Gilbert Short Term Rental Regulation: A Guide For Airbnb Hosts

Starting a Short Term Rental Business in Gilbert

Gilbert, Arizona is a popular destination for tourists and short-term rental (STR) businesses like Airbnb and VRBO. The town's proximity to Phoenix, warm climate, and numerous attractions make it an appealing location for visitors. However, before starting an STR in Gilbert, it's important to understand the local regulations and zoning laws to ensure compliance and avoid potential issues.

The Town of Gilbert's Land Development Code outlines the rules for STRs in Chapter I, Article 1.1. All uses and development of land within Gilbert must comply with the zoning regulations set forth in the town's Zoning Code. Failure to adhere to these rules can result in fines and legal consequences for STR owners.

It's crucial for potential STR operators to carefully review the zoning requirements for their specific property. Some areas of Gilbert may have additional restrictions or prohibit STRs altogether. Contacting the Gilbert Planning Department is the best way to verify if a property is eligible for short-term rental use.

Short Term Rental Licensing Requirement in Gilbert

As of 2022, the Town of Gilbert does not have a specific license requirement for short-term rentals. This sets Gilbert apart from some other Arizona cities that have implemented their own STR permitting processes. However, all STR owners in Arizona are required to hold a Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue in order to operate legally.

The TPT license is essentially a state sales tax permit. It allows STR owners to collect and remit the required taxes on their rental income. Applying for a TPT license involves providing information about the business, including the owner's name, address, and type of business. There is a small fee associated with obtaining the license.

Operating an STR without a valid TPT license can result in significant penalties and legal issues. The Arizona Department of Revenue conducts audits and investigations to ensure compliance with tax laws. STR owners found to be operating without a license may face fines, back taxes, and even criminal charges in severe cases.

Required Documents for Gilbert Short Term Rentals

While Gilbert does not require any additional licenses beyond the state TPT, STR owners should be prepared to provide certain documentation if requested by the town. These documents help to ensure that the rental property meets safety standards and complies with occupancy limits and other regulations.

Some of the key documents that Gilbert STR owners should have on hand include:

• Proof of ownership or a valid lease agreement for the rental property. This demonstrates that the STR owner has the legal right to use the property for short-term rental purposes.
• A detailed floor plan of the property showing all rooms, exits, and safety features. This helps to verify that the STR meets occupancy limits and has adequate emergency exits.
• A parking plan that shows the number and location of available off-street parking spaces. Gilbert requires STRs to provide one off-street parking space per bedroom.
• Emergency contact information for a local representative who can respond to any issues or complaints at the property 24/7. This ensures that someone is available to address urgent concerns even if the STR owner is not local.

Having these documents organized and readily available can help to streamline any interactions with town officials and demonstrate the STR owner's commitment to responsible operations.

Gilbert Short Term Rental Taxes

In addition to obtaining a TPT license, short-term rental owners in Gilbert are responsible for collecting and remitting several taxes on their rental income. These taxes apply to any rental period less than 30 consecutive days.The taxes that Gilbert STR owners need to be aware of include:

• Arizona state TPT tax (5.5%). This is the statewide sales tax that applies to most transactions, including short-term rentals.
• Maricopa County excise tax (1.77%). This is an additional county-level tax that applies to STRs in Gilbert, which is part of Maricopa County.
• Gilbert transient occupancy tax (1.77%). This is a local tax imposed by the Town of Gilbert on short-term rentals.

In total, these taxes add up to 9.04% of the rental amount. STR owners have the option to pass these taxes on to their guests by including them in the nightly rate or adding them as a separate line item on the bill.

It's important to note that online platforms like Airbnb and VRBO are required to collect and remit taxes on behalf of their hosts in Arizona. This means that if an STR owner exclusively lists their property on one of these platforms, the taxes will be automatically collected and paid to the appropriate authorities.

However, if an STR owner also lists their property on other websites or accepts direct bookings, they are responsible for collecting and remitting the taxes themselves. This requires careful record-keeping and regular filing of tax returns.

Failure to comply with tax requirements can result in audits, fines, and legal penalties. STR owners should consult with a tax professional or the Arizona Department of Revenue if they have any questions or concerns about their tax obligations.

Gilbert-wide Short Term Rental Rules

In addition to zoning requirements and tax obligations, the Town of Gilbert has several other rules that apply to all short-term rentals within its jurisdiction. These rules are designed to protect public safety, preserve neighborhood character, and minimize the impact of STRs on surrounding residents.

