Airbnb & VRBO Performance in Tempe Arizona.

Short-Term Rental Regulations in Tempe, Arizona for 2024

Licensing and Registration

• Tempe Short-Term Rental License: Owners must obtain a Tempe Short-Term Rental License for each property or unit, with an annual fee of $250.
• Transaction Privilege Tax (TPT) License: All short-term rental owners in Arizona, including Tempe, must hold a TPT license to operate.
• Maricopa County Assessor Registration: All rentals must be registered with the Maricopa County Assessor’s office.

Compliance and Safety

• Emergency Contact Information: Owners must provide emergency contact information to nearby residences.
• Neighbor Notification: Owners must comply with neighbor notification requirements, including notifying the city if the property is sold or no longer used as a short-term rental.
• Liability Coverage: Owners must obtain at least $500,000 in liability coverage.

Operational Requirements

• Conduct Background Checks: Conduct sex offender background checks on anyone booking the rental.
• On-Site Residency for ADUs: Proposed requirement for on-site residency of the owner when renting an Accessory Dwelling Unit (ADU) for short-term rental.

Penalties and Enforcement

• Licensing Non-Compliance: Failure to secure a Tempe Short-Term Rental License can result in a penalty of up to $1,000 per month per property.
• Emergency Contact Information Non-Compliance: Failure to provide adequate emergency contact information can result in a penalty of up to $1,000 per month.
• License Suspension: Recurring breaches of the rental ordinance may result in license suspension for up to 12 months.

Additional Requirements

• Community Standards: Owners must ensure their rentals do not disturb local communities and uphold safety standards.
• Tax Compliance: Owners must collect and remit the Transaction Privilege Tax (TPT), with a total rate of 14.07% for short-term rentals.

Accessory Dwelling Units (ADUs)

• ADU Allowances: One attached and one detached ADU are allowed in single-family dwelling areas, with additional restrictions and allowances based on state and local regulations.
• Prohibition on Banning ADUs as Short-Term Rentals: ADUs cannot be banned as short-term rentals, but on-site residency of the owner may be required.

Top Neighborhoods for Airbnb Revenue in Tempe, Arizona

1. Tempe Royal Palms

• Average Revenue: $62.6K per year
• Average Daily Rate: $323.7 per night
• Average Occupancy Rate: 53%
• Average RevPAR: $171.8.
• Appeal: Tempe Royal Palms stands out for its unique blend of tranquility and convenience. The neighborhood offers well-maintained homes, lush landscaping, and quiet streets, creating a peaceful oasis close to major attractions and business centers. Its strong sense of neighborliness and family-friendly atmosphere make it ideal for travelers seeking a comfortable and welcoming home away from home.

2. Evergreen

• Average Revenue: $42.8K per year
• Average Daily Rate: $209.5 per night
• Average Occupancy Rate: 56%
• Average RevPAR: $118.9.
• Appeal: Evergreen is appealing due to its convenient location, family-friendly atmosphere, and proximity to local attractions such as the Arizona Mills Mall and Tempe Town Lake. The neighborhood's well-maintained homes, tree-lined streets, and abundant green spaces create a welcoming environment for both residents and visitors.

3. Downtown Tempe

• While specific financial data is not provided, Downtown Tempe is highly attractive due to its central location and proximity to Arizona State University (ASU), Mill Avenue, and other key attractions.
• Appeal: Downtown Tempe offers a vibrant living experience with easy access to restaurants, shops, and entertainment options. Its proximity to ASU and major transportation routes makes it a prime spot for both students and professionals. The area features a mix of modern apartments and historic homes, catering to a variety of tastes and preferences.

4. Northshore

• Located near Tempe Town Lake, Northshore is known for its luxurious lakeside condos and vibrant lifestyle.
• Appeal: Northshore offers a peaceful yet vibrant living experience with serene views of Tempe Town Lake. The area is perfect for those who crave a relaxing lifestyle with the convenience of nearby cafes, shops, and attractions.

These neighborhoods are highly sought after by Airbnb guests due to their unique blend of convenience, amenities, and community atmosphere, making them ideal for various types of travelers.

Furnishing and Design Tips for an Inviting Airbnb in Tempe, Arizona

Measuring and Layout

• Measure your rooms to determine the best layout, ensuring plenty of space to move around and unobstructed natural light sources.

