Key Takeaways
- Gilbert, Arizona is weighing a 150 percent increase to its annual short-term rental license fee
- Town officials say the higher fee would help cover the cost of running the town’s short-term rental program
- The September 1 vote could signal where more Phoenix-area towns are heading on STR fees
An Arizona town wants to more than double what short-term rental operators pay to license their properties.
The proposal is unfolding in Gilbert, a town located about 20 miles southeast of Phoenix, where the Town Council has approved a notice of intent to raise the annual STR licensing and renewal fee 150 percent — from $100 to $250.
According to ABC15, town officials say the higher fee is designed to cover the cost of running Gilbert’s licensing program and bring the town closer to what nearby communities already charge.
A public hearing and final vote are scheduled for September 1.
Gilbert’s short-term rental fee vote set for September 1
Ashley Namor, Business Compliance Project Manager for the town of Gilbert, said the goal of the fee increase is not to generate revenue.
Related: Europe’s short-term rental crackdown just went continent-wide
Local host Ryan Nees, who has rented out his childhood Gilbert home for nearly two years, said he understands the explanation, but he prefers a slower approach.
“I understand raising fees and trying to get their money, but I think they could do a little more gradual increase,” Nees told the outlet. “AIRBNB’s aren’t as bad as some people say. If you do them legally, get the right licenses, don’t have parties… it’s a great way to bring people to the town, bring business in.”
He also noted that higher operating costs could eventually be passed on to guests.
“If costs and stuff rise, then we have to raise our prices as well,” he added.
The September 1 vote will determine whether the $250 figure becomes official — and whether it sets a new baseline for other East Valley towns still calculating their own program costs.
MORE STR NEWS:
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- Salt Lake City launches first ever short-term rental licensing rules
- Zillow files antitrust suit over hidden listings
- Inside the nearly $1 billion cities collected as short-term rental rules and fees piled up
