Short-Term & Long-Term Rentals

Short-Term/Vacation Rentals

Background

Per Carefree Ordinance Number 2022-03, short-term/vacation rental owners must obtain and maintain an annual Town license for each Carefree property. This Town of Carefree license is in addition to the county and state requirements outlined in the sections below.

View Article 6-8 Online

Short Term Rental Flyer (PDF)

STEP 1: Obtain a Transaction Privilege Sales Tax (TPT) license from the Arizona Department of Revenue

A valid TPT license is required for each rental property in Carefree; your TPT number will be needed to apply for the Town of Carefree rental license in Step 2.
• Obtain your TPT license from ADOR at aztaxes.gov

STEP 2: Apply for a Short-Term Rental License  Short Term Rental Application Packet

Complete the Carefree License Application – for each property, you must provide:
1. The name, address, phone number and email for the owner or owner’s agent
2. The address of the property
3. Proof of TPT license (obtained above)
4. Emergency contact information
5. Copy of Fire Safety Evacuation Map (see example)
6. Payment of Fee - $250.00
Apply for your short-term rental license at Carefree Town Hall, 8 Sundial Circle, Carefree AZ 85377 or mail to Town of Carefree, P.O. Box 740 Carefree AZ 85377, Attention: Dennis Randolph

STEP 3: Schedule the Required Town Inspection

Pursuant to Carefree Town Code Section 6-8-4, contact the Town of Carefree Building Department to schedule a short-term rental compliance inspection.

Short-term Rental Inspection Checklist

STEP 4: Notify neighbors and provide proof of insurance

Notify all single-family residential properties adjacent to, directly and diagonally across the street from the property, or in a multi-family residential building, all units on the same building floor prior to offering the property as an STR.
Carefree’s ordinance also requires that every short-term/vacation rental property be insured with liability coverage of at least $500,000 (either directly or through an online lodging marketplace).
• Once neighbor notification has occurred and proof of insurance has been provided, complete the Neighbor Notification & Liability Insurance Compliance Attestation and submit with the application

STEP 5: Complete Maricopa County requirements

Each property must be registered with Maricopa County as required by ARS 33-1902 – it is illegal to rent a property before it is registered with the Maricopa County Assessor.
• Register with Maricopa County at mcassessor.maricopa.gov

Once your property is licensed, make sure contact information is up-to-date.

If the emergency/management contact information changes for a licensed rental property, you must update your Town license and provide the new property contact information to neighbors.
• Submit a new Carefree Short-Term Rental License Application, and provide any other forms as needed.
• Renotify neighbors with the updated contact information and provide a new Neighbor Notification & Liability Insurance Compliance Attestation to the Town.
Submit these forms in person or by US mail to Carefree Town Hall, 8 Sundial Circle, Carefree AZ 85377 or mail to Town of Carefree, P.O. Box 740 Carefree AZ 85377, Attention: Dennis Randolph

Long-Term Rentals

Also included under A.R.S. §9-500.39 are regulations for residential rentals or “Long-Term Rentals”.  Long-term rentals are required to register with the Town of Carefree. These properties are defined as the rental of real property for a period of 30 or more consecutive days for residential purposes only and not commercial. Residential rental properties are also subject to tax, transaction privilege tax (TPT), and there applied to those properties when engaged in business under the residential rental classification by the Model City Tax Code. Individual owners of taxable rental properties are required by law to obtain a TPT license with ADOR regardless if the owners rent the property themselves or employ a property mana:gement company.

Whether the property is rented short-term or long-term, the entire property must be rented as a whole.  Accessory buildings may not be leased, subleased, or rented separate and apart from the main building and no main building may be leased, subleased, or rented separate and apart from an accessory building.

Section 2.02 Definitions

(14) BUILDING ACCESSORY: A detached structure which is subordinate to and incidental to the main use of the principal structure on the same lot. Accessory structures must be located in the  building envelope and shall comply with the applicable sections of this Ordinance.

(49) Guest House: Living quarters in an accessory building or attached to the principal residence, which may include cooking facilities, used to house guests or domestic attendants of the occupants of the principal building, and which shall never be rented or offered for rent or lease separate from the principal residence.

Article II: Rules and Definitions

ZO-AMENDED_EFFECTIVE_Aug_2021__1_.pdf (carefree.org)

Article IX. General Provisions

Section 9.02 Accessory Buildings and Uses

1. Accessory buildings shall not be constructed upon a lot until after the construction of the principal building has begun.
2. Accessory buildings in Single-Family Residential zoning districts shall not be rented or leased for any purpose.

STEP 1: Obtain a Transaction Privilege Sales Tax (TPT) license from the Arizona Department of Revenue

A valid TPT license is required for each rental property in Carefree; your TPT number will be needed to apply for the Town of Carefree rental license in Step 2.
• Obtain your TPT license from ADOR at aztaxes.gov

STEP 2: Apply for a Long-Term Rental License  Long Term Rental Application Packet

Complete the Carefree License Application – for each property, you must provide:

1.  The name, address, phone number and email for the owner or owner’s agent.
2. The address of the property
3. Proof of TPT license (obtained above)
4. Emergency contact information
5. Payment of Fee - $250.00

Apply for your Long-term rental license at Carefree Town Hall, 8 Sundial Circle, Carefree AZ 85377 or mail to Town of Carefree, P.O. Box 740 Carefree AZ 85377, Attention: Dennis Randolph