Hey there, it’s William Hamburg, your friendly Sedona real estate expert and a local for 35 years. If you own a home in this stunning red rock paradise, you’ve probably heard about the short term rental (STR) license buzzing around town. It’s a hot topic, especially with Sedona’s 80% Airbnb occupancy rates and all those tourists flocking in. Whether you’re planning to rent out your place or just want to keep your options open, getting an STR license for $250 a year is like having a safety net cheap insurance for the future. This guide walks you through the process, step by step, based on the latest from the City of Sedona. Let’s get you set up!
Why Get an STR License?
First off, let’s talk about why this matters. Even if you’re not renting out your Sedona home right now, snagging an STR license keeps the door open for later. With tourism driving our market, you might decide to cash in on that STR potential down the road and trust me, it’s a goldmine. Plus, at just $250 annually (plus a $50 TPT license), it’s a small price to pay for flexibility. And hey, if rules tighten up, you’ll be grandfathered in. It’s a no brainer for protecting your property’s value.
Step by Step Application Process
Alright, let’s dive into the how to. Here’s the simplies way to get your 2025 STR license:
Step 1: Verify Eligibility
- Make sure your property’s zoned for STRs check with the Community Development Department if you’re unsure. You’ll also need to meet safety basics like smoke alarms, fire extinguishers, and parking. It’s a quick once-over to keep things safe for everyone.
Step 2: Gather Required Documents
- You’ll need: your property’s address and parcel number (check your deed), proof of ownership, your contact info, a 24/7 emergency contact (that’s a must!), and if someone else manages it, an agent authorization. Oh, and grab proof of $500,000 liability insurance standard stuff to cover your bases. Be sure to include a floor plan showing bedrooms, exits, and safety gear too. There are plenty of free apps for this like Planner 5D, RoomSketcher, SketchUp, and Floorplanner.
Step 3: Get a TPT License
- Before you can even think about the STR permit, you’ve got to get a Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue at aztaxes.gov. It’s $50 a year, and you’ll need it to collect and remit taxes if you rent later. Do this early to avoid any hiccups.
Step 4: Complete the Application
- Go to sedonaaz.gov, find the STR section under Community Development, and fill out the online form or drop by City Hall at 102 Roadrunner Drive, Sedona, AZ 86336. You’ll upload your documents, add your TPT license number, and pay that $250 fee. It’s non refunded, so double check everything!
Step 5: Schedule an Inspection
- The City may reach out within 10 business days to set up a quick inspection. Make sure your safety gear’s in place and parking’s sorted nothing fancy, just a smooth walkthrough to greenlight your permit.
Step 6: Receive Your License
- If all checks out, you’ll get your STR license, good through December 31. Stick the license number in all your rental ads (like Airbnb listings) to stay legit.
Step 7: Renew Annually
- Mark your calendar for December 31 each year to renew $250 again, with a 30 day grace period into January (late fees might apply). Keep that TPT license current too, renewed yearly in December/January. Early renewal starts the new permit date immediately, so don’t lose those extra weeks!
Key Compliance Notes
- Advertising: Place your STR and TPT license numbers in every listing keeps you on the right side of the law.
- Taxes: Even if you’re not renting, file your TPT and bed taxes monthly (even as $0) to stay compliant.
- Safety: Keep smoke alarms, fire extinguishers, and clear exits in top shape.
- Complaints: Got a neighbor issue? You’ve got 1 hour to respond as the emergency contact 24/7 availability is key. Call the STR hotline at (928) 203 5110 if needed.
Common Mistakes to Avoid
- Incomplete Apps: Missing a document? That’ll slow you down. Check twice before hitting submit.
- No TPT License: Skip this, and your STR application’s dead in the water. Get it sorted first.
- Non Compliance: Flunk the inspection with parking or safety issues, and you’re back to square one. Prep ahead.
Why Sedona’s STR Market Rocks
Sedona’s a tourist hotspot with 3 million visitors yearly, and that drives our STR demand sky high. Whether it’s a cozy casita or a full house, having an STR license means you’re ready to jump on that opportunity whenever it feels right. Plus, with median home prices over $1 million, this little license could boost your resale value down the line.
Need a Hand?
Applying’s a breeze with the right know how, and I’ve helped tons of Sedona homeowners nail this process. Grab this guide at OwnInSedona.com and let’s chat if you need a nudge. Book a free consultation with me, William Hamburg, and we’ll get your STR license sorted. I’m here to make it easy!
About Me: I’m Will Hamburg, Associate Broker at Realty One Group Mountain Desert, with 35 years of roots in this gorgeous Arizona town. From short term rentals to 1031 exchanges, I’ve got your back. Hit me up at will@owninsedona.com or (928) 300 8277.
