Gilbert staff proposes higher short‑term rental fees, tougher penalties; Council delays formal notice

Ashley Moore, the Town of Gilbert’s business compliance project manager, told the council at a study session on April 7 that the town currently lists about 450 active short‑term rental units and is about 98% compliant with licensing requirements. "We're 98% compliant with licensing for short‑term rentals in the Town of Gilbert," Moore said.

Moore said short‑term rentals are treated as hotel/motel tax classifications and are commonly listed on platforms such as Airbnb and VRBO. The town uses GovOS to identify, license and manage short‑term rental properties and to receive complaints through a 24/7 hotline and an online complaint form.

Staff reviewed the existing rules adopted under Gilbert Ordinance 2874 (June 2023), which require an annual $100 license, a local emergency contact and neighbor notification. Moore said the current monthly fine for operating without a license is $500 and that the town lacks an enforcement pathway for civil penalties in repeat or refusal cases.

To address repeat noncompliance and to make the program revenue neutral, Moore said staff will propose adding code language to allow submission of cases to the courts, increasing the unlicensed monthly fine from $500 to $1,000 and increasing the annual license fee from $100 to $200. "We would also like to increase the monthly fine for operating without a license from $500 to $1,000 in order for the program to be revenue neutral," she told the council.

Staff said the notice of intent would normally open a 60‑day public comment period before Council action, but they asked to postpone the notice on the regular agenda to give the council and community more time to review the study session materials. Hawkin (town staff) told council there was no date certain for the rescheduled notice and that staff would return with options, including presenting the maximum $250 fee allowed by statute if Council wanted that alternative.

Vice Mayor Chuck Bongiovanni asked why Gilbert would set the fee at $200 rather than the $250 maximum some neighboring cities charge; staff replied the $250 is the statutory cap and that Council could choose to keep the fee at $100 (subsidize), raise it to a cost‑recovery level, or set it at the statutory maximum when the notice of intent is brought forward.

The presentation also described outreach materials for property owners — a good‑neighbor guide, postcards and vendor resources — and noted that since the program began the town has received roughly 73 complaints through the GovOS portal, with 15 received so far in fiscal year 2026.

The council did not take formal action at the study session and staff said they would reintroduce the notice of intent after additional review and community input. If the notice is filed, staff said it would provide a 60‑day period for public comment before Council would act.