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In Phoenix, Arizona, short-term rentals (STRs), commonly known as vacation rentals, are legal but subject to strict regulations enforced by the Phoenix City Council. As of November 6, 2023, a new ordinance was established which replaces the previous registration system with a detailed permitting process, requiring all STR operators to obtain a permit from the city's Planning and Development Department. The properties that typically thrive as STRs include urban apartments, particularly in areas frequented by tourists and professionals, reflecting a market that caters substantially to both business travelers and vacationers. Recent updates to regulations include stricter compliance requirements, such as proof of insurance, notification to local residents about the operation of STRs, and adherence to heightened penalty structures for violations, which can reach up to $3,500 for repeat offenders. The primary authority overseeing these regulations is the Neighborhood Services Department, which is responsible for the enforcement and compliance of STR ordinances. For more comprehensive details, you can refer to the official government websites at City of Phoenix - Short-Term Rentals and Avalara MyLodgeTax - Phoenix STR Updates.
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