Furniture Selection

• Choose timeless, sturdy pieces that align with your theme. Opt for solid beds with easy-to-clean surfaces and consider storage beds for extra space.
• Select a mattress that is at least 8 inches thick, preferably a memory foam mattress for durability and ease of replacement.
• Use a mattress cover to extend the life of the mattress.
• For sofas, pick ones with washable covers and consider sofa beds to increase guest capacity.

Dining Area

• Use a durable dining table that can withstand wear and tear. It doesn’t have to be the best-looking piece, as it can be enhanced with tablecloths, runners, and decor.
• Choose comfortable, lightweight chairs that are sturdy and easy to move around.

Kitchen Essentials

• Equip your kitchen with essentials like a coffee maker, microwave, toaster, and kettle. Include a good blender, sharp knives, basic cookware, utensils, and dinnerware.
• Provide items like a cutting board, measuring cups, and a corkscrew. Ensure there is ample space for food storage, including a pantry or cupboards.

Bathroom and Linens

• Use high-quality, durable towels in neutral colors that can be bleached. Provide enough storage for guests' toiletries and personal items.
• Include a hairdryer, basic toiletries, and a first-aid kit.

Workspace and Technology

• Set up a sturdy desk and comfortable chair for guests who need to work. Ensure good lighting and easy access to power outlets. High-speed internet is crucial, and consider a Wi-Fi booster for larger spaces.

Safety and Accessibility

• Install smoke detectors, carbon monoxide detectors, and a first aid kit. Consider adding a safe for valuables and ensure the property is accessible to guests with disabilities by including features like ramps, wide doorways, and grab bars in bathrooms.

Storage and Organization

• Use smart storage solutions like beds with drawers, wall hooks for coats, pegboards in the kitchen, and stackable containers to keep the space tidy.
• Offer guests a designated spot for their personal items, such as a luggage rack.

Mirrors and Lighting

• Use mirrors to make the space feel bigger and brighter. Ensure there is a full-length mirror with a power socket nearby for hair dryers and straighteners.

Aesthetic and Local Touch

• Incorporate elements that reflect Tempe’s unique style, such as vibrant colors and local artwork. Keep the decor clean and uncluttered, using neutral colors and high-quality bedding and linens.
• Add local touches like abstract art or desert-inspired decor to give the space a unique and inviting feel.

Outdoor and Additional Amenities

• If possible, include amenities like a pool or hot tub, outdoor space, and proximity to local attractions such as Arizona State University and downtown Tempe.
• Provide a well-stocked kitchen, comfortable furnishings, and modern technology like smart home devices to enhance guest satisfaction.

Discover Tempe, Arizona: Local Attractions and Insider Tips

Top Attractions

Tempe Town Lake

• Rent kayaks, stand-up paddleboards, or swan boats to explore the lake.
• Enjoy stunning sunsets and scenic views of the surrounding area.

Papago Park

• Explore the 1,500-acre urban desert preserve with hiking and biking trails, picnic areas, and lagoons.
• Visit the Desert Botanical Garden and the Phoenix Zoo within the park.
• Hike to the Hole in the Rock for breathtaking views, especially during sunrise or sunset.

"A" Mountain (Hayden Butte Preserve)

• Hike this short but scenic trail for views of Tempe, ASU campus, and Tempe Town Lake.
• Ideal spot to watch sunrise or sunset.

Arizona State University (ASU)

• Visit the ASU Art Museum for free exhibitions and unique photo opportunities.
• Explore the campus, including the James Turrell ASU Skyspace: Air Apparent and the palm-lined pedestrian walkway.
• Take a tour of ASU Gammage, one of Frank Lloyd Wright's last public commissions.

Desert Botanical Garden

• Located just outside Tempe, this garden features over 50,000 desert plants across 140 acres.
• Visit early in the morning for cooler temperatures and better lighting for photos.
• Enjoy a meal at Gertrude’s, the garden’s on-site restaurant.

Downtown Tempe

• Experience the vibrant nightlife on Mill Avenue.
• Visit the Tempe Center for the Arts and explore local galleries.
• Shop at Tempe Marketplace, Arizona Mills, and other local shopping centers.