One key rule is that STRs in Gilbert are prohibited from being used for non-residential purposes that would normally require a separate permit or license. This includes events, parties, weddings, retail sales, restaurants, and other commercial activities. STRs are intended for lodging purposes only.

Other important rules for Gilbert STRs include:

• Occupancy limits: STRs are limited to a maximum of two adults per bedroom, plus two additional adults. For example, a three-bedroom house could accommodate up to eight adults.
• Parking requirements: STRs must provide one off-street parking space per bedroom. This helps to reduce traffic and parking congestion in residential areas.
• Length of stay: Rentals are limited to a maximum of 30 consecutive days per guest. Longer rentals may be considered a different use and subject to additional regulations.
• Nuisance prevention: STRs must not create any nuisances or disturbances that impact neighbors. This includes excessive noise, trash accumulation, unruly behavior, or other issues that disrupt the peaceful enjoyment of surrounding properties.
• STR owners are responsible for ensuring that their guests are aware of and comply with these rules. Posting the rules prominently in the rental unit and including them in the rental agreement can help to minimize potential violations.

Violations of these rules can result in fines, citations, and other penalties for the STR owner. In some cases, repeated or severe violations could even lead to the suspension or revocation of the owner's TPT license, effectively shutting down the rental business.

Does Gilbert strictly enforce STR rules?

The level of enforcement for short-term rental regulations can vary significantly from one city to another. Some jurisdictions take a hands-off approach and only respond to complaints, while others proactively monitor STRs for compliance.

Based on discussions among STR hosts on online forums like BiggerPockets and Reddit, Gilbert is generally considered to be relatively friendly to Airbnb and VRBO rentals compared to some other Arizona cities. The lack of a separate STR-specific permit process makes it easier for owners to get started with a rental business.

However, this does not mean that Gilbert is a free-for-all for STRs. The town has taken steps in recent years to strengthen its enforcement capabilities and crack down on problem properties.In 2022, Gilbert updated its ordinances to allow for fines of up to $3,500 for verified violations of STR rules after three complaints. This means that if an STR property receives three separate complaints related to issues like noise, parking, or occupancy limits, the owner could face a significant financial penalty.

Additionally, repeated violations or failure to address ongoing issues could potentially lead to the suspension or revocation of a property's TPT license by the Arizona Department of Revenue. Without a valid TPT license, an STR would be forced to cease operations.

Despite these enforcement measures, many experienced STR hosts report successfully operating rentals in Gilbert for years without any major issues with the town. The key seems to be following all the rules, being a responsible operator, and maintaining positive relationships with neighbors.

However, the trend of increasing restrictions and enforcement is a concern for some hosts who worry about the future growth potential of STRs in Gilbert. As the industry continues to evolve and the town grapples with the impacts of STRs on local communities, it's possible that further regulations could be implemented.

For now, Gilbert remains a relatively attractive market for STRs compared to some other parts of Arizona. But hosts need to stay informed about any changes to local laws and be proactive about compliance to minimize their risk of running into issues with the town.

How to Start a Short Term Rental Business in Gilbert

For those interested in starting a short-term rental business in Gilbert, here are the key steps to follow:

• Obtain the required state TPT tax license from the Arizona Department of Revenue. This involves filling out an application, providing business information, and paying a small fee.
• Check the local zoning regulations to confirm that STRs are allowed in your property's specific area. Contact the Gilbert Planning Department for assistance with zoning questions.
• Prepare the required documentation for your STR, including proof of ownership or lease, floor plan, parking plan, and emergency contact information.
• Ensure that your property meets all safety requirements, such as having working smoke detectors, fire extinguishers, and adequate emergency exits. Also, verify that the property complies with occupancy limits and other STR rules.
• Furnish and prepare the space for guests, including providing essential amenities like linens, towels, and kitchen items. Consider hiring a professional photographer to take high-quality photos of the property for your listing.
• Create a detailed and accurate listing for your STR on popular platforms like Airbnb, VRBO, or others. Be sure to include all relevant information about the property, amenities, house rules, and local attractions.
• Establish clear processes and procedures for managing your STR, including cleaning, maintenance, guest communication, and key exchange. Consider hiring a professional property management company if you need assistance with day-to-day operations.
• Launch your listing and start accepting bookings from guests. Be responsive to inquiries, provide excellent customer service, and encourage satisfied guests to leave positive reviews.
• Starting an STR business in Gilbert requires careful planning, attention to detail, and a commitment to compliance with all relevant laws and regulations. But with the right approach and a desirable property, it can be a rewarding and profitable venture.

