New year, same problems! Rental properties, including short-term rentals, remain a HOT topic for HOAs/Condos throughout the State of Arizona. Let’s take a look at what’s going on…

City of Scottsdale takes Action
Last month, Scottsdale’s City Council voted unanimously in favor of updating the City’s Vacation Rental ordinance and Nuisance Parties and Unlawful Gatherings ordinance. The new rules remove loopholes, increase fines and improve the City of Scottsdale’s ability to crack-down on vacation rentals. The updated ordinances went into effect on January 7, 2022. We look forward to reviewing City of Scottsdale’s Short-Term Rental Quarterly Report for updates on this matter! (Noteworthy: City of Scottsdale estimates that they have 4,000 short-term rentals within their city limits … wow!)

Busy Time for AZ Legislature
As you may know, Arizona Legislature opened the Fifty-fifth Second Regular Session on January 10, 2022. Several bills impacting HOAs/Condos have already been introduced this legislative session, including a bill that addresses short-term rentals. In summary, HB2234, would give city and towns additional enforcement authority related to short-term rentals, and would allow cities and towns to impose civil penalties against owners that fail to comply with the terms set forth in the bill. For details related to HB2234, and other introduced bills, review our firm’s Summary of Pending Arizona Legislation Impacting HOAs/Condos.

SOME SOLUTIONS FOR DEALING WITH RENTAL PROBLEMS
• Amend CC&RS to Restrict Short-Term Rentals: It is important to note that in most cases, in order to implement a rental restriction, an association will need the requisite approval of the membership to amend its CC&Rs. Review our Cheat Sheet entitled, Amending Association Documents & Implementing Rental Restrictions for additional information.
• Develop a paper trail! Make sure to document (tenant issues) and provide evidence to the landlord (i.e. police reports, letters, photos, etc.).
• Pick-up the phone and call the landlord (or, hire our firm to do this – we do this all the time!).
• Make it hurt in the landlord’s pocket! Continue to fine the Owner for their tenants behavior. This is the best way to make a tenant to comply, and it may push the landlord/owner to evict the tenant if fines continue.
• If all other avenues have been exhausted, then it may be time to file lawsuit or an ADRE complaint.

Mulcahy Law Firm, P.C. is here to discuss the association’s remedies and available options. We urge board members and managers to review our popular and informative Cheat Sheet on How to Effectively Work with Rental Properties. If your HOA/condo needs assistance or has questions related to rental properties, contact Beth Mulcahy, Esq. at Bmulcahy@mulcahylawfirm.com.