Judi Murphy had lived in the North Phoenix neighborhood of Royal Crest Villa for 48 years when an Airbnb moved in earlier this year.
Neighbors say the new owner was renting the property as an Airbnb, after a state law was passed in 2016 extended protections for short-term rentals. Airbnb and VRBO are two popular websites that allow people to rent homes for short-term stays that can last a few days or up to a week. People may rent out their homes occasionally, but some investors turn their properties into year-round vacation rentals.
The neighbors, on a quiet street with perfectly manicured green lawns and children playing in the street, were immediately skeptical.
Shortly after, the tenants arrived, which led to increased noise, traffic and even recreational marijuana use, according to neighbors.
“We were all nervous,” neighbor Holly Keeble said. “It took away our quiet enjoyment of life.”
She and her neighbors united to change neighborhood rules to ban short-term rentals. The house is now for sale.
Keeble wants Valley residents to grapple with the consequences of the new law know their options when an Airbnb moves in.
The neighbors push back
The four-bedroom home was renting for $459 a night for up to 12 people, according to an Airbnb listing of the property Keeble shared with The Republic of Arizona.
Keeble began reaching out to neighborhood advocates and attorneys to see what could be done to stop short-term rentals on their street.
The neighbors were first told by a lawyer that their only recourse was to call the police if there was a mess, which they were reluctant to do.
Keeble said she wasn’t inherently opposed to Airbnb, but with kids playing in the street and neighbors barbecuing in the driveways, she didn’t think Royal Crest Villa was a good choice for rentals. short term.
“I don’t think every neighborhood is the right neighborhood for this,” Keeble said.
Neighbors sent the owner a cease and desist letter, telling him he needed a business license to operate his Airbnb in the neighborhood.
The landlord pulled the Airbnb listing after neighbors refused, according to a letter from his lawyer sent by Keeble.
The owner “doesn’t want any hard feelings in the neighborhood,” wrote attorney David Knapper. “It is, and it will also be where he lives.”
Knapper could not be reached for comment.
Editing Act Restrictions
Royal Crest Villa was established in 1955 as part of a historic house-building challenge called the House Parade.
The neighborhood is not governed by an incorporated homeowners association, but it does have a Statement of Restrictions established in 1955 to set the rules for the neighborhood.
The restrictions reflected relevant issues at the time, but neighbors were told by a lawyer that they could revise the restrictions statement by voting through an official ballot.
Neighbors voted to change the restrictions so that no home can operate an Airbnb or VRBO short-term rental on their property.
With 30 homes on the street, neighbors needed at least 51% of owners to approve the reviews. The vote passed, with 23 out of 30 neighbors voting “yes” and seven abstaining.
The district attorney reviewed the statement of restrictions and filed it with Maricopa County. They also sent the owner a letter with the new rules.
The house is now listed for sale.
“Change starts with you,” Keeble said. “If you care about something, do something.”
Homeowners associations have the power
The 2016 state law only prevents cities and towns from regulating short-term rentals, but says nothing about homeowners associations and individual neighbors taking action, according to real estate attorney Christopher Combs.
After the state law took effect, Sedona began requiring all short-term rentals in the city to pay $50 for a city business license. The The Arizona Attorney General’s office determined the move violated state law.
However, with or without an HOA, homeowners can often access the deed restrictions that come with their home purchase, Combs said.
Many homeowners associations already ban short-term rentals of less than six months in their neighborhoods.
“The reason many (HOA rules) have banned short-term rentals is because they depreciate the value of the neighborhood,” Combs said. “Renters don’t care as much about the neighborhood as the people who live there year-round.”
The Arizona courts have yet to rule on the intersection of Airbnb and community covenants.
The future of law
Republican state Sen. John Kavanagh, who represents Scottsdale and Fountain Hills, said he is drafting legislation to address some of the issues created by the original law.
“It was sold as an invoice for individual owners to earn extra money,” Kavanagh said. The Republic in October. “Unfortunately, it turned into big investment groups pooling their money, buying houses and setting up party houses and having drunken golf outings.”
In its new legislation, Kavanagh hopes to require a registry of all homes rented out through Airbnb and VRBO, and prevent investors from buying homes to turn into short-term, year-round hotels.
Contact the reporter at [email protected]. Follow her on Twitter: @lolonghi.
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