Scottsdale: City Council Unanimously Bans Party Houses at Short-Term Rentals With New Ordinance

Scottsdale closes legal loophole on short-term rental party houses

The Scottsdale City Council voted unanimously on June 23 to adopt Ordinance No. 4719, a measure that defines what counts as an "event center" and gives police clearer authority to shut down short-term rentals used as commercial party venues.

The ordinance takes effect on July 23. It arrives just before one of the busiest weekends of the year for vacation rentals in the city.

A breaking point for neighbors

Scottsdale police responded to 48 nuisance calls at short-term rental properties in May alone. Officers issued 56 charges and citations during that same month, according to KTAR News and Arizona's Family.

The enforcement surge followed a shooting at a rental party in the Maya complex. That incident led to arrests on aggravated assault and weapons charges, according to KTAR News.

Mayor Lisa Borowsky told the council the city had reached a limit on how long it would tolerate the problem.

"Why now? We're just really tired of it. It's gone on too long," Borowsky said.

She said a small fraction of property owners were responsible for most of the complaints.

"I would say there's about 10% of the short-term rental, STR, unit or property owners that constitute the bad actors in Scottsdale," Borowsky said.

How the new rule works

Arizona state law and existing Scottsdale city code already prohibit short-term rentals from operating as event centers. The problem was that neither the state nor the city defined the term. That left police and code enforcement without a clear standard when responding to complaints, according to KTAR News.

Ordinance No. 4719 fills that gap. It defines an event center as any organized gathering tied to a commercial purpose. Examples include weddings, corporate events, and promoter-driven parties advertised on social media or sold with tickets, according to Hoodline and Arizona's Family.

The rule exempts ordinary residential gatherings. A family hosting relatives for a birthday or holiday dinner is not covered by the ban, according to City Attorney Luis Santaella.

"If the council passes this ordinance, there will be a definition and it will make it easier for our police and code enforcement personnel to enforce," Santaella said before the vote, according to KTAR News.

Penalties for owners and guests

The new ordinance carries consequences for both party attendees and property owners.

• Fines can be issued to people attending unauthorized parties
• Property owners face the potential loss of their short-term rental license
• Owners can lose the ability to operate the home as a short-term rental entirely

Under the previous rules, police responding to a noise complaint had limited options. Partygoers could quiet down while officers were present and resume the party after they left. Borowsky described that cycle as having "no teeth."

What council members said

Councilmember Barry Graham supported the stricter rules but said he wanted even stronger action.

"Short-term rentals have destroyed many of our neighborhoods and our streets," Graham said during the meeting, according to KTAR News.

He added: "I wish you could take the hammer and drop it farther."

Councilmember Solange Whitehead credited Santaella with drafting the updated rules. She called the new ordinance the strictest of its kind in the state.

"One of these neighbors called me up crying," Whitehead told the council. "She finally feels hopeful."

Enforcement tools

Scottsdale has invested in data tools and a Short-Term Rental Resource Center to help identify suspect listings. The center allows residents to verify license status, view enforcement data, and report issues with specific properties, according to the City of Scottsdale website.

City officials say enforcement will continue to rely on a multi-department program that coordinates police, code enforcement, and the city attorney's office. Reporting shows officers have issued more citations even as nuisance calls have declined, according to Arizona's Family.

What residents should know

The Scottsdale Police Department said it will have officers and members of the Short-Term Rental Unit available during the July 4 holiday weekend to address neighborhood concerns, according to the Scottsdale Progress.

Residents with concerns about disruptive parties or fireworks are encouraged to report issues early. Reports should include the specific address, what is occurring, and any immediate safety concerns, according to Sgt. Alison Sempis.

• For emergencies: Call 911
• For non-emergency issues: Contact the Scottsdale Police Department at 480-312-5000

Operators who believe they have been wrongly cited can use the administrative review and appeal processes described on the city's website, according to Hoodline.