Gilbert council approves notice of intent to raise short‑term rental license fee to $250

The Gilbert Town Council on June 23 voted to publish a notice of intent to increase the town’s short‑term rental licensing and renewal fee from $100 to $250. Staff said the program is currently operating at a deficit and that the proposed fee increase is intended to make the licensing program revenue‑neutral.

Staff presentation: Ashley Nomura, who manages the town’s short‑term rental program, told the council Gilbert has roughly 450 active short‑term rentals and an average of about 25 booked nights per month per rental. Nomura said the program currently nets approximately $40,000 a year but that the lower than‑projected number of rentals and ongoing software costs require a fee increase to avoid continued general‑fund subsidy.

What the fee covers: The renewal/initial fee funds the Numo software contract that automates licensing, provides a 24/7 complaint hotline and supports complaint tracking and compliance functions. Nomura said the software allows sweeps multiple times per week to identify new listings and centralizes complaint management, which would otherwise be manual and cost staff time.

Council discussion and vote: Council members asked about program costs, comparators (e.g., Peoria’s approach), and whether the town is subsidizing compliance. Staff said the general fund has covered the shortfall to date and that increasing the fee would avoid that subsidy. The council moved to approve publishing the notice of intent and related steps; the motion carried 7–0.

Next steps: Publishing the notice of intent begins the public process; staff indicated potential final council action could occur at a later meeting (example date discussed was September 1 for final vote on fee adoption).