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Flagstaff council reads short‑term rental code updates; ordinance would raise license fee, add safety and posting rules
Summary
Council read an ordinance updating the city’s short-term rental rules (first reading): raising the license fee to the state cap of $250, adding minimum liability insurance, requiring guest background-check processes, new posting requirements for winter parking, fire restrictions and trash/recycling rules, and aligning neighbor-notification rules with state law.
The Flagstaff City Council on May 5 heard staff presentations and completed first-reading action on proposed short-term rental (STR) code updates that raise the maximum license fee and add new safety, insurance and posting requirements.
Jessica KDson, customer-service director, summarized the program (1,119 tracked STRs; a 94% compliance rate as of March 2026) and the complaint patterns staff used to shape proposed changes (noise, fire-safety concerns, trash/parking). Management Services Director Rick Tatter presented key changes: adjust the license fee to the state maximum of $250 (staff estimated a full-cost recovery at $270 per location but state law caps the fee); add clearer definitions and prohibited uses including special events; align neighbor-notification requirements with state statute (notice at initial licensing, not every renewal); require minimum liability insurance ($500,000); and clarify that background checks may be satisfied by marketplace platforms if they meet state standards.
Fire Chief Gayler described the fire-safety rationale for postings and minimal life-safety requirements (e.g., carbon-monoxide and smoke detectors) and explained that enforcement currently will remain complaint-driven rather than via pre-licensing inspections. Staff also proposed adding links and guidance in the posted STR guest notice for winter parking rules, fire-restriction guidance and a human-trafficking hotline.
Council read a resolution and ordinance by title and voted to proceed; staff said implementation steps would follow, including updating the license portal and enforcement protocols. Several public commenters (including a long-time HOA leader) praised the increased notice and safety postings and urged continued enforcement resources. The city attorney clarified that current code relies on complaint-based enforcement and that more proactive inspection programs would require additional resources or a different legislative framework.
What’s next: the ordinance completed first-reading processes and staff will implement updated portal materials and incorporate the fee change effective July 1 if adopted following required procedures; council and staff also discussed using incremental enforcement resources (license-fee revenues to support additional compliance staff).
