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Payson latest town to consider regulating short-term rentals

Payson is the latest Arizona town to consider implementing regulations on short-term vacation rentals like Airbnb and VRBO. The move comes amid a statewide residential housing shortage and complaints about problems caused by short-term renters.

State legislation passed earlier this year allows local governments to impose stricter regulations on short-term rentals. Before then, there was very little oversight of such properties. The Payson City Council this month proposed drafting a new ordinance to regulate them, as many other Arizona communities already have, including Williams and Sedona.

The new state law allows municipalities to require permits or business licenses for property owners to operate short-term rentals. They must also show proof of liability insurance as well as provide owner contact information in case of an emergency or disturbance.

According to the Payson Roundup, there have been a number of complaints about noise and parties in residential properties that are, essentially, used as hotels.

It’s estimated that approximately one-third of residential properties statewide are rented for short-term stays. According to Airbnb and VRBO, that added about $7 billion to the state’s economy in 2021.

The Payson City Council says a draft plan won’t be issued until next year.