest capacity.
Test downside cases for tax changes, platform collection gaps, nuisance incidents, seasonality, association restrictions, and regulatory suspension.

Contacts and support

Tempe STR Contacts and Support

Use Tempe Tax and License for licensing questions and Tempe Police for active nuisance-party reports

Email license@tempe.gov for Tempe license, renewal, notice, and application questions.
Call Tempe Tax and License at 480-350-2955 for licensing assistance during posted business hours.
Use the City short-term-rental license page for current requirements, applications, fees, and tax classifications.
Call Tempe Police non-emergency at 480-350-8311 for an active nuisance party; use 911 for an emergency.
Plan a Tempe Property Strategy Call with the address, parcel details, proposed stay pattern, private restrictions, tax assumptions, and operating budget.

Sources and review

Official Tempe and Arizona Sources

Official City and State sources define the licensing, operating, tax, and enforcement requirements summarized here

City of Tempe short-term-rental license guidance and current application requirements.
City of Tempe license list and complaint guidance.
Arizona Revised Statutes section 9-500.39 governing local regulation of vacation and short-term rentals.
Tempe City Code and Charter including Chapter 16A, Article X and the nuisance-party rules.
Arizona Department of Revenue short-term-rental tax guidance.

For a Tempe property strategy call, bring the address, parcel details, proposed stay pattern, private restrictions, tax assumptions, insurance response, and operating budget. Plan a Tempe Property Strategy Call

Tempe Short-Term Rental Rules and Investment Review

Tempe Rental Rules and Investment Review