In the picturesque City of Mesa, Ariz., the allure of desert landscapes and the promise of year-round sunshine have made it a burgeoning hotspot for vacationers.
For property owners, this translates into a lucrative opportunity to offer their homes as short-term vacation rentals. However, navigating the legal intricacies of such a venture, particularly concerning Homeowners Associations (HOAs), is crucial to ensure compliance and profitability.
UNDERSTANDING MESA’S SHORT-TERM RENTAL REGULATIONS
The City of Mesa has implemented a licensing system for short-term rentals to safeguard the community’s health, safety, and welfare. This system requires adherence to zoning, safety, and nuisance standards, and mandates the disclosure of contact information for the property owner or their designee responsible for addressing complaints and emergencies. Additionally, property owners must notify neighboring properties when a home is to be used as a short-term rental.
THE ROLE OF HOAS IN REGULATING SHORT-TERM RENTALS
HOAs play a pivotal role in the governance of shortterm rentals within their communities. In Arizona, the Planned Community Act and Condominium Act stipulate that HOAs can only regulate short-term rentals if their Declaration of Covenants, Conditions, and Restrictions (CC&Rs) includes a clause that either prohibits rentals or mandates a minimum rental duration. If the CC&Rs are silent on rentals or simply permit them without time restrictions, the HOA cannot impose a ban on short-term rentals.
COMPLIANCE WITH HOA REGULATIONS
For property owners within an HOA, it is imperative to review the CC&Rs thoroughly. If the HOA has established regulations regarding short-term rentals, these rules must be followed to avoid penalties, which can include fines or legal action. It is also advisable to engage in open communication with the HOA board to understand any future plans or changes to the regulations that may affect the ability to rent out the property.
BEST PRACTICES FOR PROPERTY OWNERS
– License Acquisition Ensure you have a valid short-term rental license from the City of Mesa and a Transaction Privilege Tax (TPT) License for your rental property
– HOA Guidelines Review your HOA’s CC&Rs and abide by any rental restrictions or requirements they may have in place.
–Neighborly Notification Inform your neighbors about your intent to operate a short-term rental, fostering goodwill and potentially mitigating future disputes.
– Emergency Preparedness Establish a reliable point of contact for emergencies and complaints related to your rental property
– Insurance Coverage Obtain appropriate insurance coverage to protect against potential liabilities associated with shortterm rentals.
– Professional Consultation Consider consulting with a real estate attorney specializing in short-term rental regulations to navigate any legal complexities.
By staying informed and proactive, property owners can successfully transform their homes into welcoming retreats for visitors, all while contributing positively to the community and reaping the financial rewards of the thriving vacation rental market.
Contact Brandon Balsley at (480) 933-8874 or email Brandon.Balsley@grandwelcome.com for more information on available vacation rental property management services.