Insider Tips

Best Times to Visit

• Early morning visits to the Desert Botanical Garden and Papago Park are recommended for cooler temperatures and better photo lighting.

Local Events

• Check out the Tempe Festival of the Arts, Oktoberfest, and Innings Festival for a lively experience.
• Visit the 6th Street Market on weekends for an arts and farmers market.

Dining and Nightlife

• Enjoy brunch at Daily Jam, Alter Ego, or Pita Jungle.
• Explore the culinary scene with unique restaurants like Ghost Ranch and The Crepe Bar.
• Experience nightlife on Mill Avenue, including Pedal Haus Brewery and board games at Snakes & Lattes.

Public Art

• Go on a mural and public art hunt around Tempe to discover vibrant and Instagram-worthy spots.

Outdoor Activities

• Hike the various trails in Papago Park and the South Mountain Preserve for diverse hiking experiences.
• Rent bikes or take a leisurely walk along the Rio Salado Pathway.

Additional Tips for Guests

• Take advantage of the warm weather (330 sunny days per year) to hike, bike, or enjoy water activities.
• Use the tree-lined, brick-paved sidewalks to explore the historic and culturally diverse community of Tempe.
• Check the local event listings to catch any festivals or performances during your stay.

Practical Tips to Run a Successful Short-Term Rental Business in Tempe, Arizona

To ensure a smooth and successful short-term rental business in Tempe, Arizona, several practical tips can be implemented. First, it is crucial to adhere to the city's noise regulations by informing guests about quiet hours through clear communication in the rental listing and a comprehensive house manual. This manual should be both digital and physical, including essential instructions, Wi-Fi passwords, and other vital information to enhance guest convenience.

A simplified check-in process can significantly improve the guest experience. Utilizing smart locks eliminates the need for physical key exchanges, allowing guests to check in seamlessly. Additionally, providing detailed parking instructions accompanied by photos can help avoid confusion and ensure a hassle-free arrival.

By complying with local regulations, such as obtaining the necessary Tempe Short-Term Rental License, registering with the Maricopa County Assessor, and holding a Transaction Privilege Tax (TPT) license, you can avoid fines and penalties. Ensuring you have at least $500,000 in liability coverage and providing emergency contact information to nearby residences further aligns your business with Tempe's regulatory requirements, fostering a positive and responsible hosting environment.

Here is a brief list of house cleaning providers in Tempe, Arizona:

House Cleaning Providers in Tempe, AZ

Tidy Casa

• Offers standard home cleaning, move-in/move-out, deep spring cleaning, and hourly cleaning services.
• Backed by a 200% happiness guarantee.
• Easy online booking and flexible scheduling options.
• Trusted house cleaners who are thoroughly vetted.

Two Maids

• Provides professional house cleaning services with fully trained, bonded, and insured cleaners.
• Supplies all necessary cleaning products and equipment.
• Customizable services to meet specific needs.
• Multi-award-winning company with over 15 years of experience.

Carole's House Cleaning

• Offers various cleaning frequencies including weekly, bi-weekly, and monthly services.
• Conducts thorough background checks and extensive training for staff.
• Uses eco-friendly and non-toxic cleaning products.
• Accommodates special requests and offers a satisfaction guarantee.

Merry Maids of Tempe

• Provides comprehensive cleaning services with 40 years of experience.
• Offers customized cleaning plans to fit individual needs.

Additional Options

• There are also numerous other house cleaning services listed in Tempe, AZ, which can be found through directories like Care.com, offering a range of rates and services.

Short-Term Rental Management Fees in Tempe, Arizona: A Comprehensive Guide

In Tempe, Arizona, managing a short-term rental property can come with a range of fees, typically ranging from 10% to 30% of the rental revenue, depending on the level of service provided. Full-service management companies, which handle all aspects including guest communication, marketing, and maintenance, usually charge on the higher end of this spectrum, often starting at around 15% of revenue.

Basic or half-service management, which may only cover tasks like cleaning and guest communication, can be more affordable, starting as low as 10% of revenue. Additionally, property owners may incur extra fees for services such as professional photography, property design, repairs, and maintenance. These fees can vary based on the property's size, location, and the specific services required to ensure compliance with Tempe's short-term rental regulations.