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Fountain Hills officials say new permitting system has doubled STR compliance; 45 unpermitted units remain
Summary
Town staff told the council that an automated permitting platform and outreach have increased permitted short‑term rentals to about 165 of roughly 210 listings, a 57% rise since last year; councilors pressed staff on enforcement, fines and next steps while monitoring state legislation.
Town staff told the Fountain Hills Town Council that a new permitting and monitoring system has substantially increased short‑term rental (STR) compliance in town.
Paul, a town staff member reporting on STR compliance, said the town adopted an ordinance last year allowing a permitting process and implemented the Rentalscape platform (Decker Technologies) to identify unpermitted listings. "As of last week, we had about 210 active short term rentals in town. 165 were permitted as of last week, a 57% increase since we implemented the new system," Paul said, adding that about 45 unpermitted units remain and staff are working with code enforcement to bring them into compliance.
The town charges the maximum annual permit fee allowed under state law of $250 and requires registrants to provide emergency contact information, liability insurance and other safety information. Paul described automated warning letters sent by the vendor and a complaints portal on the town website where neighbors can report noise, code violations or other concerns.
Vice Mayor Earl and other council members pressed staff on enforcement and penalties. Paul said civil citations for code violations range from $250 up to $1,000 depending on the offense and that the town has issued citations as compliance efforts ramped up. He described the software's ability to cross‑reference confirmed listings and bookings and to help reconcile tax records.
Staff reminded the council that state law prevents municipalities from outright banning STRs and limits the town to regulatory tools such as permitting. The town manager and staff also said they are monitoring pending state legislation that could expand municipal enforcement options and would return with recommended updates if that law changes.
The council did not take action on STR rules at the meeting; staff said enforcement efforts will continue and they will update the council as necessary.
