How to Start a Short-Term Rental in Phoenix: SHAPE PHX Permit, $250 Fee and the 600-Foot Notice

Renting a Phoenix house, condo or guest room for short stays requires a City of Phoenix short-term rental (STR) permit before you accept a booking. The permit is handled through SHAPE PHX, the Planning and Development process for the city. Three requirements catch most first-time hosts: a $250 fee, a state Transaction Privilege Tax (TPT) license, and a notice that must go by certified mail to neighbors within a 600-foot radius of the property.

This guide walks through the order we would follow if we were filing for a client. It is informational content, not legal or tax advice. City rules and agency procedures change, so check every step against the city's short-term rental page at phoenix.gov/str before you spend money or sign a lease.

What you need before you start

Collect these items first. Most delays come from a missing document, not from the permit review itself.

• The property address and parcel number. Pull the Maricopa County Assessor parcel number from the Assessor's records. You will need it for the application and for the rental status update.
• Proof of ownership and owner contact details. Use the owner name exactly as it appears on the deed. If an LLC holds title, use the exact name on file with the Arizona Corporation Commission.
• An ADOR Transaction Privilege Tax license. The application requires it. The license costs $12 per location.
• An updated Maricopa County Assessor rental status. The county record must show the property as a rental before you apply.
• A neighbor notice list. Names and mailing addresses for adjacent single-family property owners and for any registered HOA or neighborhood association within 600 feet.
• Certified mail supplies. You need one certified mailing per recipient, plus the receipts for your file.
• $250 for the permit fee. Keep a copy of the payment confirmation.
• ADU documents, if applicable. If the lot has an accessory dwelling unit (ADU), you need the date on its certificate of occupancy.

Step-by-step: getting your Phoenix STR permit

Step 1: Confirm the address is eligible before you spend money

Start with SHAPE PHX. Ask whether the specific address can be permitted as a short-term rental and what the property type requires. Get the answer in writing, or save the web page you relied on. An eligibility question costs nothing to ask now. Discovering the answer after you have bought furniture, signed a lease or paid for a TPT license you did not need costs real money. If the answer is unclear, talk to a Phoenix land use attorney before you commit.

Step 2: Check the ADU owner-occupancy rule

For applications effective April 4, 2026, a property with an ADU carries an owner-occupancy requirement if the ADU's certificate of occupancy was issued on or after September 14, 2024. Pull the certificate of occupancy date from the city's permit records before you finalize your rental plan. If the ADU was finished after that date, assume the owner-occupancy requirement applies and confirm the details with SHAPE PHX before you apply. A plan that rents the ADU separately from the main house should be checked against this rule first.

Step 3: Obtain the ADOR TPT license

Apply for the Transaction Privilege Tax license through the Arizona Department of Revenue at azdor.gov/business/transaction-privilege-tax/tpt-license. The license costs $12 per location. Arizona has no general state business license. The TPT license is a tax license for taxable business activity, and it is separate from the city permit. Your city permit application requires it, so get it before you apply and keep the license number ready for the form.

Step 4: Update the Maricopa County Assessor rental status

The application also requires the county record to show the property as a rental. Contact the Maricopa County Assessor's office, or check the parcel record online, and confirm how the rental status is updated and what documentation it accepts. Ask whether the update carries a fee or a processing time, because the Assessor's process is separate from the city permit. Handle this step yourself, and save the confirmation or a screenshot for your file.

Step 5: Map the 600-foot notice radius

The notice goes to two groups within a 600-foot radius of the property: adjacent single-family properties, and registered HOAs and neighborhood associations. Use an aerial map to draw the radius, then list every parcel it touches. Before you finalize the list, ask SHAPE PHX where the radius is measured from, whether your lot line or the parcel center, and whether a parcel that is only partly inside the radius counts. Ask the city how to confirm which associations are registered, and check which registry the city uses. Association contact details often appear on the association's own website, but confirm the source with the city.

Step 6: Send the certified-mail notices

Send a certified mailing to each adjacent single-family property owner and each registered HOA or neighborhood association in the radius. Certified mail gives you a tracking record and a return receipt, which are your evidence if a recipient later says they were not notified. Before you mail, confirm with SHAPE PHX what the notice must say and whether it must include your contact details or permit information. Keep the mailing receipts, return receipts and a copy of each letter in one folder with your application.

Step 7: Submit the application and pay $250

Once the TPT license, the Assessor update and the notices are complete, submit the application through SHAPE PHX and pay the $250 permit fee. The same $250 applies to the initial permit and to each renewal. The fee is non-refundable and applies per permit, so if you withdraw or are denied, the fee is not returned. Each permit carries its own $250 fee.

