Scottsdale Closes Short-Term Rental Loophole, Cracks Down On Party Houses

SCOTTSDALE, AZ — If you’ve ever lived near a short-term rental that seemed to host a different wedding, corporate party or promoter event every weekend, Scottsdale now has a clearer path to shut it down.

The City Council approved an ordinance June 23 that formally defines what counts as an “event center” under city code, closing a loophole that had made it harder to enforce existing rules against short-term rentals being used as commercial venues.

Arizona law already banned the practice. The problem was that neither the state nor the city had clearly defined an event center, which gave property owners room to argue and left enforcement officials with less to stand on in court.

Now the city has a definition: a property used for organized gatherings involving a commercial purpose, activities requiring a city permit or event-related impacts on the surrounding area.

Weddings, banquets, corporate events, receptions and promotional events all qualify. Normal house parties do not.

The change comes after one of Scottsdale’s most active months of short-term rental enforcement on record.

In May, police fielded 48 nuisance calls at rental properties, the city issued 56 charges and citations, and investigators made arrests tied to a shooting at a party in the Maya complex. Officers also identified and shut down several large promoter-run events advertised on social media before they could begin.

"Scottsdale has consistently been at the forefront of finding innovative and lawful ways to address short-term rental impacts on neighborhoods," City Manager Greg Caton said. "This action is another example of our commitment to protecting residents' quality of life while ensuring short-term rentals operate as intended under state law. When properties cross the line from residential use to commercial event operations, we need the tools to respond effectively."

City officials said the ordinance gives them stronger legal footing when property owners push back, and no additional city resources are needed to enforce it.