Sedona tourism board debates new short-term rental enforcement measures amid visitor traffic concerns

The Sedona Tourism Board met Tuesday to discuss new enforcement measures for short-term rentals amid growing concerns over increasing visitor traffic in the city. Officials said the proposed changes aim to improve compliance with existing regulations under City Code Chapter 5.25 and address permit and safety issues related to short-term rental properties.

The board focused on enforcing Sedona’s short-term rental regulations as outlined in City Code Chapter 5.25, which governs the operation and permitting of short-term rentals—defined as stays of fewer than 30 consecutive days. Officials emphasized that each rental unit must have a valid city permit to operate legally, with the city requiring separate permits for each advertised unit starting in December 2024.

Permit applications or renewals submitted with missing or invalid information will be denied beginning Oct. 23, 2025, according to the city’s short-term rental webpage.

Recent amendments to the ordinance, unanimously approved by the Sedona City Council on March 25, 2025, aim to clarify and tighten regulations. One change requires permits for “each short-term rental unit” rather than for a property as a whole, reinforcing unit-by-unit permitting. Another amendment restricts the use of accessory dwelling units (ADUs), such as guesthouses or casitas with full kitchens, as short-term rentals unless the owner’s primary residence is the main structure on the same property. This change affects ADUs issued certificates of occupancy on or after Sept. 14, 2024, which cannot be rented short-term unless the owner lives on-site, according to Red Rock News and city documents.

The ordinance also distinguishes between legal nonconforming guest quarters—those with certificates of occupancy before Sept. 14, 2024—and later-converted ADUs. Guest quarters modified without required permits, such as converting a kitchenette into a full kitchen, are treated as ADUs and subject to the new restrictions. These amendments reflect the city’s effort to define which structures qualify for short-term rental use and to ensure compliance with safety and zoning standards.

Sedona officials stressed that short-term rental operators must also obtain an Arizona Transaction Privilege Tax (TPT) license in addition to city permits. The city’s FAQ states that structures not approved as dwelling units, including unsafe buildings like garages or sheds, cannot be used for short-term rentals. Eligible property types include single-family homes, 1- to 4-unit houses, condominiums, townhouses, cooperatives, individual rooms within those property types, and guest houses or casitas that meet code standards.

Enforcement measures discussed include the city’s authority to suspend permits for up to one year for violations. During suspension, operators must immediately cease all advertising and rental activities. Permit fees are non-refundable, and violations of the city’s special-event prohibition can result in citations and permit revocation for one year. Sedona City Code 5.25.050 prohibits short-term rentals from advertising or hosting special events that require a permit or license under state or city law. The city’s short-term rental page warns that such violations may lead to penalties, including permit suspension.

The special-event restriction aims to mitigate neighborhood impacts such as increased traffic, parking demand, and noise associated with event-related gatherings. City officials said this policy supports maintaining neighborhood standards and clarifies enforcement responsibilities. Fines for violations reportedly start at $500 for a first offense, with higher penalties for repeat violations, though the exact amounts require verification against the city code.

Sedona operates a 24/7 short-term rental hotline at 928-203-5110 for residents to report incidents related to short-term rentals. The city also provides an online incident report form and encourages residents to contact the Short-Term Rental Specialist at 928-203-5198 for follow-up or data collection. According to city materials, enforcement is primarily complaint-driven and managed by the Community Development Department, which actively monitors compliance.

The city’s regulatory framework and recent ordinance amendments reflect ongoing efforts to address concerns about visitor traffic and neighborhood impacts associated with short-term rentals. Officials said these measures are intended to improve compliance with permit and safety requirements while supporting the city’s broader tourism management goals.