Flagstaff Business News
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“I think in general the changes are good,” but some owners may opt out, he said.
Flagstaff raised a license fee to $250 for owners and operators of short-term rental properties in the city, along with new requirements for fire safety, insurance and background checks for renters.
“I think in general the changes are good,” but some owners may opt out, he said.
The 35% increase from $185 is due upon the annual license renewal. Flagstaff has 1,055 licensed short-term rentals (STRs), up from 573 registered in 2021.
Other new STR measures that went into effect July 1 include:
Some management companies overseeing STRs for owners are generally supportive of the new and updated requirements.
Tim Allen, executive property manager for the Local Rental Team at West USA Realty Flagstaff, said nearly all his 23 clients list their vacation rentals on major platforms, such as Airbnb and VRBO. That provides them an exemption from the city’s background check and liability insurance requirements. Both platforms provide those services for owners.
“I think in general the changes are good,” but some owners may opt out, he said. “An individual owner might become overwhelmed or overburdened and may no longer want to manage their own STR. My crystal ball is a little cloudy because I thought the saturation of the market would lead to a pretty drastic decrease in the total number [of STRs]. So far that is not happening.”
In addition to Flagstaff’s 1,055 STRs, sprawling Coconino County has more than 900 STRs with many of them close to the city in Kachina Village, Mountainaire, Doney Park and Munds Park.
Plus, Flagstaff has 5,458 hotel and motel rooms, according to Discover Flagstaff, the city’s tourism marketing arm. Visitors have a wide choice of hotels and STRs. Last year, local hotels filled 68% of their rooms at an average daily rate of $120.41.
“Discover Flagstaff works to inspire responsible overnight visitation and build compression into the city, and customers choose what accommodations fit their situation,” Executive Director Trace Ward said.
STR guests pay a 2% Bed, Board and Beverage tax, the same rate as Flagstaff hotel and campground visitors, and restaurant and bar patrons.
The Flagstaff City Council approved the new STR requirements in May to more closely align with state law with a cap of $250 for the licensing fee. In 2016, the state blocked cities from banning STRs.
The higher fee is projected to raise an additional $71,500 for Flagstaff.
The city decided to require sex offender background checks “to ensure a consistent, reliable vetting process is in place,” said Jessica Kittleson, Flagstaff customer service director. “This check gives license holders a clear, standardized process for vetting guests prior to check-in, rather than leaving that judgment to individual discretion.”
STR owners or managers must retain a digital or hard copy record of the background check for 12 months after the booking date.
They are also required to post a notice inside the STR of information on waste, recycling and winter parking restrictions.
Kittleson said the city “cannot speculate on operator response to the new regulations.”
Bella Bifano, Flagstaff Vacation Properties operations manager, said she doubts STR owners will opt out because of the new mandates.
“I don’t think so,” she said. “We run a very kosher business already so all those things are rules we follow.”
“Business has been really good actually. We’ve had a great summer so far since it’s been so hot in Phoenix.”
While vacation rentals have proved popular with visitors, they have been controversial with residents, especially in a city that declared an affordable housing shortage crisis in 2020. Neighbors of STRs registered more than 300 complaints between November 2024 and March 2026, according to the city.
Nearly 40% of the complaints were about noise. Other complaints targeted fire safety, parking, trash, too many guests and illegal rentals.
Flagstaff has an online complaint form on the city’s website that replaces an STR hotline.
Property manager Allen said most of the complaints he gets are from neighbors who are philosophically opposed to STRs. FBN
By Peter Corbett, FBN
Courtesy Photo: Flagstaff short-term rentals range from woodsy forest homes to cozy cottages in the historic downtown.
Filed Under: Business, Local News, Tourism
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