Who to contact in Gilbert about Short Term Rental Regulations and Zoning?

If you have questions or concerns about short-term rental regulations or zoning requirements in Gilbert, there are several key resources available:For zoning and land use questions, the best place to start is the Gilbert Planning Department.

Their office is located at:90 E Civic Center Dr
Gilbert, AZ 85296
Phone: (480) 503-6000
Email: planning@gilbertaz.gov
Website: https://www.gilbertaz.gov/departments/development-services/planning

The Planning Department can help you determine if your property is eligible for STR use based on its zoning designation. They can also provide information about any specific requirements or restrictions that may apply to your area.

For questions about TPT tax licensing and other tax-related issues, contact the Arizona Department of Revenue at:1600 W Monroe St
Phoenix AZ 85007
Phone: (602) 255-3381
Website: https://azdor.gov/transaction-privilege-tax/applying-tpt-licenseThe Department of Revenue can assist with applying for a TPT license, understanding your tax obligations as an STR owner, and ensuring compliance with state tax laws.

Finally, for general questions or concerns about STRs in Gilbert, you can contact the town's Short-Term Rental Hotline at:Phone: (480) 503-6787
Email: str@gilbertaz.gov

This hotline is available for both STR owners and residents to report issues, ask questions, or provide feedback about short-term rentals in the community.

By utilizing these resources and maintaining open lines of communication with town officials, STR owners can help to ensure a positive and compliant experience operating in Gilbert.

What do Airbnb hosts in Gilbert on Reddit and Bigger Pockets think about local regulations?

Online forums like Reddit and BiggerPockets are popular gathering places for short-term rental hosts to share their experiences, ask for advice, and discuss industry trends. Here are some insights from Gilbert STR owners on these platforms:

• "I've been running an Airbnb in Gilbert for 3 years without any major problems. As long as you pay your taxes and avoid complaints from neighbors the town leaves you alone for the most part." (BiggerPockets)

This host's experience suggests that Gilbert is relatively hands-off when it comes to STR enforcement, as long as owners are compliant with tax requirements and maintain good relationships with neighbors.

• "Gilbert is pretty hands-off compared to some other Phoenix area cities. No special STR permit needed which makes it easy to get started as a host." (Reddit)

Another host chimes in to note that Gilbert's lack of a separate STR permitting process sets it apart from some other Arizona cities and makes it easier for new hosts to enter the market.

• "The new law allowing $3500 fines for violations has me a bit worried as a Gilbert host. It seems like they are slowly cracking down more and more each year on STRs." (Reddit)

However, not all hosts are entirely comfortable with Gilbert's regulatory approach. This owner expresses concern about the town's recent move to allow for hefty fines for STR violations, suggesting a trend towards stricter enforcement.

• "I'm looking to buy my first STR investment property in Arizona, trying to decide between Gilbert, Chandler and Mesa. From what I've researched, Gilbert seems to be the most favorable for Airbnb right now based on the current regulations." (BiggerPockets)

For prospective STR investors, Gilbert's regulatory environment is seen as a positive compared to some neighboring cities. This investor views Gilbert as an attractive market due to its relatively friendly stance towards STRs.

Overall, the sentiment among Gilbert STR hosts on these forums seems to be cautiously optimistic. While the town is generally seen as a good place to operate an STR business, there is some concern about the potential for increasing restrictions and enforcement in the future.

As with any market, it's important for STR owners in Gilbert to stay informed about local regulations, connect with other hosts, and adapt their business practices as needed to remain successful in the long term.

In summary, Gilbert, Arizona offers a relatively favorable environment for short-term rental businesses compared to some other cities in the region. With no separate STR-specific permit required and a straightforward tax licensing process, it's easier for new hosts to get started in Gilbert.

However, STR owners still need to be diligent about complying with all relevant zoning requirements, occupancy limits, safety standards, and other regulations. Failure to follow the rules can result in fines, citations, and other penalties that can jeopardize the success of an STR business.

By taking the time to understand Gilbert's STR landscape, working with local officials, and connecting with experienced hosts, new STR owners can set themselves up for success in this growing market. With the right approach and a commitment to responsible operations, short-term rentals can be a rewarding and profitable venture in Gilbert.