Step 8: Put the permit number on every listing

After the permit is issued, put the permit number in every advertisement for the rental. That includes booking platform listings, your own website, social media posts and any printed material. A listing without the number is a compliance problem even if your permit is current. Build a checklist: before a new listing or price change goes live, confirm the permit number appears on it.

Step 9: Calendar the renewal

Renewals cost $250, the same as the initial permit. When you receive the permit, confirm the renewal deadline and process with SHAPE PHX, then put the date on your calendar with a reminder well ahead of it. A lapse can interrupt bookings, so do not wait for a notice from the city.

Business structure, city licensing and taxes

How you hold the property affects your paperwork. An Arizona LLC is formed by filing Articles of Organization with the Arizona Corporation Commission for a $50 filing fee. LLCs file no annual report, but for-profit corporations do. If you run the rental under a name other than the owner's legal name, you can register a trade name with the Arizona Secretary of State at azsos.gov/business/tntm. Trade name registration is optional and separate from the Corporation Commission filing.

Arizona has no general state business license, and counties issue no general business license. Many cities require their own business license on top of the state tax license. Confirm with the City of Phoenix whether a separate city business license applies to your rental in addition to the STR permit.

LLC income passes through to the members, who pay Arizona's flat 2.5 percent individual income tax. A CPA can explain how the TPT license, your federal return and your Arizona return fit together for your situation.

Costs at a glance

Item	Cost	Where it is handled
Phoenix STR permit, initial	$250, non-refundable per permit	City of Phoenix, SHAPE PHX
Phoenix STR permit, renewal	$250	City of Phoenix, SHAPE PHX
Transaction Privilege Tax license	$12 per location	Arizona Department of Revenue
Certified mail notices	Your postage and fees, which vary by mailing	U.S. Postal Service
Articles of Organization (only if you form an LLC)	$50	Arizona Corporation Commission
Trade name registration (optional)	Confirm the current fee on the agency page	Arizona Secretary of State
City business license (if required)	Confirm with the City of Phoenix	City of Phoenix
Maricopa County Assessor rental status update	Confirm with the Assessor	Maricopa County Assessor

Tips for a clean application

• Run the TPT license and the Assessor update at the same time as the eligibility question. They are separate steps, so there is no reason to wait for one before starting the other.
• Keep one folder with the parcel number, TPT license number, Assessor confirmation, notice list, certified mail receipts and payment confirmation.
• Write down the name of every SHAPE PHX staff member you speak with, and the date.
• Match the owner name on the application to the deed and to any LLC record.
• Use one permit number format on every platform, so guests and the city can match a listing to your permit.

Common mistakes to avoid

• Taking bookings before the permit is issued. A live listing before the permit exists creates a public record you cannot undo.
• Skipping the ADU check. The owner-occupancy rule for ADUs turns on the certificate of occupancy date, not on when you bought the house.
• Mailing notices to an incomplete list. A missed adjacent owner or association can hold up your application and invite a complaint later.
• Using ordinary mail. The notice must go by certified mail, so first-class mail does not meet the requirement.
• Assuming the TPT license is the whole process. The TPT license is a state tax license. The city permit is a separate approval.
• Leaving the permit number off a listing. The permit number belongs on every ad, including old listings you forgot about.
• Treating $250 as a one-time cost. The fee repeats at renewal.

What to expect after you file

A complete application gives you the best chance of a smooth review, but the city controls the timing and the outcome. We cannot promise an approval date, a specific number of bookings or any level of income. Occupancy and rates vary widely by neighborhood, season and how the property is managed. Hosts who keep the notice file complete, their listings consistent and their renewal calendar current may find it easier to answer questions from the city or from neighbors if questions come up.

Next steps

Start with the eligibility question to SHAPE PHX. Then pull your parcel number and, if there is an ADU, its certificate of occupancy date. Once those are in hand, file for the TPT license and the Assessor update so the rest of the application can move forward. Verify every fee and deadline on phoenix.gov/str before you pay.

Important information

This article is informational content about Arizona business formation and City of Phoenix short-term rental requirements. It is not legal, tax or financial advice. Requirements, fees and deadlines can change. Confirm current rules with SHAPE PHX, the Arizona Department of Revenue, the Maricopa County Assessor and the Arizona Corporation Commission, and consult a qualified attorney or CPA about your situation before you file.